Rabbalshede Kraft AB (publ) YEAR-END REPORT 2010 The information was released for publication on February 25, 2011

Continued growth and favorable earnings

Year-end report 2010 Rabbalshede Kraft AB (publ) The fiscal year January 1, 2010 – December 31, 2010 . Net sales totaled KSEK 47,347 (33,461) . EBITDA amounted to KSEK 48,477 (17,121) . Operating profit (EBIT) amounted to KSEK 26,135 (2,851) . Profit after tax was KSEK 6,845 (loss: 1,058) . Earnings per share amounted to SEK 0.31 (loss: 0.06) . Electricity production totaled 65,653 MWh (42,360) . The average sales price for electricity was SEK 468/MWh (468) . The operating revenues item is recognized at MSEK 68.0, which includes a payment of MSEK 18.2 from Göteborg Energi AB for the right to build ten turbines on the Töftedalsfjället wind farm. . As the first wind power company in Sweden, Rabbalshede Kraft received both quality certification in accordance with ISO 9001 and environmental certification under ISO 14001 during the year. . The Brattön wind farm (15 MW) in Munkedal Municipality was opened. . Building permit and environmental application approved for Dingle-Skogen wind farm (15 MW), Ås wind farm (15 MW) and Hällevadsholm Väster wind farm (5 MW) in Munkedal Municipality. The decision concerning the Ås wind farm has been appealed. . In line with a previously approved incentive program share capital rose by KSEK 9,650. . Application documents submitted for projects totaling 580 MW.

Comparative figures pertain to amounts for January-December2009, which have been compiled from interim reports. Comparative figures pertaining to profit and loss have been adjusted somewhat to facilitate comparability between the years. Fourth quarter of the fiscal year, October 1, 2010 – December 31, 2010 . Net sales totaled KSEK 19,103 (12,750) . EBITDA amounted to KSEK 15,294 (10,020) . Operating profit was KSEK 6,786 (5,249) . The result after tax amounted to a loss of KSEK 2,185 (profit: 2,747) . Earnings per share amounted to a loss of SEK 0.10 (0.02) . Electricity production totaled 24,535 MWh (15,998) . The average sales price for electricity was SEK 504/MWh (465) . In line with a previously approved incentive program share capital rose by KSEK 9,650. . Application documents submitted for the Årjäng NO, Årjäng SV, Årjäng NV, Kyrkeröd, Brattön-Sälelund and Ulvås projects. The projects pertain to a total of 213 MW.

This is Rabbalshede Kraft Rabbalshede Kraft AB (publ) is a fast-growing player in wind power with three wind farms in operation, one under construction and 380 wind turbines in a procurement, application or planning phase. The goal is to take 250 wind turbines into operation by 2015, corresponding to a production capacity of about 1.5 TWh per year. To guarantee the long-term capital requirements that the planned build-out requires, the Company is preparing an application for listing on the NASDAQOMX Stockholm exchange. Follow the company’s development at www.rabbalshedekraft.se.

Contents

The fiscal year, January-December 2010 ...... 4 Fourth quarter, October-December 2010 ...... 5 President’s comments ...... 6 Investments ...... 7 Financing ...... 7 Hedging instruments ...... 7 Production ...... 8 Personnel...... 10 Rabbalshede Kraft’s financial calendar ...... 15 Contact information ...... 15 Consolidated income statement ...... 16 Consolidated balance sheet ...... 17 Consolidated cash-flow statement ...... 19 Parent Company income statement ...... 20 Parent Company balance sheet ...... 21 Notes to the condensed financial statements ...... 23

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Key data table

Q4 Q4 Q1-4 Q1-4 2010 2009 2010 2009 Amounts in KSEK Oct-Dec Oct-Dec Jan-Dec Jan-Dec Net sales 19,103 12,750 47,347 33,461 EBITDA 15,294 10,020 48,477 17,121 EBITDA margin,% 80.0 78.6 102.3 51.2 EBIT 6,786 5,249 26,135 2,581 EBIT margin,% 35.5 41.2 55.2 7.7 Equity/assets ratio,% 56 69 56 69

EBITDA: operating profit before depreciation, amortization and impairment EBITDA margin: EBITDA as a percentage of net sales EBIT: operating profit before financial items and tax EBIT margin: EBIT as a percentage of net sales Equity/assets ratio: Shareholders equity in relation to total assets.

Photos from ongoing wind farm construction at Töftedalsfjället in Dals-Ed Municipality.

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The fiscal year, January-December 2010 In Sweden, 2010 was the coldest year since 1987 and westerly and southwesterly winds were substantially lower than normal, according to SMHI. This resulted in the production level being lower than expected in the Company’s wind farms. During the period January-December 2010, production totaled 65,653 MWh (42,360), generating net sales of KSEK 47,347 (33,461). The average price of electricity and electricity certificates during the year was SEK 714/MWh (787), of which the price of electricity accounted for SEK 468/MWh (468). The share of price-hedged electricity was 70 percent. The market price of electricity certificates declined during the year from slightly more than SEK 300 to SEK 235/MWh, which also had an impact on recognized revenue.

Other operating revenues of KSEK 68,001 include reinvoicing of KSEK 49,576 for construction costs for the Töftedalsfjället and Tolvmanstegen wind farms. It also includes payment from Göteborg Energi of 18,154 KSEK for the sale of the right to construct ten 10 turbines at the Töftedalsfjället wind farm. Operating profit depreciation/amortization and impairment (EBITDA) amounted to KSEK 48,477 (17,121). Operating profit (EBIT) of KSEK 26,135 (2,851) included personnel expenses of KSEK 5,860 (6,111) and external costs of KSEK 61,011 (10,229). The external costs include reinvoiced construction costs of KSEK 49,576.

As more wind farms are established, interest-bearing indebtedness and financial expenses increase. During the year, net financial items amounted to an expense of KSEK 16,779 (expense: 4,623). Financial expenses include KSEK 3,730 for preparations conducted for an exchange listing and capital procurement. Profit after tax amounted to KSEK 6,845 (loss: 1,058) for the fiscal year.

In February, Rabbalshede Kraft and Göteborg Energi signed an agreement with Siemens AB pertaining to the delivery of 21 2.3-MW turbines to the Töftedalsfjället wind farm. The investment totals about MSEK 700, of which Rabbalshede Kraft’s share is MSEK 370. Construction is being financed by a credit facility from Swedbank AB. Töftedalsfjället will be Rabbalshede Kraft’s fourth wind farm in operation. It is scheduled to be in full production by spring 2011 and the Company’s installed output will increase by slightly more than 40 percent.

At the Annual General Meeting (AGM) on April 15, Håkan Hellström was elected a new member of the Company’s Board. Håkan Hellström is President of the listed property company Castellum AB and a Board member of the West Sweden Chamber of Commerce and Industry. The AGM also resolved that the Company’s shares were to be consolidated so that ten (10) Class A shares and Class B shares become one (1) new Class A and Class B share, respectively (known as a reverse split). The implementation date for the reverse sprit at Euroclear Sweden AB was Tuesday, May 4, 2010.

In May 2010, Rabbalshede Kraft became the first wind-power company in Sweden to secure ISO 9001 quality certification and ISO 14001 environmental certification.

The Company’s third wind farm, Brattön in the Municipality of Munkedal, was opened on June 13, 2010.

The Municipality of Munkedal granted building permission and approved the environmental application for the Dingle-Skogen wind farm (15 MW), the Ås wind farm (15 MW) and the Hällevadsholm Väster wind farm (5 MW). In October 2010, the decision regarding the Ås wind farm was appealed.

In October, Tanum Municipality granted approval for the wind farms Sögårdsfjället and Skaveröd/Gurseröd. For Sögårdsfjället, the approval implies that the maximum total height of the turbines will be 150 meters and for Skaveröd/Gurseröd that the number of turbines has to be reduced from 13 to 11. The municipality’s decision is a prerequisite for the county council’s ability to grant permission during the Environmental Code.

During the year, the Company submitted applications for the Lillhärdal Åndberg, Vävra Berg, Forshälla, Lursäng, Hällevadsholm Väster, Årjäng NO, Årjäng SV, Årjäng NV, Kyrkeröd, Brattön-Sälelund and Ulvås projects. These projects comprise a total of 580 MW. The Lillhärdal Åndberg wind farm in the Municipality of Härjedalen will comprise up to 101 wind turbines with an estimated output of up to 303 MW. In November, the Municipality of Härjedalen adopted a wind-power plan for an area that is not indicated as a zone for wind power establishments. In December, Rabbalshede Kraft applied to the government for permission to construct a wind farm at Åndberget.

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In October, the Swedish Defense Forces reached a decision on new guidelines for the assessment of wind power in the vicinity of military air bases. A small section of the Forshälla project in the Municipality of Uddevalla and sections in two projects in the planning phase are located in what is known as a “stop area” for Såtenäs Airport. Earlier, the project had received a positive referral from the Swedish Defense Forces. It is unclear whether or not the new guidelines will entail limitations on Rabbalshede’s build-out options.

In line with a previously approved incentive program share capital rose by KSEK 9,650. In total, 482,500 new Class B shares were subscribed for at a price of SEK 20. The subscription price was determined at an extraordinary General Meeting held in December 2007. The share issue was registered in January 2011.

Aligning the organization to the growth of and increased demands imposed on the Company continues. As per December 31, 2010, the Company had 25 employees (18). During the year, for instance, a purchasing manager was recruited, who is a member of the Company’s management group and a business controller was recruited, whose duties include analyses that form the basis for investing activities and further development of the Group’s financial control.

Board member Anders Kullendorff passed away on October 23, 2010.

Fourth quarter, October-December 2010 Production totaled 24,535 MWh (15,998), resulting in net sales of KSEK 19,103 (12,750). Sales for the year- earlier period do not include the Brattön wind farm, which was opened on June 13, 2010. Net sales are based on an average price for electricity and electricity certificates, which was SEK 779/MWh (796), of which the price of electricity accounted for SEK 504/MWh (465). During the past year, the price of electricity certificate has fallen significantly. For the fourth quarter, average revenue of SEK 275/MWh was recognized, compared with SEK 331/MWh for the year-earlier period.

Other operating revenues of KSEK 68,001 include KSEK 16,331 in construction costs for the Töftedalsfjället and Tolvmanstegen wind farms, which was reinvoiced to Göteborg Energi AB and Eolus Vind AB. Operating profit before depreciation/amortization and impairment (EBITDA) amounted to KSEK 15,294 (10,020) and operating profit (EBIT) to KSEK 6,786 (5,249). Depreciation/amortization, which pertained primarily to existing wind farms, amounted to KSEK 8,508 (4,771). The result after tax was a loss of KSEK 2,185 (profit: 2,747).

In line with a previously approved incentive program share capital rose by KSEK 9,650. In total, 482,500 new Class B shares were subscribed for at a price of SEK 20. The subscription price was determined at an extraordinary General Meeting held in December 2007. The share issue was registered in January 2011.

After the close of the period

In February 2011, Rabbalshede Kraft and Eolus Vind AB renegotiated the agreement governing the Tolvmanstegen wind farm in Strömstad Municipality. The wind farm has obtained permission to establish a total of 24 turbines. In the previous agreement with Eolus Vind, Rabbalshede Kraft was entitled to construct 50 percent of the turbines and Eolus Vind the remaining 50 percent. Under the new agreement, Rabbalshede Kraft has sold its share of the Tolvmanstegen wind farm to Eolus Vind. This divestment will have a favorable impact on the Company’s profit and cash flow during the first quarter of 2011.

An application for an environmental permit has been submitted for the Vetteberget project (7.5 MW) in Strömstad Municipality.

Munkedal Municipality has granted approval for the Brattön-Sälelund wind farm (35 MW). The municipality’s decision is a prerequisite for the county council’s ability to grant permission during the Environmental Code.

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President’s comments

For the past few weeks, trial operations of the Company’s fourth wind farm, Töftedalsfjället in Dals- Eds Municipality, have been under way. The trial operation is being initiated in stages, as the turbines are assembled. Although the heavy snow falls that are characterizing the current winter have required many hours of snow clearance of the 24 kilometer- long access roads, we are still counting on having the farm in regular operation in May, following a delay just a couple of weeks. Rabbalshede Kraft has been responsible for the project planning, procurement and construction of the wind farm. As previously announced, Göteborg Energi owns 10 of the 21 turbines, but Rabbalshedekraft, together with Siemens, will be responsible for operation and maintenance of all turbines.

Another business partner is Eolus Vind, with whom we are in discussions regarding several projects, one of which is the Tolvmanstegen wind farm in Strömstad Municipality. This week, we announced that Eolus Vind is to take over the whole of Tolvmanstegen, a transaction that will generate a healthy gain for us and a positive effect on liquidity.

In the immediate future, we will be focusing on three wind farms in Munkedal Municipality, which will be handled as a single farm during construction and connection of electrical installations. These wind farms are Hällevadsholm, Dingle-Skogen and Ås, representing a total of 14 wind-power turbines and a combined output of up to 35 MW. The investment decision will be taken this year when construction will also commence, and the farms are expected to be in operation during 2012. When these are included, Rabbalshede Kraft will reach a total installed output of nearly 100 MW from seven farms.

At the same time, we are continuing to develop our project portfolio. As of December 31, there were farms with a total of 240 wind-power turbines in the permit application phase, compared with 72 a year earlier. This forms the foundation for a rapid build-out during 2011 and the years ahead. The Company aims to have achieved annual production capacity of 1.5 TWh by the end of 2015. Since this must occur against a background of continued profitability, we take great care when we plan our farms to ensure that they will generate as favorable a return as possible. We prefer to turn projects down rather than compromise our profitability requirements.

For 2010, we reported a profit, which I am proud of. We achieved this despite production being below budget during the year, due to the fact that westerly and southwesterly winds were weaker than normal. In return, winds during the first two months of 2011 have been favorable and production in our farms has been significantly better than during the early part of last year. We provide quarterly reports of our production at the wind farm level to provide an understanding of how wind strengths can vary sharply compared with a normal year. Accordingly, knowing how winds have blown during a quarter or a year is of importance to being able to correctly assess the financial accounts of a wind power company. Viewed over time, it is possible to arrive at an average assessment of the production outcome.

To achieve our ambitious target for 2015, we must accelerate our build-out and this requires capital. It is against this background that we have for some time given notice of an intention to apply for a listing on NASDAQ OMX and a simultaneous new share issue. As I have explained in previous interim reports, the Company is completely ready for a listing.

The Board of Directors and Company management, together with the owners and advisors, continuously monitor the situation in the financial market and how economic conditions are developing in Sweden and the rest of the world. The way the global economy is developing is of great importance to the timing of our listing. At present, I can state that although the positive signals from the business community are increasing and become stronger, a listing application will have to wait until we are certain that this will really benefit the Company and our shareholders.

Thomas Linnard, President, Rabbalshede, February 2011

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Condensed income statement

Q4 Q4 Q1-4 Q1-4 2010 2009 2010 2009 Amounts in KSEK Note Oct-Dec Oct-Dec Jan-Dec Jan-Dec

Net sales 19,103 12,750 47,347 33,461 Other operating revenues 3 16,229 - 68,001 - Operating profit 6,786 2,687 26,135 2,851 Profit/loss after financial items -2,896 840 9,356 -1,772 Profit/loss after tax -2,185 3,096 6,845 -1,058 Earnings/loss per share before dilution (SEK) 6 -0.10 0.02 0.31 -0.06 Earnings/loss per share after dilution (SEK) 6 -0.10 0.02 0.30 -0.06 Cash flow from operations before changes in 5,730 8,522 39,662 13,527 working capital

Condensed balance sheet Dec 31 Dec 31, Change Amounts in KSEK 2010 2009 % Total assets 947,304 786,877 20.4 Fixed assets 807,280 537,536 50.2 Current assets 140,024 249,341 -43.8 Shareholders’ equity , incl. non-controlling interest 535,217 544,686 -1.7 Interest-bearing liabilities 366,153 181,338 101.9 Other liabilities 45,934 60,853 -24.5

Investments

Investments, including paid advances, amounted to KSEK 299,932 in the fiscal year and KSEK 29,204 during the fourth quarter. Investments related in all significant respects to the Brattön and Töftedalsfjället wind farms and ongoing wind-farm planning. The Brattön wind farm was opened during the second quarter.

Financing

Rabbalshede Kraft aims to finance up to 75 percent of its new investments with loans and to have an equity/assets ratio of not less than 25 percent. Since previous fiscal years, Rabbalshede Kraft has signed agreements regarding credit facilities with Swedbank and DnB NOR, and has a remaining credit facility of slightly more than MSEK 800. Discussions are also under way with other banks regarding the financing of forthcoming wind farms.

Interest-bearing liabilities at December 31, 2010 amounted to KSEK 366,153 (181,338), of which the change during the 2010 fiscal year pertained primarily to loans raised for investments in the Brattön and Töftedalsfjället wind farms. The fixed interest period on the balance-sheet date was 3.78 years and the capital maturity term was 5.38 years. The equity/assets ratio was 56 percent at December 31, 2010 (69 percent at December 31, 2009). The Company’s cash and cash equivalents amounted to KSEK 100,189 (193,375) at the close of the period.

Hedging instruments

Rabbalshede Kraft applies hedge accounting of financial instruments in accordance with IAS 39. This entails that value changes in various derivatives acquired to hedge cash flows are recognized against shareholders’ equity via comprehensive income. At December 31, 2010, the market value of the

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Company’s outstanding currency, electricity and interest-rate contracts represented liabilities of KSEK 20,359, KSEK 11,121 and KSEK 6,770, respectively.

Production For the Group’s three wind farms that have been placed in operation to date, the estimated annual production is 90 GWh. In Sweden, 2010 was the coldest year since 1987 with much less westerly and southwesterly winds than normal, according to SMHI. This resulted in the production level being lower than expected in the Company’s wind farms. During the first quarter of the year, production at Hud wind farm was on a par with the year-earlier period and also matched the projected output, while the Kil wind farm did not produce to the projected level. April was dominated by a low-pressure system, while May and June mainly offered high-pressure weather systems and thus weaker winds. The third quarter was characterized by considerable variations but production was generally in line with the year-earlier period.

With the exception of a few blustery days in early October, the start of the fourth quarter consisted of high-pressure systems with cold and sunny days and weak winds. November was windy, which was positive for production. December was dominated by high pressure with milder winds.

Operation and maintenance work at the farms continued to show a positive trend with increased accessibility that was measured at nearly 99 percent. Production at the Hud wind farm amounted to 32,790 MWh for the 2010 fiscal year, down 6 percent compared with 2009. There are no comparative figures for the Kil wind farm, which was taken into operation in late August 2009 and was in trial operation during the autumn of 2009. The Brattön wind farm, which was opened on June 13, 2009, was in trial operation until the end of November.

Production

Full-year Q4 2010 Q3 2010 Q2 2010 Q1 2010 Production outcome, MWh 2010 Hud wind farm 32,790 10,771 7,843 5,743 8,433 Kil wind farm 15,281 4,830 4,189 2,925 3,337 Brattön wind farm 17,582 8,934 6,946 1,702 - Total 65,653 24,535 18,978 10,370 11,770 Price-hedged electricity 70% 57% 50% 110% 91%

Full-year Full-year Q4 2009 Q3 2009 Production outcome, MWh 2009 2008

Hud wind farm 34,802 10,643 8,850 20,314 Kil wind farm 7,558 5,355 2,203 - Total 42,360 15,998 11,053 20,314 Price-hedged electricity 52% 43% 38% 62%

Seasonal and annual variations Wind-power production normally varies during the year, entailing a higher average production during the winter season than during the summer season. Average past figures for all of Sweden indicate that 28 percent of annual production is generated between January and March, 22 percent between April and June, 20 percent between July and September and 30 percent between October and December. This annual distribution can vary from location to location. Wind speeds can also vary by +/-15 percent from year to year, compared with an estimated average year, which has a direct effect on revenues and earnings during a single quarter or year. Variations in wind speed also affect the percentage of presold

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electricity that is hedged. Since price hedging is conducted in advance, the percentage is generally higher when conditions are less windy than expected. When it is windier than expected, the percentage of price-hedged electricity generally declines. Prices for electricity and electricity certificates Rabbalshede Kraft’s revenues comprise in part electricity sales and in part sales of electricity certificates Electricity price SEK/MWh Company’s sales price

Spot price Nord Pool 1 000,00 SEK

900,00 SEK

800,00 SEK

700,00 SEK

600,00 SEK 521 522 480 466 462 500,00 SEK 464 456 438 440 428 415 428 400,00 SEK

300,00 SEK

The average price per MWh sold during the fourth quarter was SEK 504/MWh (465). An average of 57 percent of production was hedged. During the fiscal year, the average price was SEK 468/MWh (468), of which 70 percent was hedged.

Hedging takes place through contracted sales of electricity for delivery at a later date, generally in one quarter or in one year. Hedging is applied to balance earnings over time and contributes to the price that the Company receives per MWh often exceeding but occasionally being below the average spot price.

The rise in the spot price on the Nord Pool Nordic electricity exchange after the summer vacation period up to November largely reflected a normal trend when the wheels of industry start rolling again and during 2010 boosted by ever-stronger Swedish economic conditions. Subsequently, winter struck in the form of exceptionally low temperatures during November and December, resulting in a sharp increase in electricity consumption, which primarily affected the spot price, which ended up at a record-high level of SEK 83.3/kWh in December.

The trend for 2011 is difficult to forecast. The level in Nordic aquifers is very low and the capacity was only 24.7 percent on February 20, compared with a mean level of 45.9 percent. Unless increased precipitation fills the aquifers during the year, this will contribute to upward pressure on prices primarily during the second half of the year. General conditions in the global economy constitute at least as important a factor. A stable upswing following the latest recession may be expected to contribute to an increase in electricity prices while the risk of a setback in economic conditions is a restraining factor. The return of Swedish nuclear power reactors to operation again and the continuing build-out of Nordic electricity production are other factors holding back the price of electricity.

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Electricity certifikates SEK/MWh Sold electricity certificates Spot price electricity 350,00 SEK certificates 16 000 13929 Sales price 14 000 325,00 SEK 315,00 SEK307,00 SEK 304,00 SEK 12 000 300,00 SEK 290,00 SEK 10 000

275,00 SEK 268,00 SEK 270,00 SEK8 000 7847 252,50 SEK 6 000 250,00 SEK 6347 6000 232,00 SEK 2847 4 000 225,00 SEK 2000 1000 700 2 000 200,00 SEK 0 jan/10 feb/10 mar/10 apr/10 maj/10 jun/10 jul/10 aug/10 sep/10 okt/10 nov/10 dec/10

The electricity certificate system provides market-based support designed to promote the build-out of electricity production from renewable resources. Producers approved by the Swedish Energy Agency, such as Rabbalshede Kraft, receive one certificate for each MWh of produced renewable electricity. These certificates are subsequently sold to electricity suppliers and certain electricity consumers, which are obligated to purchase electricity certificates corresponding to a certain proportion of their annual sales and/or consumption. This percentage is designated the quota obligation and was 17.9 percent in 2011.

At December 31, 2010, inventories of electricity certificates totaled 46,130 and had a value of KSEK 11,509. The average market price of electricity certificates is governed in part by the economy and the effect it has on electricity demand and in part by the number of certificates allocated to producers of renewable power. Since the system was introduced in 2003, the spot price has fluctuated between about SEK 175 and 400, with a clear downward trend during the first six months of 2010 to subsequently rise slightly after the close of the third quarter. A considerable allocation of electricity certificates, primarily to biofuel-fired boiler plants, contributed to the accumulation of a surplus of certificates, resulting in declining prices for full-year 2010.

Personnel

Aligning the organization to the growth of and increased demands imposed on the Company continues. As per December 31, 2010, the Company had 25 employees (18). During the year a purchasing manager was recruited, who is a member of the Company’s management group. In connection with the procurement of wind-power turbines, contract work and other purchases, the Company pursues an industrial purchasing process to ensure the attainment of optimum total economy over the turbines’ total life. In October, the Company employed a business controller, whose duties include analyses that form the basis for investing activities and further development of the Group’s financial control.

As more wind farms are deployed, operations and maintenance resource become subject to increased demands. Work is under way that includes developing the operation and maintenance organization, which is growing in pace with the Company’s expansion plans.

Environment and Quality In May 2010, Rabbalshede Kraft became the first wind power company in Sweden to secure quality certification in accordance with ISO 9001 and environmental certification in accordance with ISO 14001. The Company adopts an industrial approach and industrial processes in all areas, from pre-planning of wind farms to operation and maintenance of farms and wind turbines.

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Risks and uncertainties For a detailed description of risks, refer to the administration report in the Annual Report for the abbreviated fiscal year 2009.

Rabbalshede Kraft AB collaborates with Scandem, one of the Nord Pool brokers, in a partnership that provides Rabbalshede Kraft with risk-management support in conjunction with the sale of produced electricity.

The permit process is a prerequisite for wind-power build-out in Sweden. With the aim of simplifying and shortening the application process for wind turbines, the Swedish Parliament has adopted legislative amendments that came into legal effect on August 1, 2009. Farms that comprise up to six turbines with a total height not exceeding 150 meters must file an application under the Swedish Environmental Code and secure a building permit pursuant to the Swedish Planning and Building Act, both of which are subject to municipal review. Farms comprising two or more wind turbines with a total height in excess of 150 meters, or, seven or more wind turbines with a total height in excess of 120 meters, must file for a permit under the Swedish Environmental Code and be reviewed by the county administrative board. Before an environmental permit can be granted, the municipality must give its support to the establishment. The new rules have simplified the permit process somewhat since establishments that secure an environmental permit under the Swedish Environmental Code no longer require a building permit pursuant to the Swedish Planning and Building Act. Under the Swedish Environmental Code, a “municipal veto” has been added to the permit-review process, which means that an environmental permit will not be granted without the support of the municipality.

Wind power is dependent not only on the general economic and political situation in society, but also on circumstances that are unique for the industry. In a weak economic climate, lower demand has an effect on electricity and electricity certificate prices and on interest rates. Wind power is also dependent on wind activity, which is explained in the Production section.

The Company has entered into agreements relating to the acquisition of at total of 29 wind turbines, and has also concluded supplementary service agreements. An advance payment in EUR was made in the amount of KSEK 39,921 (rate 9.23). The agreements stipulate specific delivery dates. Given that the Company has not yet secured permits for these projects, there is a risk that the Company cannot meet certain commitments within the specified time and that this will delay the supplier’s deliveries. If the Company cancels all the 29 wind turbines, the expenses for the Company could amount to an additional KSEK 78,077 at a rate of 9.03. However, according to the supplementary agreements, the Company is entitled to instruct that the deliveries be made to other wind farms owned by the Company. The Company plans to place regular orders as from the supplier agreements for the continued build-out.

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Wind farms in operation and planning operations

Project portfolio at Dec 31, 2010 Number of turbines Total output Dec 31 Dec 31 Dec 31 Dec 31 2010 2009 2010 2009 Wind turbines in operation 16 10 38 MW 23 MW Under construction 11 6 25 MW 15 MW Under procurement1) 38 36 95 MW 90 MW

Under permit application 240 72 655 MW 176 MW

Under planning 105 260 288 MW 700 MW Under pre-planning 91 103 244 MW 258 MW

1) The number turbines being procured applies to December 31, 2010. After the end of the fiscal year, Rabbalshede Kraft and Eolus Vind renegotiated the agreement governing the Tolvmanstegen wind farm in Strömstad Municipality. Under the new agreement, Rabbalshede Kraft is selling its share in the Tolvmanstegen wind farm to Eolus Vind.

Wind farms in operation

The Company has three wind farms in operation: the Hud wind farm and the Kil wind farm in the Municipality of Tanum and the Brattön wind farm in the Municipality of Munkedal. The Hud wind farm was taken into operation in June 2008 and the Kil wind farm in August 2009. The Brattön wind farm was opened on June 13, 2010 and was under trial operation until the end of November 2010.

Farms in operation

Number of turbines Output Estimated annual production Hud wind farm 6 15 MW 36 GWh Kil wind farm 4 8 MW 20 GWh Brattön wind farm 6 15 MW 34 GWh

Development work

The Company’s core expertise is the planning, procurement, construction and operation and maintenance of wind farms. Thorough preparatory work is of decisive importance to the profitability of a wind power project. Development work is divided into five phases prior to the start of operations.

Phase 5: Construction The Company has one farm under construction: the Töftedalsfjället wind farm in the Municipality of Dals- Ed.

Töftedalsfjället – Municipality of Dals-Ed The Töftedalsfjället wind farm in the Municipality of Dals-Ed has permits to establish up to 25 wind turbines. During the first stage, 21 2.3-MW wind turbines are under construction. In December 2009, Rabbalshede Kraft signed an agreement with Göteborg Energi regarding the sale of part of the farm. Under the agreement, Rabbalshede Kraft will own 11 turbines and Göteborg Energi will own ten. The companies are cooperating on the implementation of the project. Around the end of 2009, construction began in cooperation with Skanska AB, which is responsible for construction of roads and foundations. Siemens is delivering and installing the turbines. The farm will be deployed in stages during spring 2011 with annual production estimated at 129 GWh.

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Phase 4: Procurement The focus in this phase is on the procurement of turbines, other engineering, electrical and contracting work, as well as financing.

Brattön II, Municipality of Munkedal Construction of the Brattön wind farm (10 MW) is awaiting grid connection before work can begin. Connection to the electricity grid is scheduled for 2013.

Dingle-Skogen, Municipality of Munkedal The Municipality of Munkedal has granted building permission and approved the environmental application for the Dingle-Skogen wind farm (15 MW).

Hällevadsholm Väster, Municipality of Munkedal In September 2010, the Municipality of Munkedal granted a building permit and approved the environmental application for the Hällevadsholm Väster wind farm (5 MW).

Tolvmanstegen, Municipality of Strömstad After year-end, in February 2011, Rabbalshede Kraft and Eolus Vind renegotiated the agreement governing the Tolvmanstegen wind farm in the Municipality of Strömstad. The Tolvmanstegen wind farm has a permit to establish a total of 24 wind turbines. Under a former agreement, Rabbalshede Kraft was entitled to construct 50 percent of the turbines and Eolus Vind to construct the remaining 50 percent. Under the new agreement, Rabbalshede Kraft has sold its share of the Tolvmanstegen wind farm to Eolus Vind.

Årjäng NV, Municipality of Årjängs Rabbalshede Kraft has a building permit to construct turbines with a total height of 150 m at Årjäng NV. Rabbalshede Kraft is investigating the possibility of raising the total height to 180 m, which requires an environmental permit. A permit application was submitted to the County Administrative Board in Värmland County in November 2010. In late June 2010, ground work began on Årjäng NV (22.5 MW). In an initial phase, this involves geotechnical surveys ahead of the paving of roads and laying of the foundation. When the procurement of the wind turbines is complete, a more detailed schedule will be formulated for the foundation, assembly and operation.

Ås, Municipality of Munkedal In September 2010, the Municipality of Munkedal granted a building permit and approved the environmental application for the Ås wind farm (15 MW). The decision was appealed to the County Administrative Board in October.

Phase 3: Under permit application The Company has 15 permit applications pending. During the year, the Company submitted application documents for projects comprising a total of 580 MV, of which application documentation for the Årjäng NO, Årjäng SV, Årjäng NV, Kyrkeröd, Brattön-Sälelund and Ulvås projects was submitted to the county administrative board during the fourth quarter. A heavy work loan at county administrative boards is affecting the procedding time. No applications were rejected during the year.

Rabbalshede Kraft AB (publ)YEAR-END REPORT 2010 Page 13 of 25

Permit application Number of turbines Prel. output Brattön-Sälelund 14 35 MW Femstenaberg 16 40 MW Forshälla 4 areas1) 15 38 MW Hällevadsholm Väster 1 2.5 MW Korpekullen 7 14 MW Kyrkeröd 3 8 MW Lillhärdal Åndberg2) 101 300 MW Lursäng 5 10 MW Skaveröd/Gurseröd3) 13 32 MW Sögårdsfjället3) 10 25 MW Ulvås 14 35 MW Vävra Berg 5 12 MW Årjäng NO 26 78 MW Årjäng SV4) 14 35 MW Årjäng NV5) 9 22 MW 1) In October, the Swedish Defense Forces reached a decision concerning new guidelines for the assessment of wind power in the vicinity of military air bases. A small section of the Forshälla project in the Municipality of Uddevalla is located in what is known as a “stop area” for the Såtenäs Airport. Earlier, the projects had received a positive referral from the Swedish Defense Forces. It is unclear whether or not the new guidelines will entail limitations on build-out options.

2) The Lillhärdal Åndberg wind farm in the Municipality of Härjedalen will comprise up to 101 wind turbines with an estimated output of up to 303 MW. The application also encompasses alternative designs for 71 and 23 turbines, respectively. The alternative designs were added when Municipal Executive Board decided to review the master plan for wind power. In November 2010, the municipality adopted a wind power plan in which the Åndberg area is not indicated as a zone that is suitable for establishing wind- power turbines. The wind power plan is not legally binding and is only indicative. In December 2010, Rabbalshede Kraft applied, pursuant to Chapter 17 of the Environmental Code, to the government for permission to construct and operate a wind farm with up to 101 wind-power turbines at Åndberget, Lillhärdal, in the Municipality of Härjedalen.

3) The Municipality of Tanum has given its support to the Sögårdsfjället and Skaveröd/Gurseröd wind farms. For Sögårdsfjället, this support entails that the turbines may not exceed a total height of 150 meters and for Skaveröd/Gurseröd that the number of turbines has been reduced from 13 to 11. The Municipality’s decision is a prerequisite for the County Administrative Board’s ability to grant permits under the Swedish Environmental Code.

4) A revised application for an establishment with an increased total height of up to 180 meters and more turbines was submitted to the County Administrative Board in Värmland County in December 2010.

5) Årjäng NW currently has a building permit for turbines with a total height of 150 meters. Rabbalshede Kraft is investigating the possibility of raising the total height to 180 m which will require a permit under the Swedish Environmental Code. A permit application was submitted to the County Administrative Board in Värmland County in November 2010, where it is under consideration.

Phase 2: Planning In the planning phase, wind measurements begin and the consultation process is initiated with the authorities, organizations and persons affected by the establishment. This is when an Environmental Impact Assessment (EIA) is prepared, which is submitted to the relevant authority together with the application. The Company has 105 wind turbines in the planning phase. Consultation and inquiry work is under way.

Phase 1: Pre-planning In this phase, basic prerequisites are analyzed, such as wind conditions based on wind maps, counterparty interests, terrain conditions and the economic feasibility of grid connections. Leaseholds with land owners are also signed, which are subject to the condition that wind measurements and other analyses in the next phase remain positive. When a contract has been signed with land owners, the project moves to the planning phase. For further information about the Company’s wind farms, visit www.rabbalshedekraft.se

Rabbalshede Kraft AB (publ)YEAR-END REPORT 2010 Page 14 of 25

Rabbalshede Kraft’s financial calendar

Publication of interim report January – March 2011 May 5, 2011

Publication of interim report January – June 2011 July 15, 2011

Publication of interim report January – September 2011 November 1, 2011

Publication of year-end report 2011 February 2012

Via Rabbalshede Kraft’s website, press releases and financial reports can be downloaded and subscribed to.

Annual General Meeting The Annual General Meeting for the 2010 fiscal year will be held at 4:00 p.m. on Wednesday, April 27, 2011 at RunAn, Chalmers Kårhus, Chalmersplatsen 1, Gothenburg. The official notice of the Annual General Meeting will be sent out in due course.

Dividend proposal The Board of Directors has decided to propose to the Annual General Meeting that no dividend be paid for the fiscal year.

Signatures/assurance of the report

Rabbalshede, February 25, 2010

Thomas Linnard, President

Auditors’ examination

This report has not been examined by the Company’s auditors.

Contact information

Thomas Linnard, President Tel. +46 (0) 525 - 197 11, +46 (0) 706 100 120 [email protected]

Kent Söderström, CFO Tel. +46 (0) 525-197 13, +46 (0) 73 330 72 80 [email protected]

Rabbalshede Kraft AB (publ) Marknadsvägen 1 SE-457 55 Rabbalshede Corp. Reg. No. 556681-4652

Telephone: +46-(0)525-197 00 www.rabbalshedekraft.se E-mail: [email protected]

Rabbalshede Kraft AB (publ)YEAR-END REPORT 2010 Page 15 of 25

Consolidated income statement

Q4 Q4 Q1-4 Q1-4 2010 2009 2010 2009 KSEK Note Oct-Dec Oct-Dec Jan-Dec Jan-Dec

Net sales 2 19,103 12,750 47,347 33,461 Other operating revenues 3 16,229 - 68,001 -

Total revenues 35,332 12,750 115,348 33,461

Personnel costs 4 -2,181 -1,282 -5,860 -6,111 Other external costs 4 -17,857 -1,448 -61,011 -10,229 Depreciation/amortization of tangible and intangible fixed assets -8,508 -4,771 -22,342 -14,270

Operating profit 6,786 5,249 26,135 2,851

Financial income 212 13 256 381 Financial expenses 5 -9,894 -1,508 -17,035 -5,004 Profit before taxes -2,896 3,754 9,356 -1,772

Tax 711 -1007 -2,511 714

Profit/loss for the period -2,185 2,747 6,845 -1,058

Earnings per share Number of shares, thousands 6 22,205 17,600 22,205 17,600 Earnings/loss per share before dilution (SEK) 6 -0,10 0,02 0,31 -0,06 Earnings/loss per share after dilution (SEK) 6 -0,10 0,02 0,30 -0,06

Consolidated statement of comprehensive income

Q4 Q4 Q1-4 Q1-4 2010 2009 2010 2009 KSEK Oct-Dec Oct-Dec Jan-Dec Jan-Dec

Profit/loss for the period -2,185 2,747 6,845 -1,058

Other comprehensive income: Cash-flow hedges: Change in fair value -9,688 -6,680 -48,935 15,363 Reversals against income statement 5,478 -1,123 8,583 -3,654 Transferred to cost of hedged item 1,606 - 2,375 -8,797 Tax attributable to cash-flow hedges 685 2,052 9,988 72

Comprehensive income/loss for the period -4,104 -3,004 -21,144 1,926

Rabbalshede Kraft AB (publ)YEAR-END REPORT 2010 Page 16 of 25

Consolidated balance sheet

Dec 31, 31dec KSEK Note 2010 2009 Assets Intangible fixed assets 39,435 49,655 Tangible fixed assets 767,830 487,866 Other long-term receivables 15 15

Total fixed assets 807,280 537,536

Intangible current assets 11,509 7,116 Accounts receivable 11,244 23,355 Prepaid costs and accrued income 7 13,781 11,268 Other receivables 3,301 14,227 Cash and cash equivalents 100,189 193,375

Total current assets 140,024 249,341

Total assets 947,304 786,877

Shareholders’ equity Share capital 222,054 176,000 Other capital contributions 321,377 234,837 New issue in progress 9,650 130,577 Reserves -28,189 -200 Profit brought forward including profit for the period 10,317 3,472

Shareholders’ equity attributable to Parent Company’s shareholders 535,209 544,686

Non-controlling interests 8 -

Total shareholders’ equity 535,217 544,686

Liabilities Other long-term liabilities 6,190 4,752 Deferred tax assets 3,560 13,145 Interest-bearing liabilities 346,403 181,338

Total long-term liabilities 356,153 199,235

Accounts payable 5,194 11,219 Tax liabilities 88 - Other liabilities 21,048 6,265 Accrued expenses and prepaid income 9,854 25,472 Interest-bearing liabilities 19,750 -

Total current liabilities 55,934 42,956

Total liabilities 412,087 242,191

Total shareholders’ equity and liabilities 947,304 786,877

Rabbalshede Kraft AB (publ)YEAR-END REPORT 2010 Page 17 of 25

Consolidated pledged assets and contingent liabilities Dec 31, Dec 31, KSEK Note 2010 2009

Pledged assets 8 706,183 405,315

Contingent liabilities 9 117,998 -

Condensed consolidated statement of changes in shareholders’ equity

Shareholders’ equity attributable to the Parent Company’s shareholders

Dec 31 Dec 31 KSEK 2010 2009

Total shareholders’ equity on the opening date 544,686 432,764 Profit/loss for the period 6,845 534 Other comprehensive loss -27,989 -19,189 Comprehensive loss for the period -21,144 -18,655 New issue in progress 9,650 138,163 Expenses attributable to new share issue - -10,293 Deferred tax, issue expenses 1,994 2,707 Paid-in warrant premium 23 - Total shareholders’ equity at year-end 535,209 544,686

Rabbalshede Kraft AB (publ)YEAR-END REPORT 2010 Page 18 of 25

Consolidated cash-flow statement

Q4 Q4 Q1-4 Q1-4 2010 2009 2010 2009 KSEK Oct-Dec Oct-Dec Jan-Dec Jan-Dec

Ongoing operations Profit before taxes -2,896 3,754 9,356 -1,772 Adjustment for non-cash items 8,508 4,768 30,188 15,319 Paid income tax -24 - -24 -20

Cash flow from operating activities 5,588 8,522 39,520 13,527 before changes in working capital

Cash flow from changes in working capital Increase (-)/Decrease (+) in intangible assets/inventories -4,540 -719 -4,393 -4,994 Increase (-)/Decrease (+) in operating receivables -1,881 -26,075 18,519 -36,717 Increase (+)/Decrease (-) of operating liabilities -27,541 28,360 -38,093 3,277

Cash flow from changes in working capital -33,962 1,566 -23,967 -38,434

Cash flow from operating activities -28,374 10,088 15,553 -24,907

Investing activities Acquisition of intangible fixed assets -7 -17 -60 -96 Acquisition of tangible fixed assets incl. advance -29,197 -46,684 -299,872 -176,849 payments

Cash flow from operating activities -29,204 -46,701 -299,932 -176,945

Financing activities New share issue 9,650 138,163 9,650 138,163 Issue costs -895 -4,220 -3,295 -4,375 Loans raised 57,247 27,838 193,124 179,988 Amortization of loans -4,472 - -8,309 - Warrant premium - - 23 416

Cash flow from financing activities 61,530 161,781 191,193 314,192

Cash flow for the period 3,952 125168 -93,186 112,340 Cash and cash equivalents on the opening date 96,237 68,207 193,375 81,035

Cash and cash equivalents on the closing date 100,189 193,375 100,189 193,375

Rabbalshede Kraft AB (publ)YEAR-END REPORT 2010 Page 19 of 25

Parent Company income statement

Q4 Q4 Q1-4 Q1-4 2010 2009 2010 2009 KSEK Note Oct-Dec Oct-Dec Jan-Dec Jan-Dec

Net sales 2 8,171 8,765 23,592 27,929 Other operating revenues 3 3,911 1,660 39,008 2,745

Total revenues 12,082 10,425 62,600 30,674

Personnel costs -3,687 -2,107 -11,677 -7,550 Other external costs -1,092 -1,286 -10,537 -9,516 Depreciation and amortization of tangible and intangible fixed assets -3,705 -2,895 -12,067 -10,901

Operating profit 3,598 4,137 28,319 2,707

Interest income and similar items 1,542 339 2,658 2,728 Interest expense and similar items -7,021 -1,330 -12,226 -4,826

Profit/loss before taxes -1,881 3,146 18,751 609

Appropriations 22,132 - 1,500 -1,986

Profit/loss before tax 20,251 3,146 20,251 -1,377

Tax -5,392 -830 -5,392 355

Profit/loss for the period 14,859 2,316 14,859 -1,022

Rabbalshede Kraft AB (publ)YEAR-END REPORT 2010 Page 20 of 25

Parent Company balance sheet

Dec 31, Dec 31, KSEK Note 2010 2009

Assets Fixed assets Intangible fixed assets 665 755 Tangible fixed assets 262,537 280,603 Financial fixed assets Participations in Group companies 321,692 170,800 Receivables from Group companies 15,087 31,316 Other long-term receivables 15 15 Deferred tax asset - 227

Total financial fixed assets 336,794 202,358

Total fixed assets 599,996 483,716 Current assets Intangible current assets 5,818 5,228 Current receivables Accounts receivable 3,306 22,172 Receivables from Group companies 40,359 19,993 Other receivables 302 4,036 Prepaid expenses and accrued income 7 8,502 6,433

Total current receivables 52,469 52,634 Cash and bank balances 31,719 163,002

Total current assets 90,006 220,864

Total assets 690,002 704,580

Rabbalshede Kraft AB (publ)YEAR-END REPORT 2010 Page 21 of 25

Shareholders’ equity and liabilities Shareholders’ equity Restricted shareholders’ equity Share capital 222,054 176,000 New issue in progress 4,825 43,526 Unrestricted shareholders’ equity Share premium reserve 287,237 200,719 New issue in progress 4,825 87,051 Profit/loss brought forward -6,058 2,426 Profit for the period 14,859 155

Total shareholders’ equity 527,742 509,877

Untaxed reserves 500 2,000

Liabilities Deferred tax liabilities - Interest-bearing liabilities 141,109 151,338

Total long-term liabilities 141,109 151,338

Current liabilities Accounts payable 2,319 6,322 Liabilities to Group companies 390 4,948 Other liabilities 1,517 5,034 Accrued expenses and prepaid income 7,987 25,061 Tax liability, current tax 88 - Interest-bearing liabilities 8,350 -

Total current liabilities 20,651 41,365

Total shareholders’ equity and liabilities 690,002 704,580

Parent Company’s pledged assets and contingent liabilities

Dec 31 Dec 31 2010 2009 KSEK Note Pledged assets 8 186,796 199,184 Contingent liabilities 9 117,998 -

Rabbalshede Kraft AB (publ)YEAR-END REPORT 2010 Page 22 of 25

Notes to the condensed financial statements

Note 1 Accounting policies The Group has applied IFRS since it was newly established during the 2007/2008 fiscal year.

This year-end report for the Group was prepared in accordance with IAS 34 Interim Reporting. Pertinent provisions of the Annual Accounts Act were also applied. The same accounting policies and calculation principles were applied as in the most recent annual report.

The year-end report for the Parent Company was prepared in accordance with the Annual Accounts Act and the regulations in RFR 2.2 Accounting for legal entities. The same accounting policies and calculation principles were applied as in the most recent annual report.

Note 2 Distribution of net sales Group

Q4 Q4 Q1-4 Q1-4 2010 2009 2010 2009 KSEK Oct-Dec Oct-Dec Jan-Dec Jan-Dec

Net sales Electricity sales 12,361 7,432 30,720 19,808 Electricity certificate sales 6,742 5,303 16,146 13,541 Other - 15 481 112

Total 19,103 12,750 47,347 33,461

Parent Company

Q4 Q4 Q1-4 Q1-4 2010 2009 2010 2009 KSEK Oct-Dec Oct-Dec Jan-Dec Jan-Dec

Net sales Electricity sales 5,258 5,054 15,911 16,602 Electricity certificate sales 2,913 3,696 7,199 11,215 Other - 15 482 489

Total 8,171 8,765 23,592 28,306

Rabbalshede Kraft AB (publ)YEAR-END REPORT 2010 Page 23 of 25

Note 3 Other operating revenues Group

Q4 Q4 Q1-4 Q1-4 2010 2009 2010 2009 KSEK Oct-Dec Oct-Dec Jan-Dec Jan-Dec

Sale of wind-power projects - - 18,154 - Reinvoiced construction costs 16,331 - 49,576 - Other -102 - 271 -

Total 16,229 - 68,001 -

Parent Company

Q4 Q4 Q1-4 Q1-4 2010 2009 2010 2009 KSEK Oct-Dec Oct – Dec Jan-Dec Jan-Dec Sale of wind-power projects - - 26,000 - Other revenues from Group companies 3,870 1,660 12,719 2,740 Other 41 - 289 5

Total 3911 1,660 39,008 2,745

Note 4 Personnel costs and other external costs The Company capitalizes all expenses for project-planning personnel linked to the Company’s projects. Personnel costs and other external costs in the area of management/administration are divided among the farms in operation (against profit and loss) and among the projects that have secured permits (against the balance sheet).

Group Q4 Q4 Q1-4 Q1-4 2010 2009 2010 2009 KSEK Oct-Dec Oct-Dec Jan-Dec Jan-Dec

Personnel costs Personnel costs -4,777 -3,595 -16,246 -10,549 Capitalized planning personnel 1,921 1,063 7,538 3,188 Capitalized personnel in management and administration 675 1,250 2,848 1,250

Total -2,181 -1,282 -5,860 -6,111

Group Q4 Q4 Q1-4 Q1-4 2010 2009 2010 2009 KSEK Oct-Dec Oct-Dec Jan-Dec Jan-Dec

Other external costs Other external costs -3,456 -3,323 -18,573 -12,109 Reinvoiced construction costs -16,331 - -49,576 - Capitalized other external costs 1,930 1,875 7,138 1,875

Total -17,857 -1,448 -61,011 -10,234

Rabbalshede Kraft AB (publ)YEAR-END REPORT 2010 Page 24 of 25

Note 5 Financial costs

Group Q 4 Q 4 Q 1-4 Q 1-4 2010 2009 2010 2009 KSEK Oct - Dec Oct - Dec Jan - Dec Jan - Dec

Interest expenses 4,827 1,508 11,774 5,004 Other financial expenses 1,336 - 1,530 - Expensed capital procurement costs 1,648 - 1,648 - Listing costs 2,083 - 2,083 -

Summa 9,894 1,508 17,035 5,004

Note 6 Number of shares The number of shares (thousands) in the comparative period was recalculated from 176,000 to 17,600 taking into account a reversed 1:10 split on April 15, 2010. As a result of this, earnings per share have been recalculated to achieve comparability.

Note 7 Prepaid expenses and accrued income The Company’s work on securing capital related to a stock-market listing is included in Prepaid expenses and accrued income. During the fiscal year, these expenses amounted to KSEK 3,295.

Note 8 Pledged assets

Group

KSEK Dec 31, 2010 Dec 31, 2009 Blocked bank deposits 47,392 25,425 Mortgage deeds for properties 13,500 13,500 Chattel mortgages 5,000 5,000 Assets pledged through collateral transfer 640,291 361,390

Total 706,183 405,315

Parent Company

KSEK Dec 31, 2010 Dec 31, 2009 Blocked bank deposits 6,336 9,425 Mortgage deeds for properties 13,500 13,500 Chattel mortgages 5,000 5,000 Assets pledged through collateral transfer 161,960 171,259

Total 186,796 199,184

Note 9 The Group’s contingent liabilities and the Parent Company’s guarantees The Company has entered into agreements relating to the acquisition of at total of 29 wind turbines, and has also concluded supplementary service agreements. An advance payment in EUR was made in the amount of KSEK 39,921 (rate 9.23). The agreements stipulate specific delivery dates. Given that the Company has not yet secured permits for these projects, there is a risk that the Company cannot meet certain commitments within the specified time and that this will delay the supplier’s deliveries. If the Company cancels all the 29 wind turbines, the expenses for the Company could amount to an additional KSEK 78,077 at a rate of 9.03. However, according to the supplementary agreements, the Company is entitled to instruct that the deliveries be made to other wind farms owned by the Company. The Company plans to place regular orders as from the supplier agreements for the continued build-out.

Rabbalshede Kraft AB (publ) . Marknadsvägen 1 . SE-457 55 Rabbalshede Telephone: +46 (0)525-197 00 . Fax +46 (0)525-197 99 . E-mail: [email protected] . Corp. Reg. No. 556681-4652 www.rabbalshedekraft.se

Rabbalshede Kraft AB (publ)YEAR-END REPORT 2010 Page 25 of 25