Scatec ASA — Investor Presentation 2017

Jan 11, 2017

Company presentation

SEB Nordic Conference

January 11, 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.

Generating and capturing 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

An integrated business model

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

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

Diesel

19 - 26

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

Linde, RSA, 40 MW

Utah, USA, 104 MW

A growing and diversified asset portfolio

A typical project and financing structure

Simplified illustration of company structure and main contracts in place

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%

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

A solid project funnel – basis for further growth

322 MW IN OPERATION

Regions

Americas, Africa, MENA

Regions

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

Regions

South Africa, Mali, Honduras, Mozambique, Brazil, Malaysia

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
• Changemakers
• Working together