Scatec ASA — Investor Presentation 2017

Jan 19, 2017

Pareto Power & Renewables Conference

CEO, Raymond Carlsen January 19, 2017

Our values

Predictable Driving results Changemakers Working together

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.

SSO: An independent solar power producer

Scatec Solar is an independent solar power producer based in Norway

• SSO develops, builds, owns and operates large scale solar power plants
• Assets in South Africa, Czech Republic, Rwanda, Honduras and Jordan
• Experienced management team with demonstrated execution capabilities

Experienced and fast-growing

• 322 MW of solar power plants in operation
• 600 MW project track record

Integrated across the downstream value chain

• Generating margins through all project stages while establishing premium assets with strong and predictable long-term cash flows
• Focus on asset management with the goal of maximizing long term values

Strong backlog and pipeline

• Project backlog of 731 MW
• Project pipeline and opportunities of ~3.6 GW

Key facts - Scatec Solar ASA

Established	2007
Headquarter	Oslo
Employees	152
Market cap	NOK 3.6 bn
Plants in operation	322 MW

Our focus: Large scale solar and 20+ year cash flows

Strong partners – key for success

Norfund partnership:

• 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 (Norwegian ECA)

• 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

Impressive cost reductions and growth in demand

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

Source: Bloomberg New Energy Finance, Q4 2016 PV Market Outlook

Solar PV is very competitive – driving demand growth

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

Source: Lazard Capital, LCOE v 10.0, Scatec Solar

7

Diesel

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731 MW ready for construction

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

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 backlog and pipeline
• Regular verification of competitiveness and technology development to ensure we are at forefront of a fast changing industry
• Technology roadmaps including 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

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

A business model enabling "self funded" growth

Example based on a 75 MW project

• The D&C gross margin provides a large part of the Scatec Solar's equity contribution in the project
• Projects are financed by non-recourse debt, allowing Scatec Solar to operate with high financial leverage at the project level while maintaining limited risk exposure at the parent level
• Annual self funded growth capacity of adding 300- 400 MW based on average ownership of 50-60%

Key figures – plants in operation and backlog

		In operation	Backlog*	Total
Capacity	MW	322	731	1,053
Annual Production	MWh	~640,000	~1,500,000	~2,140,000
Annual Revenues	MNOK	~1,100	~1,200	~2,300
Total capex	MNOK	5,300**	~9,200	~14,500
Total Equity	MNOK	1,425**	~1,850	~3,275

• Scatec Solar equity position in backlog projects; 50-100% / leverage 75-80%
• Average equity IRR of 15% nominal after tax on new power plant investments
• Typical EPC contract value represents 80% of project capex (~7,400 MNOK for backlog)
• Scatec Solar expects 15% gross margin from Development & Construction

(*) Backlog: Projects assessed as having more than 90% likelihood of being realized (**) Based on project company balance sheet values as of end of Q3'16

• Target 1,300-1,500 MW in operation and under construction by end 2018
• Development and Construction gross margin averaging 15%

• Average equity IRR of 15% nominal after tax on power plant investments

• The global market for PV is expected to grow significantly in the years to come

• Recent fall in component prices makes solar power even more competitive
• Emerging economies will continue to take advantage of lower cost renewables
• Cost of batteries in rapid decline
• Lower oil and gas prices have limited impact on the appetite for renewables

The 10 MW Oryx solar power plant in Jordan

Thank you

Our values Predictable Driving results Change makers Working together