markets - Swedbank

Hafslund - a pure play utilitySwedbank First Securities – Nordic Energy Summit 201321 March 2013Heidi UlmoCFO, Hafslund ASA

DisclamerCertain statements included within this presentation contain (and oral communications made by or on behalf ofHafslund may contain) forward-looking information, including, without limitation, those relating to (a) forecasts,projections and estimates, (b) statements of managements' plans, objectives and strategies for Hafslund, such asplanned expansions and investments, (c) targeted production volumes and costs, capacities or rates, start-upcosts, cost reductions and profit objectives, (d) various expectations about future developments in Hafslund'smarkets, particularly prices, supply and demand and competition, (e) results of operations, (f) margins, (g) growthrates, (h) risk management, as well as (i) statements preceded by "expected", "scheduled", "targeted", "planned","propose", "intended" or similar statements.Although Hafslund believes that the expectations reflected in such forward-looking statements are reasonable,these forward-looking statements are based on a number of assumptions and forecasts that, by their nature,involve risk and uncertainty. Various factors could cause Hafslund's actual results to differ materially from thoseprojected in a forward-looking statement or affect the extent to which a particular projection is realised. Factorsthat could cause these differences include, but are not limited to, world economic growth and other economicindicators, including rates of inflation and industrial production, trends in Hafslund's key markets, energy prices andchanges in governmental regulations.No assurance can be given that such expectations will prove to have been correct. Hafslund disclaims anyobligation to update or revise any forward-looking statement, whether as a result of new information, future eventsor otherwise.The Hafslund shares have not been registered under the U.S. Securities Act of 1933, as amended (the "Act"), andmay not be offered or sold in the United States absent registration or an applicable exemption from the registrationrequirements of the Act.2

Hafslund – a leading Norwegian utilityNorway’s largest grid company562,500 customersNorway’s largest district heating operator1.8 TWhNorway’s largest retail power supplier –5 th largest in the Nordic regionA medium sized power producer905,000 customers3.1 TWh3

More than 100 years of history• Viken Energi • Røyken Kraft• Oslo Energi • Gjermå Kraft• Tindra• Varslingssystemer• Norges Energi • Vaktservice• Fredrikstad Energi • SES• ØkoKraft• Göta Energi AB• Energibolaget AB1898Hafslundestablished1986Nycomed partof Hafslund1996DemergerHafslund Nycomed2002-2005• Restructuring• Integration• Value creation2008• Focusing onrenewable energy• Spin-off: Infratek2010-2011• Established inthe NordicPower market• Spin-off: Highvoltage gridand Venturearea2012 -• An integratedand focusedenergycompany4

Recent years – focus on core businessCapital employed[MNOK]45.000Divestments40.00035.00030.00025.00020.00015.000OtherFiberCentral gridplants10.000Other businessesMarkets5.000NetworkProduction0Heat2007200820092010201120125

A strong position in the entire value chainEnergygeneration(wholesale)DistrictheatingDistributionPowersales(retail)PRODUCTIONHEAT NETWORK MARKETSCapital employed100% = NOK 21.7 billionEBITDA100% = NOK 2,114 millionMarkets Other8%2%22%ProductionMarkets17%Other0%22%ProductionNetwork43%26%Heat46%14%HeatNetwork6Note: 2012 figures. Other segment with negative profit contribution

OsloPRODUCTION• Normal production 3.1 TWh/year• 3 large power stations in Glomma• Completed building of new power stationin 2011• River based• Acquired prior to the reversion regime• Partial price hedging7

HEAT• Norway’s largest district heating operator• Annual heat production: 1.8 TWh• District heating system in Oslo• Two smaller heat and steam based plants• Revenue regulated by power prices• >90% of fuel based on renewable energysources• From growth to consolidation and improvedprofitability8Concession areaDeveloped grid

OsloRegional gridDistribution andRegional grid9NETWORK• Norway’s largest grid company• Located in the extended Oslo region• 562,500 customers• Regional and distribution grid• Fully regulated through the Energy Act• Automatic metering systems within 2019• One of Norway’s most efficient gridoperators with few power outages

MARKETS• Norway’s largest retail power supplier• Fifth largest in the Nordic countries• Several brand names - common backoffice functions• 905,000 customers• Fully deregulated and highly competitivemarket• Well positioned for organic growth10

The Nordic power market – a key driver forprofitability• Yearly generation in Norway: 130 TWh – ofwhich 95% hydropower• 90 % of Norwegian hydropower is publiclyowned• Power prices are set on the Nordic powerexchange (Nord Pool) – and prices are driven by– Short run marginal cost of coal power generation– Hydrological situation in the Nordic region– Transmission lines• Green certificates from 201211

Uncertainty regarding future power prices in theNordic regionNOK/kWh0,450,400,350,300,250,2028 NOK/kWh*0,150,100,050,001996 1998 2000 2002 2004 2006 2008 2010 2012 2014 2016 2018Nordic power price - SystemPeriod average12*Period average 2013 – 2018 is based on averages of forward prices for SYS.Source: www.nordpoolspot.com and www.nasdaqcommodities.com

… other key value driversSwap interestrate• Network regulated-income model from 2013based on swap interest rate• Financing costRegulatoryregime• Regulated revenue regime Network and Heat• Automatic metering systems by 2019• El-certificates• National hubEfficientoperations• Organic growth• Efficient operations• Risk management13

Historic organic growth within core business unitsMarketsCustomers(thousands)1.000800600400+287.000 customersGrowth2007-201245% morecustomers2013 andforwardHigh growthProduction3,53,02,5+200 GWh7% highervolumeUpgrades andgreen certificatesTWh/yr2,0NetworkCustomers(thousands)560540520500+29.000 customers5% morecustomersIncreased growthHeat21+900 GWh90% highervolumeIncreasedcustomer densityTWh/yr0142007 2012

Going forward - continued organic growthNetwork and HeatMarketsHafslund’s operationslocated in areas withhigh population growthOsloDistrict heating, Oslo15Distribution gridRegional gridHydro power plantsPopulation growth

Hafslund – a pure play utility