Corporate Factbook 23 September 2020 Table of contents Vattenfall Group - Overview and strategy 3 - Green Financing 20 - Sustainability deep-dives 28 Operating segments - Customers and Solutions 39 - Power Generation 44 - Wind 51 - Heat 61 - Distribution 67 Financials - Financial performance 73 - Hedging, debt and funding 77 2 Overview and strategy This is Vattenfall Activities in the Value Chain Active Inactive Upstream Production Transmission Distribution Trading Retail Services Main markets CO2 emissions & Renewable In Brief 6.9 Million • Sweden capacity Electricity Customers • Vattenfall is a leading European • Germany 90 3 500 energy company • Netherlands 3 000 1.9 Million 60 2 500 • We want to make fossil-free living Heat Customers • Denmark 2 000 MW • United Kingdom 1 500 possible within one generation 30 3.3 Million Mtonnes 1 000 • We are driving the transition to a more Electricity 500 sustainable energy system through growth Network Customers 0 0 in renewable production and climate smart energy solutions for our customers 2.5 Million Gas Customers Installed renewable capacity (MW) • 100 per cent owned by the Swedish CO2 emissions (Mtonnes) State 19,814 Employees Electricity generation EBITDA breakdown by • Our long-term credit ratings are BBB+ breakdown by technology, 2019 segment, 2019 stable outlook by S&P and A3 negative Customers & Solutions Distribution outlook by Moody’s 7% 8% 21% 24% 41% SEK 130.3 35% 13% 42.4 bn TWh Heat Power Generation 27% 24% Wind 4 Vattenfall Executive Group Management President and CEO Magnus Hall1 Senior Vice President, General Senior Vice President, CFO Counsel and Secretary to the Anna Borg2 board of Directors Anne Gynnerstedt Senior Vice President, Senior Vice President, Human Strategic Development Resources Andreas Regnell Kerstin Ahlfont Senior Vice President, Communications Karin Lepasoon3 Business Area Business Area Business Area Business Area Business Area Heat Customers & Solutions Wind Power Generation Distribution6 Senior Senior Executive Senior Vice Senior Vice Executive Vice Senior Vice Vice President, President, Senior Vice President President President Generation Markets President Gunnar Tuomo Martijn Hagens Torbjörn Anna-Karin Annika Viklund Groebler Hatakka4 Wahlborg Stenberg5 1 Magnus Hall will leave Vattenfall, at latest in January 2021. 6 2 Anna Borg will take over as CEO on 1 November 2020. The electricity distribution operations are regulated by the Swedish Electricity Act 3 Karin Lepasoon will leave Vattenfall at the end of September 2020. (Ellagen) and the German Energy Industry Act (Energiewirtschaftsgesetz), and are 5 4 Tuomo Hatakka will retire at the end of 2020. unbundled from Vattenfall’s other operations. 5 Acting SVP. For more info: please see page 84-85 in the Annual- and Sustainability Report 2019 Vattenfall Board of Directors Chairman of the Board Lars G. Nordström Board member Board member Viktoria Bergman Ann Carlsson Board member Board member Håkan Erixon Mats Granryd Board member Board member Tomas Kåberger Jenny Lahrin Board member Board member Åsa Söderström Fredrik Rystedt Winberg Employee Employee Employee Employee Employee Employee representative representative representative representative representative representative (deputy) (deputy) (deputy) Robert Lönnqvist Rolf Ohlsson Jeanette Regin Lennart Bengtsson Anders Bohlin Christer Gustafsson For more info: please see page 82-83 in the Annual- and Sustainability Report 2019 6 Vattenfall’s value chain Production Electricity distribution Sales of electricity, District heating Energy services & heat and gas decentralised generation Production from • Guarantees secure • Sells electricity, heat • Drives the Offers energy services • Hydro supply via well- and gas to consumers transformation towards • Heat pumps • Nuclear functioning distribution and business fossil-free heating and • Solar panels networks and smart customers cooling solutions • Coal • Charging solutions for network solutions • Focuses on various together with partners, • Natural gas electric vehicles • Enables customers to price and service cities and regions • Battery storage • Wind feed self-generated models, and gives • One of Europe’s • Solar electricity into the grid customers the largest producers and • Network services • Biomass (“prosumers”) opportunity to distributors of district • Smart meters • Waste • Flexibility services to understand and reduce heating Provides marketplaces Actively phasing out both electricity their environmental and access to fossil-based production producers and impact marketplaces where consumers to optimise customers can buy and network functionality sell electricity 7 Operating segment overview FY 2019 Operating segments Customers & Solutions Power generation We report our operations broken down by the Responsible for sales of electricity, gas and Responsible for Vattenfall’s hydro and nuclear Group’s operating segments: Customers & energy services in all of Vattenfall’s markets power operations, maintenance services Solutions, Power Generation, Wind, Heat, and • One of the market leaders in Sweden with nearly business, and optimisation and trading Distribution. The operating segments reflect our 900,000 electricity contracts operations, including certain large business Business Area organisational structure except for • One of the market leaders in the Netherlands with customers the Power Generation segment, which is divided 3.6 million electricity and gas contracts • Operates a portfolio with 7.2 GW nuclear capacity into the Generation and Markets Business Areas • Leading position in Berlin and Hamburg as an and 11.7 GW hydro power capacity across electricity supplier Sweden, Finland and Germany • Activities in France expanded from business • One of Europe’s largest providers of fossil-free Number of Employees as of 31 customers to also serve retail customers with electricity, with 35.8 TWh from hydro power and December 20191 electricity and gas 53.4 TWh from nuclear power • Operates 14,900 e-mobility charging points in • Provides professional asset optimisation services Sweden, Germany and the Netherlands and market access, and a leading player in PPA Customers and Solutions 3,150 • Launch of Flexpower, a public smart charging markets in northwest Europe network for e-vehicles, in cooperation with the • Closure of Ringhals reactor 2 and preparation for Power Generation 7,429 city of Amsterdam the decommissioning of Ringhals reactor 1 in 2020 Wind 1,000 Underlying Operating Profit3: SEK 1,337 mn Underlying Operating Profit: SEK 15,437 mn Heat 3,310 (5% of total) (58% of total) External Net Sales: SEK 87,343 mn External Net Sales: SEK 38,425 mn Distribution 2,247 (53% of total) (23% of total) EBITDA: SEK 2,976 mn EBITDA: SEK 13,642 mn (8% of total) (35% of total) Other2 2,678 1 Full-time equivalents. 2 Pertains mainly to Staff Functions and Shared Service Centres. 8 3 Numbers reflect FY 2019 Operating segment overview FY 2019 (Cont’d) Wind Heat Distribution Responsible for development and operation of Responsible for Vattenfall’s heat operations Responsible for Vattenfall’s electricity Vattenfall’s wind farms as well as large-scale including sales, decentralised solutions and distribution operations in Sweden, Germany and decentralised solar power and batteries gas-and coal-fired condensing (Berlin) and the UK • One of the largest producers of offshore wind • One of Europe’s leading producers and • Leading owner and operator of electricity power in the world distributors of heat with more than 1.9 million end distribution networks in Sweden • One of the largest producers of onshore wind customers • Approximately 3.3 million business and retail power in Denmark and the Netherlands • Power-to-Heat facility connected to district customers in Sweden and Berlin, Germany • Inauguration of the Horns Rev 3 offshore wind heating network in Berlin, enabling the closure of • Swedish Energy Markets Inspectorate farm (407 MW) in Denmark a coal-fired power plant announced significantly lower revenue frames for • Winning bid for the subsidy-free Hollandse Kust • Feasibility study conducted by Vattenfall and the the next regulatory period, reducing the scope for Zuid 3 & 4 offshore wind farm (~750 MW) in the City of Berlin shows that a coal phase-out in needed investments Netherlands Berlin is feasible by 2030 • Major disruptions after Storm Alfrida in 2019 with • Construction started on the Kriegers Flak (605 • Transfer of district heating operations in Hamburg associated costs of approximately SEK 800 MW) offshore wind farm in Denmark completed million • Closure of the Hemweg 8 coal-fired power plant in the Netherlands • Switch from peat to wood pellets as fuel in heat- only boiler in Uppsala Underlying Operating Profit1: SEK 4,155 mn Underlying Operating Profit: SEK 550 mn Underlying Operating Profit: SEK 4,998 mn (16% of total) (2% of total) (19% of total) External Net Sales: SEK 6,578 mn External Net Sales: SEK 15,947 mn External Net Sales: SEK 17,903 mn (4% of total) (10% of total) (11% of total) EBITDA: SEK 9,645 mn EBITDA: SEK 4,957 mn EBITDA: SEK 8,236 mn (24% of total) (13% of total) (21% of total) 1 Numbers reflect FY 2019 9 Our beliefs about the future 1 2 3 4 5 6 Sustainability is Simple solutions Demand for Digitalisation of New Cost efficiency the business to customers fossil-free the entire energy competencies and needed in a electricity and value chain is are critical in the competitiveness complex energy grids will necessary energy transition is paramount landscape increase significantly