Q U A R T E R L Y R E P O R T 2017 THIRD QUARTER

Q U A R T E R L Y R E P O R T 2017 THIRD QUARTER

Contents Highlights 3 Group summary 5 Business areas 6 Other matters 7 Outlook 7 Financial statements 9 Notes to the financial statements 12 Definitions 15 Financial calendar and investor information 16 2 QUARTERLY REPORT Q3 2017

Highlights per third quarter 2017 Hafslund ASA de-listed from Oslo Stock Exchange, de-merger and Hafslund AS established effective 4 August, with main business Hafslund Nett. Ytd EBITDA NOK 1,124 million Hafslund Marked, Hafslund Varme and Hafslund Produksjon spun off and sold to Fortum, E-CO and the Oslo kommune on 4 August. Year-to-date EBITDA of NOK 1,124 million and year-to-date profit after tax before discontinued operations of NOK 362 million at end of third quarter. Solid operations and KILE costs in Q3 on a par with last year. Net debt/ EBITDA 3.9 AMS project progressing well more than half of 700,000 meters installed. Net debt of NOK 6.2 billion and net debt/ebitda ratio of 3.9. 3 QUARTERLY REPORT Q3 2017

Transaction and financial figures Hafslund AS was established on 4 August after Hafslund ASA had been de-listed from the Oslo Stock Exchange, and Hafslund AS had been de-merged from Hafslund ASA. Following the divestment of Hafslund Marked, Hafslund Varme and Hafslund Produksjon to Fortum, E-CO and Oslo kommune effective the same date, the main business of Hafslund AS comprises Hafslund Nett. The divested businesses are reported net after tax under the result from discontinued operations in the 2016 figures and in the year-to-date figures to July 2017. The balance sheet figures for 2016 relate to the former Hafslund ASA Group. Hafslund AS financial statements for the third quarter of 2017 do not contain comparative figures for the previous year. Figures for the former Hafslund ASA s Networks business can be viewed in Hafslund ASA s historical financial reports. Key figures Income statement (NOK million) Ytd 2017 Year 2016 Sales revenues 3,690 4,824 EBITDA 1,124 1,636 Operating profit 641 964 Profit before tax and discontinued operations 487 816 Net result from discontinued operations, after tax 3,849 741 Profit after tax 4,211 1,402 Capital and equity Equity ratio 30% 36% Net liabilities / EBITDA 3.9 n/a Net interest-bearing liabilities 6,242 9,480 Capital employed 11,949 22,730 Other key figures Energy delivery Networks (GWh) 10,486 19,524 Number of network customers ( 000) 702 697 KILE cost 74 76 Costs of overhead network 1,201 1,315 Investments 1,085 1,016 NVE capital 8,922 8,818 Figures in NOK unless otherwise stated. The figures for 2016 are stated in parentheses. 4 QUARTERLY REPORT Q3 2017

Summary per third quarter 2017 Hafslund AS and completed transaction On 26 April Oslo kommune and Fortum, which together owned shares representing 87.8 per cent of Hafslund ASA s share capital and 91.3 per cent of its voting rights, announced that they had agreed to de-list Hafslund ASA from the Oslo Stock Exchange and each assume ownership of a share of Hafslund ASA s former business. Hafslund AS was established following the de-merger of Hafslund ASA on 4 August 2017 and has continued ownership of Hafslund ASA s former Networks business. Hafslund AS also owns a waste-to-energy plant in Fredrikstad, and part-owns network and energy companies in Østfold and in Hafslund s previous venture activities as follows: Hafslund AS is wholly owned by the Oslo kommune. Profit per third quarter Hafslund AS 100% 100% 100% Bio-El Fredrikstad AS Hafslund Nett AS 33% Rakkestad Energi AS 49% Trøgstad Elverk AS 33% Kraftcert AS Hafslund Handel AS 49% Fredrikstad Energi AS 50% Energy Future Invest AS 3,6% Norwegian Crystal AS Hafslund posted EBITDA of NOK 1,124 million and an operating profit of NOK 642 million year-to-date 2017. At NOK 154 million, financial expenses for year-to-date include a reduction of NOK 57 million due to changes in the market value of the share of the loan portfolio that is recognised at fair value caused by lower forward interest rates. This compares with a reduction of NOK 31 million for the former Hafslund ASA year-todate second quarter. Financial expenses include NOK 25 million relating to two short-term drawdown credit facilities of NOK 1,800 million established in connection with the spin-off of Hafslund ASA and compensation for bond holders for the reassignment of bond loans from Hafslund ASA to Hafslund AS. The tax expense for the first nine months of the year closed on NOK 125 million, while the profit after tax on continuing operations totalled NOK 362 million. The profit after tax from discontinued operations amounted to NOK 3,849 million. Of this amount, NOK 477 million related to the profit after tax to July 2017 for the divested businesses and NOK 3,732 million to associated gains on disposals in connection with the sold entities in August. This generated a net year-to-date profit after tax from continuing and discontinued operations of NOK 4,211 million at the reporting date. Cash flow per third quarter At the end of the third quarter, the cash flow from operating activities amounted to NOK 2,021 million. This includes NOK 725 million in reduced working capital, which closed the quarter on NOK 529 million. At NOK 1,124 million, third-quarter EBITDA were NOK 172 million lower than the related cash flow from operations before changes in working capital. This was primarily attributable to a cash inflow from discontinued operations of NOK 906 million, and the payment of combined interest and tax of NOK 725 million. At the reporting date net investments amounted to NOK 1,063 million, primarily due to higher AMS activities. Financing and capital At the end of the third quarter, Hafslund had net interest-bearing liabilities of NOK 6.2 billion and an average coupon rate for the loan portfolio of 2.8 percent. Annual maturity profile of loans as of October 2017 (NOK million) Commercial paper Maturity profile for the next 12 months as of October 2017 (NOK million) Commercial paper Bonds Bonds Other loans Hafslund maintains solid financial key figures and at the reporting date had net debt/ebitda ratio of 3.9. Hafslund s capital structure has been aligned with operations following the spin-off, May Other loans Oct 5 QUARTERLY REPORT Q3 2017

with an aim of maintaining a similar credit profile to that of the former Hafslund ASA. Gross interest-bearing liabilities are expected to be on a par with net interest-bearing liabilities by the first half of 2018. Hafslund s capital requirements will increase slightly towards the end of 2018, in part due to the completion of the roll-out of automatic meters (the "AMS project"). The company s net-interest bearing liabilities/ebitda ratio is not expected in exceed 5. At the end of the third quarter, Hafslund had cash and cash equivalents of NOK 2,066 million and a drawdown facility of NOK 500 million that matures in October 2018. Management is working to establish a new, larger drawdown facility that is expected to be in place in the fourth quarter of 2017. Hafslund has a robust financing structure with sufficient liquidity to cover at least the next 12 months maturities. Networks Key financial figures NOK million Q3 17 Q3 16 Ytd 2017 Ytd 2016 Sales revenues 1,110 1,103 3,603 3,400 Gross contribution 688 751 2,128 2,175 EBITDA 386 411 1,160 1,195 Operating profit 224 255 687 748 Energy delivery (GWh) 4,065 3,856 10,486 10,458 Number of customers ( 000) Costs of overhead network 702 693 361 304 1201 963 Investments 410 254 1,085 605 NVE capital 8,922 8,294 Capital employed 11,694 11,279 11,694 11,279 Networks posted sales revenues of NOK 1,110 million in the quarter, up NOK 7 million on the comparable prior-year period. The increase was attributable to a higher volume and network rental. The energy delivery for the third quarter came in at NOK 4,065 GWh, an increase of five per cent on the previous year. Combined costs for the overhead network (Statnett) and energy purchases for network losses amounted to NOK 409 million (NOK 345 million) in the quarter. The increase primarily relates to higher costs for the overhead network (Statnett) of NOK 57 million. This generated a gross contribution of NOK 688 million (NOK 751 million) for the third quarter. At NOK 302 million, operating expenses for the third quarter were NOK 38 million lower than the third quarter of 2016. Operating and maintenance expenses fell by NOK 32 million, of which NOK 20 million relates to customer-initiated work, NOK 3 million to lower contingency costs, and NOK 9 million to other operating expenses. Remaining operating expenses decreased by NOK 17 million, primarily due to lower costs for meter reading, invoicing and revenue collection services for network customers. Investment contributions rose by NOK 6 million against the previous year. These contributions have no impact on profit due to the fact that there is a corresponding increase in income. Third-quarter EBITDA of NOK 386 million were NOK 25 million lower than the previous year. Assuming normal energy demand, planned network tariffs and forward power prices, as well as planned maintenance and cost changes, Networks operating profit for 2017 is expected to come in around 15 percent lower than in 2016. This is attributable to major positive non-recurring effects in 2016 relating to the purchased networks business in Østfold in 2014. At the end of 2016, Networks had accumulated surplus income of NOK 187 million. According the current forecasts, accumulated surplus income is expected to increase to around NOK 310 million by the end of 2017. The increase in surplus income is part due to Hafslund Nett s desire to maintain the network rental as stable as possible. Operations Hafslund Nett s security of supply is among the best of any network operator in Norway. The table below shows the change in operating disruptions (right-hand scale) and the KILE cost (lefthand scale). KILE is the quality-adjustment of the income ceiling for non-delivered energy. KILE cost and operating downtime Penalties 35 30 25 20 15 10 5 0 Q3 15 Q4 15 Q1 16 Q2 16 Q3 16 Q4 16 Q1 17 Q2 17 Quarterly penalties (NOK million) Outages 2 000 1 800 1 600 1 400 1 200 1 000 Operating conditions in Hafslund Nett s supply area were generally good in the third quarter due to stable weather conditions. There were significantly fewer incidents in the distribution network than in the previous year. However, the regional network experienced some incidents with a high KILE cost during the quarter. Total KILE cost for the reporting period was on a par with the corresponding prior-year quarter. Investments Investments in the third quarter totalled NOK 410 million (NOK 254 million). The increase primarily relates to AMS, along with internal investments in the supply network. The AMS project is progressing well, and in the second quarter of 2017 the investment forecast was reduced from NOK 2.4 billion to NOK 2.1 billion. At the end of October 353,000 out of a total of 658,000 smart meters, and 6,000 out of a total of 8,300 concentrators, had been installed. The project remains on schedule and there are currently being installed between 1,000 and 1,500 meters a 800 600 400 No. of outages last 12 months 6 QUARTERLY REPORT Q3 2017

day. The risk profile is relatively unchanged against the second quarter. The greatest areas of uncertainty for the project relate to continuation of the current installment rate, efficient use of IT support and capacity in the radio-mesh network. At the end of the third quarter of 2017, Networks had capital employed of NOK 11.7 billion (NOK 11.3 billion). Other business NOK million Ytd 2017 Year 2016 Staff functions (62) (48) Other business 16 (44) Operating loss Other business (46) (92) Other business posted a total operating loss of NOK 46 million in the third quarter. Staff functions, which related to the former parent company Hafslund ASA until 4 August and subsequently to the new company Hafslund AS, posted an operating loss of NOK 62 million for the nine months to 30 September 2017. This compares to a loss of NOK 27 million at the end of the second quarter for the former Hafslund ASA. The operating loss for staff functions includes NOK 29 million in costs relating to the transaction. Staff functions have been scaled down in the new company Hafslund AS. Other business comprises Bio-El Fredrikstad AS, associates and changes in the value of interestrate derivatives. The low result in 2016 primarily relates to impairments in associates and Other business. Business disposals In August 2017, Hafslund s Markets, Heat and Production business areas were spun off and sold. The income statement for the first nine months of 2017 has been restated with the results of discontinued operations shown separately. The comparative figures for 2016 have been restated accordingly. See also discussion in Note 2. Other matters Settlement of transaction Profit from discontinued operations is based on the latest estimated purchase figures per balance sheet date. It is expected that the final purchase figures and settlement will be completed in fourth-quarter 2017. Preliminary calculations indicate that Hafslund's cash holdings will be reduced by approximately NOK 250 million, mainly as a result of tax and working capital adjustments. The Board of Directors of Hafslund AS Hafslund AS Board of Directors comprises: Hilde Tonne Chair Bente Sollid Storehaug Jeanette Iren Moen Odd Håkon Hoelsæter Bjørn Erik Næss Per Orfjell Employee representative Per Luneborg Employee representative Tommy Linder Employee representative Bjørn Erik Næss is the Chair of the Audit Committee Outlook The transaction agreed with Oslo kommune and Fortum was implemented on 4 August this year. Hafslund was de-merged, and Hafslund Marked, Hafslund Varme and Hafslund Produksjon were sold. The main business of Hafslund now comprises Hafslund ASA s former Networks operations. Hafslund Nett, which owns and operates the bulk of the regional and distribution network in Akershus, Oslo and Østfold, is Norway s largest network operator with 700,000 customers. Ownership of the regulated network business provides a solid basis for stable and predictable returns. In implementing the de-merger, importance was attached to maintaining deliveries to customers, securing stable and efficient operations and upholding expertise levels and the performance of the business areas. Hafslund will deliver Group services to the divested businesses for a transitional period, and significant work is being performed to securely embed Hafslund and the divested businesses with their new owners. Networks long-term earnings are influenced by the business area s relative cost efficiency compared with the rest of the networks industry, interest rate fluctuations and changes in public regulations. Digitalisation of the value chain and the customer interface is absolutely critical to achieving efficient operations and retaining satisfied customers. Hafslund will ramp up its investments to a yearly average of around NOK 1.7 billion in 2017 and 2018, compared with a yearly average of NOK 0.7 billion between 2013 and 2015 and NOK 1 billion in 2016. In addition to ongoing investments in operations and expansion, the Group s future investments will be characterised by investments of NOK 2.1 billion in automatic meters at all customers and associated new ICT systems. Hafslund ASA s debt have been transferred to Hafslund AS, and will be aligned with the business activities and strategy. Hafslund AS aims to maintain a similar credit profile to that of the former Hafslund ASA. Hafslund will continue the previously communicated growth and improvement initiatives and further develop Hafslund Nett as one of Norway s most efficient network operators. Hafslund also holds a 49 per cent stake in Fredrikstad Energi AS, which has 94,000 customers, and shareholdings in two smaller network operators. Hafslund will seek out further growth opportunities both organically and through acquisitions and intend to participate in any consolidation in the eastern parts of Norway. Oslo, 27 November 2017 Hafslund AS Board of Directors 7 QUARTERLY REPORT Q3 2017

Consolidated income statement NOK million Ytd 2017 Year 2016 Sales revenues 3,690 4,824 Purchases of goods and energy (1,487) (1,756) Gross contribution 2,203 3,068 Net financial items 9 14 Personnel expenses (207) (349) Other operating expenses (881) (1,097) EBITDA 1,124 1,636 Depreciation and amortisation Impairments (483) (672) - (30) Operating profit 641 964 Interest expenses, etc. (211) (235) Change in value of loan portfolio 57 87 Financial expenses (154) (148) Profit before tax and discontinued operations 487 816 Tax expense (125) (155) Net result from discontinued operations, after tax 3,849 741 Profit after tax 4,211 1,402 8 QUARTERLY REPORT Q3 2017

Consolidated statement of comprehensive income Profit after tax 4,211 1,402 Changes in value of hedging contracts, cash flow hedging 109 Credit risk, loans valued at fair value. (4) Translation differences 48 Tax (27) Total items that can be reclassified to the income statement - 130 Change in pension estimates (21) 304 Tax 5 (76) Total items that cannot be reclassified to income statement (16) 228 Other comprehensive income for the period, allocated to: 4,191 1,760 Profit attributable to shareholders of Hafslund ASA and Hafslund AS 4,191 1,760 Other comprehensive income after tax 4,191 1,760 9 QUARTERLY REPORT Q3 2017

Consolidated balance sheet NOK million 30.09.17 31.12.16 Intangible assets 624 2,880 Property, plant and equipment 11,610 19,610 Financial assets 336 542 Receivables and inventories 720 3,135 Cash and cash equivalents 2,066 572 Assets 15,355 26,740 Equity (controlling interests) 4,656 9,567 Equity (attributable to minority) 0 4 Provisions 1,167 3,553 Long-term interest-bearing liabilities 6,504 7,870 Current interest-bearing liabilities 1,803 2,193 Current non-interest-bearing liabilities 1,225 3,553 Liabilities and equity 15,355 26,740 Equity reconciliation NOK million Ytd 2017 Equity at start of period 9,571 Other comprehensive income for the period 4,191 Spin-off (1,521) Dividends (634) Non-cash distribution (6,946) Change in non-controlling interests Other equity effects (5) Equity at end of period 4,656 10 QUARTERLY REPORT Q3 2017

Consolidated statement of cash flows NOK million Ytd 2017 Year 2016 EBITDA 1,124 3,143 Interest paid (238) (350) Tax payable (470) (380) Changes in market value and other liquidity adjustments (26) (132) Change in trade receivables, etc. 746 (525) Change in working capital credits, etc. (21) 284 Cash flow from operations discontinued operations 906 Cash flow from operating activities 2,021 2,041 Investments in operations and expansion (1,063) (1,513) Net purchase/sale of shares, etc. 387 Cash flow from investing activities, discontinued operations 2,940 Cash flow from investing activities 1,877 (1,126) Change in interest-bearing liabilities and receivables (1,769) (482) Dividends and equity transactions (634) (586) Cash flow from financing activities (2,403) (1,068) Change in cash and cash equivalents during the period 1,495 (153) Cash and cash equivalents at start of the period 571 724 Cash and cash equivalents at end of period 2,066 571 11 QUARTERLY REPORT Q3 2017

Notes to the financial statements 1) Framework conditions and key accounting policies The consolidated financial statements for the third quarter of 2017, for the period ending 30 September 2017, have been prepared in accordance with International Financial Reporting Standards (IFRSs) as adopted by the EU and include Hafslund AS, its subsidiaries and associates. Financial figures have not been prepared for the third quarter in isolation; however, year-to-date figures have been prepared as of 30 September 2017 following the completion of the spin-off. This deviates from the requirements for interim reporting contained in IAS 34. This interim report has not been audited, The interim financial statements do not provide the same scope of information as the annual financial statements and should therefore be viewed in the context of Hafslund ASA s consolidated financial statements for 2016. The accounting policies and calculation methods applied in interim reporting are the same as those described in Note 2 to the consolidated annual financial statements of the Hafslund ASA Group for 2016, with the exception of IFRS 9 Financial Instruments. The Group has decided to early-adopt IFRS 9, which replaces IAS 39, and will apply IFRS 9 from 1 January 2017. In accordance with IFRS 9 financial assets are divided into three categories: fair value through profit or loss; fair value through other comprehensive income; and amortised cost. The standard deals with the classification, measurement, recognition and de-recognition of financial assets and liabilities, and introduces new rules for hedge accounting and a new impairment model for financial assets. The following areas have been affected by IFRS 9: The standard essentially continues the requirements of IAS 39 for financial liabilities, where the most significant change relates to use of the fair value option for financial liabilities. In accordance with IFRS 9 changes in fair value attributable to changes in inherent credit risk are recognised in other comprehensive income. At the end of the third quarter of 2017, this change amounted to NOK -4 million. Impairments attributable to credit risk are now recognised based on expected losses rather than under previous models where losses must already have been incurred. The new impairment model has not materially impacted the consolidated figures at the end of the third quarter of 2017. IFRS 9 will be of less relevance for the residual business following the disposal of Hafslund s powerexposed operations. The Group is also working to implement IFRS 15 Revenues from Contracts with Customers and IFRS 16 Leases. See Note 2 to Hafslund ASA s consolidated annual financial statements for 2016. 2) Business disposals On 3 July 2017, Oslo kommune made a voluntary offering for all the shares in Hafslund ASA through its wholly owned subsidiary Oslo Energi Holding AS. After the compulsory acquisition of the shares of minority shareholders, the shares were de-listed from the Oslo Stock Exchange. On 4 August 2017 Hafslund ASA implemented a spin-off pursuant to company law with continuity of shareholders shares and rights, in which all assets, rights and obligations, apart from those assets, rights and liabilities associated with Hafslund Produksjon, were spun off to the new company Hafslund AS. From a company-law perspective Hafslund AS is the acquiring company in the spin-off described above. However, for consolidated accounting purposes the financial entity represented by the former Hafslund ASA Group is continued as the reporting entity. Since Hafslund AS acquired three of four business areas in the spin-off, the consolidated financial statements of Hafslund AS are deemed to represent a continuation of the former Hafslund ASA Group. Consequently, the values have not been re-measured in the Hafslund AS Group. The disposal of the power production segment is recognised in the consolidated financial statements as a reduction in equity as a result of the spin-off in the statement of changes in equity. The results of the power production business for the period 1 January 2016 to the spin-off date are recognised under the result from discontinued operations. Immediately after the spin-off, Hafslund AS sold 100 percent of the shares in the subsidiary Hafslund Marked AS and 50 per cent of the shares in the subsidiary Hafslund Varme AS to Fortum. The gain on the sale of the shares in Hafslund Market AS is recognised in the consolidated financial statements as the difference between the carrying amount in the Group and the consideration received. The results from the Markets segment for the period 1 January 2016 to the disposal date are recognised in the result from discontinued operations together with the gain. The sale of 50 per cent of the shares in Hafslund AS is recognised in the consolidated financial statements as a sell-off with loss of control. The residual shareholding is measured at fair value, with the resulting upwards revaluation recognised in income. The results from the Heat segment for the period from 1 January 2016 to the disposal date are recognised in the result from discontinued operations together with the associated gains. 12 QUARTERLY REPORT Q3 2017

The residual 50 percent shareholding in Hafslund Varme AS, and receivables due from Fortum following the disposal of the shares in Hafslund Varme AS and Hafslund Marked AS, were distributed as a non-cash asset to Oslo Energi Holding AS as of 30 September 2017. This distribution is recognised at fair value in the consolidated financial statements. The consideration for all the above transactions was measured at fair value and subject to normal purchase sum calculations. The result from discontinued operations is based on the latest estimated purchase sum calculations available at the balance sheet date. It is expected that the final purchase figures and settlement will be completed in fourth-quarter 2017. Preliminary calculations indicate that Hafslund's cash holdings will be reduced by approximately NOK 250 million, mainly as a result of tax and working capital adjustments. Result from discontinued operations NOK million Ytd 2017 2016 Operating revenues 5,428 9,126 Operating expenses (4,660) (7,898) Net financial items (47) (69) Profit before tax 721 1,159 Tax expense (244) (418) Net profit for the period 477 741 Profit after tax 3,372 Result from discontinued operations 3,849 741 3) Networks income ceiling and income surpluses/shortfalls Permitted income for the year Electrical power is distributed via networks, which represent a natural monopoly within the individual network business s geographic area. The Norwegian Water Resources and Energy Directorate (NVE) therefore establishes an income ceiling that represents the maximum income level the networks businesses are allowed to collect in network rental, and which is intended to provide a reasonable return on invested capital, and to cover normal operating and maintenance expenses. The regulated income ceiling, plus re-invoicing of expenses from the overhead network (Statnett) are referred to as permitted income and established for the year as a whole. Actual income for the year Actual income (tariff income) for a network company comprises the tariffs, power output and actually transmitted energy volumes at any one time in the network company s supply area. In accordance with IFRSs, income is recognised in the Networks business based on actual income for the year, and not permitted income as described above. However, the tariffs, or network rental, are established based on the premise that over time actual income will correspond to the permitted income for the Networks business. Annual income surpluses and shortfalls Permitted income will normally deviate from actual income for the year due to the effect of the weather and temperatures on the transmitted volume in the network. If actual income is higher than permitted income, this results in an income surplus; and if it is lower, in an income deficit. Under IFRSs, income surpluses and income shortfalls are defined as regulated liabilities or assets that do not qualify for balance-sheet recognition. This is justified on the grounds that a contract has not been entered into with a particular customer and therefore the resulting receivable/liability is theoretically contingent on a future delivery. At the end of 2016, Networks had an accumulated income surplus of NOK 187 million. According the available forecasts, accumulated surplus income is expected to increase to around NOK 310 million by the end of 2017. The increase in surplus income is partly due to Hafslund Nett s desire to maintain the network rental charge as stable as possible. 4) Interest-bearing loans and interest and currency derivatives At the end of the third quarter of 2017, the value of the loan portfolio recognised in the balance sheet amounted to NOK 8,386 million, of which NOK 6,583 million related to long-term liabilities and NOK 1,803 million to current liabilities. The change in the fair value of the loans boosted profits by NOK 51 million in the third quarter, while the change in the fair value of interest rate derivatives reduced profits by NOK 9 million. Hafslund s credit spreads narrowed by 30 40 basis points for maturities of between three months and ten years during the reporting period. The Nibor and swap rates fell by up to 40 basis points for maturities of up to one year and by 10 to 20 basis points for terms of two to five years. The interest rates for longer terms remained virtually unchanged. The net effect of the above was that the market interest rate (including Hafslund s credit spreads) narrowed by around 60 to 70 basis points for maturities of up to one year and by around 40 basis points for longer maturities. The change in the fair value of loans is recognised as financial expenses in the income statement, while any change in the value of interest rate derivatives is recognised as a net financial item in the operating result. 13 QUARTERLY REPORT Q3 2017

Hafslund has a drawdown facility of NOK 500 million maturing in October 2018 which was unutilised at the reporting date. Management is working to establish a new, larger drawdown facility that is expected to be in place in the fourth quarter of 2017. Until 31 December 2009, Hafslund s entire loan portfolio was valued at fair value through profit or loss. Since 2010, new loans have been measured at amortised cost. At the end of the third quarter of 2017, these were valued at NOK 6,603 million. 5) Financial Instruments by category, including hedging instruments The following principles have been applied in the subsequent measurement of financial instruments for financial instruments recognised in the balance sheet: NOK million Derivatives used for hedging purposes Assets at fair value through profit or loss Receivables at amortised cost Long-term receivables 128 128 Derivatives 21 21 Trade and other receivables 487 487 Cash and cash equivalents 2,697 2,697 Total financial assets as of 30 September 2017 21 3,312 3,333 NOK million Derivatives used for hedging purposes Liabilities at fair value through profit or loss Other financial liabilities at amortised cost Loans 1,783 6,603 8,386 Trade and other current payables 1,121 1,121 Total financial liabilities as of 30 September 2017 1,783 7,724 9,507 Derivative financial instruments are valued either at fair value through profit or loss or for hedging purposes. Hafslund s interest rate derivatives are recognised at fair value through profit or loss. The table below shows financial instruments at fair value by valuation method. The levels are: Total Total 1. Listed price in an active market for an identical asset or liability (level 1). 2. Valuation based on observable factors other than listed prices (level 1) either directly (prices) or indirectly (derived from prices) for the asset or liability (level 2). 3. Where it is not practicable to use only a listed price or transaction value, discounted future cash flows and the Group s own estimates are used. NOK million Level 1 Level 2 Level 3 Total Financial assets at fair value through profit or loss: Interest rate derivatives 21 21 Total assets 21 21 Financial liabilities at fair value through profit or loss: Loans 1,783 1,783 Total liabilities 1,783 1,783 6) Operating assets A total of NOK 1,085 million was invested in operating assets for continuing operations in the third quarter of 2017. Investments relate in their entirety to investments in operations and expansion. 7) Related party transactions Hafslund enters into purchase and sales transactions with related parties as part of normal business operations. In 2017 Hafslund bought and sold goods and services from/to Oslo kommune. The Oslo kommune owns 100 percent of the shares in Hafslund AS through Oslo Energi Holding AS. Examples of sales to the Oslo kommune include network rental. Examples of purchases from the Oslo kommune include waste heat from the Norwegian Waste-to-Energy Agency (EGE). Purchases from the Oslo kommune relate to discontinued operations. All transactions between the parties are conducted in accordance with the arm s length principle. The table below shows transactions with related parties: NOK million Ytd 2017 Sales of goods and services Purchases of goods and services Purchases recognised as investments Trade receivables Trade payables Oslo kommune 103 30 6 14 QUARTERLY REPORT Q3 2017

Definitions Capital employed NVE capital Equity ratio Net interest-bearing liabilities Liabilities / EBITDA Equity + Net interest-bearing liabilities + Net tax positions Finished non-current assets including a fixed percentage add-on for working capital Equity / Total capital Interest-bearing liabilities - Interest-bearing receivables and cash equivalents Net interest-bearing liabilities / EBITDA for the last 12 months 15 QUARTERLY REPORT Q3 2017

Financial calendar 1. Fourth Quarter 2017 Report and provisional annual result 15 February 2018 2. First Quarter 2018 Report 2 May 2018 3. Second Quarter 2018 Report 10 July 2018 4. Third Quarter 2018 Report 24 October 2018 Investor information 1. Information is displayed on Hafslund's website: o o www.hafslund.no You can subscribe to stock market notifications via "My page" at www.oslobors.no 2. CFO, Heidi Ulmo, o Heidi.Ulmo@hafslund.no o Tel.: +47 909 19 325 3. Head of Finance and Investor Relations, Martin S. Lundby o martin.lundby@hafslund.no o Tel.: +47 416 14 448 16 QUARTERLY REPORT Q3 2017