Ørsted — M&A Activity 2012

Feb 23, 2012

DONG Energy has today signed an agreement to sell 50 per cent of the German
offshore wind Borkum Riffgrund 1 to the LEGO Group’s parent company, KIRKBI
A/S, and the Oticon Foundation, via its investment company, William Demant
Invest A/S for a total sum of DKK 4.7 billion.

When completed Borkum Riffgrund 1 will consist of 77 3.6 MW wind turbines from
Siemens Wind Power. The wind farm will be able to supply CO2-free power
equivalent to the annual electricity consumption of more than 285,000
households.

KIRKBI participates in the buying consortium with an investment of DKK 3
billion, giving it an ownership interest of 32 per cent. The Oticon Foundation
will invest DKK 1.7 billion, giving it an ownership interest of 18 per cent.

KIRKBI A/S and the Oticon Foundation will pay the purchase price in four
instalments, starting at the end of 2012 and paying the last instalment at the
end of 2015. The instalments make up 11, 12, 56 and 21 per cent of the purchase
price.

DONG Energy commits to constructing Borkum Riffgrund 1 offshore wind farm at a
fixed price and by a fixed date. KIRKBI and the Oticon Foundation expects to
take over the completed offshore wind farm and the earnings that come with
their ownership interests on 1 October 2015. Until that date, production will
primarily accrue to DONG Energy. Furthermore, DONG Energy has signed a 15-year
contract with KIRKBI A/S and William Demant Invest on operation and planned
maintenance of the farm.

DONG Energy has previously entered into partnership agreements with
institutional investors on investment in renewable energy generation, but the
agreement with KIRKBI and the Oticon Foundation is its first agreement with
privately owned companies.

”The agreement is a major step forward for DONG Energy's partnership model for
financing offshore wind farms. The market for offshore wind has seen strong
growth in recent years because a number of countries wish to switch to green
energy. This has led to a great need for external capital, and I am therefore
pleased that we are also able to attract capital from privately owned companies
and industry. The agreement will strengthen our position as a market leader in
the construction and operation of offshore wind farms and shows that our
partnership model also works in the German market,” says Anders Eldrup, CEO of
DONG Energy.

For KIRKBI A/S, which owns 75 per cent of the LEGO Group, this is a sound,
long-term investment that at the same time contributes to more renewable energy
to society. The LEGO Group’s goal is to generate enough renewable energy
capacity to meet 100 pct. of its energy needs by 2020. With the investment in
the project, the LEGO Group will be able to meet its target as the wind farm is
expected to produce more electricity than the company’s total electricity
consumption up to and including 2020.

“One of our fundamental values is that we want to help enable future
generations of children to grow up in a better world. We do that first and
foremost through our play materials – but also by improving the safety of our
employees, improving the energy efficiency of our production, and reducing the
volume of waste. In the field of renewable energy our objective is an ambitious
one – and I am very pleased at this time to be able to announce this
investment,” says Jørgen Vig Knudstorp, LEGO Group CEO.

The Oticon Foundation also views the construction of the wind farm as a good,
long-term financial investment and an important step towards achieving a
positive balance on the Group’s energy balance. In 2015, when the farm is fully
operational, the stake owned by the Oticon Foundation will generate more than
five times Oticon’s total global consumption.

”As one of the world’s leading hearing aid manufacturers, we have a long
tradition of using innovation and foresight to enhance quality of life for
people suffering from hearing loss – and that is an important task as these
number 500 million. We would like to take our share of the responsibility for
meeting the energy challenges of the future, and we therefore consider this
considerable investment in renewable energy as a very positive step that far
exceeds our own consumption as a company,” says Søren Nielsen, CEO of Oticon
A/S.

The transaction is subject to approval by the competition authorities. The
transaction is expected to be completed in the second quarter of 2012.

The information provided in this announcement does not change DONG Energy’s
previous financial guidance for the 2011 financial year or the announced
expected investment level.

FACTS
Construction of Borkum Riffgrund 1 is expected to commence in 2013, and first
power is expected to be generated in 2014. The farm will be constructed in the
German sector of the North Sea, approx. 55 km off the north-western coast of
Germany. DONG Energy is also working on further developing the neighbouring
project, Borkum Riffgrund 2. No investment decision has been made concerning
this project as yet.

DONG Energy is one of the leading energy groups in Northern Europe. We are
headquartered in Denmark. Our business is based on procuring, producing,
distributing and trading in energy and related products in Northern Europe. We
have approximately 6,000 employees and generated DKK 55 billion (EUR 7.3
billion) in revenue in 2010. DONG Energy has constructed more of the world’s
largest offshore wind farms than any other company and is consequently the
market leader in this field. DONG Energy has approximately 1,3 GW offshore wind
power in operation and approximately 1,1 GW under construction in the UK,
Germany and Denmark. For further information, see www.dongenergy.com

The Oticon Foundation is a commercial foundation. Its investment activities are
managed by William Demant Invest A/S (WDI), which is wholly owned by the Oticon
Foundation. The Oticon Foundation is the controlling shareholder of William
Demant Holding A/S (WDH) which has over 7,000 employees and activities in more
than 100 countries across the world. Oticon, one of the world’s leading hearing
aid manufacturers, is part of the WDH Group.

KIRKBI A/S is the Kirk Kristiansen Familiy’s holding- and investment company
with activities within 3 areas: 75% ownership of LEGO, 36% ownership of Merlin
Entertainments and among other things a number of investments in bonds, listed
and unlisted equities, and real estate.

The LEGO Group is engaged in the development of children’s creativity through
playing and learning. Based on the world-famous LEGO® brick, the company today
provides toys, experiences and teaching materials for children in more than 130
countries. The LEGO Group has approximately 10,000 employees, and is the
world’s third-largest manufacturer of play materials.

For further information, please contact:

DONG Energy

Media Relations
Helene Aagaard
+45 9955 9330

Investor Relations
Morten Hultberg Buchgreitz
+45 9955 9750

KIRKBI A/S
Frederikke Tømmergaard
+45 5215 9373.

The LEGO Group
Charlotte Simonsen
+ 45 7050 6579

Oticon
Søren Nielsen
+45 3917 7100

William Demant Invest
Niels Jacobsen
+45 3917 7100