The most important infrastructure. Of all.

One focused business

The most important infrastructure. Of all. 3

Facts 2014

The most important infrastructure. Of all.

4

Grid size 11-12,000 km high voltage lines

Substations 170

Employees 1121

Balance sheet NOK 41,1 billion

Revenues (adj) NOK 6,2 billion

EBITDA (adj) NOK 3,2 billion

Profit after tax

(adj)

NOK 1,3 billion

One defined mission

The most important infrastructure. Of all. 5

“ To build the next generation power system in Norway by 2030.

2

Focused

investments

Investments in the power system

- the long term picture

7Focused investments

Bringing Statnetts investments

to a new level

Focused investments 8

0

1

2

3

4

5

6

7

8

9

10

11

12

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Expected Investments(2014)

(Investments in billion NOK)

Secure power supply

Lofoten (substations)

2015

Increased

transformer capacity

Northern Norway

(substations)

2017/2018

Ørskog-Sogndal

(new powerline)

Voltage upgrade

west corridor;

Solholm-

Arendal

Feda-Ertsmyra

Lyse-Førre-

Saurdal

Ofoten - Balsfjord (new

powerline) 2017/2018

AC-cables Tjeldsundet

(reserve power) 2015

Voltage upgrade Central

Norway;

Klæbu-Namsos and Namsos-

Nedre Røssåga 2017

Increased transformer

capacity Eastern Norway

2015/2016

New 420 kV AC

cables Oslofjord

2018

Nordlink, sea cable

connecting Norway and

Germany 2020

NSN, sea cable

connecting Norway

and Great Britain

2021

Lakselv substation

2015

Projects under construction 2015

Recently commissioned:

- Skagerak 4

- Sima-Samnanger

- Østre Korridor

- Varangerbotn-Skogfoss

- Ytre Oslofjord

Focused investments

Connecting the European power market

NSN (UK)-Capacity app. 1400 MW

-Est. compl. 2021

NordLink-Capacity app. 1400 MW

-Est. compl. 2020

Focused investments

Needle eye

https://vimeo.com/136111749

60 helicopter flights per tower – 36 000 for

the Ørskog – Sogndal project in total

Work in high voltage environment

Marine operations – laying of sea cable

Health and safety, comes first – always

• Injury frequency halved

• No severe environmental damages

• Stable, absence due to illness- 3,2 in 2014

0

1

2

3

4

5

6

7

8

9

10

2013-12 2014-02 2014-04 2014-06 2014-08 2014-10 2014-12

Development injury frequency,incl. Contractors,

(12 month rolling mean)

H1-verdi StatnettSkadefraværsfrekvens i StatnettAbsence frequency of injury in Statnett

12

S&P research update, May 2014

3

Ownership and financing

«Business Risk: Excellent»

2012 Meld. St. #14

“

17

Long term state ownership

All investments politically sanctioned (license,

white paper on grid development)

Equity injection 2014 supported by two governments

Mature and predictable regulation

The TSOs essential role in the power system makes it important that these functions are unified and owned by the State.

Predictable revenues and profitability

«Business Risk: Excellent» 18

Costs 40% Costs 60% efficiency score

Efficiency score: 100%

Successful benchmark with other European TSOs

The 15% efficiency programme

Timely compensation

No time lag on investments, system service costs or depreciation, two years lag on operational costs

(compensated with inflation)

2. Regulated rate of return:

(2,5%+inflation+0,875*5%)

0,73

1. Revenues:

* 40% + (5ySwap rate+margin) * 60%

Conservative finance policy

Sufficient liquidity

• 12 months reserves

• NOK 6,5 bn RCF

Low counterparty risk

• Minimum rating requirements

• Credit Support Annex (CSA)

Reduced interest rate risk

• New regulated rate of return from 2013

• Seek to correlate rate on debt with NVE-interest rate

Low finance risk 20

Multiple sources of capital as of 30.06.2015

Low finance risk 21

Issues in SEK (SEK 200 million)

Domestic Bonds (NOK 6 060 million)

Issues in CHF (CHF 400 million)

Issues in JPY (JPY 4 000 million)

Drawn Bank Loans EIB & NIB (NOK 5 466 million)

Issues in USD (USD 720 million)

Issues in EUR (EUR 70 million)

Issues in Domestic Commercial Papers (NOK 500 million)

Low re-financing risk as of 30.06.2015

Low finance risk 22

0

500

1000

1500

2000

2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 2035 2037 2039 2041 2043 2045

Bank Loans (EIB & NIB)

Domestic Bonds

International Bonds

Commercial Paper

Long term funding

NOK 3.1 billion in new long term loans in 2014

• Three transactions from two different markets

• Average volume weighted tenor 11,5 years

Significant funding program going forward – across markets

Core bank group:

Low finance risk 23

Summary

5

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Key investments

Under implementation Location Expected investment

in million NOK

Ørskog - Sogndal, new 420 kV power line Møre og Romsdal/Sogn og Fjordane 4 600 - 5 600

Ofoten - Balsfjord, new 420 kV power line Nordland/Troms 3 000 - 4 000

Licences pending or appealed

Western Corridor, voltage upgrade Vest-Agder/Rogaland 6 000 - 9 000

Namsos - Trollheim, new 420 kV power line Trøndelag/Møre og Romsdal 5 400 - 7 700

Balsfjord - Hammerfest, new 420 kV power line Troms/Finnmark 5 000 - 8 000

Interconnectors

Cable to England EUR 750 - 1 0001)

Cable to Germany EUR 750 - 1 000)

Latest commissioned facilities

Skagerak 4 Norway/Denmark

Eastern Corridor Vest-Agder/Telemark

Ytre Oslofjord Telemark/Østfold

Focused investments 28 1) Statnett's share

Reconciliation of financial key figures

Appendix 29*You will find these figures in note 4 in the annual report

In million NOK

Unadjusted figures 2007 2008 2009 2010 2011 2012 2013 2014 H1- 2015

Revenue 3 415 4 256 2 862 7 247 5 497 5 334 4 561 5 563 2 874

EBITDA 1 535 1 722 259 3 945 2 426 2 260 1 394 2 528 1 769

EBIT 1 025 1 194 -403 3 279 1 628 1 433 346 1 378 1 010

Profit after tax 651 1 517 -480 2 198 1 000 837 82 829 607

Adjustments

Accumulated higher revenue* -293 428 -633 1 554 2 617 3 455 2 413 1 790 1 494

Adjustment for changes in acc. higher/lower revenue -20 -721 1 061 -2 187 -1 064 -838 1 042 623 296

Adjusted figures

Adjusted revenue 3 395 3 535 3 923 5 060 4 433 4 496 5 603 6 186 3 170

EBITDA 1 515 1 001 1 320 1 758 1 362 1 422 2 436 3 151 2 065

EBIT 1 005 473 658 1 092 564 595 1 388 2 001 1 306

Profit after tax 637 998 284 623 234 234 832 1 284 823

Calculation of allowed regulated revenue

Appendix 30