Company presentation – January 13 – page 1 Welcome to Scatec Solar predictable our values driving results change makers working together copyright: Scatec Solar Solutions GmbH www.scatecsolar.com • [email protected] Company presentation – January 13 – page 2 Scatec Solar – who are we our vision: What we do: Improving our future We leverage our experience and vertically integrated business model to identify and realize new high return project development opportunities our values: predictable driving results changemakers working together copyright: Scatec Solar Solutions GmbH www.scatecsolar.com • [email protected] 7 Company presentation – January 13 – page 3 Scatec Solar – a brief overview Established: 2007, HQ in Oslo Employees: 80 Main shareholders: Scatec* 62.5 %, Itochu 37.5 % Unique vertically integrated, scalable and flexible business model • All required competences in-house to ensure a successful project • On-the-ground technological expertise with best practice processes and risk management Excellent track record across multiple markets in different roles and applications Milano, Italy 2010, 7.2 MWp • Track record of approx. 270 MW installed, 70 MW under O&M, 50 MW sales of project rights • Project finance track record of more than 800 M€ • Ownership of 22 MW of assets in Czech Republic, Italy and US Highly successful in the South African IPP program, business development initiatives across a diversified set of markets • Firm back-log of 190 MW in South Africa • Exclusive agreement with IFC covering West and Central Africa • Joint development agreement in Japan Sulkov, Czech R 2010, 10 MWp copyright: Scatec Solar Solutions GmbH * Includes Scatec controlled shares www.scatecsolar.com • [email protected] Company presentation – January 13 – page 4 Scatec Solar is fully integrated downstream and possesses all the required capabilities to realize a project Project development Financing Construction Own / operate (1-2 years) (6-12 months) (2-5 months) ▪ Scatec Solar seeks to be an early ▪ Arrange debt and equity ▪ Engineering and ▪ Scatec Solar takes entrant into new markets capital for individual system design equity positions with projects or portfolios an aim to recycle capital ▪ By partnering with local players we ▪ Procurement and within 3-5 years seek to get access attractive supply chain projects and secure all the required management ▪ Currently holds 20 MW permits to construct a PV park of assets in Czech ▪ Construction and quality Republic and US control ▪ Operates plants throughout its lifetime ▪ Currently 65 MW under operation copyright: Scatec Solar Solutions GmbH www.scatecsolar.com • [email protected] Company presentation – January 13 – page 5 On-the-ground technological expertise with best practice processes and risk management Track record of approx. 265 MW in Germany, Czech Republic, Italy, France, and South Africa In-house capabilities Triple ISO certified World’s first triple certified solar • Engineering system integrator for • Design • Quality (ISO 9001) • Supply chain • Environment (ISO 14001) management • Occupational Health and Safety (OHSAS 18001) • Project management • Operation and Sample projects: MW sized power plants Maintenance Ground mounted PV Roof top PV PV Carports Sulkov, Czech R. 2010, 10 MWp DHL roof, Italy, 2010, 7.2 MWp Quinciuex, France, 2011, 8MWp copyright: Scatec Solar Solutions GmbH www.scatecsolar.com • [email protected] Company presentation – January 13 – page 6 We have a worldwide presence 1 Overview Norway HQ Germany US ▪ Execution hub Czech R Japan France Central America MENA Romania Hawaii India Saudi Arabia South America ▪ Rural el project West / Central Africa Project development Ownership of assets EPC services South Africa Planned copyright: Scatec Solar Solutions GmbH www.scatecsolar.com • [email protected] Company presentation – January 13 – page 7 Scatec Solar has a solid track record … Cumulative project size MWp Track record: • No calls on performance or warranty bonds, • No loss-making contracts. • All projects completed without significant overrun on time or cost • Performance expectations met or exceeded Cumulative number of projects1 1 Small rooftop projects are grouped and listed as “one project” per year copyright: Scatec Solar Solutions GmbH SOURCE: Scatec Solar www.scatecsolar.com • [email protected] Company presentation – January 13 – page 8 … across various roles, markets and applications Track record across various roles various markets various applications Proven project development Business model is scalable Proven execution in and EPC capabilities across new markets multiple applications Proven and diverse experience in multiple geographies, different roles and different applications copyright: Scatec Solar Solutions GmbH www.scatecsolar.com • [email protected] Company presentation – January 13 – page 9 Scatec Solar has a project finance track record of ~EUR 800 million Debt financing track record Asset structuring and management experience • Non-recourse financing of 3 plants (13 MW) in Germany in • 7,5 MW of operating assets in Germany (from late 2008 / 2009, totaling EUR 35 mill (5 facilities) early 2009, under management) • 20 MW of operating assets in Czech Rep. (from late 2009 / • Non-recourse financing of 1 plant (7 MW) in Italy in 2010, late 2010, under management) totaling EUR 17 mill (1 facility) • 9 MW of operating assets in Italy (from late 2009 – early • Non-recourse portfolio financing of 4 plants (20 MW) in 2011, recently sold) Czech Rep. in 2010-11, totaling ~EUR 65 mill (7 fac.) • 190 MW already structured in South Africa. Additional volumes in preparation. • Non-recourse portfolio financing of 9 plants (9 MW) in Italy in 2010-11, totaling EUR 33 million (9 facilities) Equity sale track record • 9 MW of operating assets in Italy sold to an institutional • Credit approval for financing of 3 plants (190 MW) in South equity investor in late 2011 Africa in 2011-12, totaling ~EUR 550 mill (6 fac.) • An additional 2 MW sold to another investor in Q2 2012 copyright: Scatec Solar Solutions GmbH www.scatecsolar.com • [email protected] Company presentation – January 13 – page 10 The Czech parks owned and operated by Scatec Solar are consistently overperforming relative to original expectations Production (kWh), actual vs budget (%) Plant Size (kW) 2011 (whole year) 2012 Jan - May Hrusovany 3 133 +13% +19% All parks have consistently shown a Mramotice substantial overproduction relative to budget. 2 648 + 11% + 16% Since actual solar irradiation have varied less than +/- 1.5% during the Sulkov same period, this reflects a real 9 993 + 11% + 23% technical over performance relative to expectations Svitavy 4 033 + 7% + 20% Note: The Svitavy park showed less positive deviation in 2011 due to extraordinary downtime in connection with equipment upgrade copyright: Scatec Solar Solutions GmbH www.scatecsolar.com • [email protected] Company presentation – January 13 – page 11 Scatec Solar has been awarded three projects in the first and second rounds of the REFIT program Round 1: Round 2: • Results were announced on December 7th 2011 • Results were announced in May 2012 • Only Wind and Solar projects were given allocation • 9 PV projects totaling 417 MW were awarded • 18 PV projects (totaling 632 MW) were awarded; ranging in • Scatec Solar submitted 5 projects and was awarded 2; size from 5 to 75MW (75 = capacity ceiling for PV) the Dreunberg and Linde, totaling 115MW, more than • Scatec Solar was awarded the Kalkbult project (75MW) 25% of the total • Financial close in November 2012 • Financial close scheduled for April, 2013 copyright: Scatec Solar Solutions GmbH www.scatecsolar.com • [email protected] Company presentation – January 13 – page 12 Scatec Solar is securing growth opportunities across diverse markets 4 Business Dev. US: Europe: 1-2 new growth opportunities Scatec Solar is focusing on 5-6 • 55 MW of project rights in • Currently assessing opportunities in business development activities at California and Hawaii already Romania, Cyprus and Jordan any given time – utilizing the sold. 200 MW in Utah in • Recently signed an EPC contract and strength of our integrated business advanced stage development business development cooperation in model and strong network of local • Cooperation with wind developer Romania and international partners in Texas to offer hybrid solutions South America: Assessing Japan: Scatec Solar has a JV with opportunities Itochu in an attractive market • Dedicated team is assessing • Japan has introduced an attractive opportunities feed-in-tariff regime • Scatec Solar has a JV with Ecosystem Japan, a subsidiary of West Africa: High growth market, cooperation South Africa: key market in 2012 Itochu. Installations and revenue with International Finance Corporation (IFC) and 2013 expected in 2013 • A joint development agreement with IFC • Backlog of 190MW, targeting (private arm of the World Bank) signed in additional projects for phase 3 June 2012 • Will be used as starting point for • Plan to build a portfolio of projects in Benin, further expansion to nearby Burkina Faso, Cameroon, Niger, and Togo countries copyright: Scatec Solar Solutions GmbH www.scatecsolar.com • [email protected] Company presentation – January 13 – page 13 West Africa – Growth Region in Need of Electricity Estimated cost of electricity delivered by diesel ▪ Strong growth region with huge power demand generator ▪ PV is competitive in this segment as costs for operating diesel generators and heavy fuel plants