Statkraft’s Annual and Sustainability Report 20092012 isis an an onlineonline reportreport that can bebe accessed accessed on: http://annualreport2012.statkraft.comhttp://annualreport2009.statkraft.com. The present document contains a compilation of the informationthe information posted in thethe online online report,report, preparedprepared for the purposepurpose of reporting in a formata format compatible with 2012 the submission of United Nations Global AnnuANNUALAl AANDnd CORPORATE Compact’s Communications on Progress. SuRESPONSIBILITYStAinAbility REPORTRepoRt ANNUAL REPORT Page 03 CORPORATE RESPONSIBILITY REPORT Page 135 Annual Report 2012 © Hans Berggren/Johnér s Key figures 2012 Content Part 1 About Statkraft Part 3 Financial Statements 4 Letter from the CEO 47 Group Financial Statements 5 Statkraft Group Management 48 Statement of Comprehensive Income 6 Statkraft at a glance 49 Balance Sheet 8 Growth from hydropower 50 Statement of Cash Flow 10 International growth with pure energy 51 Statement of Changes in Equity 13 Offshore power 52 Notes 14 Wind power with the wind at its back 16 Statkraft in facts and figures 99 Statkraft AS Financial Statements 18 Statkraft around the world 100 Income statement 101 Balance Sheet Part 2 Report from the Board of Directors 102 Statement of Cash Flow 102 Notes 116 Auditor’s Report 119 Corporate Responsibility Statement 120 Statement 128 Auditor’s Statement Read the full report at: annualreport2012.statkraft.com Financial key figures Statkraft AS Group Unit 2012 2011 2010 2009 2008 From the income statement Gross operating revenues***** NOK mill 32 331 22 203 29 252 25 675 25 061 Net operating revenues NOK mill 17 659 17 094 23 176 16 983 23 601 EBITDA NOK mill 9 908 9 767 15 955 9 769 18 171 Operating profit NOK mill 5 365 6 203 12 750 7 027 16 618 Share of profit from associates NOK mill 1 024 898 766 1 179 935 Net financial items NOK mill 2 417 -3 635 -917 4 281 20 267 Profit before tax NOK mill 8 806 3 466 12 599 12 487 37 820 Net profit NOK mill 4 671 40 7 451 7 716 33 262 Items exluded from underlying business** Unrealised changes in value energy contracts NOK mill -1 328 -1 152 62 -2 182 3 921 Non-recurring items NOK mill -1 881 -1 035 70 -108 307 Underlying business** Gross operating revenues NOK mill 34 098 22 298 28 990 25 044 25 422 Net operating revenues NOK mill 18 811 18 120 22 721 19 165 19 680 EBITDA NOK mill 11 060 10 851 15 161 11 951 14 250 Operating profit NOK mill 8 573 8 390 12 618 9 316 12 390 From the balance sheet Property, plant & equipment and intangible assets NOK mill 86 271 84 348 80 772 80 516 77 035 Investments in associates NOK mill 17 974 16 109 17 090 16 509 14 387 Other assets NOK mill 40 747 43 420 58 105 46 980 52 877 Total assets NOK mill 144 992 143 878 155 967 144 005 144 299 Total equity NOK mill 62 437 65 651 75 302 64 901 72 324 Interest-bearing debt NOK mill 40 263 36 887 40 486 45 660 40 791 Capital employed, basic 1) NOK mill 64 811 62 546 66 722 65 486 67 584 Cash flow Net change in cash flow from operating activities NOK mill 9 948 9 521 13 577 12 714 11 499 Dividend for the year to owner(incl. minority interests) NOK mill 4 293 9 400 7 964 10 260 8 396 Depreciation NOK mill 4 543 3 564 3 205 2 743 1 553 Maintenance investments 2) NOK mill 1 065 1 129 1 000 1 308 796 Expansion investments in new generating capasity 3) NOK mill 6 085 5 217 1 852 2 447 1 196 Investments in shareholdings 4) NOK mill 3 523 1 923 888 1 152 581 Cash and cash equivalents NOK mill 5 045 8 282 20 052 6 663 2 209 Unused drawing rights NOK mill 14 205 14 200 9 074 8 785 8 400 Financial variables FFO interest coverage 5) 7.1 7.3 10.5 5.7 7.5 FFO/debt % 23.7 33.1 72.0 21.9 37.9 Interest-bearing debt ratio 6) % 39.2 36.0 35.0 41.3 36.1 Equity ratio 7) % 43.1 45.6 48.3 45.1 50.1 Long-term rating - Standard &Poor’s A- A- A- A- BBB+ Long-term rating - Moody’s Baa1 Baa1 Baa1 Baa1 Baa1 Key figures, accounts EBITDA-margin, accounts 8) % 31 44 55 38 73 EBITDA-margin, underlying 8) % 32 49 52 48 56 ROACE before tax 9) % 13.6 13.9 19.7 14.2 27.2 Net return on investments in associated companies 10) % 5.7 5.6 4.5 7.1 6.5 Return on total assets after tax 11) % 3.8 0.8 6.0 7.0 27.9 Return on total assets after tax 12) % 7.2 0.1 11.8 11.9 57.0 Tax rate 13) % 47.0 98.9 40.9 38.2 12.1 Key figures, upstream business* Production cost/MWh 14) Øre/kWh 7.8 7.3 7.1 7.0 6.4 Production capacity*** TWh 50.4 50.1 49.8 49.9 48.9 Production, actual TWh 60.0 51.5 57.4 57.0 53.4 Installed capacity****** MW 16 055 15 800 15 510 14 942 15 163 Key figures, downstream business* No. of distribution grid customers 1000 183 181 181 275 273 Energy supplied TWh 7.1 7.1 7.8 10.0 9.1 Distribution grid capital (NVE capital) 15) NOK mill 2 685 2 690 2 782 3 627 3 614 No. of end user costumers 1000 400 408 400 397 401 Total volume supplied TWh 13.2 11.9 13.0 11.6 11.4 No. of distric heating customers 1000 11 12 11 10 8 Distric heating supplied TWh 1.1 0.8 1.0 0.9 0.5 Market variables* System price, Nord Pool EUR/MWh 31.3 47.2 53.1 35.0 44.7 Spotprice, European Energy Exchange EUR/MWh 42.6 51.1 44.6 38.9 65.8 Electricity consumption in the Nordic market TWh 385 376 393 381 390 Electricity generated in the Nordic market, actual TWh 399 371 374 372 391 Statkraft`s share of Nordic electricity production % 15.0 13.9 15.3 15.3 13.7 The numbers for 2007-2011 are in accordance with IFRSs. * Key figures include consolidated companies (not associates) in Norway ** Ajusted for unrealised changes in values and material non-recurring items *** Exclusive trading and origination **** Exclusive of gas power and distric heating ***** Gross revenue is from 2011 and onwards restated so that realized and unrealized changes appear on the same line item ****** Includes the share of consolidated companies and the associated gas power companies Herdecke and Naturkraft and the associated biopower companies Emden and Landesbergen 1) Property, plant & equipment 4) Purchase of shares as well as equity increase in 7) Total equity * 100 12) Net profit * 100 + intangible assets other companies Total assets Average total assets + receivables 5) Operating profit 8) Operating profit before depreciation * 100 13) Taxes expense * 100 +inventories + financial income Gross operating revenues Profit before tax - provisions for liabilities + depreciation - taxes payable 9) Operating profit * 100 14) Production cost, incl.property tax and depreciation, + dividend from associates - other interest-free liabilities Average capital employed, basic excl. Sales costs, overhead, net financial items and tax – taxes payable + provisions for dividend payable (NGAAP) Normal output from power plants under own management Financial expenses 10) Share of profit from associates * 100 2) Book value of maintenance investments to sustain Investments in associates 15) Key figures used to calculate the revenue ceiling. 6) Interest-bearing debt * 100 current generating capasity Published at www.nve.no Interest-bearing debt + equity 11) (Net profit + financial expenses * 0.72) * 100 3) Book value of investments to expand generating capacity Average total equity Non-financial key figures The following tables present Statkraft’s most significant results within the areas environmental impact, health and safety, society and employees for the period 2008-2012. More detailed results can be found in the corporate responsibility statement. Power generation and district heating productiona b Unit 2012 2011 2010 2009 2008 Installed capacity MW 16 967 16 430 16 010 15 806 15 478 Of which hydropower MW 13 522 13 249 12 969 12 774 12 546 Of which wind powerc MW 528 321 304 305 245 Of which gas powerc MW 2 178 2 178 2 178 2 160 2 130 Of which biofuel MW 29 16 16 16 16 Of which district heating MW 710 666 544 548 541 Capacity under developmentd MW 1 792 1 923 - - - Of which hydropower MW 910 1 037 - - - Of which wind power MW 361 344 - - - Of which gas powerc MW 430 430 - - - Of which district heating MW 91 112 - - - Power production, actual TWh 60.0 51.5 57.4 56.9 53.4 Of which hydropower TWh 57.6 46.0 50.1 50.1 47.4 Of which wind power TWh 0.8 0.8 0.6 0.6 0.6 Of which gas powerc TWh 1.5 4.6 6.6 6.1 5.4 Of which biofuel TWh 0.1 0.1 0.1 0.1 - District heating TWh 1.1 0.9 1.1 0.9 0.5 Proportion of renewable power productione % 97.2 90.8 88.1 89.1 89.7 a Includes Statkraft’s shareholdings in subsidiaries where Statkraft has a majority interest.