Statkraft Revised strategy and reduced investment plan - December 2015

Disclaimer This presentation has been prepared by, and the information contained herein (unless otherwise indicated) has been provided by Statkraft AS (the

"Company"). By attending the meeting or otherwise viewing this presentation you agree to be bound by the following conditions.

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 or 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 or 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.

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.

None of the Company, or any of its affiliates, advisers or representatives shall have any liability whatsoever (in negligence or otherwise) for any loss

howsoever arising from any use of this document or its contents or 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.

This document may not be distributed or delivered to any person or in any jurisdiction where such distribution is unlawful or restricted. This document may not

be delivered in the United States or to any person or entity in the United States.

2

Statkraft overview

Peru

295 MW

Chile

140 MW

Turkey

122 MW

(+ project)

Nepal 23 MW

Philippines

146 MW

Brazil

172 MW

Panama

Zambia

6 MW

Norway

12 988 MW

Sweden

1 511 MW

(+ project)

UK

243 MW

(+ project)

Laos 50 MW

Germany

2 692 MW

India

91 MW

Albania

100 %

owned by the

Norwegian state

A- / Baa1 from S&P and

Moody’s

Installed capacity

18 480 MW1

Power production

56 TWh2

99% renewable

energy

SN POWER/

AGUA IMARA

STATKRAFT

1Statkraft’s direct and indirect ownership in power plants. Excl. 714 MW of district heating capacity. 2Actual production 2014.

Key credit strengths

Strong market position

- A low-cost and flexible generator of renewable

electricity

Stable cash flow

- Long-term industrial contracts stabilize cash flow

Capex flexibility

- Adapt investment program to financial capacity

Owned by the Norwegian state (AAA/Aaa)

- Historically strong support from owner with equity

contributions in 2010 and 2014

4

The “Sysen reservoir” above is part of the Sima power

plant system with an annual output of 2.7 TWh.

Installed capacity is 1120 MW.

Key strategic changes

5

Statkraft will no longer

invest in new offshore

wind projects

Some international

hydropower projects

may be postponed

The investment ambition for 2016-2020 is adapted in

order to maintain Statkraft’s financial solidity

Industry-leading Northern-European hydropower producer with international growth opportunities

6

Production assets with

low marginal cost, high

flexibility

Unique optimizations

skills leading to

premium price capture

Strategy for long-term

contracts

Refurbishments and

upgrades

1

Northern European

hydro generation

player with unique

asset base and

optimization skills

Strong value creation

track record

Low capital intensive

business model to

exploit new

opportunities in a

transforming European

energy market

Value adding position

in European Market

Operations

2

Consolidation focus in

the short term to build

platform for further

value creation

Ongoing capacity

expansions

Attractive platform to

build a sustainable

competitive position in

Emerging markets

3

Consolidation and

ambition to develop

wind power in Central

Norway

xx

4

Utility scale onshore wind power business

Strong O&M

performance

Limited expansions

related to existing

assets

5

Stable cash flow from

district heating in Norway and Sweden

European Flexible Generation

Market operations Hydropower in emerging markets

Wind power District heating

Northern European hydro generation player with unique asset base and optimization skills

7

Low-cost European hydropower production

- Total cash cost in 2014: 6.7 EUR/MWh

- Full cost incl. depreciation: 9.3 EUR/MWh1

Energy management optimised through a unique information base and power market modelling

- Production optimised relative to power prices and water inflows

- Water can be stored for up to three years in some reservoirs

Peak supplier with high degree of flexibility

- 80% of installed capacity within highly flexible hydropower

- Europe’s largest reservoir capacity (~40 TWh)

1 Annual Report 2014: 78 NOK/MWh. Incl. property tax and depreciations, excl. sales costs, overhead, net financial items and tax.

Based on normal production from power plants under own management in Norway, Sweden, Germany and the UK.

Currency conversion is based on 2014 average annual exchange rate.

1

~ 20 TWh sold on long-term contracts

with power-intensive Nordic industry

Corresponding to ~ 40% of Statkraft’s

annual mean power production for

Nordic hydropower

8

0

5 000

10 000

15 000

20 000

25 000

30 000

2015 2017 2019 2021 2023

GWh

Statutory priced lease agreements Statkraft's share of leasing agreements

Long-term market contracts

1

Long-term contracts stabilize earnings

Strong track-record within physical and

financial power trading and origination

Expanding market activities in Europe,

as well as in Brazil and India

Market access for small renewable

producers

9

Value adding position in European Market Operations: Strong results and leveraging competence in new markets

2

Established positions in several promising

emerging markets

- long-term economic growth

- rising energy demand

- increased demand for renewables

Majority of volumes locked-in on PPA’s

Nepal India

Brazil

Chile

Peru

Attractive platform to build a sustainable

competitive position in emerging markets

Industrial approach based on leveraging

strategic core competencies

Consolidation and integration of new assets in

the short term. Economic benefits to be realized

in the medium term.

Some projects may be postponed. Significant

growth opportunities in wind and solar power

generation as well as within hydropower

10

3

Utility scale onshore wind power business

Major player in the Nordic wind power market

- 488 MW in operation

- 76 MW under construction

- Major wind farm planned on Fosen and Snillfjord

Business model with low capital requirements in the UK

- 142 MW in operation

- 36 MW under construction onshore Offshore:

- 317 MW in operating (40% share)

- 402 MW under construction (30 % share)

Existing

Under construction

Solid track-record in delivering onshore projects

on cost and time. Assessing profitability of the

Fosen/Snillfjord-project in Mid-Norway

Opportunity to leverage core competences in

emerging markets

Planned Statkraft will no longer invest in new offshore

wind projects. Alternatives for the offshore

assets will be assessed.

4

Stable cash flow from district heating in Norway and Sweden

12

5

Ambition to become among the most profitable

Nordic players

Ongoing construction projects. Limited

expansions related to existing assets going

forward.

1.1 TWh in operation

70 GWh under construction

In operation

Under construction

Investment ambition 2016 - 2020

13

11 10 10 10

Full flexibillity

41 billion

Maintenance and reinvestments

Reserved Decided investments

Investment ambition 2016 - 2020: NOK 41 bn*

Subject to financial capacity and maintaining current ratings

* The investment ambition for 2016-2020 is reduced by NOK 7 bn from previous communicated ambitions.

Norway 42 %

Europe ex Norway

18 %

Emerging markets

40 %

Allocation of investments 2016-2020 Ambition

Hydropower 72 %

Offshore WP

14 %

Onshore WP

11 %

Trading & Origination

2 %

District Heating

1 %

14

Technology allocation Geographical allocation

Predominantly Nordic hydropower but increased diversification

Solid base in the Nordic region Estimated annual contribution after committed capex in 2020

Norway 63 %

Nordic outside Norway 11 %

Europe outside Nordic

15 %

Outside Europe 11 %

EBITDA + share of profits

Norway 75 %

Nordic outside Norway 10 %

Europe outside Nordic

7 %

Outside Europe

8 %

Power generation (71 TWh)

15

Strengthening of financial solidity

Divestments in 2014:

- Divested Finnish hydropower

- Reduced ownership in UK onshore wind

- Reduced ownership in UK offshore wind

Equity increase of NOK 5 bn in 2014

Divestment in 2015:

- Sale of small-scale hydropower with booked EV ~1.9 bn (sales premium not disclosed)

Investment plan 2016-2020 adapted to maintain financial solidity

Further measures to be considered in 2016

16

NOK ~4.7 bn

Strong credit ratings

Rating target: Maintain current ratings

Flexible CAPEX-ambition

Equity strengthened in 2014

Divestments completed

Rating impact assessment completed prior to new investment decisions

Historically strong support from owner

17

A- / Stable Baa1 / Stable

Summary

A competitive generator of low-cost electricity

- Dominated by flexible hydro power with large reservoir capacity

Strong position in the Nordics

Consolidation and targeted growth for the next two years - European renewable energy production

- Hydropower outside Europe

Balanced investment plan to maintain credit strength

Proven support from Norwegian government through its 100% ownership

18