April 12, 2019

Investor Presentation Our vision: A leading Norwegian renewable energy group Agder Energi in brief

Vertically integrated utility company

Fourth largest supplier of hydro power – mean production of 8.1 TWh

Fourth largest network company – 202 000 customers

Leading market share in retail power sales – appox. 14 TWh in end user sales

Underlying operating revenues approximately NOK 15 bn

Government owned – 54.5 % by Agder municipalities and 45.5 % by Statkraft

Headquarter in Kristiansand, Norway, 1 005 employees Key credit strengths

Strong market position Low cost profile and flexible producer of hydro power Monopoly position through operation of distribution grids in the Agder Counties

Strong cash flow High share of price hedging next 3-5 years, robust hedge the following 10 years due to long term power sales contracts Stable and considerable cash flow from monopoly business

Investment flexibility Optionality in existing project portfolio

Strong and stable ownership structure 30 coordinated municipalities and Statkraft (A-), which is 100 % owned by the Norwegian state (AAA) Core business activites

Hydro Power Network Build and operate Build and operate hydro power stations distribution network

Market Energy Management LOS: Private end user sales Maximising profit of the Otera Ratel: Infra structure hydro power portfolio, contractor business retail sales in the Varme: District heating and cooling Nordics and Germay Group structure

Tom Nysted CEO

Pernille K. Gulowsen FINANCE AND RISK MANAGEMENT Board of directors NETWORK Unni Farestveit CSR AND CORPORATE DEVELOPMENT

Svein A. Folgerø Jan T. Tønnessen Steffen Syvertsen Anders Gaudestad Frank Håland NETWORK HYDROELECTRIC POWER ENERGY MANAGEMENT MARKET SHARED SERVICES

AE Kraftforvaltning LOS AE Fleksibilitet

Entelios Nordic Otera Ratel Enfo

Entelios Europe AE Varme

Nordgröön AE Venture Hydro power with high flexibility

River system Mean production Reservoir capacity 9 100 9 000 8 900 8 800 8 700 (TWh/year) (TWh) Otra 3.6 2.7

Mandal 1.7 0.5

Arendal 1.3 0.7

Sira-Kvina 0.8 0.7 ProductionGWh

Ulla-Førre 0.3 0.5

Andre 0.4 0.1

Sum 8.1 5.3 2014 2015 2016 2017 2018 Sole network owner in Agder • Agder Energi Nett owns and operates the regulated transmission and distribution networks in Aust-Agder and Vest-Agder • Stable and considerable cash flow • Smart metering (AMS) in full operation • Network capital NOK 5 083 mill Strategic goals toward 2020

Results and value creation best in industry

20% improved profitability in existing business

Develop business models and positions related to digitalization and new energy markets Focus areas

Optimizing existing business activities

Positioning to offer scalable hydro power capacity

Market operations posisitioning for future energy markets with flexibility and effect

Posistioning for future network business

Energy solutions to private consumers Investments

6 % Planned investments cirka NOK 1 030 mill per year on average in the 5 year period, of which NOK 440 mill per year is comitted and government imposed. After 2021 back to reinvestment level 49 %

45 % The next few years a high degree of customer initiated projects with the network business

Investment flexibility within the hydro power project portfolio

Hydro Network Other Investments 2018-2020

Largest projects Project cost Completion (ca, NOK mill) Hydro power Skjerka generator 300 2019

Hydro power Åseral Nord 870 2020

Hydro power Planned projects 340 2021 Dividend policy

Indicative dividend ratio 70% based on the Group’s net income to majority according to underlying IFRS previous year

Significant nonrecurring sales gains or losses may be considered to be excluded from the dividend calculation. No dividend floor

The revised dividend policy applies for the years 2018-2020 Financial update Highlights 2018

Profit from operations NOK 2 957 mill (NOK 2 597 mill) in underlying EBITDA

Investments NOK 1 583 mill (NOK 1 516 mill), of which NOK 92 mill (NOK 99 mill) of investments within network paid by customers

Other activities 51 % of shares in Otera Infra was sold to Roadworks in May, closing in August In June, Agder Energi sold the Honna transmission substation in Åseral to Statnett

HMS Low and stable sickness absence of 3,6% Reservoir levels NO2

100%

80%

60% % % of normal 40%

20%

0% 1 3 5 7 9 11 13 15 17 19 21 23 25 27 29 31 33 35 37 39 41 43 45 47 49 51 2019 2018 10 yrs average Power prices NO2

70

60

50

40 Øre/KWh 30

20

10

0 1 3 5 7 9 11 13 15 17 19 21 23 25 27 29 31 33 35 37 39 41 43 45 47 49 51 Forward price 2019 Spot price 2019 Spot price 2018 Revenues and EBITDA per segment

Revenues (NOK mill) EBITDA (NOK mill)

16 000 3 500 1 588 14 000 3 000 2 679 2 520 12 000 2 440 2 500 2 194 10 000 2 000

8 000 1 500

6 000 1 000

4 000 500

2 000 0 2014 2015 2016* 2017* 2018* 0 -500 2014 2015 2016* 2017* 2018* Hydro Network Market Energy Mgt Hydro Network Market Energy Mgt

* Reorganization, Energy Management from 2016 Solid cash flow providing financial strength

Cash Flow (NOK mill) FFO*/Net Debt

2 500 25% 22,40 % 22,90 % 2 049 2 000 1 779 19,40 % 1 502 20% 18,40 % 1 500 1 189

1 000 15%

500

10% 0

-500 5% -1 000

-1 500 0% 2015 2016 2017 2018 2015 2016 2017 2018 Operational CF Net investments Dividends FFO*/Net Debt *Unadjusted, adjustments are made in rating. Interest bearing debt on 4 quarters rolling basis Robust funding structure and diverse maturity profile

Funding sources Maturity profile (NOK mill)

1 600

5% 5% 1 400

8% 1 200

1 000

800 53% 600

29% 400

200

- 2019 2021 2023 2025 2027 2028+

Bonds EUR Loans Green Bonds CP Schuldschein Bonds EUR Loans Green Bonds CP Schuldschein

Unutilized credit facilities NOK 1 500 mill to support short term funding and refinancing risk, overdraft facility NOK 1 000 mill for operational liquidity and Nasdaq cash requirement Scope credit rating affirmed Aug-18

Vertically integrated business model with monopolistic power distribution, strong position of hydro power generation in the merit system and leading retail sales business

Profitable and environmentally-friendly hydro power production with substantial hedging agreements and sizeable reservoir capacity

Long-term, committed majority owners that are jointly organized and show ability and willingness for potential parent support God kraft. Godt klima. Agder Energi: God kraft-godt klima