Government (AAA) ownership and backing. Fully regulated. The most - - PowerPoint PPT Presentation

The most important infrastructure. Of all.

Government (AAA) ownership and backing. Fully regulated.

Governance reflects the strategic role

The most important infrastructure. Of all.

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*

* One business – functional divisions and subsidiaries.

Facts 2016

The most important infrastructure. Of all.

4 Grid size 12,000 km high voltage lines Substations 154 Employees 1323 Balance sheet NOK 50,7 billion Revenues (adj) NOK 7,7 billion EBITDA (adj) NOK 4,3 billion Profit after tax (adj) NOK 1,4 billion

One defined mission

The most important infrastructure. Of all.

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“

To develop the next generation power system in Norway by 2030.

• Well under way
• Strong project track record

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Focused investments

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Significant activities ongoing

Fremtiden er elektrisk

Balsfjord-Skaidi (9%), Oct. 21 Ofoten-Balsfjord OTHL and substations (88%), Dec. 18 Kvitfossen (45%), Jul.17 Namsos-Åfjord and Surna-Snilldal (19%), Sep. 19 Namsos-Nedre Røssåga, Voltage upgrade (66%), Dec. 18 Klæbu- Namsos, Voltage upgrade (75%), Dec.18

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Sildvik rehabilitation (7%), Oct.18 Skjomen rehabilitation (9%), Jan.19

Fremtiden er elektrisk

Vestre korridor, Voltage upgrade (90%), Dec. 20

Vestre korridor, OHTL, substations package 1 and 2

(43%), Feb. 19 NSL Interconnector UK (5%), Dec. 21 NordLink Interconnector (20%), Commissioning Dec 2019 Reactors for voltage reduction (95%), Dec. 18 Furuset Control system (94%), Dec. 16 Vemorktoppen (29%), Dec. 18 Inner Oslofjord subsea cable (38%), Dec. 18 Outer Oslofjord dismantling old subsea cable (59%), Nov. 17 Nesflaten Reinvestment control Systems (30%), Dec.17

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Significant activities ongoing

Focused investments

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Significant investments successfully completed

• Execution on track
• Apart from the two new interconnectors, more than NOK 40 billion passed final

investment decision since 2004, about 50% already completed.

• The two new interconnectors currently being built to Germany and UK are

progressing within plan and budget.

• Consistent and significant savings
• Both completed and ongoing projects are below total budget, mostly within time.

Major projects completed within the last 10 years include: Skåreheia-Holen, Varangerbotn-Skogfoss, Sauda-Liastølen, KrSand-Bamble, Sima-Samnanger, NorNed interconnector, Ørskog-Sogndal, Eastern Corridor, Outer Oslofjord, Skagerak 4 interconnector, 2/3 of Ofoten-Balsfjord and numerous substations.

The most important infrastructure. Of all.

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Bringing Statnett's investments to a new level

Focused investments

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2 4 6 8 10 12 14 16 18 Expected Investments Investments Billion NOK

Priority #1: HSE

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Health and safety, comes first – always

• Injury frequency halved
• No severe environmental damages
• Stable absence due to illness: 3,3% in 2016

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S&P research update, May 2014

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Ownership and financing

Long term State Ownership

(Kingdom of Norway AAA)

All investments politically sanctioned Support / Equity Predictable, mature regulation

The most important infrastructure. Of all.

15 The TSOs essential role in the power system makes it important that these functions are unified and

• wned by the State.

2012 Meld. St. #14

“

Critical infrastructure

"Norway most stable and predictable regulatory framework in Nordics"

The most important infrastructure. Of all.

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Moody's Sector In-Depth Report, 15 June 2016

Predictable revenues and profitability

«Business Risk: Excellent»

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Costs 40% Costs 60% efficiency score

Efficiency score: 100% Successful benchmark with other European TSOs The 15% efficiency programme Timely compensation No time lag on investments, system service costs or depreciation, two years lag on operational costs (compensated with inflation)

• 2. Regulated rate of return:

(2,5%+inflation+0,875*5%) (1-tax rate)

• 1. Revenues:

* 40% + (5ySwap rate+margin) * 60%

Stable revenues, improved from 2013

«Business Risk: Excellent»

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1000 2000 3000 4000 5000 6000 7000 8000 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 RAB (index) EBITDA (IFRS) EBITDA excl. higher/lower revenues

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Conservative finance policy

Sufficient liquidity

• 12 months reserves
• NOK 8,0 bn RCF (matures jan. 2022)
• EUR 300 mill undrawn loan from EIB
• Normalised cash position: Approx. NOK 2 bn

Low counterparty risk

• Minimum rating requirements
• Credit Support Annex (CSA)

Low interest rate risk

• New regulated rate of return from 2013
• Seek to correlate rate on debt with NVE-interest rate

Low finance risk

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Multiple sources of capital as of 23.08.2017

Low finance risk

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Issues in SEK (SEK 1 200 million) Domestic Bonds* (NOK 10 560 million) Issues in CHF (CHF 400 million) Issues in JPY (JPY 4 000 million) Drawn Bank Loans EIB** & NIB (NOK 6 190 million) Issues in USD (USD 1 080 million) Issues in EUR (EUR 70 million) Issues in Domestic CPs (NOK 2 000 million) * New NOK 1 bn bond issue with settlement in Sept -17 included ** EUR 300 mill undrawn loan from EIB not included

Low re-financing risk as of 23.08.2017

Low finance risk

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• 500

1 000 1 500 2 000 2 500 3 000 3 500 4 000 4 500 5 000 2017 2019 2021 2023 2025 2027 2029 2031 2033 2035 2037 2039 2041 2043 2045 Commercial Paper Bank Loans (EIB & NIB) Domestic Bonds International Bonds

*New NOK 1 bn bond issue with

settlement in Sept 17 included Million NOK

*

Long term funding

Access to capital markets supported by

• Credit Facility NOK 8,0 billion
• Robust A-rating

Normally EMTN-documentation

Core bank group:

Low finance risk

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Summary

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Disclaimer

This presentation has been prepared by, and the information contained herein (unless otherwise indicated) has been provided by Statnett SF (the "Company"). By viewing this presentation you agree to be bound by the following conditions: This document may only be used internally for business purposes and shall not be used for any unlawful or unauthorized purposes. This document and the information therein are being furnished to you solely for your information and may not be reproduced, redistributed or passed on, in whole or in part, to any other person. This document does not constitute or form part of and should not be construed as, an offer to sell or issue or the solicitation of an offer to buy or acquire securities of the Company or any of its subsidiaries in any jurisdiction

• r an inducement to enter into investment activity.

No part of this document, nor the fact of its distribution or reception, should form the basis of, or be relied on in connection with, any contract

• r commitment or investment decision whatsoever.

This document is not a prospectus and does not comply with rules or regulations regarding investor information, and has not been approved by or filed with any stock exchange or regulatory authority. Amongst others, this document does not disclose risks and other significant issues related to an investment in any securities. This presentation includes and is based on, among other things, forward-looking information and

• statements. Such forward-looking information and statements are based on

the current expectations, estimates and projection of the Company or assumptions based on information available to the Company. Such forward- looking information and statements reflect current views with respect to future events and are subject risks, uncertainties and assumptions. The Company cannot give any assurance as to the correctness of such information and statements. Investors should only subscribe for any transferable securities on the basis of information in a relevant prospectus and term sheet, and not on the basis of any information provided herein. The information contained in this document has not been independently verified and no representation or warranty, express or implied, is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the information or opinions contained herein. The Company shall have no liability whatsoever (in negligence or otherwise) for any loss howsoever arising from any use of this document or its contents

• r otherwise arising in connection with this document.

The information contained in this document is provided as at the date of this document and is subject to change without notice. Because of the possibility of human or mechanical error by the Company, its affiliates or its third party licensors, the Company, its affiliates and its third party licensors do not guarantee the accuracy, adequacy, completeness or availability of any information and is not responsible for any errors or

• missions or for the results obtained from the use of such information. The

Company gives no express or implied warranties, including, but not limited to, any warranties of merchantability or fitness for a particular purpose or use. In no event shall the Company, its affiliates and its third party licensors be liable for any direct, indirect, special or consequential damages in connection with subscriber's or others use of the data/information contained herein. Access to the data or information contained herein is subject to termination in the event any agreement with a third party of information or software is terminated. This presentation is subject to Norwegian law, and any dispute arising in respect of this presentation is subject to the exclusive jurisdiction of Norwegian courts.

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Key investments

Under implementation Location Expected investment in million NOK Ofoten - Balsfjord, new 420 kV power line Nordland/Troms 3 200 - 3 700 Balsfjord – Skaidi (-Hammerfest), new 420 kV power line Troms/Finnmark 4 000 - 6 000 Western Corridor, voltage upgrade Vest-Agder/Rogaland 7 100 - 8 500 Namsos – Åfjord , Snildal – Surna, new 420 kV power lines Trøndelag//Møre og Romsdal 3 400 - 3 700 Interconnectors Interconnector to England EUR 750 - 1 0001) Interconnector to Germany EUR 750 - 1 0001) Latest commissioned facilities Ørskog - Sogndal, new 420 kV power line Møre og Romsdal/Sogn og Fjordane Skagerak 4 Norway/Denmark Eastern Corridor Vest-Agder/Telemark Ytre Oslofjord Telemark/Østfold Focused investments

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1) Statnett's share

Reconciliation of financial key figures

Appendix

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*You will find these figures in note 4 in the annual report

In million NOK Unadjusted figures 2007 2008 2009 2010 2012 2013 2014 2015 2016 Revenue 3 415 4 256 2 862 7 247 5 334 4 561 5 563 5 906 6 678 EBITDA 1 535 1 722 259 3 945 2 260 1 394 2 528 3 340 3 296 EBIT 1 025 1 194

• 403

3 279 1 433 346 1 378 1 714 1 152 Profit after tax 651 1 517

• 480

2 198 837 82 829 1 103 645 Adjustments Accumulated higher revenue*

• 293

428

• 633

1 554 3 455 2 413 1 790 1 346 343 Adjustment for changes in acc. higher/lower revenue

• 20
• 721

1 061

• 2 187
• 838

1 042 623 444 1 003 Adjusted figures Adjusted revenue 3 395 3 535 3 923 5 060 4 496 5 603 6 186 6 350 7 681 EBITDA 1 515 1 001 1 320 1 758 1 422 2 436 3 151 3 784 4 299 EBIT 1 005 473 658 1 092 595 1 388 2 001 2 158 2 155 Profit after tax 637 998 284 623 234 832 1 284 1 427 1 397 Diff figures. 2007 2008 2009 2010 2012 2013 2014 2015 2016 Adjusted revenue 20 721

• 1 061

2 187 838

• 1 042
• 623
• 444
• 1 003

EBITDA 20 721

• 1 061

2 187 838

• 1 042
• 623
• 444
• 1 003

EBIT 20 721

• 1 061

2 187 838

• 1 042
• 623
• 444
• 1 003

Profit after tax 14 519

• 764

1 575 603

• 750
• 455
• 324
• 752

Calculation of allowed regulated revenue

Appendix

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New: Pension costs base is 5 y average ending n-2, inflated.

Financial information and contact info

Available at: http://www.statnett.no/en/investor-relations/ Contact details:

Knut Hundhammer (Executive Vice President, CFO, Chief of Staff)

• Tel. +47 23 90 32 10

knut.hundhammer@statnett.no Petter Erevik (Director of Finance)

• Tel. +47 23 90 35 70

petter.erevik@statnett.no

The most important infrastructure. Of all.

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