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