Scatec ASA

Investor Presentation • Oct 19, 2018

Disclaimer

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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.

Agenda

• Highlights and project update

Raymond Carlsen, CEO

• Financial review

Mikkel Tørud, CFO

• Summary and Outlook

Raymond Carlsen, CEO

High construction activity and increased backlog

• Q3'18 proportionate revenues of NOK 1,259 million and EBITDA of NOK 257 million
• D&C revenues of NOK 1,077 million and EBITDA of NOK 130 million
• 35 MW Los Prados plant in Honduras grid connected and in commercial operation
• Secured 121 MW of new backlog projects in Ukraine
• Year to date cash distributions from operating assets of NOK 188 million
• Increased ownership in the three operating plants in South Africa

Our second solar plant in Honduras in commercial operation

Los Prados solar plant

• Capacity 35MW
• Equity partnership with Norfund
• 20-year power purchase agreement with state-owned utility ENEE
• Annual production 73,000 MWh
• Providing energy for more than 16,300 households

ENEE: Empresa Nacional de Energía Eléctrica.

Five projects totalling 1,057 MW under construction

Egypt, 400 MW

Malaysia, 197 MW Brazil, 162 MW Mozambique, 40 MW

South Africa, 258 MW

Increasing project backlog to 251 MW in Ukraine

Solar in Ukraine

• Aiming to change energy mix replace nuclear reactors and reduce supply of Russian gas – 11% renewables by 2020
• FiT of 15 €cents/kWh until 2030 for renewable energy embedded in law and backed by international community
• Financing from DFIs with EBRD and others available

Scatec Solar in Ukraine

• Projects with total capacity of 251 MW secured
• Target grid connection towards end of 2019
• Additional pipeline of 220 MW

Key facts

• Feed-in Tariff 15 €cents/kWh
• Tariff valid until 2029
• Yield: 1,200 1,400 hours per year

Solid project backlog and pipeline of 4.3 GW

Financial review

Mikkel Tørud, CFO

High construction activities - steady increase in cash generation

Power Production Improved performance – especially in Czech Republic

Operation & Maintenance Stable operations – ready to operate new power plants

Development & Construction High construction activities – satisfactory margins

Revenues EBITDA

Note: The gross profit in third quarter 2017 was positively affected by the NOK 375 million gain on the partial sale of the Apodi project in Brazil.

A solid financial position

• Equity investments of about NOK 1.4 billion in the construction portfolio over the last 18 months
• Group free cash of NOK 489 million + NOK 500 million available through undrawn credit facilities
• Group* book equity strengthened to NOK 2,900 million equity ratio of 80%

NOK million	Consolidated	SSO prop. Share	Group level*
Cash	2,041	1,444	489
Interest bearing liabilities*	-7,136	-4,537	-742
Net debt	-5,095	-3,093	-253

Consolidated financial position (NOK million)

Current assets Non-current assets Equity Current liabilities Non-current liabilities

* As defined in the corporate bond and loan agreements

Q3'18 movement of free cash at group level

Stable project cash flows based on PPAs - allowing for a non-recourse debt structure

Managing financial risk

Financial targets and guidance

• 2018 O&M revenues of NOK 80-85 million with an EBITDA margin of around 40%
• Total D&C contract value of projects under construction of about NOK 8.0 billion
• Around 50% of the D&C contract value is expected to recognised in 2018 – balance in 2019
• Power production volumes:

GWh	Q3'18	Q4'17	Q4'18e
Proportionate	73	71	105-115
100% basis	155	167	220-240

Short term guidance Targets and guidance 2021

D&C contribution of NOK 2.0 – 2.5 billion

Annual cash flow from operating solar plants of NOK 750 – 850 million

D&C gross margin; 12-15%

Equity IRR on power plant investments; 15%

Summary and Outlook

Raymond Carlsen, CEO

Increase installed capacity to above 3.5 GW by end 2021

Effective execution of current project portfolio

Secure growth in priority regions

Broaden commercial and technology scope Optimise financing and asset portfolio to enhance value

Targeting 3.5 GW by end of 2021

Consolidated profit & loss

NOK MILLION	Q3 18	Q3 17	YTD 18	YTD 17	FY 17
Total revenues and other income	294.2	654.9	869.3	1,210.0	1,491.5
OPEX	73.6	-60.4	-224.1	-176.2	-250.2
EBITDA	220.6	594.5	645.2	1,033.8	1,241.3
Depreciation, amortization and impairment	-78	-60.3	-202.7	-188.2	-248.1
Operating profit	142.6	534.3	442.5	845.6	993.2
Interest, other financial income	60.5	11.1	206.5	40.8	51.2
Interest, other financial expenses	-121.5	-119.3	-376.3	-377.1	-523.8
Foreign exchange gain/(loss)	-21.7	-14.3	-44.1	-60.5	-59.8
Net financial expenses	-82.7	122.5	-213.9	-396.8	-532.3
Profit before income tax	59.9	411.8	228.6	448.9	460.9
Income tax (expense)/benefit	-24.0	-5.0	-78.6	-9.6	-23.0
Profit/(loss) for the period	35.9	406.8	150.0	439.3	437.9
Profit/(loss) attributable to:
Equity holders of the parent	14.4	383.0	94.5	374.0	339.1
Non-controlling interests	21.5	23.8	55.5	65.3	98.8
Basic and diluted EPS (NOK)	0.13	3.71	0.88	3.73	3.36

Consolidated cash flow statement

NOK MILLION	Q3 18	Q3 17	YTD 18	YTD 17	FY 17
Net cash flow from operations	60.7	190.9	1,064.6	668.2	844.1
Net cash flow from investments	-655.6	-192.4	-2,464.0	-338.1	-874.1
Net cash flow from financing	244.4	-129.4	626.8	-292.0	1,639.8
Net increase/(decrease) in cash and cash equivalents	-350.6	-130.9	-772.7	38.1	1,609.8
Effect of exchange rate changes on cash and cash equivalents	-38.1	-58.9	-49.7	-56.4	116.1
Cash and cash equivalents at beginning of the period	2,429.4	1,308.8	2,863.1	1,137.2	1,137.2
Cash and cash equivalents at end of the period	2,040.7	1,118.9	2,040.7	1,118.9	2,863.1

Segment results – Q3'18

Q3 2018 NOK MILLION	Power Production	Operation & Maintenance	Development & Construction	Corporate	Total
Revenues	155	22	1,077	4	1,259
Gross profit	155	22	160	4	342
EBITDA	127	11	130	-11	257
EBITDA %	82%	50%	12%	-	20%
EBIT	89	11	113	-12	200
EBIT (%)	57%	50%	10%	-	16%

Q3 2017
	Power	Operation &	Development &
NOK MILLION	Production	Maintenance	Construction	Corporate	Total
Revenues	141	20	760	3	924
Gross profit	141	20	405	3	569
EBITDA	119	9	384	-11	500
EBITDA %	84%	45%	50%	-	54%
EBIT	81	9	383	-11	461
EBIT (%)	57%	45%	50%	-	50%

Segment results – Q3'18

	PROPORTIONATE					RESIDUAL
	POWER	OPERATION &	DEVELOPMENT &			OWNERSHIP
NOK MILLION	PRODUCTION	MAINTENANCE	CONSTRUCTION	CORPORATE	TOTAL	INTERESTS	ELIMINATIONS	CONSOLIDATED
External revenues	145.9	-	-	-	145.9	137.5	-	283.4
Internal revenues	9.5	22.1	1,077.2	4.2	1,113.0	78.3	-1,191.3	-
Net gain/(loss) from sale of project assets	-	-	-	-	-	-	-	-
Net income from JV and associated companies	-	-	-	-	-	-	10.7	10.7
Total revenues and other income	155.4	22.1	1,077.2	4.2	1,259.0	215.8	-1,180.6	294.2
Cost of sales	-	-	-916.9	-	-916.9	1.3	915.6	-
Gross profit	155.4	22.1	160.3	4.2	342.1	217.1	-265.0	294.2
Personnel expenses	-3.0	-5.8	-13.0	-9.7	-31.4	-	-	-31.5
Other operating expenses	-25.7	-5.4	-16.8	-6.0	-53.9	-17.4	29.3	-42.1
EBITDA	126.8	10.9	130.4	-11.5	256.7	199.7	-235.8	220.6
Depreciation and impairment	-37.8	-0.2	-17.9	-0.8	-56.7	-36.6	15.4	-78.0
Operating profit	89.0	10.8	112.5	-12.3	200.0	163.0	-220.4	142.6

Project companies' financials – Q3'18

Q3 2018 NOK MILLION	CZECH REPUBLIC	SOUTH AFRICA	RWANDA	HONDURAS	JORDAN	OTHER	TOTAL
SSO economic interest	100%	39%	54%	40%	60%
Revenues	42	64	2	12	26	11	155
OPEX	-3	-10	-1	-2	-3	-10	-29
EBITDA	39	54	1	9	23	-1	127
Net interest expenses	-5	-22	-1	-4	-6	3	-35
Normalised loan repayments	-6	-14	-1	-5	-6	-	-32
Normalised income tax payments	-4	-5	-	-	-1	-3	-13
Cash flow to equity	22	14	-1	0	11	1	47

Q3 2017 NOK MILLION	CZECH REPUBLIC	SOUTH AFRICA	RWANDA	HONDURAS	JORDAN	OTHER	TOTAL
SSO economic interest	100%	39%	54%	40%	60%
Revenues	33	68	4	11	23	3	141
OPEX	-3	-9	-1	-1	-1	-6	-22
EBITDA	30	59	3	9	22	-4	119
Net interest expenses	-5	-26	-1	-4	-7	1	-42
Normalised loan repayments	-6	-12	-2	-5	-4	-	-28
Normalised income tax payments	-3	-5	-	-	-	1	-8
Cash flow to equity	17	17	0	1	10	-2	42