Inspired by the future AGENDA
Akershus Energi in brief
Business overview
ESG
Financial policy Akershus Energi In brief 1918 - 1922 Construction of Rånåsfoss I and regional infrastructure 1950 - 1970 Oppland, Usta and Nes 1975 Funnefoss 1978 Bingsfoss 1983 Rånåsfoss II 1990 Energy legislation – formerly duty of coverage 1990 - 1998 Distribution grid in Romerike and Follo 1999 Bøhnsdalen power plant 2000 Sold distribution infrastructure 2003 Skotfoss og Klosterfoss - Skien 2003 Tistedalsfoss and Skonningsfoss - Halden 2005 Expansion into district heating 2011 Akershus EnergiPark opens 2013 Norway’s first solar heating installation
2016 Opening Rånåsfoss III Introduction to the company
• Akershus Energi is an innovative company for Production mix 2025 Production mix 2020 renewable energy and green infrastructure 5% 10% 8% • In addition to hydropower, Akershus Energi is growing 20%
within other renewable energy sources, e.g. bioenergy, 65% 92% district heating, solar power, wind and hydrogen
• 100 % owned by the county of Viken Hydropower Hydropower Wind District heating District heating Solar power • BBB/stable rating from Scope Our vision
Akershus Energi is an innovative company for renewable energy and green infrastructure Our core values
Safety Unity Innovative Organization and partners
District New renewable and Hydro power Wind power Solar power Energy trading heating/cooling infrastructure
Soleie AS Legal structure Key credit strengths
Diversified portfolio Infrastructure investment mitigate business volatility and lower volatility Income and invested in several renewable sources; hydropower, district heating, solar and wind
Strong cash flow Highly profitable and cost-efficient hydropower production leading to strong EBITDA Hedging policy short-term
Strong ownership Committed, long-term majority owner with clear and predictable direction
Capex flexibility Low maintenance capex and flexible expansionary capex Waste heat from indoor skiing center Hydrogen production with strong partners Large-scale solar power
We contribute to projects for the future
34 wind turbines under construction Investment in data center Local solar solution for facade and roof Group structure and management
Eskil Lund Jensen CEO
Astri England Garshol Bente Nordlie CFO Director of organization and development
Tom Flattum Emil Orderud Ida Matilde Falch Sigvald Maldal Frank Sagvik Director of Hydropower Director of Wind Director of District Director of Energy Director of New renewable heating/cooling Trading and infrastructure AGENDA
Akershus Energi in brief
Business overview
ESG
Financial policy Whollyowned Hydro power Part owned
• Total production 2346 GWh - 9 wholly owned power plants: Glomma, Skien, Halden - 10 part owned: Opplandskraft og Uste Nes - NGK Utbygging: Small hydro power plants • Recently completed projects - Rånåsfoss III – 6 new turbines - Extensive rehabilitation of Funnefoss, Bingsfoss, Klosterfoss and Skotfoss • New projects: Tolga and Hinøgla District heating
• Total production 200 GWh
• Partner:
• Facilities at Lillestrøm, Kjeller, Lørenskog, Skedsmokorset, Sørumsand, Årnes
• Based on bioenergy and solar heating
• Norway’s largest solar heating facility
• Also delivers district cooling and constrution heating Solar heating and power
• Norway’s largest solar heating facility (used for district heating)
• Part owner in:
• Solar power on large scale buildings – roof and facade
• Aim to build several solar power plants in our region Wind power
• First power plant construction started in Nord-Odal in 2020 – 34 turbines producing 526 GWh to be completed end of 2021
• Partner:
• Focus on large-scale wind farms where local conditions are supportive as well as smaller-scale onshore wind (<10 MW)
• 1 of 5 projects in Norway not in breach of any of WWF’s environmental criteria in study conducted by NINA¹.
¹ https://www.wwf.no/assets/attachments/ninarapport1896.pdf Real estate and infrastructure
• Real estate investment portfolio (in process of being reinvested directly in industrial assets)
• Data center OS-IX in cooperation with:
• Aim to build hydrogen production in the region AGENDA
Akershus Energi in brief
Business overview
ESG
Financial policy Goals 2025
Sustainability – roadmap to a future we believe in
As an renewable energy company, we are particularly well equipped to contribute. We have identified a number of the UN Sustainability Development Goals where we believe we can make relevant contributions:
• Efficient management of • Continuous hydro • From energy production • Holistic approach to natural resources power production to a broader energy society, industry, • Reuse of waste heat • Large scale wind and company transport and from sewage, waste and solar power • Growth in new renewable agriculture residual products for • New renewable energy forms of energy, • Circular economy energy purposes in our region infrastructure and • Innovation contributing • Waste reduction from distribution of energy to the above internal operations
• A driving force to • Production in line with • Actively seek partnerships develop solutions society and nature and collaboration, with necessary to cover the conservation without companies, municipalities energy demand of the sacrificing bio diversity and society as a whole, as future • Actively contribute to knowledge and problem better migration conditions solving is key to a common for fish at our power future where we live in stations harmony with nature Akershus Energi Green Finance Framework
• Use of proceeds Our Green Finance Framework covers the issuance of Green Bonds and Green Loans, financing and refinancing investments within the following categories • Hydropower, wind power and solar power • District heating and cooling facilities • Green hydrogen facilities and related infrastructure
• Second Party Opinion CICERO Shades of Green has provided a Second Party Opinion, giving our Framework a “Dark Green” Rating and a “Good” Governance Score
• EU Taxonomy We have mapped our investments against the EU Taxonomy (based on delegated acts published in November 2020) • CICERO has included an assessment around possible Taxonomy- alignment in their Second Party Opinion AGENDA
Akershus Energi in brief
Business overview
ESG
Financial policy KPI’s 2019
Operating income Net income EBITDA Net debt Available cash
Production volume hydropower Sales volume district heating Sales volume district cooling Hydropower Waste stations
Injuries Abscence due to Employees Share of women CO2- reduction illness BBB/Stable from Scope Ratings Agency
Key figures from the rating report Comments from latest rating report
Scope Estimates 2017 2018 2019F 2020F EBITDA/Interest 9.3x 14.6x 11.7x 9.6x Scope adjusted debt (SaD) 2.2x 1.8x 1.7x 2.4x /EBITDA Scope adjusted funds from 25% 25% 41% 21% operations / SaD Free operating cash flow / SaD 23% 11% 31% 6% Q3-2020 Financials impacted by volatility in utility prices
Hydro power District heating Green infrastructure
• Power production from 9 fully owned and 10 • District-heating includes investments in the • Income from investments in real-estate funds, partly owned hydro-power facilities majority (66.67%) owned company Akershus properties (shares), data center and solar Energi Varme AS, located in Viken. • Hedging strategy counters effects of low prices • Deliver district-heating in Lillestrøm, Lørenskog, Skedsmokorset, Sørumsand and Årnes 668 129
503 17 88 318 9 8 169 174 35 129 13 2 6
Revenue EBITDA Net profit -10 -2 Revenue EBITDA Net profit -6 Share of AF * Net financial Net profit 2019 2020 * Affiliated company income Investment / dividend policy / hedging
• Dividend policy defined with minimum 80 mill. NOK
- With net income above 80 mill. NOK, an additional 60 % will be distributed to dividends.
- With net income above 150 mill. NOK, an additional 80 % will be distributed to dividends.
• Hedging strategy within power prices, fx and interests is clearly defined and aligned yearly with the board
- Risk levels controlled in framework from board to company director
- Risk manager performs independent risk reporting on three risk areas: non-financial risk, hedging and financials, as well as corporate policy
• Investments under green framework to be approved by Green Financing Committee. Significant investments to be approved by General Meeting. Growth strategy towards 2025
• Contribute to release 1 TWh of new renewable energy production in our region within 2025.
• Do so with strong partners and maintain a significant A contribution of 1 TWh new industrial role in the new renewable production ourselves. renewable energy will resolve 25-30 % of the increased energy demand to reach the • New renewable production to be developed within solar sustainability goals in Viken power, local heating solutions, wind power and hydrogen. and Oslo in 2030
• Develop our energy portfolio from around 2,7 TWh today to 3,7 TWh in 2025. Akershus Energy to deliver balancing and administrative services for the new 1 TWh in the region. Funding structure and maturity profile
775 • Akershus Energi has 700 mill. NOK in the bond 300 market today and 590 mill. 500 500 NOK in NIB loans • In addition available credit 200 lines (RCF) and overdrafts 400 1 (annual renewal) 475 300 100 100 90 100 2021 2022 2023 2024 2025 2029
Bonds NIB loans Bank loans
1. Revolving credit facilities Inspired by the future Appendix: Q3 2020 P&L and Balance sheet
3. kvartal 2020
Resultat - Akershus E nergi Konsern Balanse - Akershus E nergi Konsern 01. juli 2020 - 30. september 2020 01. juli 2020 - 30. september 2020
Beløp i millioner kroner 3. kvartal 2020 3. kvartal 2019 Året 2019 Beløp i millioner kroner Pr. 30.09.2020 Pr. 30.09.2019 Pr. 31.12.2019
Salgsinntekter 405 795 1 112 EIENDELER
Driftsinntekter 405 795 1 112 Anleggsmidler
Energi- og overføringskostnader -70 -111 -158 Immaterielle eiendeler 256 226 233
Lønn og personalkostnader -61 -59 -95 Varige driftsmidler 4 891 4 532 4 572
Av- og nedskrivninger -87 -86 -116 Finansielle anleggsmidler (inklusive derivater) 672 613 652
Andre driftskostnader -134 -123 -170 Sum anleggsmidler 5 819 5 371 5 457
Driftsresultat 53 415 573 Omløpsmidler
Andel resultat tilknyttede selskap -2 -6 -1 Varelager og fordringer 144 62 107
Finansinntekter 15 31 44 Finansielle plasseringer og derivater 27 588 458
Finanskostnader -42 -53 -67 Kontanter og bankinnskudd 383 133 138
Resultat før skattekostnad 23 388 549 Sum omløpsmidler 554 783 702
Skattekostnad 39 -250 -350 Sum eiendeler 6 373 6 154 6 159
Resultat etter skattekostnad 62 137 200 EGENKAPITAL OG GJELD
Egenkapital 2 813 2 495 2 632
Tilordnet: Avsetning for forpliktelser 1 414 1 337 1 369
Aksjonærer 68 135 194 Langsiktig gjeld (inklusive derivater) 1 567 1 575 1 571
Ikke kontrollerende interesser -6 2 6 Kortsiktig gjeld (inklusive derivater) 579 747 587
Sum gjeld og egenkapital 6 373 6 154 6 159 IMPORTANT INFORMATION
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This Presentation has been produced solely for information purposes and does not in itself constitute or form part of, and should not be construed as an offer or the solicitation of an offer to subscribe for or purchase any securities of Akershus Energi AS ("Akershus Energi" or the "Company") in any jurisdiction, and nothing contained herein shall form the basis of or be relied on in connection with any contract or commitment whatsoever, nor does it constitute a recommendation regarding such securities.
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