Half-yearly report H1

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1 Trust us to manage your risks 2018 Half-yearly report H1 Energi Danmark A/S, Hedeager 5, DK-8200 Aarhus N - CVR

2 Board of Directors & Management review During the first half of 2018, the Energi Danmark Group realised a profit before tax of DKK 60.8 million and consolidated revenue of DKK 13,695 million. This corresponds to a return on equity before tax of 13 % and an increase in the gross profit of 13.7 % compared with the first half of Cash flow improved by DKK million. The half-year result is in line with the budget and the expectations for the year as a whole are maintained. The Energi Danmark Group's balance sheet is DKK 8,661 million as of 30 June The cash flow for the period continued to improve in the first half of 2018 with an increase in the group cash position of DKK million. The Energi Danmark Group has experienced a positive first half year in terms of sales and the sales in the Danish, Finnish, German, and Swedish markets are in line with the expectations. Sales in our Norwegian subsidiary, Energi Salg Norge AS, have been especially strong in the first half of No audit or review has been made to the figures for the first half of August 2018 Board of Directors and Management, Energi Danmark A/S 01

3 Income statement and statement of other comprehensive income Notes DKK half year half year Revenue - Sales of power etc. 13,694,893 8,232,514 Purchase of power -14,014,081-8,148,543 Net income/loss from financial instruments 569, ,421 Gross profit 250, ,392 Staff costs -74,790-59,846 Other external costs -66,310-53,557 Depreciation -26,622-24,452 Operating profit 82,959 82,537 Finance income 1,917 4,297 Finance costs -24,106-22,166 Profit before tax 60,770 64,668 Tax -13,369-14,227 Profit for the period 47,401 50,441 Attributable to: Shareholders of Energi Danmark A/S 47,401 50,441 47,401 50,441 Other comprehensive income Items that may be reclassified to profit or loss in subsequent periods Exchange differences on translation of foreign operations -9,029-2,874 Net other comprehensive income to be reclassified to profit or loss in subsequent periods -9,029-2,874 Total comprehensive income for the period, net of tax 38,372 47,567 Attributable to: Shareholders of Energi Danmark A/S 38,372 47,567 02

4 Balance sheet assets Notes DKK / / Assets Non-current assets Intangible assets 82,643 67,209 Tangible assets 806, ,547 Deferred tax 6,339 6,277 Total non-current assets 895, ,033 Current assets Trade receivables 3,481,143 3,273,231 Trade receivables from associates 0 1,951 Income tax receivables 12,712 12,122 3 Derivative assets 3,788,566 1,323,674 Deposits 312, ,711 Other receivables 148, ,785 Cash 23,299 8,020 Total current assets 7,765,806 5,143,494 Total assets 8,660,880 6,043,527 03

5 Balance sheet liabilities Notes DKK / / Equity Share capital 221, ,833 Exchange rate reserve -18,052-9,023 Retained earnings 749, ,779 Proposed dividend 0 0 Total equity 952, ,589 Non-current liabilities Corporate bonds 748, ,851 Deferred tax 64,918 64,580 Total non-current liabilities 813, ,431 Current liabilities Credit institutions 0 409,947 Trade payables 1,795,718 1,625,938 Income tax payable 15,327 5,985 3 Derivative liabilities 4,774,161 1,604,217 Other payables 309, ,420 Total current liabilities 6,894,722 4,316,507 Total liabilities 7,707,919 5,128,938 Total equity and liabilities 8,660,880 6,043,527 04

6 Statement of changes in equity DKK 000 Share capital Exchange rate reserve Retained earnings Dividends Total Equity 1 January ,833-9, , ,589 Profit /(loss) for the period , ,401 Other comprehensive income Foreign currency translation adjustment 0-9, ,029 Comprehensive income for the period 0-9,029 47, ,372 Transactions with the owners Dividend distributed Proposed dividend Transactions with the owners for the period Equity 30 June ,833-18, , ,961 Equity 1 January ,833-2, , ,880 Profit /(loss) for the period , ,441 Other comprehensive income Foreign currency translation adjustment 0-2, ,874 Comprehensive income for the period 0-2,874 50, ,567 Transactions with the owners Dividend distributed Proposed dividend Transactions with the owners for the period Equity 30 June ,833-5, , ,447 05

7 Statement of cash flows DKK half year half year 2017 Operating profit 82,959 82,537 Adjustments for operating items of a non-cash nature etc.: Depreciation and amortisation etc. 26,622 24,452 Net foreign exchange differences -9,029-2,874 Finance income, received 1,917 4,297 Finance costs, paid -24,106-22,166 Changes in trade and other receivables -2,606, ,763 Changes in trade and other payables 2,979, ,981 Income taxes paid -4,341-4,716 Cash flow from operating activities 446, ,312 Purchase of intangible assets -20,819-18,104 Purchase of tangible assets ,413 Disposal of tangible assets Cash flow from investing activities -21, ,899 Repayment of corporate bonds 0-500,000 Issuing of coporate bonds 0 747,417 Dividends paid 0 0 Cash flow from financing activities 0 247,417 Cash flow for the period 425, ,830 Cash and cash equivalents at 1 January -401, ,717 Cash and cash equivalents 30 June 23, ,887 06

8 Notes Notes 1 Accounting policies The interim financial report comprises Energi Danmark and its consolidated subsidiaries (the Group). Accounting policies remain unchanged from the annual report 2017, to which reference is made. The interim financial report has been prepared in accordance with IAS 34 "Interim Financial Reporting" as adopted by the EU. Implementation of new standards and interpretations Energi Danmark A/S has implemented the standards and interpretations that are effective in EU in 2018 and except for IFRS 9 which has been early adopted. Standards and interpretations adopted in 2018 comprises mainly IFRS 15, Revenue from contracts with customers. 07

9 Notes Notes DKK Operating segments 1. half year 2018 Total revenue Internal revenue External revenue Reportable segment profit/ loss before tax Energi Danmark 13,558,879 2,571,761 10,987,118 61,457 Energi Danmark Securities 6,665 6, ,750 Energi Danmark Vind 42,073 19,512 22,561 10,845* Energi Försäljning Sverige 1,003, ,003,983 6,675 Energia Myynti Suomi 692, ,180-1,102 Energi Salg Norge 459, ,206 5,021 Energie Vertrieb Deutschland EVD GmbH 529, ,845-4,783 Total segments 16,292,831 2,597,938 13,694,893 85,863 Adjustment and elimination -2,597,938-2,597, ,093 Consolidated 13,694, ,694,893 60,770 * Profit from Energi Danmark Vind adjusted to IFRS principles is DKK -26, half year 2017 Total revenue Internal revenue External revenue Reportable segment profit/ loss before tax Energi Danmark 7,875,765 1,859,298 6,020,935 3,130 Energi Danmark Securities 8,292 8, ,446 Energi Danmark Vind 44,707 18,755 25,952 20,176 Energi Försäljning Sverige 850, ,273 28,171 Energia Myynti Suomi 681, ,129 1,691 Energi Salg Norge 271, ,608-1,307 Energie Vertrieb Deutschland EVD GmbH 382, ,617-1,953 Total segments 10,118,859 1,886,345 8,232,514 63,354 Adjustment and elimination -1,886,345-1,886, ,314 Consolidated 8,232, ,232,514 64,668 08

10 Notes Notes DKK Information about financial instruments Categories of financial instruments 30/ / Carrying amount Fair value Carrying amount Fair value Trade receivables 3,481,143 3,481,143 3,273,231 3,273,231 Trade receivables from associates 0 0 1,951 1,951 Other receivables and deposits 460, , , ,496 Cash 23,299 23,299 8,020 8,020 Financial assets measured at amortised cost 3,964,528 3,964,528 3,807,698 3,807,698 Derivative assets 3,788,566 3,788,566 1,323,674 1,323,674 Financial assets measured at fair value through profit or loss 3,788,566 3,788,566 1,323,674 1,323,674 Credit institutions , ,947 Corporate bonds 748, , , ,250 Trade payables 1,795,718 1,795,718 1,625,938 1,625,938 Other payables 324, , , ,405 Financial liabilities measured at amortised costs 2,868,840 2,875,811 3,460,141 3,467,540 Derivative liabilities 4,774,161 4,774,161 1,604,217 1,604,217 Financial liabilities measured at fair value through profit or loss 4,774,161 4,774,161 1,604,217 1,604,217 09

11 Notes Notes DKK 000 Fair value measurement of financial instruments 30/ Level 1 Level 2 Level 3 Total Financial assets measured at fair value Derivative financial assets: Foreign exchange forward 60,453 60,453 Commodity derivative 987,019 2,582, ,587 3,728,113 Total 987,019 2,642, ,587 3,788,566 Financial liabilities measured at fair value Derivative financial liabitilies: Interest rate swaps 17,274 17,274 Foreign exchange forward 9,703 9,703 Commodity derivative 7,055 4,727,866 12,263 4,747,184 Total 7,055 4,754,843 12,263 4,774,161 Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value measurement is based on the presumption that the transaction to sell the asset or transfer the liability takes place either in the principal market or, if not available, in the most advantegeous market. The principal or the most advantageous market must be accessible by the Group. The fair value of an asset or a liability is measured using the assumptions that market participants would use when pricing the asset or liability, assuming that market participants act in their economic best interest. A fair value measurement of a non-financial asset takes into account a market participant s ability to generate economic benefits by using the asset in its highest and best use or by selling it to another market participant that would use the asset in its highest and best use. The Group uses valuation techniques that are appropriate in the circumstances and for which sufficient data are available to measure fair value, maximising the use of relevant observable inputs and minimising the use of unobservable inputs. All assets and liabilities for which fair value is measured or dis closed in the financial statements are categorised within the fair value hierarchy, described as follows, based on the lowest level input that is significant to the fair value measurement as a whole: Level 1 - Quoted (unadjusted) market prices in active markets for identical assets or liabilities Level 2 - Valuation techniques for which the lowest level input that is significant to the fair value measurement is directly or indirectly observable Level 3 - Valuation techniques for which the lowest level input that is significant to the fair value measurement is unobservable. If electricity prices changes with 5 % at 30 June 2018, the net level 3 value will change with 14,7 m. 10

12 Notes Notes 31/ Level 1 Level 2 Level 3 Total Financial assets measured at fair value Derivative financial assets: Foreign exchange forward 0 35, ,083 Commodity derivative 258, , ,191 1,288,591 Total 258, , ,191 1,323,674 Financial liabilities measured at fair value Derivative financial liabitilies: Interest rate swaps 0 18, ,932 Foreign exchange forward 0 6, ,824 Commodity derivative 5,026 1,572, ,578,461 Total 5,026 1,598, ,604,217 If electricity prices changes with 5 % at 31 December 2017, the net level 3 value will change with DKK 19.5 m. Amortisation of initial margin If, at the time of inception, a difference arises between the model value of a financial instrument or physical contract accounted for as derivatives, calculated on the basis of unobservable inputs, and the transaction price (day-1 profit or loss), the Group adjusts the model parameters to take into account the initial margin. The margin is recognised as profit over the delivery period. 30/ / Deferred initial margin beginning of year 344, ,695 Recognised in profit or loss -58, ,551 Initial margin on new contracs 65, ,700 Deferred initial margin end of year 351, ,844 11

13 Notes Subsequent events No significant events have occured after the balance sheet date. Risk and uncertainties Besides what has been disclosed in the half year report, no changes in the Group's most significant risks and uncertainties have occured relative to what was disclosed in the consolidated annual report for

14 Financial Calendar March Annual report April Annual general shareholder meeting August Half-yearly report

15 About the Energi Danmark Group The Energi Danmark Group is one of Northern Europe s leading energy trading groups with activities rang ing from physical and financial en ergy trading, carbon trading and trading with gas and wind energy to currency hedging, portfolio man a gement, portfolio contracts and associated trading in derivative financial instruments. The Group buys and sells electricity at NASDAQ OMX Commodities in Stockholm, the Nordic electricity exchange Nord Pool in Oslo, the German electricity exchange EEX and via decentralised electricity producers. The customers of the Energi Danmark Group comprise much of the business market as well as public sector enterprises in the Nordic region, and the Group is currently expanding its activities to new countries in Northern Europe, most recently Germany. As at 30 June 2018, the company has the following shareholders: Ownership % Share capital (DKK) 1. SEAS-NVE a.m.b.a., Svinninge, Denmark ,260, NRGi a.m.b.a., Aarhus N, Denmark ,292, Energi Nord Holding A/S, Aalborg, Denmark ,755, EWII Energi A/S, Kolding, Denmark ,590, SEAS-NVE Strømmen A/S, Svinninge, Denmark ,556, SEF Energi A/S, Svendborg, Denmark ,493, Fonden Langelands Elforsyning, Rudkøbing, Denmark , ,833,336 14

Energi Danmark A/S Hedeager 5 DK-8200 Aarhus N Tel. +45 87 42 62 62 Fax +45 87 42 62 63 E-mail ed@energidanmark.dk www.

16 Energi Danmark A/S Hedeager 5 DK-8200 Aarhus N Tel Fax ed@energidanmark.dk Aarhus Copenhagen Odense Malmö Stockholm Gothenburg Helsinki Vaasa Kuopio Oslo Trondheim Hamburg Leipzig Osnabrück

Energi Danmark A/S, Hedeager 5, DK-8200 Aarhus N - CVR Trust us to manage your risks

Energi Danmark A/S, Hedeager 5, DK-8200 Aarhus N - CVR 17 22 58 98 Trust us to manage your risks CONTENTS MANAGEMENT REVIEW 4 Board of Directors & Management review 2018 6 Financial highlights for the