Investor presentation

May 2019

Disclaimer

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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.

Contents

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• Introduction

• The solar market

• Business model

• Financials

• Outlook and guidance

Scatec Solar – a frontrunner in renewable energy

We develop, build, own and operate utility-scale solar power plants

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IN OPERATION & UNDER

CONSTRUCTIONPROJECT BACKLOG

& PIPELINE

4.6 GW1.7 GW

CAPACITY BY END 2021

3.5 GWEMPLOYEES

263

A portfolio of 649 MW in operation – track record of 1 GW+

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Honduras, 95 MW Malaysia,65 MWSouth Africa, 190 MW

Rwanda, 9 MW

Brazil, 162 MW

Czech, 20 MWJordan, 43 MWEqypt, 65 MW

Scatec Solar’s average economic interest: 55%

1,006 MW under construction in six countries

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Jasin & Merchang, Malaysia, 130 MW Argentina, 117 MWEgypt, 335 MW

Mozambique, 40 MW

South Africa, 258 MW

Redsol, Malaysia, 47 MWUkraine, 77 MW

Scatec Solar’s average economic interest: 60%

First 65 of 400 MW in Egypt reached commercial operation

Scatec Solar’s Egypt solar power plants:• Bi-facial solar panels: 1 million • Peak manning: 4,500• Lost Time Incidents: 1 on 4 million hours• Households powered: 420,000 • Annual production: 870 GWh• Avoided CO2 annually: 350,000 tonnes

January2019

Expected commercial operation dates

December20191 2 3 4 5 6

Project pipeline and backlog of 4.6 GW across our target markets

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Latin America

833 MW

Africa

2,106 MW

Southeast Asia

824 MW

Europe and Central Asia

410 MWBacklog

377 MW

Pipeline4,173 MW

All figures are as per reporting date for first quarter 2019.

Bi-lateral28 %

FiT28 %

Project tender32 %

Price tender12 %

Partnering with UN to reduce carbon emissions and the cost of power

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• 0.7 MW project for United Nations entity secured in South Sudan• Combined battery and solar project for IOM – covering about

90% of off-takers energy demand 24/7

• The solar systems can easily be increased to supply power to local communities or to other off-takers at a later stage

• UN spends about USD 600* million annually on fuel for power

• A large potential to reduce cost and carbon emissions for the UN entities

• In addition, two hybrid plants with total capacity of 2.25 MW for an international agency in South Sudan

*Source: The Moving Energy Initiative (MEI), December 2018.IOM: International Organisation for Migration.

We have advanced into a top 10 global independent solar PV developer

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0 2,000 12,0006,000 10,000 14,0004,000 8,000

Enel Green Power

SunEdison

First Solar

GCL New Energy

Engie

EDF

Scatec Solar

Enerparc

Total (SunPower and Eren)

Canadian Solar

Adani

Marubeni

Equis

Neoen

Lightsource

Asia Pacific

North America

Europe

Latin America

Middle East and North Africa

Sub-Saharan Africa

MW, operational and under development

Upstream

Direct peers

• Top 10 global utility-scale solar developer • A broad portfolio across emerging markets

Source: GTM Research

Our success is based on our integrated business model combined with a strong entrepreneurial culture

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• Agile and lean• Entrepreneurial culture• Passionate and empowered people• Strong talent bench

• Fully integrated• Structuring and financing• Financial discipline• Partnerships

Business model People

Predictable Working together Driving results Changemakers

The Solar Market

Multiple governmental drivers for solar PV demand

Demand for solar is growing significantly across emerging markets

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Main drivers

Time-to-market

Cost of energy

Energy security

More foreign

investments

Employment and economic

growth

Climate treaty

& national actionplans

Annual global solar PV demand forecast - GW

20202014

45

130

2016 2018 2019 2021

75

105

117127

Rest of AsiaUSAMENA

Rest of WorldSub-Saharan Africa

Latin America

China

IndiaEurope

Source: BloombergNEF Q1 2019 conservative forecast

Solar is one of the world’s most competitive sources of energy

• The levelized cost of solar has come down 83% since 2010 – industry scale and technology

• Solar is now the lowest cost source of energy across the sun-rich regions globally

• Storage and hybrid solutions are expected to become increasingly important for demand

• New business propositions are emerging when solar is cost competitive with base load

Cost of alternative energy sources (LCOE, USD/MWh)

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0

50

100

150

200

250

Solar PV CoalWind Gas base load

Gas peakload

Nuclear

Source: Lazard Capital, LCOE v12, Scatec Solar

Diesel

A solid business case for corporates sourcing solar across emerging markets

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Cost of electricity for corporates in emerging markets

0

50

100

150

200

250

Solar on 20 yr contracts

On-grid Power –unreliable and blackouts

Off-grid Diesel –high opex and logistics

Source: Lazard Capital, Scatec Solar

LCOE, USD/MWh

A large potential to replace diesel and oil based power generation globally

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• Total installed capacity of more than 500 GW of diesel and heavy fuel oil gen sets globally

• Annual installations of more than 35 GW in emerging markets

• Installed base of more than 250 GW in Africa • More than 10 GW new capacity installed annually

• Significant potential in Africa, Southeast Asia, Middle-East and Latin America

Source: Bloomberg New Energy Finance, Scatec Solar analysis.

Corporates active on renewables in OECD, but slower adaption in emerging markets

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6256

3225

20

93

Europe US - NA India China Latin-America Other- Asia Africa

• RE100 is a global initiative with 100 influential businesses

• Committed to sourcing 100% renewable electricity

• The companies consume 188TWh annually

Percentage of electricity sourced from renewables per region

RE100 members

• Sourcing of renewables is high in Europe and US due to de-regulated markets and available wheeling regimes and good tracking of origination

Source: RE100.org

Business model

Scatec Solar’s value chain

• Site development & permitting

• System design

• Business case development

• PPA negotiation

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Project development Financing Operations Ownership (IPP)Construction

• Debt/Equity structuring

• Due diligence

• Engineering and procurement

• Construction management

• Maximize performance and availability

• Maintenance and repair

• Asset management

• Financial optimization

We develop, build, own & operate solar plants for 20 years

Scatec Solar is partnering with Governments and Development banks

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• As cost of solar continues to decline - governments are looking to solar to cover their power needs and grow the economy

• Governments in emerging economies finds private/public partnerships very attractive implementation model (IPPs)

• Multilateral development banks typically with a long standing presence and experience in the county

• Project structures and contracts designed to mitigate risk (political financial, compliance etc)

Creates business opportunities and Reduces risks of Scatec Solar’s investments

Our business model and typical project structure

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Simplified illustration of company structure and main contracts in place

Scatec Solar O&M / EPC

Single Purpose Vehicle

State owned utility

Project financing

Scatec Solar Equity co-investors

State government

• EPC contract • O&M contract• Asset Management

contract

Loan agreements

• Sovereign guarantee• Concession

agreement

PPA agreement

Land lease agreements

Land owners

Shareholders agreement

World Bank/others

• Political risk insurance (when relevant)

100% 39%-100%

Component Suppliers

Sub-Contractors

A business model enabling «self funded» growth

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D&C margin

13(12.5%)

100(100%)

Partner’s equity share

Total capex Debt Financing

75(75%)

13(12.5%)

SSO equity

13(12.5%)

USDm

• All projects enters 20-25 year PPAs with fixed tariffs with state owned utilities

• The power plants are financed with non-recourse debt, and the PPAs allows Scatec Solar to operate with high financial leverage at project level

• The D&C gross margin covers a large part of the Scatec Solar’s equity contribution in the project

100 MW project expample

Stable project cash flows based on PPAs - allowing for a non-recourse debt structure

• Tariffs fixed for 20-25 years

• Take or pay all volume produced

• Structuring of project debt in same currency as power sales revenues

• Inflation adjusted tariffs in PPA

• Project finance debt with fixed interest of 10 years or more from grid connection

• PPAs with state owned utilities with government guarantees

• Financing partners with strong government relations

• Political risk insurance or equivalent in selected markets

Power price & volume CurrencyInterest rateCounterparty

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Managing financial risk

PPA: Power purchase agreement

Scatec Solar utilises new technology to improve power plant performance

• The world’s largest solar park with bi-facial modules

• 400 MW / 870 GWh annual production

• Test station established on site

• Real-time data from all plants globally 24/7

• Improving operational quality and efficiency

• Increasing uptime and production yield

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

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There is a significant value of solar power plants post Power Purchase Agreements

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Post PPA value:

• Power Purchase Agreements of 20-25 years

• Technical life of solar plants of 35+ years

• Scatec Solar have secured land rights for 35+ years

• Market power prices are expected continue to increase – especially across emerging markets

• After 20 years the marginal cost of solar power production is very limited

• Fully depreciated and debt free plants• No fuel cost• Limited cost of operation & maintenance

The 40 MW Linde plant in South Africa.

Sustainability is an integrated part of our business

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Sustainability is;

• Project risk mitigation and value creation

• Local engagement and strong community relations

• Facilitating strong partnerships (project and group level)

• A competitive advantage if done well

SustainabilityLocal development programmes - focus on education

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Contributing to local value creation

• Education - key focus for local development programmes – one of our four selected UN Sustainability Development Goals

• Target at least one long-term education programme related to all our solar projects

Examples: • Jordan: English language lab set up to offer free

training courses and workshops• Honduras: 80 women from the local community

received HSSE training in the Los Prados project• South Africa: 60 Entrepreneurs received business

administration training Read more: Sustainability Report 2018

Financials

Q1’19: Continued strong growth and solid financial results

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388

815

Q1 17 Q1 18 Q1 19

1,168

Proportionate financials - last 12 months (NOK million)

943

Q1 19Q1 18Q1 17

2,108

5,682

90279

639

Q1 17 Q1 18 Q1 19

Revenues EBITDA Cash flow to Equity*Key drivers:

• Consistent conversion of an attractive project pipeline in emerging markets

• Solid delivery on construction across four continents

• A broad asset portfolio with long term cash flows secured • 17 years of remaining tenor of current

power purchase agreements

• Strong focus on operations & asset management

(*) Cash flow to equity is defined as EBITDA less normalised (i.e. average o over each calendar year) loan and net interest repayments less normalised income tax payments. The definition implies changes in net working capital and investing activities are excluded from the figure.

Proportionate revenues by segment (NOK million)

Q1’19: Revenues and EBITDA are up three fold from the same quarter last year

Proportionate EBITDA by segment (NOK million)

30

417

137

150 155

180208

Q1 18

1,0771,045

Q2 18 Q3 18 Q4 18

1,4661,297

Q1 19

1,229

572

1,259

1,6661,528

Development & ConstructionCorporate Power Production

Operations & Maintenance

140 130202

159106

121 127

139168

266

Q4 1815

Q1 18 Q2 18 Q1 19Q3 18

109

257

329 315

A solid financial position

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• Group free cash of NOK 785 million • Revolving Credit Facility increased by NOK 275 million to

NOK 775 million – undrawn at the end of Q1’19• Group* book equity strengthened to NOK 3,318 million –

equity ratio of 82%

Consolidated financial position (NOK million)

NOK million ConsolidatedSSO prop.

Share Group level*

Cash 2,806 2,082 785

Interest bearing liabilities* -10,441 -7,124 -744

Net debt -7,635 -5,042 41

As of 31.12.2018 As of 31.03.2019

* Defined as ‘recourse group’ in the corporate bond and loan agreements

10,647 10,647

15,876 15,876

10 583 11 412

1 8002 100

2 4752 364

10 41511 686

4 4424 190

Assets Equity & Liabilities Assets Equity & Liabilities

Current assets Non-current assets Equity Current liabilities Non-current liabilities

14,85714,857

Q1’19 movement of free cash at group level

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73 128

2

Cash flow to equity O&M

1,039

End Q4 Working Capital/other

Cash flow to equity Corporate

Distributions from operating power plants

Cash flow to equity D&C

-312

-20

-114

Project equity End Q1

-12

Project Development

capex

785

NOK million

Development of project backlog

and pipeline

Malaysia & Ukraine Net working capital

construction projects

Movement of cash in ‘recourse group’ as defined in the corporate bond and loan agreements

Our principles for investments and financing

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Transactional and operational control- SSO the lead developer and investor

D&C margins - key contribution to equity positions

Working capital - managed through project structuring

Moderate debt at group level - reflecting debt capacity of long term cash flows

Dividends- 50% of free cash flow from operating power plants

Outlook and guidance

Short term guidance

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• 2019 O&M revenues of NOK 110-120 million with an EBITDA margin of around 30%

• D&C value for 1 GW under construction: NOK 7 billion• Remaining NOK 3.3 billion value to be recognised

• Power production from plants in operation end Q1:

GWh Q1’19 Q2’19e 2019e

Proportionate 133 150-170 620-660

100% basis 254 290-310 1,100-1,300

The 65 MW Gurun solar plant in Malaysia.

New investments generate significant value from D&C and Power Production

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Key figures – NOK million 1.7 GW in operation & under construction

1.8 GW new capacity towards 2021

Total 3.5 GW towards 2021

SSO’s economic interest 58% 50% – 70% 50% – 70%

Capex , 100% 20,700 13,000 – 15,000 34,000 – 36,000

SSO’s equity investments 3,500* 1,800 – 2,300 5,200 – 5,800

Development & Construction – after tax margin 950 – 1,050 1,000 – 1,500 2,000 – 2,500

Annual cash flow to equity - Power Production & O&M 500 – 550 250 – 300 750 – 850

(*) About NOK 500 million remains to be invested at year end 2018. Based on equity financing of the Los Prados project. Figures in the table above are estimates.

A well-proven business model with an execution capacity of 800-1,200 MW per year

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1,700

3,500

MW

2019In operation & under

construction

End 2021In operation & under

construction (2018 CMU target)

Growth beyond 2021

• Effective execution of current project portfolio 1 GW under construction plus additional volumes to be secured in 2019

• Secure growth in priority regionsPipeline and backlog of 4.6 GW

• Broaden commercial and technology scope 2019 expected to be a break-through yearfor corporate PPAs

• Optimize financing and asset portfolio to enhance value Selective asset rotation as portfolio grows over time

Our asset portfolio – May 2019

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CAPACITY ECONOMICMW INTEREST

South Africa: R1 & R2 190 45%Brazil: Apodi Solar 162 44%Honduras: Agua F, LP I 95 51%Malaysia: Gurun 65 100%Egypt: Benban 65 51%Jordan: EJRE/GLAE, Oryx 43 59%Czech Republic 20 100%Rwanda: Asyv 9 54%Total 649 55%

CAPACITY ECONOMICMW INTEREST

Egypt: Benban 335 51%South Africa: Upington 258 46%Malaysia: Jasin, Redsol 179 100%Argentina: Guañizuil 117 50%Ukraine: Rengy, Kaminaka 77 70%Mozambique: Mocuba 40 52%Total 1,006 60%

CAPACITY ECONOMICMW INTEREST

Ukraine 326 65%Mali 33 51%Honduras 18 70%Total 377 64%

In Operation: Under Construction: Project backlog: