Scatec ASA

Investor Presentation • Apr 26, 2019

First quarter 2019

Oslo, 26 April 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 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

Q1'19: Continued strong growth and solid financial results

• Proportionate revenues of NOK 1,528 million and EBITDA of NOK 315 million
• Continued high construction activity with D&C revenues of NOK 1,297 million and EBITDA of NOK 159 million
• Power production reached its highest level ever with 133 GWh – revenues up 52% year on year
• A new 152 MW project in Ukraine added to backlog
• Secured the first combined solar and battery project in Africa
• 65 MW of the 400 MW project in Egypt reached commercial operation in April

First 65 of 400 MW in Egypt reached commercial operation

Scatec Solar's Egypt solar power plants:

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

Expected commercial operation dates

Ukraine: 152 MW added to project backlog

• Progressovka, 152 MW:
  • 10 year feed in tariff
  • Annual production: 184 GWh
  • Capex: EUR 156 million
• Scatec Solar's 500 MW portfolio in Ukraine:
  • Under construction: Rengy & Kamianka 77 MW
  • Project backlog: 326 MW
  • Project pipeline: 100 MW

The Rengy project currently under construction.

Broad portfolio of 1,006 MW under construction in six countries

South Africa, 258 MW

Egypt, 335 MW Jasin & Merchang, Malaysia, 130 MW Argentina, 117 MW

Mozambique, 40 MW

Sustainability is an integrated part of our business

Sustainability is;

• Project risk mitigation and value creation
• Local engagement and strong community relations
• Facilitating strong partnerships (project and group level)
• A competitive advantage if done well

Sustainability Local development programmes - focus on education

Contributing to local value creation

• Education key focus for local development programmes – one of our four selected UN Sustainability Development Goals
• Target at least one long-term education programme related to all our solar projects

Examples:

• Jordan: English language lab set up to offer free training courses and workshops
• Honduras: 80 women from the local community received HSSE training in the Los Prados project
• South Africa: 60 Entrepreneurs received business administration training Read more: Sustainability Report 2018

Financial review

Mikkel Tørud, CFO

Continued strong growth and solid financial results

• Consistent conversion of an attractive project pipeline in emerging markets
• Solid delivery on construction across four continents
• A broad asset portfolio with long term cash flows secured
  • 17 years of remaining tenor of current power purchase agreements
• Strong focus on operations & asset management

(*) 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.

Q1'19: Revenues and EBITDA are up three fold from the same quarter last year

417 137 150 155 180 208 Q1 18 1,045 1,077 Q2 18 Q3 18 Q4 18 1,466 1,297 Q1 19 1,229 572 1,259 1,666 1,528

Proportionate revenues by segment (NOK million)

Proportionate EBITDA by segment (NOK million)

Power Production Power production reached highest level ever

• Production in Brazil and Malaysia below normal levels due to extraordinary weather conditions

Operation & Maintenance Steady operations – revenues set to grow with new plants grid connected

• Q1 Revenues are normally seasonal low in South Africa

Development & Construction Continued high development and construction activities

• The project development team continued to mature a wide range of projects
• Jasin, Merchang, Mocuba and next sites in Egypt are expected to reach commercial operation in the second quarter

A solid financial position

• Group free cash of NOK 825 million
• Revolving Credit Facility increased by NOK 275 million to NOK 775 million – undrawn at the end of Q1'19
• Group* book equity strengthened to NOK 3,318 million equity ratio of 82%

NOK million	Consolidated	SSO prop. Share	Group level*
Cash	2,806	2,082	785
Interest bearing liabilities*	-10,441	-7,124	-744
Net debt	-7,635	-5,042	41

Consolidated financial position (NOK million) As of 31.12.2018 As of 31.03.2019 10,647 10,647 15,876 15,876 1 800 2 100 2 475 2 364 4 442 4 190 14,857 14,857

10 415

Assets Equity & Liabilities Assets Equity & Liabilities Current assets Non-current assets Equity Current liabilities Non-current liabilities

10 583 11 412

11 686

Q1'19 movement of free cash at group level

Short term guidance

• 2019 O&M revenues of NOK 110-120 million with an EBITDA margin of around 30%
• D&C value for 1 GW under construction: NOK 7 billion
  • Remaining NOK 3.3 billion value to be recognised
• Power production from plants in operation end Q1:

GWh	Q1'19	Q2'19e	2019e
Proportionate	133	150-170	620-660
100% basis	254	290-310	1,100-1,300

The 65 MW Gurun solar plant in Malaysia.

Outlook and summary

Raymond Carlsen, CEO

Partnering with UN to reduce carbon emissions and the cost of power

• 0.7 MW project for United Nations entity secured in South Sudan
  • Combined battery and solar project for IOM covering about 90% of off-takers energy demand 24/7
• The solar systems can easily be increased to supply power to local communities or to other off-takers at a later stage
• UN spends about USD 600* million annually on fuel for power
• A large potential to reduce cost and carbon emissions for the UN entities
• In addition, two hybrid plants with total capacity of 2.25 MW for an international agency in South Sudan

Scatec Solar – a global solar power company

Strong growth towards 2021 and beyond

• The solar market is expected to grow strongly in the coming decade
• A track record and market position to realise increased growth beyond 2021
• A well-proven business model with a present execution capacity of 800-1,200 MW per year

Thank you!