Investor presentation

February 2020 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.

2 Contents

• Introduction • The solar market • Our backlog & pipeline • Our business model • Financials • Outlook and guidance

The 40 MW Mocuba solar plant, Mozambique.

3 Scatec Solar today – a frontrunner in renewable energy

Scatec Solar develops, builds, owns and operates solar power plants across emerging markets

IN OPERATION & PROJECT BACKLOG CAPACITY BY END ANNUAL GROWTH NUMBER OF UNDER CONSTR. & PIPELINE 2021 FROM 2022 EMPLOYEES

1.9 GW 5.8 GW 4.5 GW 1.5+ GW 345

4 Scatec Solar at a glance

Key facts • We develop, build, own and operate solar plants across emerging markets 1.9 GW 5.8 GW 345 • Founded in 2007 – headquarter in Oslo, Norway • Present in 18 countries globally In operation & Backlog & Employees under construction pipeline Our locations

Scatec Solar offices Plants in operation Plants under construction

5 2019: Doubled installed capacity and expanded the project pipeline

Proportionate EBITDA Global footprint & targets raised – (NOK million) expanded pipeline & backlog to 5.8 GW +63% 1,571

Grid connected 609 MW in Egypt, Malaysia, Ukraine and Mozambique – 961 in total 1.2 GW in operation

Industry leader in ESG risk management – also expanded to include reporting to Carbon Disclosure Project (CDP)

2018 2019

6 A diversified portfolio of 1.9 GW in operation and under construction

Eqypt, 390 MW South Africa, 362 MW Malaysia, 197 MW Brazil, 162 MW Honduras, 95 MW

Malaysia, 197 MW Ukraine, 47 MW Jordan, 43 MW Mozambique, 40 MW Czech, 20 MW Rwanda, 9 MW IN OPERATION

Ukraine, 289 MW Argentina, 117 MW South Africa, 86 MW Malaysia, 47 MW UNDER CONSTR.

7 Our success is based on our business model and a strong entrepreneurial culture

Business model People

• Integrated – capturing full project value • Agile and lean • Structuring and financing • Entrepreneurial culture • Financial discipline • Passionate and empowered people • Partnerships • Strong and diversified talent pool

Predictable Working together Driving results Changemakers

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

The global power 62% sector towards 2050: 77% Increase in global Of new demand to be electricity demand covered by renewables

12,000 GW 98% New power Demand growth in generation capacity non-OECD-countries

Solar from 2% to 22% Fossil from 64% to 20% market share in power market share in power

Source: Bloomberg New Energy Outlook 2019. 10 Solar is one of the world’s most competitive sources of energy

Cost of alternative energy sources (LCOE, USD/MWh) • Solar is now the lowest cost source of energy across the sun-rich regions globally • The levelised cost of solar has come down 85% 250 since 2010 – industry scale and technology • Storage and hybrid solutions are expected to 200 become increasingly important for demand 150 • New business propositions are emerging when solar is cost competitive with base load 100

50

0 Solar PV Wind Gas base Coal Nuclear Gas peak Diesel load load

Source: Lazard Capital, LCOE v13, Scatec Solar. LCOE: Levelised cost of energy 11 Solar market expected to reach almost 160 GW of annual installations

Multiple governmental drivers for solar demand Annual global solar demand forecast - GW

Rest of Asia Latin America India Time-to- MENA USA Europe market Sub-Saharan Africa China Rest of World Climate 159 154 treaty Cost of & national energy 134 action plans Main 104 drivers 75 Employment Energy and economic security growth 45 More foreign investments

2014 2016 2018 2019 2020 2021 Source: Bloomberg NEF Q4 2019 forecast by region. 12 Battery costs expected to be reduced by almost 60% by 2030

Expected battery cost development 600 GW of large scale diesel/HFO installed globally

325 Installed large scale diesel/HFO (GW) 250

255 219 183 130 130 USD/kWh 161 149 137 100

2018 2020 2022 2024 2026 2028 2030 Americas Africa Europe Asia

Source: Bloomberg NEF 2019. Fully installed equipment in 2019 USD.. Source: IEA World Energy Outlook, BNEF, MarketResearchFuture, Scatec Solar analysis.

13 Our backlog & pipeline Solid backlog & pipeline supporting our growth ambitions

Europe & Central Asia 528 MW

Backlog & Southeast Asia pipeline Africa 1,695 MW 2,591 MW 5,774 MW Latin America 2021 target 960 MW 4,500 MW

All figures are as of Q4 2019 reporting date. 15 Vietnam – a high growth economy with a significant market potential

• Strong economic growth – GDP growth of 7% per year • Population of close to 100 million • Strong demand for power – rapid growth in renewables • Needs to add 60-70 GW of new capacity the next 10 years • Government assessing how to further develop the renewable programme • A market that fits well with Scatec Solar’s business model

16 South Africa – accelerating renewable developments

• One of Africa's largest economies – weak economic growth but in need for more power capacity • Integrated resource plan approved in Q4 2019 • 20 GW of renewable energy planned towards 2030 • Renewable tender Round 5 expected in 2020 • In addition: Short term power deficit has led to an extra power procurement round • New regulations allows for industrial self-production • Scatec Solar’s market position • Existing asset base of 448 MW • 950 MW of excellent sites ready for tenders • Strong interest for Release – public and private customers The 75 MW Dreunberg plant in South Africa started operations in 2014.

17 We are further expanding our market segments & product offerings

Utility scale solar Corporate & Industrial Release – Redeployable solar

• PPAs with state owned utilities • Large industrial customers • Hybrids with storage and gensets • Non-recourse project finance • Long-term PPAs with fixed prices • Off-grid or on-grid solutions

18 Release – a new growth platform for Scatec Solar

• Release offers affordable, clean, reliable and flexible solar power for rent • Targeting industrial customers in emerging markets with pre- assembled and re-deployable solar parks • Large addressable market, including 600 GW in large scale diesel power plants • Targeting annual installations of 300 - 500 MW from 2022 and onwards • Equity partnership with Norfund and other partners

19 - offering reliable, flexible and low cost solar power

Pre-assembled and containerised solar Quickly installed – Limited upfront investment and battery equipment modular, scalable and redeployable flexible contract duration

by Scatec Solar

Photo: Cambridge Energy Partners 20 Our business model Scatec Solar’s value chain We develop, build, own & operate solar plants for 20 years

Project development Operations Financing Construction Ownership (IPP)

• Site development & • Debt/Equity structuring • Engineering and • Maximize performance and • Asset management permitting procurement availability • Due diligence • Financial optimization • System design • Construction management • Maintenance and repair • Business case development • PPA negotiation

22 Partnering with Development Banks for project finance and risk mitigation

• Multilateral development banks (DFIs) are providing project debt to infrastructure in emerging markets • DFIs are often advising governments on design of renewable programmes to promote private / public partnerships • Project structures and contracts are set up to mitigate risk and facilitate non-recourse project level debt

23 Our business model and typical project structure

Simplified illustration of company structure and main contracts in place

Equity co- Scatec Solar investors

100% 39%-100% Shareholders agreement Component Suppliers Land lease Land owners agreements

Scatec Solar Single Purpose O&M / EPC • EPC contract Vehicle Loan agreements • O&M contract Project financing Sub-Contractors • Asset Management contract PPA agreement • Sovereign guarantee • Concession • Political risk agreement insurance (when State owned relevant) utility World State Bank/others government

24 Scatec Solar’s growth capacity continues to increase

Our business model and typical project capital structure:

Scatec Solar’s growth capacity • As the asset portfolio grows, more dividends/operating cash flow is available for investments 75 • In addition the integrated business model adds to (75%) our growth capacity – D&C margin generation 100 USDm (100%) • Timing, size & type of funding depends on several factors: • Size and timing of new projects • Debt leverage of projects 10 • Scatec Solar ownership in projects (10%) 15 (15%) 11

Total capex Non-recourse Partner’s equity SSO equity SSO D&C margin project finance share 40% share 60%

100 MW project example

25 Scatec Solar utilises new technology to improve power plant performance

Bi-facial solar modules, Egypt Global control & monitoring centre, Cape Town

• The world’s largest solar park with bi-facial modules • Real-time data from all plants globally 24/7 • 390 MW / 870 GWh annual production • Improving operational quality and efficiency • R&D programs with several universities and institutions

26 Environmental, Social & Governance (ESG) is integrated in our operating model

Project Power Opportunity Financing Delivery Development Production

Continuous compliance risk assessment, integrity due diligence and monitoring

Conduct E&S due diligence CO2 emissions Identify, mitigate and monitor environmental and social impacts avoided

Stakeholder engagement, grievance mechanism and local development programmes

Establish local E&S team

Health & Safety

Responsible Procurement

Calculate Scatec Solar’s emissions DG3: Final investment End of life decision management An industry leader in ESG risk management

ESG RISK RATING REPORT

SSO’s material ESG topics from risk rating report Rating summary: Low risk Relative performance

Corporate Human Rank governance capital • Low risk of experiencing material financial impacts Global universe 379 out of 12,237 from ESG factors • Strong ESG risk Business Community Product management Utilities (Industry Group) 1 out of 450 relations ethics governance • Not experienced any significant controversies Renewable power 1 out of 48 Health & Land use & production (Subindustry) safety biodiversity

28 Financials Our priorities when investing in solar stay firm

Continue to stay selective - Focus on value and risk adjusted returns - Secure D&C margin – key for equity funding

Transactional and operational control - Scatec Solar – the lead developer and investor

Debt & Equity partnerships - Maximise return on equity and mitigate political risk

Capital structure approach remains unchanged - Maximise leverage at the project level - Moderate group level debt

Dividend policy stays firm - Pay out 50% of free cash flow from operating power plants

30 Continued growth and predictable long term cash flows

Installed capacity and power production Proportionate revenues and EBITDA (NOK million)

6,341 Installed capacity at year end (MW) EBITDA GWh produced (100% basis) Revenues 1,655

4,725 1,193

681 1,680 583 627 584 1,601 1,571 466 1,211 1,174 961 274 278 322 322 792 219 391 428 376

2014 2015 2016 2017 2018 2019 2014 2015 2016 2017 2018 2019

31 A strong financial position

Consolidated financial position (NOK million)

• Group free cash of NOK 758 million As of 31.12.2018 As of 31.12.2019

• Undrawn Revolving Credit Facility at USD 90 million 21,681 21,681

• Group* book equity at NOK 5,004 million 4,495 3,742 – equity ratio of 87% 2,440 14,857 14,857 NOK million Consolidated SSO prop. share Group level* 2,475 4,442 Cash 2,824 2,155 758 1,800 Interest bearing 17,186 15,499 liabilities* -13,810 -9,467 -745 10,415 10,583 Net debt -10,986 -7,312 13

Assets Equity & Assets Equity & Liabilities Liabilities Current assets Equity Non-current liabilities Non-current assets Current liabilities *Defined as ‘recourse group’ in the corporate bond and loan agreements 32 Q4’19 free cash at group level

Argentina, Ukraine NOK million & South Africa 10 -25 Net working capital 66 107 construction projects 1,518 -187 -88

-642 Development of project backlog and pipeline 758

End Q3 Distributions Cash flow to Cash flow to Cash flow to Project equity Project Working End Q4 from operating equity D&C equity O&M equity Corporate Development capex Capital/other power plants

Movement of cash in ‘recourse group’ as defined in the corporate bond and loan agreements. 33 2019 free cash at group level

NOK million Net working capital construction projects

-108 37 -91

471 1,300 -1,127 -869 241

-135

1,039 758

End 2018 Distributions Cash flow to Cash flow to Cash flow Project equity Project Share capital dividend Working End 2019 from operating equity D&C equity O&M to equity Development increase distribution Capital/other power plants Corporate capex

Movement of cash in ‘recourse group’ as defined in the corporate bond and loan agreements 34 Stable cash flows based on PPAs with public utilities and corporates

Power price Counterparty Interest rate Currency & volume

• Tariffs fixed in long • PPAs with state owned • Project finance debt • Structuring of project debt term contracts utilities with fixed interest of 10 in same currency as power years or more from grid sales revenues • Take or pay all volume • Financing partners with connection produced strong government relations • Inflation adjusted tariffs in PPA • Shorter contract • Political Risk Insurance in tenors in Release selected markets concept • Corporate off takers with solid financial position and guaranteed payments

35 A well diversified portfolio with PPA contract values of more than NOK 60 billion

20 years average remaining PPA tenor: Portfolio currency split*: 1.9 GW in operation & under Egypt - 390 MW 25 MYR ZAR construction Malaysia - 244 MW 21 10% 25% Mozambique - 47 MW 20 EUR 25% Portfolio country split*: Argentina - 117 MW 20 9% BRL Czech Republic South Africa IV- 258 MW 20 Argentina 7% South Africa 32% 3% Rwanda - 9 MW 20 24% USD Brazil - 162 MW 19 Ukraine 18% Honduras - 95 MW 18 Rwanda Jordan - 40 MW 18 9% Mozambique Honduras South Africa I & II - 190 MW 15 3% Ukraine - 336 MW 10 16% Jordan 9% Egypt Czech republic - 20 MW 10 10% Brazil Malaysia Expected plant lifetime of more than 35 years *Based on expected cash flow to equity. 36 A significant Post PPA value based on a plant life of 35+ years

Post PPA value: 15 years of post PPA Equity Value for 1.9 GW* NOK billion

CoE 10% • Power Purchase Agreements of 20-25 years 4 CoE 8% • Technical life of solar plants of 35+ years CoE 6%

• After 20 years the marginal cost of solar power 3 production is very limited • Fully depreciated and debt free plants • No fuel cost 2 • Limited cost of operation & maintenance • Market power prices are expected continue to 1 increase – especially across emerging markets

0 45 55 65 Post PPA tariff level (USD/MWh) (*) 2019 tariff value, 65% ownership, 2.5% inflation and 20% tax rate 37 Outlook and guidance Short term guidance

• D&C value for 711 MW under construction: NOK 3.4 billion • Remaining NOK 700 million value to be recognised • Power production from plants in operation end of 2019:

GWh Q4’19 Q1’20e 2020e Proportionate 298 305-325 1,250-1,350 100% basis 536 540-580 2,300-2,400

• In 2020, revenues and margins from Asset Management and O&M will be reported together in a new Services segment • Guidance and restated figures will be published before reporting of Q1 2020 The 47 MW Rengy project, Ukraine.

39 Scatec Solar is well positioned for continued strong growth

• Completing 711 MW in first half 2020 • Long term cash flows from 1.9 GW Installed capacity* Annual growth of • ESG – integrated part of our operating model 4.5 GW 1.5+ GW • Positive market outlook by end 2021 from 2022 • A leading player in emerging markets onwards

Effective execution of Secure growth in Broaden commercial Optimise financing and asset current project portfolio priority regions and technology scope portfolio to enhance value

*In operation and under construction. 40

Our asset portfolio – February 2020

In operation: Under construction: Project backlog: CAPACITY ECONOMIC CAPACITY ECONOMIC CAPACITY ECONOMIC MW INTEREST MW INTEREST MW INTEREST

Malaysia: Gurun, Jasin, Ukraine: Kamianka, Tunisia 360 65% Merchang 197 100% Progressovka, Chigirin, Boguslav 289 96% Vietnam 48 65% Egypt: Benban 390 51% Argentina: Guañizuil 117 50% Ukraine 65 65% South Africa: R1 & R2 190 45% South Africa: Upington 86 46% Bangladesh 62 65% South Africa: Upington Malaysia: Redsol 47 100% Mali 33 51% (2 of 3 plants) 172 46% Total 539 78% Total 568 64% Brazil: Apodi Solar 162 44% Honduras: Agua Fria, Los Prados I 95 51% Rengy 47 51% Jordan: EJRE/GLAE, Oryx 43 62% Mozambique: Mocuba 40 53% Czech Republic 20 100% Rwanda: Asyv 9 54% Total 1,365 53%

42