Fourth quarter 2016 Presentation to analysts and preliminary results 2016 Finn Bjørn Ruyter Oslo, 9 February 2017
Agenda 1 Summary of the year 2016 2 Fourth quarter 2016 results 3 Theme: Strategy 4 Appendix 2
Highlights for the year 2016 Solid profit after tax of NOK 1,402 million and 4 th consecutive year with improved earnings. Improved results in all four business areas partly driven by improvement initiatives and higher power prices. Positive contribution from non recurring effect from acquired networks business and appreciation of power derivatives. Lower year-on-year water flow and hydropower production. Profit growth improves key financial figures. The Board proposes a dividend of NOK 3.25 (NOK 3.0) per share for 2016. 3
EBITDA per business area EBITDA 2016 (NOK mill) Change in EBITDA from 2015 (NOK mill) 585 5 3,143 2,920 266 54 71 25-193 3,143 462 437 1,654 Network Heat Production Markets Other EBITDA 2016 EBITDA 2015 Network Heat Production Markets Other EBITDA 2016 4
Strong focus on reducing the number of injuries Goal Injuries Hafslund 1 Industry average 2 0 injuries 2016: 11 2015: 8 injuries per million hours (H2) 2015: 11 injuries per million hours (H2) Increase in number of injuries through 2016. Strong focus on developing competency and following up on injuries to avoid reoccurrence. 5 1 Last 12 months, Total number of injuries per million working hours to employees and suppliers in the Hafslund Group's own facilities, exclusive the business area Markets. 2 Industry Average for total injuries acc. to Energy Norway's statistics for 2015. Includes companies in the energy industry, incl. contractors, but excluding suppliers.
Strong profit growth in past years Profit after tax last five years (NOK mill) EBITDA per business area last five years (NOK mill) 4,000 4,000 +972 3,000 2,000 1,000 2,171 2,446 747 2,795 1,003 2,920 1,284 3,143 1,402 3,000 2,000 1,000 2,171 2,446 2,795 2,920 3,143 0-12 0-1,000 2012 2013 2014 2015 2016-1,000 2012 2013 2014 2015 2016 EBITDA Profit after tax Network Heat Production Markets Other 6
Agenda 1 Summary of the year 2016 2 Fourth quarter 2016 results 3 Theme: Strategy 4 Appendix 7
Fourth quarter 2016 highlights Operating profit before depreciation (EBITDA) of NOK 818 million in the quarter is up NOK 22 million from last year - solid operations and result improvements in all business areas. Profit after tax of NOK 384 million - down NOK 27 million on the prior year primarily due to a lower positive tax effect of NOK 53 million compared with NOK 97 million in 2015. Improvement initiatives, higher power prices and appreciation on forward contracts contribute positively. Milder weather than normal in the quarter, but slightly colder weather compared with last year. Low water flow and hydropower production. 8
Key figures Earnings per share NOK2.0 EBITDA (NOK mill) Earnings per share (NOK) Net debt / EBITDA (x) 1 +22-0.1 3.3 2.7-0.3 2.8 2.9 3.0 796 971 695 659 818 2.1 2.5 1.4 1.3 2.0 Q4 2015 Q1 2016 Q2 2016 Q3 2016 Q4 2016 Q4 2015 Q1 2016 Q2 2016 Q3 2016 Q4 2016 31.12.15 31.03.16 30.06.16 30.09.16 31.12.16 9 1. EBITDA for the group last 12 months
EBITDA per business area EBITDA Q4 2016 (NOK mill) Change in EBITDA from Q4 2015 (NOK mill) 122-29 818 796 56 1 16 30-81 818 107 459 159 Network Heat Production Markets Other EBITDA Q4 2016 EBITDA Q4 2015 Network Heat Production Markets Other EBITDA Q4 2016 10
Production and distribution Heat and Production (GWh) Network (GWh) -12 384 511 722 262 136 585 681 618 930 821 595 5.498 6.602 3.856 3.184 5.882 Q4 2015 Q1 2016 Q2 2016 Q3 2016 Q4 2016 Q4 2015 Q1 2016 Q2 2016 Q3 2016 Q4 2016 Heat Production Network Lower power production than last year due to reduced water flow, but higher demand for energy due to colder weather. 11
Power price development NO1 NOK/kWh 0,40 0,35 0,30 0,25 0,20 0,15 0,10 0,05 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2016 2015 12 Source: NordPool Spot per 31.12.2016
Developments in forward prices and hedging activities Forward prices for 2018 (YR-18) Results from hedging activities (NOK mill) NOK/kWh 0,30 0,25 163 0,20 86 0,15 Jan-13 Jul-14 Jan-14 Jul-14 Jan-15 Jul-16 Jan-16 Jul-16 Jan-17 25 13 2012 2013 2014 2015-16 2016 Rising power prices have improved group revenues but reduced reported earnings from hedging activities. 13 Source Nasdaq OMX Commodities, Bloomberg, per 06.02.2017
Results per business area NETWORK HEAT PRODUCTION MARKETS 14
Network NOK million Q4 2016 Q4 2015 Year 2016 Year 2015 Operating revenue 1 357 1 218 4 757 4 361 Gross margin 852 830 3 028 2 943 EBITDA 459 403 1 654 1 388 Operating profit 308 222 1 056 822 Energy delivery (GWh) 5 882 5 498 19 524 18 960 Number of customers (in 1 000) 697 689 697 689 Investments 404 331 1 009 926 Development EBITDA (NOK mill) Q4 2016 Energy supply in the period of 5.9 TWh up 0.4 TWh from Q4 2015. Operating costs NOK 34 mill lower than last year mainly due to improvement initiatives. Stable operations and KILE-costs of NOK 17 mill (21 mill). Year 2016 Quarter 500 400 300 200 100 378 304 0 Q4 2014 Q1 2015 332 Q2 2015 350 Q3 2015 403 Q4 2015 384 400 411 Q1 2016 Q2 2016 Q3 2016 Last 12 months 1 750 1 500 1 250 1 000 459 750 500 250 0 Q4 2016 Positive effects from improvement initiatives, as well as non recurring events in regulated revenue generates a particularly good result. Given normal energy demand operating profits for 2017 are expected around 10 % lower than in 2016. EBITDA EBITDA last 12 months 15
Network - 2016 tariff income and income surplus-/shortfall NOK million 2014 2015 2016 2017P* Tariff income 3 871 4 149 4 404 4 600 - Regulated revenue own network 2 659 2 829 3 796 2 900 - Costs to overlying grid 1 006 1 166 1 315 1 500 = Income surplus-/shortfall 206 154 (707) 200 Development accumulated income surplus per 31.12. mill 1 000 Year 2016 Tariff income up NOK 255 mill compared to 2015 due to increased energy supply and higher network tariffs. Regulated revenue include positive non-recurring events from acquisition of network operations in Østfold in 2014. 800 600 400 200 0 2011 2012 2013 2014 2015 2016 High regulated revenue in 2016 used to reduce income surplus. Regulated revenue expected significantly reduced in 2017 due to non-recurring events in 2016. 16 * Given normal energy demand the rest of the year, current network tariffs and forward power prices
Network - status AMS August 16 January 17 Ultimo 18 Roll-out plan H2 2016 H1 2017 H2 2017 Pilots Roll-out phase H1 2018 H2 2018 100 000 installed power meters 700 000 total power meters Not Hafslund Full scale roll-out of power meters started in August 2016. Accumulated investments of NOK 586 mill per 31.12.16 against total project cost estimate of NOK 2.4 billion. 17
Heat NOK million Q4 2016 Q4 2015 Year 2016 Year 2015 Operating revenue 414 331 1 152 977 Gross margin 228 222 699 619 EBITDA 159 157 437 383 Operating profit 121 112 291 231 Production volume (GWh) 585 511 1 704 1 567 Gross margin (NOK/kWh) 0.45 0.45 0.46 0.41 Investments 56 30 175 112 Development EBITDA (NOK mill) Quarter Last 12 months 300 600 250 200 450 150 285 300 100 201 157 159 50 116 150 0 19 6 5-12 -50 0 Q4 2014 Q1 2015 Q2 2015 Q3 2015 Q4 2015 Q1 2016 Q2 2016 Q3 2016 Q4 2016 Q4 2016 Operating profits of NOK 121 mill in the quarter and NOK 291 mill in 2016 which represents Heat s bestever result. Organic growth and colder weather gave a year-onyear production increase of 14 % against Q4 2015. Hedge ratio next six months at 58 %. New customers connected in 2016 with a combined annual district heating requirement of 44 GWh. EBITDA EBITDA last 12 months 18
Heat - Volume and fuel mix Production volume (GWh) Fuel mix (GWh) 350 722 300 250 511 585 200 150 100 50 262 136 0 Jan Feb Mar Apr May Jun Jul Aug Sep 2016 2015 Normal 1 Oct Nov Dec Q4 2015 Q1 2016 Q2 2016 Q3 2016 Bio oil, natural gas, oil Electricity Pellets Heat pumps Waste Q4 2016 19 1: Normal = Normal = expected production in 2016 provided normal temperatures.
Production NOK million Q4 2016 Q4 2015 Year 2016 Year 2015 Operating revenue 168 151 687 654 EBITDA 107 91 462 391 Operating profit 95 81 417 346 Revenue (NOK/kWh) 0.28 0.22 0.23 0.2 Production volume (GWh) 595 681 2 964 3 291 Investments 95 136 274 156 Development EBITDA (NOK mill) Quarter Last 12 months 160 600 120 450 80 153 147 300 117 119 113 40 91 95 107 65 150 0 0 Q4 2014 Q1 2015 Q2 2015 Q3 2015 Q4 2015 Q1 2016 Q2 2016 Q3 2016 Q4 2016 Q4 2016 Results are influenced by higher power prices which more than compensate for lower water flow and production volume. Production volume 14 % below normal. Achieved income of NOK/kWh 0.28 up NOK 0.06 from last year and somewhat below power price NO1. Hedge ratio next six months at 31 %. Estimated production in Q1 at about normal levels (545 GWh). Accumulated investments in new aggregate in Vamma NOK 393 mill. EBITDA EBITDA last 12 months 20
Production and water flow Production (GWh) Water flow and capacity utilization (m 3 /sec) 400 2 000 300 1 500 200 1 000 100 500 0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Q4 Nov Dec 2016 2015 Normal 1 2015 Normal 2 Max. capacity utilization 2016 21 1: Normal production = 3100 GWh based on 10 years water flow history adjusted for efficiency improvements. 2: Normal = Median water flow last 10 years.
Markets NOK million Q4 2016 Q4 2015 Year 2016 Year 2015 Operating revenues 2 308 1 704 7 303 5 939 Gross margin 417 359 1 675 1 524 EBITDA 122 92 585 560 Operating profit 102 69 498 476 Number of customers (in 1 000) 1 093 1 050 1 093 1 050 Sold volume (GWh) 5 791 5 183 19 565 17 872 Development EBITDA (NOK mill) Q4 2016 Satisfying results in a quarter normally with high energy demand. The result reflects customer growth, appreciation of power derivatives and somewhat lower margins. Volume growth of 12 % due to colder weather and 43,000 additional customers compared to Q4 2015. 1,093,000 customers at the end of 2016, where of 375,000 customers are outside of Norway. Quarter Last 12 months 240 200 160 600 450 120 80 40 0 85 Q4 2014 186 208 137 145 92 124 131 122 Q1 2015 Q2 2015 Q3 2015 Q4 2015 Q1 2016 Q2 2016 Q3 2016 Q4 2016 300 150 0 EBITDA EBITDA last 12 months 22
Group summary NETWORK HEAT PRODUCTION MARKETS 23
Change in EBITDA and profit after tax Change in EBITDA from Q4 2015 (NOK mill) Profit after tax Q4 2016 (NOK mill) 796 13 40 31 818 818 262 Earnings per share NOK 2.0 60 113 384 EBITDA Q4 2015 Gross margin Gain/loss financial items Operating expenses EBITDA Q4 2016 EBITDA Q4 2016 Depreciation Financial expenses Tax Profit after tax Q4 2016 24
Investments Annual investments Investments, excluding acquisitions (NOK bn.) Growth investments towards 2020 Periodical avg. investments 1.5 Average 2017P-2018P: NOK 2.1 billion Network AMS NOK 2.4 bn. ~10 000 new customers annually District heating +260 GWh 1.3 0.8 0.9 New aggregate in Vamma NOK 920 mill. +230 GWh Markets Customer growth 2013 2014 2015 2016 2017 P 2018 P 25
Change in net interest bearing debt Change in net debt in the quarter (NOK mill) Net debt / EBITDA (x) 1 7 9,480 3.3 2.7 2.8 2.9 3.0 9,045 571 31.12.15 31.03.16 30.06.16 30.09.16 31.12.16 818 584 Equity ratio (%) 35% 36% 37% 34% 36% 91 Net debt 30.09.16 EBITDA Paid interest and tax Change in working capital etc Investments Freed capital Net debt 31.12.16 31.12.15 31.03.16 30.06.16 30.09.16 31.12.16 26 1: EBITDA for the group last 12 months
Outlook Forward power price (NO1) for delivery of power in 2017 at 0.24 NOK/kWh, and in line with spot price in 2016 1. Regulated revenue expected significantly lower in 2017 due to non-recurring events in 2016 and corresponding operating profits are expected around 10 % lower than in 2016 given normal energy demand. Level of investments (ex. acquisitions) expected to increase to an average of NOK 2.1 billion per year in 2017 and 2018 from NOK 1.5 billion in 2016. The increase is driven by AMS and the new aggregate in Vamma. The organic growth is to be continued, while structural opportunities are being pursued. 27 1 Sources: NordPool Spot and Nasdaq OMX Commodities per 06.02.2017
Agenda 1 Summary of the year 2016 2 Fourth quarter 2016 results 3 Theme: Strategy 4 Appendix 28
Hafslund leading market positions Norway s largest grid company ~ 700,000 customers 23% share * Norway s largest district heating operator ~ 1.7 TWh ~ 35% share * A medium sized power producer 3.1 TWh ~ 2% share * Norway s largest retail power supplier 5th largest in the Nordics ~ 1.1 mill. customers ~ 25% share * 29 * The Norwegian market
Energy and infrastructure, and power sales Energy plants and infrastructure in Eastern Norway Power sales in the Nordic region Critical infrastructure Local presence Capital intensive business Solid growth Strong Nordic presence Synergies across brands and countries Capital light business Clear multi brand strategy High growth ambitions Organic growth from investments and population growth 1.1 million customers Hydropower plants Hafslund headquarter Supply area Networks Heat, Oslo Hafslund Customer center Hafslund Tellier 30
Strong results well positioned for further growth Streamlining, improvement initiatives and growth have resulted in strong results and solid capital structure 2016: EBITDA per business area Results last five years (NOK bn.) Net debt/ebitda Markets 19% Production 15% 53% Networks 2.2 2.4 2.8 2.9 3.1 3.0x per 31.12.16 Heat 14% 1.3 1.4 Share of regulated business 1 0.7 1.0 Target Unregulated 40% 60% Regulated 0.0 2012 2013 2014 2015 2016 < 4.0x Net debt/ EBITDA EBITDA Profit after tax 31 1 EBITDA for 2016 where 100% of Networks and 50% of Heat is included as regulated business
Strategic priorities Regulatory framework Environment Profitable growth Business development and digitalization Productivity Health, Safety and Environment 32
High degree of regulated business NETWORKS HEAT PRODUCTION MARKETS 100% regulated business > 50% of income regulated 1 0% regulated Market prices, but resource tax and energy price hedging reduces volatility 0% regulated Market prices, but resource tax and energy price hedging reduces volatility EBITDA 2016 NOK 1,654 mill EBITDA 2016 NOK 437 mill EBITDA 2016 NOK 462 mill EBITDA 2016 NOK 585 mill Income regulated and natural monopoly Price regulated and natural monopoly Resource tax and hedging program Diversified customer portfolio and electricity price hedging 33 1 Given today's energy prices, grid regulations and government taxes
Provider of environmentally friendly solutions NETWORKS Electrification HEAT Renewable thermal energy PRODUCTION Renewable energy MARKETS Efficient energy consumption Energy solutions for the future for you and the environment 34
Business development and productivity driven by digitalization Automation and cost efficiency Effective customer dialogue and customer growth New business opportunities Solar Wind Smart City Cloud IT/OT-convergence Energy storage Cooling Internet of things Big data Advanced analysis 35
Networks: Investments and structural growth Strategic priorities Organic growth - Automatic meters (AMS) - Reinvestments in the grid - Population growth Area AMS Invests NOK 2.4 billion in AMS to 700 customers by 2019 Structural growth - Primarily in geographical proximity Optimal operations - High uptime - Low costs Target: The most efficient grid company in Norway Hafslund s network area 36
Heat: Volume growth and new products Strategic priorities Organic growth - Customer densification - Replace oil heating in Oslo - Cooling - New products and services Increased volume The Munch museum New products and services Optimal operations - High uptime - Low costs - Target of 100% renewable heat The Deichmanske library How Youngstorget 3 will look like when it is ready in 2018. The building will be cooled with district heat from Hafslund. (Photo: Hille Melbye Architects / Thon Property) 37
Production: New renewable energy New aggregate in Kykkelsrud - 2011 New aggregate in Vamma - 2019 About the new aggregate Investment NOK 920 mill Installed effect 128 MW Production Vamma 12 1,000 GWh Increased renewable production 230 GWh Completion of the new aggregate in Vamma scheduled before the 2019 spring flood 38
Markets: Nordic growth strategy Nordic champion Potential new growth horizons Regional player National leader Hafslund Markets today 0.6 mill customers 0.7 mill customers 1.1 mill customers New products and business areas 2007 2013 2020 Nordic end user market 39
Increased growth in the years to come Growth last five years 1 +26% (+145 customers) NETWORKS Historical and expected investments Average 2017P-2018P: NOK 2.1 bn. Positioned for new growth opportunities +20% (+288 GWh) +11% (+330 GWh) HEAT PRODUCTION 0.8 0.9 1.3 1.5 + Structural growth +24% (+215 customers) MARKETS 2013 2014 2015 Yearly investments 2016 2017 P 2018 P Periodic average investment 40 1 Growth 2011-2016; Heat and Production compared to normal production. Ongoing investment in the new power aggregate in Vamma is included.
Target to maintain stable dividends Historical dividends and profit per share (NOK per share) 6.58 7.18 5.14 3.83 2.50 2.50 2.50 3.00 3.25-0.06 2012 2013 2014 2015 2016* Ordinary dividend Profit per share The long-term dividend policy of the Group is to pay stable dividends that over time equals at least 50 percent of annual profit after tax. 41 * The Board's proposed dividend for 2016.
Hafslund a pure play energy and infrastructure company NETWORKS Capital employed 100% = NOK 22.7 billion per 31.12.16 HEAT 20% Heat Operational optimization and organic and structural growth Operational optimization and organic growth PRODUCTION 52% Networks 6% Markets MARKETS 1% Other 20% Production Uptime and growth Nordic growth strategy 42
Agenda 1 Summary of the year 2016 2 Fourth quarter 2016 results 3 Theme: Strategy 4 Appendix 44
Oslo price (NO1) historic and forward 0.50 NOK/kWh 0.40 0.30 0.22 NOK/kWh 0.20 0.10 0.00 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Power price - NO1 Period average 45 Sources: NordPool Spot, Nasdaq OMX per 06.02.2017
Group profit and loss account NOK million Q4 2016 Q4 2015 D Year 2016 Year 2015 Operating revenue 4 222 3 360 862 13 803 11 905 Cost of energy (2 644) (1 823) (821) (7 954) (6 264) Gross margin 1 578 1 538 40 5 849 5 641 Gain/loss financial items 47 34 13 154 112 Operating expenses (806) (775) (31) (2 860) (2 833) EBITDA 818 796 22 3 143 2 920 Depreciation and write-downs (262) (275) 13 (949) (947) Operating profit 557 522 35 2 193 1 973 Interest expences etc (90) (125) 35 (304) (425) Market value change loan portfolio 30 33 (3) 87 137 Financial expenses (60) (92) 32 (217) (288) Pre-tax profit 497 429 67 1 976 1 686 Tax (113) (18) (95) (573) (401) Profit after tax 384 411 (27) 1 402 1 284 Earnings per share (EPS) in NOK 2.0 2.1 (0.1) 7.2 6.6 46
Group balance sheet NOK million 2016-12-31 2016-09-30 D Q3 2016 2015-12-31 Intangible assets 2 880 2 890 (9) 2 933 Fixed assets 19 610 19 297 314 19 302 Financial assets 542 459 83 841 Accounts receivables and inventory 3 135 1 875 1 260 2 752 Cash and cash equivalents 572 421 150 724 Assets 26 740 24 941 1 798 26 552 Equity (incl. min. int.) 9 571 9 291 280 9 013 Allocation for liabilities 3 553 3 679 (126) 3 528 Long-term debt 7 870 7 719 151 8 330 Other current liabilities 2 193 1 794 399 2 156 Short-term debt 3 553 2 458 1 094 3 526 Equity and liabilities 26 740 24 941 1 798 26 552 Net interest-bearing debt 9 480 9 045 435 9 752 Equity ratio 36 % 37 % -1 % 34 % 47
Group cash flow NOK million Q4 2016 Q4 2015 D Year 2016 Year 2015 EBITDA 818 796 22 3 143 2 920 Paid interests (73) (88) 15 (350) (419) Paid tax (18) (87) 69 (380) (344) Marketvalue changes and other liquidity adjustments (33) 20 (52) (132) (45) Change in working capital, etc. (555) (517) (38) (241) 89 Total cash flow from operations 140 124 17 2 041 2 201 Net operations and expansion investments (571) (510) (61) (1 513) (1 282) Net purchase/sale of shares etc. (7) 350 (357) 387 362 Cash flow from investments activities (578) (159) (418) (1 126) (919) Cash flow to down payments and interests (437) (35) (402) 915 1 282 48
Capital employed and return on capital employed Capital employed NOK 22.7 bn. per 31.12.2016 Return on capital employed (%) Markets 6% Production 8.3% 9.2% 10.0% 20% Network 52% 1% Other 20% Heat 2014 1 2015 2016 49 1 : Includes write-downs in Bio-El and secondary networks at Søndre Nordstrand of NOK -127 million.
Loans portfolio data 3 000 2 000 1 000 0 800 600 Debt maturity profile NOK million 2 180 2017 1 689 2018 1 906 2019 Commercial paper 972 2020 1 240 2021 Bonds 470 2022 370 813 Loans at maturity next 12 months NOK million 600 700 70 350 2023 2024 2025 2026+ Other loans 580 Q4 16 Q3 16 D Bonds 67 % 73 % -6 % Commercial paper 3 % 0 % 3 % Other loans 30 % 27 % 3 % NOK million Q4 16 Q3 16 D Nominal value - market value of loands (130) (160) 30 Market value interest rate and fx derivatives* 20 33 (13) Average interest inlc. derivatives (%) 3.1 % 3.3 % -0.2 % Loans at maturity next quarter - 988 (988) Unused drawdown facilities 3 800 4 300 (500) *) incl. currency derivatives under hedge accounting 400 300 200 0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Commercial paper Bonds Other loans 5 0
Key figures Group Year 2016 Year 2015 Heat Year 2016 Year 2015 Capital matters Total assets 26 740 26 552 Capital employed 22 730 22 355 Equity 9 571 9 013 Market capitalization 18 456 11 583 Equity ratio 36 % 34 % Net interest-bearing debt 9 480 9 752 Capital employed 4 626 4 709 Avg. district heating income (NOK/kWh) 0.73 0.63 Gross margin (NOK/kWh) 0.46 0.41 Sales volume (GWh) 1 704 1 567 Production Year 2016 Year 2015 Profitability EBITDA 3 143 2 920 Earnings per share (EPS) 7.18 6.58 Cash flow per share 10.46 11.28 Capital employed 4 622 4 505 Sales price (NOK/kWh) 0.23 0.20 Production volume (GWh) 2 964 3 291 Network Year 2016 Year 2015 Capital employed 11 870 11 116 Gross margin 3 028 2 943 Energy delivery (TWh) 19 524 18 960 Number of customers (in 1000) 697 689 NVE-capital (regulatory) 8 818 7 907 Markets Year 2016 Year 2015 Capital employed 1 374 1 419 - of this working capital 212 (227) Number of customers (in 1 000) 1 093 1 050 Volume power sales (GWh) 19 565 17 872 51
Shareholders as of 31.12.2016 # Shareholder Class A shares held Class B share held Total Ownership Share of voting rights 1 City of Oslo 67 525 37 343 104 868 53.7 % 58.5 % 2 Fortum Forvaltning AS 37 853 28 706 66 559 34.1 % 32.8 % 3 Kommunal Landspensjonskasse 5 327 4 042 9 370 4.8 % 4.6 % 4 MP Pensjon PK 5 1 979 1 984 1.0 % 0.0 % 5 Folketrygdfondet 60 709 769 0.4 % 0.1 % 6 The Northern Trust Company 279 372 651 0.3 % 0.2 % 7 Greenwich Land Securities AS 84 323 408 0.2 % 0.1 % 8 Avanza Bank AB 89 311 400 0.2 % 0.1 % 9 Nordnet 69 317 386 0.2 % 0.1 % 10 JP Morgan Chase Bank 10 336 347 0.2 % 0.0 % Total, 10 largest shareholders 111 301 74 440 185 741 95.2 % 96.4 % Other shareholders 4 127 5 318 9 445 4.8 % 3.6 % Total 115 428 79 758 195 186 100 % 100 % 52
Definitions Group Return on equity Return on capital employed Capital employed Equity ratio Net interest-bearing debt Earnings per share Debt / EBITDA Cash flow per share Hedge ratio Hydro power Hedge ratio District heating Profit after tax last 12 months / Average 12-month equity incl. non-controlling interests Operating profit/loss / Average 12-month capital employed Equity + Net interest-bearing liabilities + Net tax positions Equity / Total assets Interest-bearing liabilities - Interest-bearing receivables and cash equivalents Profit after tax / Average number of shares Net interest-bearing debt at the end of the quarter / EBITDA last 12 months Net cash from operations / Average no. of shares Hedged amount of estimated production portfolio Hedged amount of estimated production. Net power price exposure by sales reduced by use of electricity and one-third of heat pumps 53
Investor information Additional information is available from Hafslund s website: www.hafslund.no You can subscribe to Hafslund press releases Group CFO, Heidi Ulmo heidi.ulmo@hafslund.no Tel: + 47 909 19 325 Head of Finance and Investor Relations, Martin S. Lundby martin.lundby@hafslund.no Tel: +47 416 14 448 54