FINANCIAL RESULTS Q1 2011 - Statkraft

FINANCIAL RESULTS Q1 2011
CFO STEIN DALE
19 MAY 2011

HIGHLIGHTS
Year-on-year results reduced due to lower power generation
following weaker Nordic hydro resource situation
Somewhat offset by higher power prices
Resource situation affected by high power generation and low water
inflow in 2010
Signing of new commercial long-term contracts with
industrial counterparts in Norway
New contact volumes during the quarter of appr. 1.3 TWh/year
Total portfolio of more than 20 TWh/year on long-term industrial contracts
New reporting structure effective from 1 January 2011
Page 2

NEW REPORTING STRUCTURE
Statkraft Group
Nordic
Hydropower
Continental
Energy
and Trading
International
Hydropower
Wind Power
District
Heating
Industrial
Ownership
Other
activities
Change in reporting of underlying profit:
• Unrealised changes in value on energy contracts under Trading and origination are
included into underlying revenues
• Financial items and tax not included into underlying profits - presented as in financial
statement
• Underlying profit - adjusted for unrealised changes in value of energy contracts and
material non-recurring items
Page 3

FINANCIAL HIGHLIGHTS
Underlying 1 gross operating revenues
Underlying 1 EBITDA
NOKm
12 000
8 000
7 324
8 066
10 286
7 416
NOKm
6 000
4 452
60.8 %
4 642
5 912
4 249
65.0 %
60.0 %
4 000
3 000
57.6 % 57.5 %
57.3 %
55.0 %
0
Q12008 Q12009 Q12010 Q12011
0
Q12008 Q12009 Q12010 Q12011
50.0 %
EBITDA
EBITDA margin
Net profit (actual)
Q1 2011 NOKm 2 809
Q1 2010 NOKm 4 533
4
1
Adjusted for changes in value on energy contracts and material non-recurring items

ELECTRICITY MARKET
Electricity, average monthly price
EUR/MWh
100
80
60
40
20
0
2009 2010 2011
Nord Pool, system price EEX, spot price
Electricity, forward price
EUR/MWh
60
Q1 2011
Average Nord Pool system price of
66.2 EUR/MWh (59.8)
Average EEX spot price of
51.8 EUR/MWh (41.1)
Nordic reservoir levels 45% of normal level at
closing of quarter
Back to normal levels in week 17 due to early snow
melting.
Nordic reservoir water levels
%
90
65
40
40
20
2010 2011
Nordic 2012 Nordic 2013
Germany 2012 Germany 2013
15
1 7 13 19 25 31 37 43 49
2009 2010 2011 Median
Week
Page 5
Sources: NordPool, EEX and NVE

STATKRAFT’S POWER GENERATION
Technology (TWh)
Geography (TWh)
0.3
(0.2)
1.5
(2.2)
13.1
(15.9)
Hydro
Wind
Gas
Q1 2011
Total generation
14.9 TWh (18.3)
Norway
Nordic ex.
Norway
Europe ex.
Nordic
Outside
Europe
1.0
(1.9)
1.3
(1.5)
0.5
(0.5)
12.0
(14.5)
Monthly power generation
TWh
8.0
7.0
6.0
5.0
4.0
3.0
2.0
Jan Mar May Jul Sep Nov
2011
2010
Avg. 2006-2010
Page 6

HEALTH, SAFETY AND ENVIRONMENT
Total Recordable Incidents
Mar Feb Jan
9
Operations - employees
3
Operations - contractors 0
2
1
Projects - employees 0
0
3
Projects - contractors
7
7
11
12
HEALTH AND SAFETY
‣ Two fatalities reported among
contractors in THPC in Laos (20%
ownership)
‣ One fatality of employee in Istad
Energimontasje (49.9% ownership)
‣ A total of 33 injuries among own
employees
‣ A total of 22 injuries among
contractors reported
ENVIRONMENT
‣ No serious environmental incidents

INCOME STATEMENT - ACTUAL
1st quarter Full year
NOK million 2011 2010 2010
Gross operating revenues 7 553 10 507 27 780
Energy purchase and transmission costs -1 336 -2 474 -6 269
Unrealised changes in value energy contracts 1 444 -211 193
Net operating revenues 7 661 7 822 23 176
Operating expenses before depreciation -1 830 -1 900 -7 221
EBITDA 5 831 5 922 15 955
Depreciations and write-downs -580 -640 -3 205
Operating profit (EBIT) 5 251 5 282 12 750
Share of profit from associates and joint ventures 395 643 766
Net financial income/expenses -193 -357 453
Unrealised changes in the value of currency and interest contracts -567 1 924 -1 369
Net financial items -760 1 567 -917
Profit before tax 4 885 7 492 12 599
Taxes -2 076 -2 960 -5 148
Net profit 2 809 4 532 7 451
Page 8

UNDERLYING OPERATIONS
NOKm
8000
7661
6080
4000
1581
4249
3670
0
Net operating
revenues
Adjustments*
Adj. Net
operating
revenues
Adj. EBITDA
Non-recurring
items
Adj. EBIT
Q1 2011
6 080 4 249 - 3 670
Q1 2010
7 813 5 912 - 5 273
Change
-22% -28% -30%
Underlying ROACE after tax
Q12011 (12m rolling) 17.3%
FY 2010 19.7%
9
* Unrealised changes in value of energy contracts

REVENUE BREAKDOWN
Year
NOK million Q12011 Q12010 2010
Net physical sales, including green sertificates 3 221 5 785 13 887
Concessionary power sales at statutory prices 93 89 308
Statutory priced industrial contracts 75 405 1 535
Long term contracts 1 063 802 3 054
Nordic and Continental dynamic asset management -188 -76 308
Trading and origination 206 253 732
Distribution grid 360 534 1 421
End-users 2 190 2 060 5 986
District heating 229 213 634
Other -12 -33 45
Sales revenues 7 236 10 032 27 911
Other operating revenues 180 254 1 080
GROSS OPERATING REVENUES 7 416 10 286 28 990
Energy purchases -982 -1 954 -4 674
Transmission costs -354 -520 -1 595
NET OPERATING REVENUE 6 080 7 813 22 721
Page 10

OPERATING EXPENSES
NOK million Q1 2011 Q1 2010
Salaries and payroll costs 693 678
Property tax and licence fees 297 322
Other operating expenses 840 901
Operating expenses before
depreciation
1 830 1 901
Depreciations 580 639
Page 11
Underlying expenses: Adjusted for material non-recurring items and unrealised changes in value on energy contracts

SEGMENTS – BREAKDOWN (I)
NOK
million
6 000
4 000
2 000
NORDIC HYDRO NOK CONTINENTAL ENERGY & TRADING INTERNATIONAL HYDROPOWER
NOK
million
million
200 191
5 516
700
627
4 747
156
4 145
372
3 340
300 238
100
62
17
0
Net operating
revenues
Q1 2011 Q1 2010
EBITDA
-100
Net operating
revenues
-12
EBITDA
Q1 2011 Q1 2010
0
Net operating revenues
EBITDA
Q1 2011 Q1 2010
Generation of 10.9 TWh (13.5)
Spot sales reduced with 30% to
6.1 TWh (8.7)
Existing generator at Svartisen
(350 MW) expected to be out of
operation until July (from
January). New generator (250
MW) expected to commence
production in June
Nordic dynamic asset management
portfolio negatively affected by high
Nordic power prices
Decreased gas power generation
due to low spark-spreads
Share of profit from associates
NOKm 124 (148)
Increased profit due to higher
generation and prices
Generation of 0.8 TWh (0.5 TWh)
(equity share)
Share of profit from associates
NOKm 32 (64)
Page 12
Underlying operations: Adjusted for material non-recurring items and unrealised changes in value

SEGMENTS – BREAKDOWN (II)
NOK
million
120
100
80
WIND POWER
114
69
NOK
million
120
100
80
DISTRICT HEATING
115
96
68
NOK
million
1 200
800
INDUSTRIAL OWNERSHIP
1 169 1 162
792
785
60
60
43
40
26
40
400
20
5
20
0
Net operating
EBITDA
revenues
Q1 2011 Q1 2010
0
Net operating
EBITDA
revenues
Q1 2011 Q1 2010
0
Net operating revenues
Q1 2011 Q1 2010
EBITDA
Increased revenues due to higher
power prices and power
generation
Project and development activities
impact profits
Generation of 246 GWh (150)
Contribution from associates
NOKm -22 (-17)
Increased profit due to higher
prices
District heating generation of
341 GWh (384)
Higher prices, but lower power
generation in Skagerak Energi
Increased profit from retail power
sales activities in Fjordkraft
Share of profit from associates
NOKm 258 (329), following weak
Nordic resource situation and
reported loss from energy
contracts
Page 13
Underlying operations: Adjusted for material non-recurring items and unrealised changes in value

SEGMENT DEVELOPMENT
Underlying 1 EBITDA Q1 2010 - Q1 2011
NOKm
6 000
5 912
5 000
4 000
-1307
-385
+44 +20 +25 +6
-87
4 248
3 000
Q1 2010
Nordic hydropower
Continental
energy and
trading
International
hydropower
Wind power
District
heating
Industrial
ownership
Other
Q12011
Δ EBITDA Q1’10 - Q1’11
Page 14
1
Adjusted for changes in value on energy contracts and material non-recurring items

CASH FLOW
NOK million
24 000
20 052
+2 899
+699
-1 054
+452
-98
22 950
18 000
12 000
Cash reserves
01.01.
From operations
Change in short
and long term
items *
Net investments
Net borrowings
incl private
placement
Currency effects
Cash reserves
31.03.
Changes in short-term items of NOKm 1015 - Changes in long-term items of NOKm -316
Gross investments of NOKm 1 131 (503)
Maintenance 11%, new capacity 27%, shareholdings 62%
Page 15

LIABILITIES AND INTEREST EXPENSES
DEBT REDEMPTION PROFIL
DEBT REDEMPTION PROFILE
NOK million
8 000
4 000
0
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 >2021
Loans in subsidiaries
Loans in Statkraft AS
Loans from Statkraft SF (back to back)
AVERAGE INTEREST RATES
FUNDING
New debt NOKm 937
Repayment NOKm 553
Total interest-bearing liabilities
NOK 40.3 bn
NOK 49%, EUR 41%, SEK 5%,
USD 5%
64% exposed to floating interest
rates
8 %
6.7 %
6 %
4 %
2 %
5.3 %
4.9 %
4.8 %
4.8 % 3.9 % 4.1 % 4.1 %
3.5 %
3.9 %
1.3 %
4.8 %
3.6 % 3.7 %
2.5 %
0 %
2008 2009 2010 Q1 2011
NOK SEK EUR USD
Page 16

FINANCIAL STRENGTH AND RATING
40 %
30 %
FFO/DEBT
FFO/debt
35.8 %
36.3 %
32.6 %
12.0
10.0
FFO INTEREST COVERAGE
10.5
9.5
20 %
18.9 %
18.7 %
8.0
7.5
10 %
6.0
5.3
5.7
0 %
2007 2008 2009 2010 3m2011
4.0
2007 2008 2009 2010 3m2011
FFO 1 of NOKm 13 145 (14 705 at year-end 2010)
Interest bearing debt of NOKm 40 332 (40 486 at year-end 2010)
Rating target of minimum current ratings
Page 17
FFO = cash flow from operations before changes in short term items
FFO interest coverage = (FFO + interest expenses) / interest expenses
FFO/debt = FFO / gross interest bearing debt
1
Calculated 12 months rolling

OUTLOOK
Lower hydro generation expected in 2011 compared to
2010 due to weak resource situation
Forward prices indicate higher price level year-on-year
Uncertainty linked to the hydrological situation and
industry demand
High project activity following equity injection in December
2010
Global nuclear power uncertainty highlights need for
increased renewable energy capacity
Page 18

APPENDIX

FULL FINANCIAL STATEMENT
1st Quarter The year
Figures in NOK million 2011 2010 2010
PROFIT AND LOSS
Sales revenues 7 373 10 253 27 780
Other operating revenues 180 254 1 473
Gross operating revenues 7 553 10 507 29 252
Energy purchase -982 -1 954 -4 674
Transmission costs -354 -520 -1 595
Unrealised changes in the value of energy contracts 1 444 -211 193
Net operating revenues 7 661 7 822 23 176
Salaries and payroll costs -693 -678 -2 387
Depreciation, amortisation and impairments -580 -640 -3 205
Property tax and licence fees -297 -322 -1 236
Other operating expenses -840 -900 -3 598
Operating expenses -2 410 -2 540 -10 426
Operating profit 5 251 5 282 12 750
Share of profit from associates and joint ventures 395 643 766
Financial income 295 77 2 060
Financial expenses -489 -434 -1 607
Unrealised changes in the value of currency and interest contracts -567 1 924 -1 369
Net financial items -760 1 567 -917
Profit before tax 4 885 7 492 12 599
Tax expense -2 076 -2 960 -5 148
Net profit 2 809 4 532 7 451
Of which non-controlling interest 145 206 357
Of which majority interest 2 664 4 326 7 094
OTHER COMPREHENSIVE INCOME
Changes in fair value of financial instruments -16 -1 181 -4 107
Reversed changes is fair value of financial instruments, recognised as loss under financial items - - 3 625
Estimate deviation pensions - - -274
Translation differences -328 -1 526 -2 583
Other comprehensive income -344 -2 707 -3 339
Comprehensive income 2 465 1 825 4 112
Page 21
Of which non-controlling interest -40 170 243
Of which majority interest 2 505 1 655 3 869

BALANCE SHEET
Figures in NOK million 31.03.2011 31.03.2010 31.12.2010
ASSETS
Intangible assets 4 623 2 175 2 981
Property, plant and equipment 77 420 78 184 77 791
Investments in associates and joint ventures 16 941 17 352 17 090
Other non-current financial assets 15 807 20 018 16 382
Derivatives 3 845 3 650 3 842
Non-current assets 118 637 121 379 118 085
Inventories 308 544 1 013
Receivables 9 980 9 502 10 748
Short-term financial investments 438 433 424
Derivatives 7 044 4 388 5 645
Cash and cash equivalents 22 950 11 950 20 052
Current assets 40 721 26 817 37 882
Assets 159 358 148 197 155 967
Page 22
EQUITY AND LIABILITIES
Paid-in capital 45 569 31 569 45 569
Retained earnings 24 637 27 730 22 449
Non-controlling interest 6 931 7 595 7 284
Equity 77 137 66 894 75 302
Provisions 21 456 13 925 15 758
Long-term interest-bearing liabilities 33 698 35 659 34 251
Derivatives 2 261 3 971 2 494
Long-term liabilities 57 414 53 555 52 502
Short-term interest-bearing liabilities 6 634 9 624 6 235
Taxes payable 3 884 3 344 3 458
Other interest-free liabilities 8 264 10 927 11 609
Derivatives 6 025 3 853 6 861
Current liabilities 24 807 27 748 28 163
Equity and liabilities 159 358 148 197 155 967

CASH FLOW STATEMENT
1st Quarter 1st The Quarter year The year
Figures in NOK million Figures in NOK million 2011 2010 20112010
2010 2010
CASH FLOW FROM CASH OPERATING FLOW FROM ACTIVITIES OPERATING ACTIVITIES
Profit before tax Profit before tax 4 885 7 492 4 885 12 599 7 492 12 599
Profit/loss on sale Profit/loss non current on sale assets of non current assets - -4 - 26 -4 26
Depreciation, amortisation Depreciation, and impairments amortisation and impairments 580 640 5803 205 640 3 205
Profit from the sale Profit activities from the sale of activities - - - -371 - -371
1st Quarter Share The of year profit from Share associates of profit and from joint associates venturesand joint ventures -395 -643 -395-766
-643 -766
Figures in NOK million 2011 2010Unrealised 2010changes Unrealised in value changes in value -877 -1 713 -8771 176 -1 713 1 176
Taxes Taxes -1 294 -1 590 -1 294 -2 562 -1 590 -2 562
CASH FLOW FROM OPERATING ACTIVITIES
Cash flow from operating Cash flow activities from operating activities 2 899 4 182 2 899 13 307 4 182 13 307
Profit before tax 4 885 7 492Changes 12 599 in long term Changes itemsin long term items -316 -38 -316 252 -38 252
Profit/loss on sale of non current assets - -4Changes 26 in short term Changes items in short term items 1 015 2 078 1 015 -1 128 2 078 -1 128
Depreciation, amortisation and impairments 580 640Dividend 3 205 from associates Dividend from associates - - - 1 146 - 1 146
Profit from the sale of activities - - Net cash -371 flow operating Net cash activites flow operating activites A 3 598 A 6 222 3 598 13 577 6 222 13 577
Share of profit from associates and joint ventures -395 -643 -766
Unrealised changes in value
Taxes
-877
-1 294
-1 713CASH FLOW 1 176 FROM CASH INVESTING FLOW FROM ACTIVITIES INVESTING ACTIVITIES
-1 590Investments -2 562 in property, Investments plant in and property, equipment, plant maintanance and equipment, maintanance -126 -231 -126 000 -231 -1 000
Cash flow from operating activities 2 899 4 182Investments 13 307 in property, Investments plant in and property, equipment, plant new and capacity equipment, new capacity -311 -221 -311 -1 852 -221 -1 852
Changes in long term items -316 -38Sale of property, 252 plant Sale of and property, equipment plant and equipment 19 38 19 67 38 67
Changes in short term items 1 015 2 078Capital -1 reduction 128 in Capital associates reduction and joint associates venturesand joint ventures - - - 46 - 46
Dividend from associates - - Business 1 146 divestments, Business net liquidity divestments, accuring net to liquidity the Group accuring to the Group - - - 1 358 - 1 358
Net cash flow operating activites A 3 598 6 222Loans 13 to 577 third parties Loans to third parties 124 -12 124-222
-12 -222
Repayment of loans Repayment of loans -64 16 -64 194 16 194
CASH FLOW FROM INVESTING ACTIVITIES
Investments in other Investments companies in other companies -696 -51 -696-888
-51 -888
Investments in property, plant and equipment, maintanance -126 -231Net cash -1 000 flow from Net investing cash flow activities from investing activities B -1 054 B -461 -1 054 -2 297 -461 -2 297
Investments in property, plant and equipment, new capacity -311 -221 -1 852
Sale of property, plant and equipment 19 38CASH FLOW 67 FROM CASH FINANCING FLOW FROM ACTIVITIES FINANCING ACTIVITIES
Capital reduction in associates and joint ventures - - New debt 46 New debt 937 571 9374 431 571 4 431
Business divestments, net liquidity accuring to the Group - - Repayment 1 358 of debt Repayment of debt -553 -1 222 -553 -8 282 -1 222 -8 282
Loans to third parties 124 -12Capital-222
increase Capital increase - - - 14 000 - 14 000
Repayment of loans -64 16Reduction 194of capital Reduction to non-controlling of capital to interests non-controlling interests - - - -334 - -334
Investments in other companies -696 -51Dividend -888 and group Dividend contribution and group paid contribution paid - - - -7 964 - -7 964
Net cash flow from investing activities B -1 054 -461Share -2 issue 297 in subsidiary Share issue to non-controlling subsidiary to interests non-controlling interests 68 158 68 241 158 241
Net cash flow from Net financing cash flow activities from financing activities C 452 C -493 4522 092 -493 2 092
CASH FLOW FROM FINANCING ACTIVITIES
New debt 937 571Net change 4 431 in cash Net and change cash equivalents in cash and cash equivalents A+B+C 2 996 A+B+C5 268 2 996 13 372 5 268 13 372
Repayment of debt -553 -1 222 -8 282
Capital increase - - Currency 14 000 exchange Currency rate effects exchange on cash rate and effects cash equivalents on cash and cash equivalents -98 19 -98 17 19 17
Reduction of capital to non-controlling interests - - -334
Dividend and group contribution paid - - Cash and -7 964 cash equivalents Cash and 01.01 cash equivalents 01.01 20 052 6 663 20 0526 663 6 663 6 663
Share issue in subsidiary to non-controlling interests 68 158Cash and 241 cash equivalents Cash and 31.03/31.12 cash equivalents 31.03/31.12 22 950 11 950 22 950 20 052 11 950 20 052
Net cash flow from financing activities C 452 -493 2 092
Net change Page in 23cash and cash equivalents A+B+C 2 996
Unused commited Unused credit lines commited credit lines 12 000 8 052 12 0008 000 8 052 8 000
5 268Unused 13 372 overdraft Unused facilitiesoverdraft facilities 1 330 550 1 3301 074 550 1 074

DISTRIBUTION OF LOANS
External loans in
subsidiaries; 8 %
Certificates issued
in the Norwegian
market; 2 %
Loans from
Statkraft SF (backto-back
agreements); 3 %
Loans issued in the
Norwegian market;
40 %
Other loans raised
in non-Norwegian
markets; 47 %
Per 31 March 2011
Page 24