Statkraft Investor Update

Q3 2018

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2

Agenda

3

Statkraft overview

Strategy and investment ambition

Funding and liquidity

Financial update

EMPLOYEES

3 500

POWER PRODUCTION

62.6 TWh 97% renewable

CONSOLIDATED CAPACITY

17 478 MW

NEPAL

Statkraft at a glance

INDIA

USA

PERU BRAZIL

CHILE

IRELAND

FRANCE

NETHERLANDS

NORWAY SWEDEN

GERMANY

SOUTH EAST EUROPE

ALBANIA

TURKEY

UK

= Hydropower

= Gas power

= Wind power

= Bio power

= District heating

= Trading and

__Origination

= Solar power

NORWEGIAN STATE OWNED

100 %

CREDIT RATING

A- / BBB+ S&P and Fitch

Strong ownership support

5

Statkraft 100% owned by the Norwegian State

- Norwegian State rated Aaa / AAA / AAA

Support through equity injections

- NOK 14 billion in 2010 and NOK 5 billion in 2014, after parliamentary approval

Revised dividend policy

- Based on recommendation from Board of Statkraft

- Reduced dividend payout ratio for non-Norwegian hydropower earnings

Ownership support Statkraft’s corporate credit ratings

- Uplift from both S&P and Fitch

Key credit strengths

6

Strong market

position

Owned by the

Norwegian

state (AAA/Aaa)

Historically strong

support from owner

Balance sheet

flexibility

Investment program

adapted to financial

capacity

Stable cash

flow

Long-term industrial

contracts stabilize

cash flow

A low-cost and flexible

generator of

renewable electricity

Solid EBITDA despite volatile Nordic and European power prices

7

0,00

10,00

20,00

30,00

40,00

50,00

60,00

70,00

80,00

2010-012012-012014-012016-012018-012020-01

Nordics

Germany

Quarterly average electricity prices

Source: Prices from Nord Pool Spot, Nasdaq OMX and EEX as of Q4 2018. * Items in underlying EBITDA changed in 2017

EUR/MWh

2011 2013 2012 2016 2015 2014

Underlying EBITDA incl. share of profit

from equity accounted investments

Bn NOK

2010 2012 2014 2 016 2018 2020 2017*

11,8 12,2

13,5 12,8

10,9

13,9

14,4

Primarily a Nordic hydropower company

8

European Flex International

power

Wind power District Heating Market

Operations

Segments and underlying EBITDA* contribution 2017

70.0 % 3.1 % 2.9 % 2.3 % 2.9 %

* Excluding gain/loss from acquisitions/divestments of business activities

European flexible generation: Maximize value of hydropower assets

9

Priority #1: Protect and improve value of

Nordic hydropower

Production assets with low marginal cost,

high flexibility, great longevity and almost

zero carbon emissions

Unique optimizations skills leading to a

premium price capture through an integrated

business model

Operate gas-fired power plants in Germany

Priority #1: Protect and improve

value of Nordic hydropower

European flexible generation

242 hydropower and 5 gas fired power plants

totalling 15 580MW capacity

Europe’s largest producer of electricity from

hydropower

1/4 of Europe’s reservoir capacity

0

10

20

30

40

50

60

Statkraft cash costhydro 2015

Cash cost gas Cash cost coal Cash cost nuclear

EUR/MWh

10

1 Annual Report 2017: Production cost 95 NOK/MWh. Production cost, incl. property tax and depreciation, excl. sales costs, net financial items and tax. This is divided

by 7 years average output from power plants under own management. 2 Cash costs for coal and gas: Estimates for modern plants. 3 Estimates for nuclear plants in Sweden / Finland is around 17-22 EUR/MWh. In Sweden nuclear tax adds to this, but Parliament has decided to phase-out nuclear tax.

Average price Nordics

2018 (YTD Q3):

~ 42.8 EUR/MWh

2 3 1 2

Full cost incl. depreciation: ~ 9.83 EUR/MWh1

Statkraft production cost

hydro 2017

Statkraft has a unique cost position

Securing long term revenues in the Nordics

Nordic long term industrial contract

~ 2.5 TWh/yr new long-

term contracts entered

2017/2018

Majority of Statkraft’s 18 TWh/yr

LTC portfolio expire in 2020

11

Statkraft is actively evaluating additional hedging opportunities

Yearly average production in Nordics approx. 56 TWh for the period

Serving needs across the whole value chain; from

market access and hedging to green power supply

12 12

Market Operations

Statkraft offer tailor-made solutions for power

producers and consumers

Managing third parties’ renewable production:

20.000 MW

Market Operations: Value creation through a market oriented and adaptable organization

Market access, Solar PV, Venture Capital, Dynamic

Assets Management Portfolio (DAMP), Trading and

Origination

International Power: Building a sustainable and

profitable position

13

27 hydropower plants and 4 wind farms in operation

in Southeast Europe, South-Asia and South

America

India

Brazil

Chile

Peru

Turkey

Albania

Securing long term revenues International Power

Evaluating hydro-, wind- and solar power

opportunities in selected markets

More than 1.000 MW in operations

Established positions in several emerging markets

- Long-term economic growth

- Rising energy demand

- Increased demand for renewables

Wind power: Utility scale business model in Europe

Solid track record in delivering projects on cost and

time

Europe’s largest onshore wind power project under

construction in Norway; Fosen 1000 MW

14 14

Existing

Under construction

Planned

Wind Power

Ensure strong North European onshore presence

and major player in the Nordic wind power market

with 790 MW in operation

11 wind farms in operations in Norway, Sweden and

UK

~1500 MW development portfolio in Ireland and UK

15

District Heating: Continue to strengthen profitability through efficient operations

17 plants in Norway and Sweden with ~1.1 TWh

annual production

Limited capex going forward

Increased profitability through optimization of

existing portfolio

Harstad

Kungsbacka

Trosa

Ås

Moss/Rygge Vagnhärad

Nannestad

Sandefjord

Trondheim Stjørdal

Namsos

Åmål

Gardermoen

District Heating

16

PIP: Strengthening of:

– Competitiveness

– Cost efficiency

– Performance

Reduced investment level

Restructured international power

Divestments

– Offshore wind

– SN Power

Revised dividend policy

Capitalize on our competitive advantages

Maintain and reinvest in existing asset base

Grow in renewable energy and market

operations

New business development

2016 - 2018 2019 +

Consolidation Profitable growth

Positioning for growth

540

800

260

Cost reductions from the Performance Improvement Programme

17

Remaining Realised Target cost reduction

Estimated cost

savings 2016-2018

Estimated reduction of the cost base per Q3

2018 compared to 2015 baseline is

approximately 540 MNOK

Achieved cost reductions mainly through

reductions in personnel, consultancy and

travel costs and the ongoing exit of Offshore

Wind Power

The program is on track to deliver the

targeted cost reductions of 800 MNOK

Comments

800

6 200

5 950 650

0

2 000

4 000

6 000

8 000

10 000

12 000

14 000

16 000

18 000

Large proceeds and financial improvements from asset disposals

18

Triton

Knoll SN Power Scira1 Fjordkraft Total

Proceeds Dudgeon

NOK million

Q4 2017 Q1 2018

0

5 000

10 000

15 000

20 000

25 000

30 000

35 000

Q1 2017 Q3 2018

Proceeds from asset disposals Net Interest bearing debt2

1 Excluding proceeds related to sell down from 50% to 40% in Q4 2014 2 Net Interest bearing debt from Interim Report Q3/2018

15 300

1 700

28 231

15 457

Agenda

19

Statkraft overview

Strategy and investment ambition

Funding and liquidity

Financial update

RAMP UP AS WIND

AND SOLAR DEVELOPER

20

OPTIMISE HYDRO-

POWER PORTFOLIO

GROW THE

CUSTOMER BUSINESS

DEVELOP NEW

BUSINESS INITIATIVES

Statkraft’s new strategy

Hydropower and other flexible generation

New hydro is challenged on costs, but the need for

flexibility increases and provides a good starting point for

a flexible hydropower player with market expertise

Priorities:

1) Protect and improve value of Nordic hydropower

- Focus on refurbishments, operational improvement, regulatory

work, hedging

2) Opportunistic acquisitions or portfolio swaps

- Restructuring Norwegian regional companies

- Bid for French hydro auctions

- Actively pursue acquiring hydropower in operation or in

construction with particular competitive advantages

3) Operate gas-fired power in Germany

21

Massive ramp up as wind and solar developer

Solar and wind become the cheapest way to build new power

generation - huge growth expected in all countries

Priorities:

1) Taking on a developer role

- High value creation for Statkraft in the development phase

- Develop and construct projects, and then partially sell down

2) Ramp up in onshore wind (6 GW) and solar (2 GW)

- Wind: Substantial growth in Europe, and South America and India

- Solar: Utility scale solar and commercial size distributed installations.

3) Hedge revenues of wind and solar to mitigate risk

4) Develop batteries and hybrid storage systems

22

Grow the customer business

More complex energy markets and customers taking stronger

interest in renewable energy. Statkraft well positioned with deep

market expertise and renewable assets

Priorities:

1) Significant ramp up of customer part of market operations

- Take a position as a leading provider of market solutions for renewable

energy for large customers

- Provide market access, hedging, distributed energy solutions and green

power supply to large customers

2) One of top three in District Heating in Norway and

Sweden

3) Continue growth in EV charging through Grønn Kontakt

23

New opportunities in the energy transition

Norway is an early mover in the energy transition,

through decarbonisation and electrification

Priorities:

Develop new business arising from the green shift

in Norway that has potential internationally:

1) Data centres: Develop, market and sell ready-

to-build data centre site prospects

2) Biofuels: Aim to produce 2nd generation

biofuel from wood feedstock

3) Hydrogen: Investigate business opportunities

in production of renewable hydrogen

Investment ambition 2018 - 2025

25

Investment ambition 2018 – 2025 subject to financial capacity:

− Average NOK 10 bn per year

Committed to maintain current ratings

0

2

4

6

8

10

12

2018 2019 2020 2021 2022 2023 2024 2025

Maintenance and reinvestments Decided investments Reserved Flexibility

NOK billion

79 %

11 %

2 % 8 %

Norway

Nordic region excl. Norway

Europe excl. Nordic region

The rest of the world

77 %

14 %

2 % 7 %

Norway

Nordic region excl. Norway

Europe excl. Nordic region

The rest of the world

Post investment ambition - predominantly a Nordic hydropower producer

Generation

EBITDA

26

2018 2025

58 %

10 %

15 %

17 %

60 % 9 %

15 %

16 %

Agenda

27

Statkraft overview

Strategy and investment ambition

Funding and liquidity

Financial update

Strong credit ratings

28

A- / Stable BBB+ / Stable

Maintaining current ratings with S&P and Fitch

Strong support from owner

CAPEX adapted to financial capacity

Rating impact assessment completed prior to new investment decisions

Liquidity position

NOK 9.2 bn [1.0] Revolving Credit Facility with

10 core banks

- Matures 2022

NOK 1bn [0.11] in committed credit line renewed

on a yearly basis

EMTN Programme EUR 6bn

- EUR 3.1 bn available under current Programme

No commercial papers outstanding

Available liquidity and target

1 Liquidity capacity defined as cash and cash equivalents, plus committed

revolving credit facilities, plus projected receipts for the next six months

Liquidity and market access

0

500

1 000

1 500

2 000

2 500

3 000

0

5 000

10 000

15 000

20 000

25 000

30 000

2013 2014 2015 2016 2017 Q32018

EUR million NOK million

Revolving Credit Facility Credit Line Cash and Cash equivalents

Liquidity capacity target1: >1.5x projected

payments over next six months

29

Balanced debt maturity and mixed funding sources

Debt maturity profile 30.09.2018 Distribution of funding sources

30

Funding overview

31

Norwegian bond and Commercial Paper market

Euro bond market

Swedish bond market

Sterling and Swiss Franc bond markets

considered

Funding need Funding sources

Funding centralized on group level

Flexibility through diversification of funding sources and maintaining sufficient back-stop facilities

Funding need going forward determined by cash flow

from operations and capex

NOK 2.7 bn redemption in Q2 2019

Funding strategy

Agenda

32

Statkraft overview

Strategy and investment ambition

Funding and liquidity

Financial update

NOK million Q3 2018 Q3 2017 YTD 2018 YTD 2017

The year

2017

Net operating revenues and

other income 5 656 4 650 18 817 16 651 23 350

Operating profit/loss (EBIT)

underlying 2 679 1 437 10 069 7 476 10 824

Net profit 1 265 1 783 11 818 6 417 11 710

Nordic prices measured in EUR up 77% Q-on-Q

Overall generation down 3% Q-on-Q

Operating expenses down 7% Q-on-Q

Key figures

33

Financial performance

34

6.7%

10.6%

Q2

6.4%

10.1%

6.5%

Q4

8.3%

Q1 Q3

9.7%

Q1 Q2 Q4 Q3

10.5%

12.5%

Q1

11.9%

Q2

13.2%

Q3

ROACE: Underlying EBIT last 12 months / Average capital employed

12 months rolling ROACE of 13.2%

- Improvement compared with the year 2017 due to higher underlying operating profit (rolling 12

months), primarily driven by higher Nordic power prices

- Average capital employed stable

2016 2017 2018

Price drivers and the German power market

35

Q3 2018 vs. Q3 2017

Coal, CO2 and gas prices increased

German power prices up by 63%

- Mainly related to higher gas and CO2

prices

0

20

40

60

80

100

120

Q1-

2017

Q1-

2016

Q3 Q2 Q1-

2015

Q2 Q4 Q2 Q4 Q3 Q2 Q3 Q4 Q1-

2018

Q3

Coal, ARA (USD/t)

0

5

10

15

20

25

Q3 Q3 Q1-

2015

Q3 Q1-

2016

Q2 Q3 Q4 Q4 Q2 Q1-

2017

Q2 Q4 Q1-

2018

Q2

CO2, EUA (EUR/t)

0

5

10

15

20

25

30

Q4 Q1-

2015

Q2 Q2 Q4 Q3 Q1-

2016

Q3 Q2 Q1-

2017

Q4 Q2 Q3 Q1-

2018

Q3

Gas, NBP/TTF (EUR/MWh)

0

10

20

30

40

50

60

Q4 Q1-

2017

Q3 Q1-

2015

Q1-

2016

Q2 Q3 Q4 Q2 Q2 Q2 Q3 Q4 Q1-

2018

Q3

EEX, base (EUR/MWh)

Nordic reservoir level

Rapid increase mid-quarter due to high precipitation

Weather drier than normal in Q2

Nordic reservoir level (total market) at 87% of median at the end of

September 36

0

20

40

60

80

100

Q1 Q4 Q2 Q3

Median

2018

2017

%

Nordic system price, monthly average

Nordic power prices 50.5 EUR/MWh, up 77% Q3 2018 vs. Q3 2017

EUR/MWh

37

0

5

10

15

20

25

30

35

40

45

50

55

Q4 Q3 Q1-

2015

Q2 Q4 Q2 Q1-

2016

Q3 Q3 Q1-

2017

Q2 Q4 Q1-

2018

Q2 Q3

Energy management

38

Q3 generation down 3% Q-on-Q

Technology TWh Change in TWh

Hydropower 12.0 -0.2

Wind power 0.6 0.1

Gas power 0.5 -0.3

Bio and solar power 0.1 0.0

Total 13.1 -0.4 0

1

2

3

4

5

6

7

8

May Jul Jan Aug Mar Feb Apr Jun Sep Oct Nov Dec

2017 2018

Stormyr dam, Nedre Røssåga hydropower plant

Q3 net operating revenues and other income

39

NOK million

Sales revenues less energy purchase

247 223 172 212

-308

-39

284

-339

277

-441

Customers Generation Grid, sale of gas

and other revenues

Trading &

Origination

Other operating

income

Transmission

costs

Total net operating

revenues and

other income

4 106

5 656

5 915

4 650

+22%

Q3 2017 Q3 2018

NOK 2.7 billion in underlying EBIT

Underlying EBIT up NOK 1243 million Q-on-Q

Primarily driven by higher Nordic power

prices. This was partly offset by lower

contribution from Nordic origination, value

reduction of long-term contracts in Brazil and

negative effects from market access activities.

NOK 237 million in reduced opex Q-on-Q

40

NOK million

1 437

2 679

7 476

10 069

Q3 2017 Q3 2018 YTD 2017 YTD 2018

+86%

Financial items

41

NOK million

Breakdown Net financial items Q3 2018

105

402

282

Other financial items Currency gains and losses

214 199

Interest income Interest expenses Net financial items Q3 2018

Underlying EBIT Q3 2017 Q3

2018

Q3 net profit breakdown

42

NOK million

Booked net profit affected by unrealised value changes from energy derivatives

Underlying EBIT Q3 2018 Net Profit Q3 2018

Underlying EBIT ∆ +86% Q-on-Q

1 437

2 679

1 265

1 006

237 518

139 352

402

1 528

Q3 2017

Operating

profit/loss

(EBIT)

underlying

Impairments

17

Operating

expenses

Net operating

revenues and

other income

Q3 2018

Operating

profit/loss

(EBIT)

underlying

Net financial

items

Unrealised

value changes

from energy

derivatives

Gain/loss from

acquisitions/

divestments of

business

activities

Share of

profit/loss in

equity

accounted

investments

Tax Q3 2018

Net profit

Q3 segment EBIT underlying

43

NOK million

39 63

-101 -26

147

-671

190 99

-29

301

Industrial

ownership

Market

operations

European flexible

generation

International

power

Wind

power

District

heating

1 442

2 939

Q3 2017

Q3 2018

Q3 2018 capital expenditure1

Distribution of CAPEX in the quarter:

- 60% new capacity investments

- 39% maintenance/other investments

- 1% shareholdings

New hydropower capacity under

construction in Albania

Wind power developments in Norway

Maintenance primarily within Nordic

hydropower and Norwegian grid

Shareholding investments mainly

related to Silva Green Fuel

44

European

flexible

generation

28%

1 Excluding loans to equity accounted investments

Other includes District heating, Market operations and Other activities

24%

20%

39%

5%

13%

European flexible generation

International power

Wind power

Industrial ownership

Other

NOK

1.6

billion

Cash flow in Q3

45

NOK million

19 899 19 046

6 182 6 045

Cash reserves 30.09. Cash reserves 30.06. From operations

869

Investing activities Currency

exchange rate

effects

Financing activities

121

Strong underlying performance in the quarter

Robust financial position

Solid foundation for growth phase

Investment plan with large degree of flexibility

Summary

46

www.statkraft.com

THANK YOU Investor contacts:

Debt Capital Markets

Funding Manager Stephan Skaane Vice President Tron Ringstad

Phone: +47 905 13 652 Phone: +47 992 93 670

E-mail: Stephan.Skaane@statkraft.com E-mail:Tron.Ringstad@statkraft.com