Scatec ASA — Investor Presentation 2016

Mar 17, 2016

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