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Scatec ASA

Investor Presentation Mar 17, 2016

3737_iss_2016-03-17_4d02bce5-ce6c-43c1-a0b6-854275684ad1.pdf

Investor Presentation

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Developing solar in emerging markets

Swedbank Conference March 17, 2016

Our values

  • Predictable
  • Driving results
  • Change makers
  • Working together

South Africa: Solar is now cheaper than coal

The 40 MW Linde plant in South Africa

Rapid price decline boosts volume growth

Total system cost - 1 MW (USD/Watt)*

Annual new installed capacity per year

(*) Capex will vary from market to market depending on system size, market maturity, bankability etc

3 Source: Bloomberg New Energy Finance, Q4 2015 PV market outlook

* Real values in EUR 2014, bandwidth represents different scenarios of market, technology and cost development. PV plant locations between south of Germany (1,190 kWh/kWp/year and South of Spain (1,680 kWh/kWp/y) US\$/watt)

Significant market growth ahead

Disruptive growth within PV, wind and storage required to meet IEAs 2 degree scenario achievable

Source: IEA

Technology is key – battery cost is dropping

Source: Pike Research

Storage will increase the market for large-scale PV

Export / generation capacity (% of installed MWp) Energy stored (hours)

-60 -40 -20 0 2 0 4 0 6 0 8 0 100 -3 -2 -1 0 1 2 3 4 5 00:00 01:00 02:00 03:00 04:00 05:00 06:00 07:00 08:00 09:00 10:00 11:00 12:00 13:00 14:00 15:00 16:00 17:00 18:00 19:00 20:00 21:00 22:00 23:00 00:00 Export grid PV generation Battery charging / discharging

Source: Bloomberg New Energy Finance

FT March 16: 90 % of new electricity was renewable

March 16

Scatec Solar – a leading player in utility scale PV

The 75 MW Dreunberg plant in South Africa

Scatec Solar Develops, Builds, Owns & Operates Solar Plants for 20 Years

A growing and diversified asset portfolio

A solid project funnel – basis for further growth

Our holistic approach is the recipe for success

Key ingredients:

  • Market understanding and screening
  • Access to financing
  • Partnerships
  • Regulatory framework and legal set up
  • Project development and execution
  • Operation and asset management
  • Corporate Social Responsibility
  • Security

Strong partners – provides capital and mitigates risk

Norfund partnership:

  • Project development and investment partnership
  • Norfund & KLP equity co-investors in key markets

IFC partnership:

• Project development and investment partner in selected countries in West Africa and Asia

Project finance partners

  • Multilateral development banks and institutions providing long term non-recourse project finance
  • Standard Bank and partners providing project finance to plants in South Africa

Key benefits:

  • Access to lower cost of capital
  • Expanded network for project origination
  • Risk mitigation representing the Norwegian government, the World Bank and government partners

Strong community relations – vital for success

  • Economic development often a critical part of the renewables program
  • Strong community relations key for successful execution
  • Job creation is the most important factor both directly through construction and operation jobs
  • In South Arica Economic Development commitments over 20 years are made as part of the bid documents
  • Existing Scatec Solar projects total community contributions in South Africa totals NOK 1.2 billion over a 20 year period; a significant contribution to the scarcely populated regions
  • Specialist advisors engaged to manage CSR and ED programs

Africa: Lack of power holds back economic growth

Key facts

  • 54 countries and population 1.1 billion
  • Sub-Saharan Africa GDP equals Netherlands, but includes 7 of the 10 fastest growing economies in the world
  • Total power production in Sub-Saharan Africa (ex South Africa) equals Norway's power production
  • 600 million people without power

COP21 in Paris: Also a leap forward for renewables?

  • Climate Finance, e.g. the UN Green Climate Fund, can speed up deployment of renewables in developing countries
  • Scatec Solar: Strategy and Programme for UN accreditation(CDM) of our solar power plants in developing countries
  • Current Scatec Solar projects save more than 600 000 tons of CO2 per year, to reach more than 2 million in 2018
  • Norwegian developers and finance institutions (e.g GIEK, Norfund) can play a vital role in accelerating renewable investments in the south; partnering with UNs Green Climate Fund
  • Hydro and solar investments by Norwegian IPPs will open opportunities for Norwegian suppliers

Scatec Solar is well positioned for the future

  • Diversified asset base with stable cash generation for the next 20-25 years
  • Solid project pipeline for further growth over the coming years
  • Track record and business model for complex emerging solar markets
  • Emerging economies take advantage of lower renewables prices
  • Lower oil and gas prices have limited impact on the appetite for renewables
  • Market transformation opens up for new business offerings

Thank you

The 60 MW Agua Fria plant in Honduras

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