Volker Malmen, Country Manager DONG Energy Germany

INVESTMENT AND OPERATION EXPERIENCE OF OFFSHORE WIND FARMS

Munich – 03 Nov 2017

Public

Headquarters in Denmark Listed in the Nasdaq OMX: DENERG 5,600 employees Revenue in 2016 €8.2bn EBITDA in 2016 €2.6bn Divestment of Oil & Gas business to INEOS Phase out the use of coal by 2023

84%*

Wind Power Develops, constructs, owns and operates offshore wind

farms in Denmark, Germany, the Netherlands and the UK.

Development projects in Taiwan and the USA

4%* Bioenergy & Thermal Power

Generates and sells power and heat to customers in Denmark and Northwestern Europe

12%* Distribution & Customer Solutions

Power distribution grid on Zealand and sale of power and gas to customers in Northwestern Europe

DONG Energy at a glance

* Share of the DONG Energy Group’s capital employed** On 24 May. 2017 DONG Energy entered into an agreement to divest its upstream oil and gas business to INEOS. On 29 Sep. 2017 DONG Energy completed the divestment of its upstream oil and gas business to INEOS.*** Following the profound strategic transformation from black to green energy and the recent divestment of the upstream oil and gas production to INEOS, the name DONG Energy does not fit the company anymore.

Consequently, DONG Energy will change its company name to Ørsted from 6 Nov. 2017

224

462

2006 2016

Significant transformation of DONG Energy over the past decade

Business transformedShare of capital employed1

%

Operating profit (EBITDA) tripledDKK Bn

International expansionShare of operating profit (EBITDA)%

19.1

5.3

20162006 20162006

16%

60%

24%

2006 2016

0%16%

84%

1. Excluding unallocated capital employed on DONG Energy group level

(50%) 3x International share >5x

CO2 emissions halvedg/kWh

Investment strategy drives growth and returns

Wind Power

Fuel global market leadership and profitable growth – ambition of 11-12 GW capacity by end of 2025

Biomass conversions well under way to support zero coal from 2023

Bioenergy & Thermal Power Distribution & Customer Solutions

Transform utility to a smart, green and growing business

83% 13%

Gross investment guidance 2017: DKK 18-20 bn (~€2.5bn)

4%

Gross investment per business unit 2016

We have become too green for our name…

‘DONG’ is originally short for ‘Danish Oil and Natural Gas’.

Over the past decade, we have transformed from an energy company based on coal, oil and natural gas to a global leader in renewable energy and a world leader in offshore wind.

In line with our green transformation we have sought to find a name that reflects the green energy company we are today.

In 2017, we divested our upstream oil and gas business, and by 2023, we will be completely coal-free.

Starting Nov 6 we will be Ørsted.

WhyØrsted?

Almost 200 years ago, the Danish scientist Hans Christian Ørsted discovered electromagnetism, establishing the foundations for the way we produce power today.

Hans Christian Ørsted’s groundbreaking discovery was driven by his curiosity, dedication and interest in nature. These qualities also characterise us as a company –and are essential to changing the way we power the world. From black to green.

Unparalleled experience and track recordDONG Energy Wind Power geographical footprint

Walney ExtensionWalney 1 & 2

Westermost Rough

Isle of Man

West of Duddon Sands

Barrow

Burbo Bank Ext.Burbo Bank

Gunfleet Sands 3

Gunfleet Sands 1 & 2

Lincs

London Array

Race Bank

Horns Rev 1 & 2

Hornsea 1

Anholt

Middelgrunden

Vindeby

Nysted

Borkum Riffgrund West 2

Borkum Riffgrund 2

Borkum Riffgrund 1Gode Wind 1

Gode Wind 3Gode Wind 2

Bay State Wind

22 offshore wind farms in operation

7 offshore wind farms under construction

15 Partnerships

25+ years of experience and track record in the offshore wind sector1991 2017

5.0 GW under

construction

2,000 Dedicated employees

3.8 GW Constructed

capacity

7.7 million Europeans with clean electricity

3.5 GWWorld's leading operator

Coastal Virginia

Avedøre

Taipei office

Under construction

In operation

Under development

Decommissioned after 25 years

Asia Pacific

Formosa 1.1Formosa 1.2

Boston office

USA Europe

Greater Changhua projects

OWP West

Ocean Wind

Hornsea 2 Hornsea 3 & 4

Borssele 1&2

DONG Energy Wind Power overview

Largest offshore wind player globally todayGlobal offshore wind capacityGW

0.30.3

3.6

OperationalUnder Construction

DONG Energy pioneered the offshore wind industry and is today the global leader

Wind Power’s scale enables cluster synergies

26% 8% 9% 8% 1% 1% 0%

Source: Bloomberg New Energy Finance, September 2017, DONG Energy analysis

0%

% share of global installed capacityInstalled1 Under construction

2% 4% 2%

Operational offshore wind farmsOffshore wind farms under construction

Cluster

1

4

5

3

2

Synergies Lower logistics costs

Fewer technician hours

Fewer facilities needed

Lower inventory levels

• UK West coast (East Irish Sea): Barrow, BurboBank, Burbo Bank Extension, West of DuddonSands, Walney Extension, Walney 1 & 2

• East UK North: Westermost Rough, Lincs, Race Bank, Hornsea 1, Hornsea 2

• East UK South: Gunfleet Sands 1 & 2, GunfleetSands Demo, London Array

• Germany: Borkum Riffgrund 1, Borkum Riffgrund 2, Gode Wind 1&2

• Danish waters: Middelgrunden, Nysted, Horns Rev 2, Anholt

Dutch waters: Borssele 1 & 2

• UK West coast (East Irish Sea): Barrow, BurboBank, Burbo Bank Extension, West of DuddonSands, Walney Extension, Walney 1 & 2

• East UK North: Westermost Rough, Lincs, Race Bank, Hornsea 1, Hornsea 2

• East UK South: Gunfleet Sands 1 & 2, GunfleetSands Demo, London Array

• Germany: Borkum Riffgrund 1, Borkum Riffgrund 2, Gode Wind 1&2

• Danish waters: Middelgrunden, Nysted, Horns Rev 2, Anholt

Dutch waters: Borssele 1 & 2

1

2

4

5

3

Vattenfall

E.ONInnogy

Iberdrola SSE

Northland Power

Van Oord

Statoil

EDPR

EnBW

1. If a project is executed on behalf of a lead developer managing the construction, then 100% of capacity is allocated to the lead developer. If construction is executed by an integrated joint venture, capacity is allocated in proportion to the JV share

6

6

WPD

2%

0.10.2

0.30.3

0.9

0.2

0.50.4

0.40.3

0.9 0.7

0.6

0.90.30.6

0.3 0.4 0.10.40.3

0.6

0.3

3.8

1.3 1.3

1.5

1.2

2.0

1.10.8

2.1

2.8

8.8

1.1

5.0

0.8

Statkraft

1%

DONG Energy Wind Power has built a strong integrated end-to-end business model

Develop Build Operate Own

Full-time employees~2,000DONG Energy Wind Power core competencies

1. Front-end engineering design

~110 ~1,150 ~640 ~100

Ability to design and optimise projects with a 'total life-cycle cost of wind farm' mindsetExperience and expertise along the entire value chain allow for better understanding and management of risksEnd-to-end model reduces LCoE through fast feedback and learning across the entire organisation

~2,000

~650

~250~250~160~100~75~40

Full-time employees

NorthlandPower Statoil SSE WPD Innogy EOn Vattenfall

Identify and mature projects

Manage construction, sourcing and supply

Conduct life-cycle maintenance

Attract capital through partnerships

9

DONG Energy is constantly maturing and standardizing the operations to reach a fully industrialized setup

SOURCE: Operation Production System team

From project driven operation… …to industrialized operation

▪ Standardization of core processes to enable repetitive high performance e.g.:– Service: Defined procedures how to conduct service– Troubleshooting: Troubleshooting guides with best practice– Mobilization

▪ Core processes with variable performance as they are executed differently depending on projects

▪ Same roles are interpreted differently across windfarms of fleet

▪ Clear role descriptions for roles across all sites

▪ Performance is only discussed on management level and targets are not cascaded to shop floor level

▪ Performance is discussed on all levels of organization with clear targets and focus is on identifying and removing performance gaps

▪ Culture of firefighting and solving problems when they arise

▪ Root Causes are solved in structured way

▪ Technical issues causing downtime are tackled without using the full benefit of the fleet and backoffice

▪ The whole fleet including the backoffice works together on reducing their losses due to technical issues and solutions are transferred

▪ Employees not fully involved in improving operations ▪ People taking ownership and are driven by continuous improvement

10

The operations production system improves performance by addressing technical system, management infrastructure and mindset and behaviors

“A cultural change need to be launched and supported to make the change happen and to ensure sustainability of the transformation”

C

“Core maintenance processes need to be stabilized, streamlined and aligned across the organization to industrialize the setup and move into a more mature state of doing operations”

A

“The way of managing operations inthis more mature setup needs to be defined and aligned between leaders in the organization”

B

Management Infrastructure

Technical system

Mindset & behaviors

11

In our hub in Norddeich, Germany we operate the generation assets, including the WTG, array cables and substations

Sub-station

Transmission assetsGeneration assets

Con-verterplat-form

Onshore facilities

Export cable

BoP

WTG

Norddeich today with ~900MW installed capacityGodewind 1 and 2 Borkum Riffgrund 1

▪ # of Turbines: 78▪ Model: SWT-4.0-120▪ Turbine capacity: 4 MW ▪ Partner: LEGO, William Demant

▪ # of Turbines: 97▪ Model: SWT-6.0-154▪ Turbine capacity: 6 MW▪ Partner: GIP, talanx, Industriens Pension,

Laegernes pension, pka

12

A Service Operations Vessel (SOV) is used as operations base, hotel and turbine transfer vehicle

SOV Normand Jarl currently in use at Norddeich hub Gangway to transfer from SOV to turbine

Built: 2013 Length: 107, 6m 69 cabins; 28 single and 41 double 7 offices and one conference room

The SOV is used as a hotel for the technicians working in the windfarm Technicians can be transferred directly to the turbine via a gangway system or

deployed by additional Crew Transfer Vessels (CTVs) It’s the operational base with all parts and tools stored in a warehouse on board

SOURCE: Operation Production System team

Different Partners – Different Focus

Partn

er fo

cus

Partn

er fo

cus

Extensive project involvement

Joint entering of contracts

Staff seconded into the project organisation

Demand for full transparency to budgets, tender processes, fact base, technical solutions, etc.

DONG Energy and partner share responsibility equally during construction

DONG Energy has full responsibility during construction

Limited technical interest

Focus on financial performance

Clear financial forecasting and reporting

DONG Energy Wind Power must show long term commitment to the project, e.g. as long term co-owner and O&M operator

Industrial partner

Financial partner

Major institutional investors are partners in DONG Energy's offshore wind projects

Walney I & II (50.1%) 367 MW (2009 / 2010)

(KIRKBI)

West of Duddon Sands (50%) 389 MW (2010)

Burbo Bank Extension (50%) 258 MW (2016)

Lincs (25%) 270 MW (2017)

Anholt (50%) 400 MW (2011)

Horns Rev 1 (40%) 160 MW (2006)

Nysted (42.7%) 166 MW (2010)

Gode Wind 2 (50%) 252 MW (2014)

Westermost Rough (50%)210 MW (2014)

Gode Wind 1 (50%)330 MW (2015)

Gunfleet Sands (50.1%)173 MW (2011)

London Array (25%)630 MW (2009 / 2014)

Borkum Riffgrund 1 (50%)312 MW (2012)

(KIRKBI)

(%) represents DONG Energy ownership interest

Race Bank (50%)573 MW (2016)

Borkum Riffgrund 2 (50%)450 MW (2017)

Proven track record in developing long-term partnerships

Q&A