Scatec ASA — Investor Presentation 2019

Oct 18, 2019

18 October 2019

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 forwardlooking 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

Q3'19: Solid financial results and increased growth target to 4.5 GW

• Power production of 295 GWh and EBITDA of NOK 296 million, up 133% year on year
• D&C revenues of NOK 1,121 million and EBITDA of NOK 133 million
• 217 MW reached commercial operation in Egypt, Ukraine and Mozambique
• Growth target raised from 3.5 GW to 4.5 GW by end 2021
• Successfully raised equity of gross NOK 1,320 million to fund further growth

Scatec Solar's largest project completed in 16 months

The 390 MW Benban project in Egypt

• Bi-facial solar panels: 1 million
• Peak manning: 4,500
• Lost Time Incidents: 1 on 7.5 million hours
• Households powered: 420,000
• Annual production: 870 GWh
• Avoided CO2 annually: 350,000 tonnes

A robust asset portfolio of 1.2 GW in operation

711 MW under construction on four continents

South Africa, 258 MW

Malaysia, 47 MW

Financial review

Mikkel Tørud, CFO

Solid financial results – growth and predictable long term cash flows

• power production and stable D&C business
• Power production set to increase further with grid connection of new plants
• Current asset base of 1.9 GW with a contract value of NOK 60 billion
• 20 year stable cash flows from a diversified asset portfolio

*Cash flow to equity is defined as EBITDA less normalised (i.e. average o over each calendar year) loan and net interest repayments less normalised income tax payments. The definition implies changes in net working capital and investing activities are excluded from the figure.

Q3'19: Record results – EBITDA up 68% year on year

Proportionate revenues by segment (NOK million)

Proportionate EBITDA by segment (NOK million)

Power Production Significant growth in power production over the last few quarters

• 217 MW in Mozambique, Ukraine and Egypt in commercial operation in Q3'19

Operation & Maintenance Improved results as O&M portfolio grows

Development & Construction Development and construction activities at continued high levels

• New projects added to pipeline and transferred to backlog

Financial position further strengthened through equity capital raise

• Group free cash of NOK 1,518 million
• Successfully raised equity of gross NOK 1,320 million to fund further growth
• Undrawn Revolving Credit Facility at USD 90 million
• Group* book equity strengthened to NOK 4,920 million – equity ratio of 87%

NOK million	Consolidated	SSO prop. Share	Group level*
Cash	3,455	1,867	1,518
Interest bearing liabilities*	-13,133	-7,958	-745
Net debt	-9,678	-6,091	773

Consolidated financial position (NOK million)

Q3'19 movement of free cash at group level

Short term guidance

• 2019 O&M revenues of NOK 110-115 million with an EBITDA margin of around 35% (up from 30%)
• D&C value for 776 MW under construction: NOK 3.9 billion
• Remaining NOK 1.9 billion value to be recognised
• Power production from plants in operation end Q3:

GWh	Q3'19	Q4'19e	2019e
Proportionate	295	295 - 310	920 - 935
100% basis	517	530 - 560	1,650 – 1,680

A well diversified portfolio with a PPA contract value of more than NOK 60 billion

20 years average remaining PPA tenor:

Outlook and summary

Raymond Carlsen, CEO

Solar & wind expected to provide 50% of all power globally by 2050

62% Increase in global

electricity demand

12,000 GW

New power generation capacity

The global power sector towards 2050:

77%

Of new demand to be covered by renewables

98%

Demand growth in non-OECD-countries

Solar from 2% to 22% market share in power

Fossil from 64% to 20% market share in power

A solid backlog & pipeline is supporting our ambition to accelerate growth

We are further expanding our market segments & product offerings

• PPAs with state owned utilities

• Non-recourse project finance

• Large industrial customers

• Long-term PPAs with fixed prices

Utility scale solar Corporate & Industrial Release – Redeployable solar

• Hybrids with storage and gensets
• Off-grid or on-grid solutions

A clear strategic direction: Expanding our platform for increased growth

Target installed capacity

Financial and operational targets

Adding 1.5+ GW per year from 2022

• Development & Construction gross margin; 12-14% Targeting 4.5 GW by end 2021
• Avg. Equity IRR on investments; 12-14%
• Grow Release to 300 500 MW per year from 2022 and onwards
• Further develop organization to support growth and new market segments
• Continued strong focus on ESG throughout the project life

Thank you!