#1Global investor reaction to Taiwan's offshore auction 18th September 2018 PRIVATE AND CONFIDENTIAL EVENT PARTNERS Asia Wind Energy Association SIEMENS Gamesa Linklaters. ABN-AMRO Swiss Re Corporate Solutions M M CATHIE AssoCIATES MACDONALD MEDIA PARTNERS RECHARGE offshoreWIND.biz lloyd's Register SPONSORS -POSH seaway Roxtec EnBW CUEL NORTH An KPMG 4th Asia Offshore Wind Day ASIA'S LARGEST GATHERING FOR THE OFFSHORE WIND INDUSTRY Taipei (Shangri-La Hotel) - 18 September 2018 AUGUSTA & CO#2Augusta & Co: pioneering renewable energy transactions Private and Confidential Discussion Materials ☐ Europe's leading specialist investment bank for renewable energy ■ €10bn raised across 87 successfully completed transactions ☐ Onshore and offshore wind, solar, biomass, hydro Pioneering renewable energy transactions since 2002 First offshore wind project financing (North Hoyle as part of RWE Innogy's Zephyr transaction in 2004) ➤ First sale of pure offshore wind turbine maker (Multibrid to Areva closed in 2007/2010) ➤ First sale of German offshore wind project to a PE investor (Nördlicher Grund to Blackstone in 2011) Sale of largest offshore wind permitted and grid connected portfolio (PNE's Gode Wind to Dong Energy in 2012) ➤ Largest Google corporate PPA in Europe (160MW Norwegian wind farm Tellenes in 2016) ➤ Largest Facebook corporate PPA worldwide (294MW Norwegian wind farm, Bjerkreim cluster 2018) ➤ Advised Yushan Energy on the sale of a 50% stake to Mitsui (2018). Yushan is the JV partner of Northland Power in Hai Long AUGUSTA & CO 7th September 2018 Page 1#3We have global access to capital In five past processes, Augusta has approached 588 investors of whom 49% were strategic and 51% financial Our database tracks 1,000+ renewable energy investors and we have executed transactions with c.100 of these Private and Confidential Discussion Materials Country of Origin of Augusta's Investors Across Five Past Deals UK & Ireland 108 Nordics 66 Germany & Austria 124 Baltics 9 Benelux 47 France 21 Switzerland 23 Iberia 18 Eastern Europe Greece & Italy 15 Russia 3 US & Canada 53 Europe 448 Asia 74 Middle East 9 South Africa Australia 3 Source: Augusta & Co analysis, ⚫ = Investor 7th September 2018 AUGUSTA & CO Page 2#4Leading experience in the offshore wind sector Augusta has advised on more offshore wind transactions than any other adviser: - - - - 17 project sell-sides closed (including 2 late stage development sell- sides) 5 project buy-sides (2 closed) 2 strategic advisory mandates 1 TIV sell-side (closed) 1 TIV buy-side (closed) Bernstein 400MW Moray Firth 1,500MW Beatrice 920MW Inch Cape 905MW Ormonde 150MW Citrin 400MW North Hoyle 60MW Veja Mate 402MW Kentish Flats 90MW Côte D'Albâtre 105MW Gemini (5%) 600MW Sell-Side Buy-Side Advisory Private and Confidential Discussion Materials Note: All closed except: Moray Firth, Beatrice, Inch Cape, Côte D'Albâtre, MEG I and Borkum West II AUGUSTA & CO -Gode Wind I (2007)/(2010)/(2012) 332MW Gode Wind II 252MW/504MW Gode Wind III 90MW A2SEA Hiiumaa 700MW Nördlicher Grund I 320MW Baltic Eagle (2015)/(2017) 476MW Ventotec Ost II 400MW MEGI (now Merkur) 400MW OLC Borkum West II 231MW Aquamarin Taiwan 400MW Yushan 1,200MW USA NRG Bluewater 500MW 7th September 2018 Page 3#5Selected offshore wind asset and supply chain transactions Augusta has completed some of the most noteworthy transactions in the European offshore wind industry including asset and supply chain transactions DONG SIEMENS Client Confidential Seawind energy yushan Energy MITSUI & CO Partial sale of Taiwanese offshore wind portfolio of up to 1,200MW 2018 STYPHOON OFFSHORE Sale of 5% of 600MW permitted Netherlands Project Gemini 2014 A2 SEA GeoSea Gotechnical & Offers Solution: Acquisition of leading offshore wind installation business 2017 BARD PNE WIND Passion for Energy Sale of 1,400MW+ German offshore wind farms Aquamarin, Bernstein and Citrin 2013 Buyer Confidential Sale of large German offshore wind farm of up to 500MW 2017 PNE WIND Passion for Energy DONG energy Sale of 584-926MW German offshore wind portfolio 2012 Valuation/Advisory Baltic Eagle (Germany) 2015 RWE The energy to lead mpi OFFSHORE Sale of single turbine installation vessel Victoria Mathias 2015 ☑ Deutsche Bank Client Confidential VENTOTEC Blackstone Sale of 320MW German offshore wind farm 2011 IBERDROLA Sale of 400MW German offshore wind farm 2010 BARDⓇ LAIDLAW CAPITAL GROUP Sale of 400MW German offshore wind farm Veja Mate 2014 PROKON Nord Energiesysteme A AREVA GmbH €150m two-part sale of Multibrid (offshore wind power turbines) to Areva 2010/2007 Private and Confidential Discussion Materials = PNE WIND Passion for Energy **RBS The Royal Bank of Scotland Acquisition of 400MW German offshore wind farm 2010 IIII PROKON Nord Energiesysteme A AREVA GmbH Sale of blade manufacturer PN Rotor GmbH to AREVA 2009 ECLIPSE VATTENFALL Financial adviser on sale of UK plc & 150MW offshore wind farm 2008 AUGUSTA & CO = IIII PROKON Nord Energiesysteme GmbH Confidential Advisory / Valuation German offshore wind farm 2007 Plambeck Neue Energien 0 RWE ARCAPITA evelop Equity placement in 400MW offshore wind farm 2007 ENGLEFIELD CAPITAL Financial adviser on acquisition of £400m UK offshore wind portfolio 2004 7th September 2018 Page 4#6The European market is setting the pace in the evolution of offshore wind.... 2017 and 2018 have seen a number of firsts in European offshore wind markets Sector "firsts" in the last twelve months': Over 18 GW installed globally £57.5/MWh¹ delivery strike price for Moray East and Hornsea 2 in UK ☐ ■ €35/MWh bid-equivalent LCOE for Danish near-shore³ Vattenfall secures Hollandse Kust Zuid concessions on a zero-subsidy winning basis (delivery in 2022/23) 8.8MW WTGs deployed commercially in 2018 (Aberdeen Bay) with 9.5MW WTGs being produced (Triton Knoll) Hywind pilot park as the world's first floating wind farm started operations off the coast of Scotland in Oct-17 Learning curve and auction pressures are delivering dramatic cost of energy (LCOE) benefits: ■ Auctions are delivering dramatic savings, especially where development and permitting costs can be socialised Debt markets issuing record volumes of debt at historically low margins ■ Each quarter brings new lenders, junior/mezzanine on the rise, syndications are back - even project bonds Equity investors chasing lower returns Notes: 1. In 2012 prices. 2. BNEF LCOE equivalent estimate of $55/MWh, 3. BNEF LCOE equivalent estimate of $39/MWh, 2016 prices, 2016 average USD/EUR FX rate used, Source: Bloomberg New Energy Finance (BNEF), Augusta & Co Private and Confidential Discussion Materials AUGUSTA & CO 7th September 2018 Page 5#7...with new emerging offshore wind markets gearing up for growth Ireland: Sector development to meet RES targets Poland: Sector development to meet RES targets USA: Award of 1.2GW offshore wind tender EnBW has formed California-based JV Turkey: Launching first 1GW offshore wind tender in 2018 Mature offshore market New offshore market Approximate project location Source: Bloomberg New Energy Finance, 4C Offshore, Inspiratia, company reports Private and Confidential Discussion Materials AUGUSTA & CO South Korea: Aggressive roadmap to 2020 Japan: Sector development to meet RES targets Taiwan: 5.5GW of offshore wind awarded India: EOI for 1GW offshore wind farm China: Fastest growing offshore wind market globally Australia: 2GW offshore wind development project 7th September 2018 Page 6#8Taiwan's offshore wind market is set to catch-up quickly with Europe... The Taiwanese target of 5.5GW of capacity by 2025 is credible with strong government support linked to a commitment to end nuclear generation International developers and investors are flocking to Taiwan attracted by the scale and attractive conditions ■ ◉ \Global investors are responding strongly to the Taiwanese Offshore Wind opportunity Excellent wind resource: Consistent wind direction mainly from the North and North-East Over 10m/s average wind speed at hub height Highly attractive Feed-in Tariff: 3.8GW of projects were awarded a 20-year feed-in Tariff in Apr-18, structured in the following alternative ways: Straight-Line: Year 1-20: TWD 5,849.8/MWh (~ €165.87/MWh) - Sculpted: Year 1-10: TWD 7,117.7/MWh (~ €198.43/MWh), Year 11-20: TWD 3,568.5/MWh (~ €99.48/MWh) A further 1.7GW were awarded a reduced feed-in Tariff in a competitive auction in mid 2018: MW-weighted feed-in tariff of c.TWD 2,489/MWh (~ €70/MWh), ranging from TWD 2,224.5/MWh (~€63/MWh) to 2,548.1 (~€72/MWh) Expected Offshore Capacity Europe vs Taiwan GW 18 16 14 12 NO 86 10 2020: 520MW Taiwan Offshore Subsidies Europe vs Taiwan (2018) €/MWh 250 2025: 5.5GW 200 10-year sculpted FIT 150 20-year straight-line FiT 100 150 50 198 166 Subsidy level expected to reduce as seen in mature European offshore wind markets 2025 4 42 2 79 66 55 47 70 0 FR1 BE UK NL DE Taiwan 2020 2019 2020 2021 2022 2023 2024 2025 ■UK ■Germany Netherlands Denmark Belgium France Taiwan Source: Bloomberg New Energy Finance, A&Co analysis; Note: 1. Subsidies were awarded in 2012 and 2014, renegotiation of tariff levels to current level by the French government was reached in Jun-18 Private and Confidential Discussion Materials AUGUSTA & CO 7th September 2018 Page 7#9...with Taiwanese authorities having awarded grid connection to 5.5GW of projects... Predominant wind direction 5 7 6 13 12 Demo 1 Demo 3 1+3 Expected Project Developer # Capacity (MW) COD Estimated Equity1 ($m) Estimated Debt¹ ($m) Yunlin Phase I1 wpd 1 360 2020 540 1,260 Taipei Formosa II Swancor/Macquarie 2 378 2020 567 1,323 Yunlin Phase II wpd 3 348 2021 522 1,218 2 Demo 2 Guanyin wpd 4 350 2021 525 1,225 Greater Changhua NW Ørsted 5 583 2025 874 2,041 Greater Changhua SE Ørsted 6 605 2021 908 2,118 Greater Changhua SW Ørsted 7 632 2021 442 1,032 Changhua ChangFang CIP 8 552 2025 828 1,932 Xidao CIP 9 48 2025 72 168 Chungnan CIP/DGA/CSC 10 300 2025 450 1,050 Taiwan Changhua Phase II TaiPower 11 300 2025 450 1,050 Hai Long II Yushan/NPI 12 532 2024 798 1,862 Hai Long III Yushan/NPI 13 512 2025 768 1,792 Total 5,500 $8.2bn $19.3bn Estimated Annual Capital Requirements² Tainan $m 7,000 5,840 6,000 Kaohsiung City 5,000 4,000 3,000 3,995 4,592 3,301 750 1,845 2,000 1,000 1,292 1,968 1,415 554 Project - Awarded in Apr-18 tender 0 2018 2019 2020 2021 2022 Equity Debt 3,750 3,000 4,443 2,987 1,456 1,904 1,280 624 2023 2024 2025 Source: News, developer publications, 4C Offshore, A&Co analysis; Notes: 1. Sell-down process initiated; 2. Based on total capex of $5m/MW and a 70% leverage assumption. Construction assumed to take two years Private and Confidential Discussion Materials AUGUSTA & CO 7th September 2018 Page 8#10...accelerated development delivered through European technology transfer A partnership proposition between local supply, chain and experienced European players Source: News, developer publications, A&Co analysis Private and Confidential Discussion Materials Ørsted Operating partners CIP " EnBW wpd Siemens Vestas TPC China Steel Turbines Yeong Guan Energy China Steel Machinery Foundations Bladt Industries Sif Group CSMC Century Wind Tainan Taichung Taiwan Kaohsiung City AUGUSTA & CO Taipei Cables " Nexans Prysmian Walsin Lihwa Installation / O&M Geosea Jan de Nul ☐ Semco Maritime TIPC Swancor Woen Jinn Harbour Engineering 7th September 2018 Page 9#11...with institutional investors willing to invest more aggressively and before COD Transaction Enterprise Value Gross MW Stake Pre- tender/ Acquired Value Per MW Per MWh Auction Pre-FC FC Construction COD Levered 609 24.5% €367m 2.46 Wind Farm(s) Date Vendor Acquirer Hohe See & Albatros Borssele III & IV Jan-18 May-18 Enbridge Blauwwind consortium CPPIB Partners Group 732 45% Borkum Riffgrund 2 Aug-17 DONG Energy GIP 450 50% Trianel Borkum II Feb-17 Trianel and EWE ewz and Fontavis 198.4 24.5% Gothaer 110.7 40% €423m1 €3.82m Nordergründe Beatrice Dec-15 wpd Jan-16 SSE CIP 588 10% Burbo Bank Extension Feb-16 DONG Energy PKA, Kirkbi (Lego) 258 50% €1.7bn €6.57m Lynn and Inner Dowsing Feb-16 Centrica / EIG GIG (61%), BlackRock (39%) 194.5 100% €521m €2.69m €899 Mar-09 Ormonde Dec-15 Vattenfall AMF 150 49% €649m €4.33m Feb-12 Rampion Aug-15 E.ON GIG May-15 E.ON GIG EnBW Baltic 2 Nov-15 Macquarie Capital Jun-15 Macquarie Capital PGGM 400.2 6% €1.7bn €4.15m €1,245 400.2 19% €1.7bn €4.28m €1,284 Arztliche B'schaft 288 3.26% 288 30% Jan-15 EnBW Macquarie Capital 288 49.9% 330 50% €1.6bn €4.73m Gode Wind 1 Sep-15 DONG Energy GIP Notes: 1. Debt estimated based on news reports that EIB and KfW IPEX provided c. two-thirds of the €410m capex. FX rate used at Date of Announcement, Source: Augusta & Co, Inspiratia Private and Confidential Discussion Materials AUGUSTA & CO 7th September 2018 Page 10#12Ørsted has pioneered the "farm down" strategy in Europe Ørsted's strategy is to recycle capital early through asset rotation and create value through partnerships that share the capital cost whilst preserving Ørsted's exclusive role in supporting services Under the "farm down" approach, Ørsted sells typically 50% of its wind farm asset to a financial or strategic investor at a price around the NPV of the project based on Ørsted's cost of capital. This enables Ørsted to liquidate capital for reinvestment in new projects whilst retaining exclusive control over supporting services such as O&M and PPA management. Ørsted operates two types of partnership when it farms down a wind asset: Develop Build Ørsted risk Ørsted risk Operate Shared risk Shared risk EPC wrap partnership Shared risk partnership The EPC wrap model is favoured by Ørsted - To insulate an investor from its efficient but complex multi-contract construction strategy Private and Confidential Discussion Materials - To maximise value by providing a guarantee to the investor that a project will reach COD at pre-agreed cost The Partnership Model Tools Ørsted can deliver a gradual increase in risk protection through a series of optional agreements: Construction (CA) Construction Management (CMA) O&M PPA SPA/ Ørsted Investor SHA 50% 50% AUGUSTA & CO CA /CMA OMA PPA Ørsted construction services Ørsted O&M services Ørsted power trading services 7th September 2018 Page 11#13Offshore wind returns have been compressed to the level of onshore wind Assuming these Consideration Onshore wind returns work for Offshore wind (2015) Offshore wind (2017) investors, offshore wind ought to be more Equity IRR 8-10% 9-10% 7-9% asset class: - attractive owing to investors' relative ability to deploy more capital in projects It is worth noting, industry views are still developing on the following key value drivers that will determine the sector's long-term attractiveness as an Project life Project life 25-30 years 25 years 25-30 years Typical stakes Majority Levered • Minority ☐ Operating partners O&M/TCM agreements Levered/Unlevered Industrial or strategic equity partner Minority Levered/Unlevered Industrial or strategic equity partner Scale (Gross) 10-100MW 60-700MW Typical gearing at FID 80% Yield performance Sub P50 30-40% CF ■ EBITDA margins 80% 0-60% - P50 35-45% CF " 70% Subsidy ROC: 0.9/MWh O&M strategy and " CfD: £80/MWh costs Turbine availability Capex EV/MW (COD) £1.2-1.5m/MW £2.0-2.7m/MW £4.5-5.5m/MW EV/MWh (P50) £800-850/MWh ROC: 1.5/MWh CfD: £115/MWh £4.0-5.0m/MW £1,100-1,300/MWh 200MW-1.5GW 0-70% >P50 ■ 45-55% CF 70-80% ROC: None CfD: £57.50-74.75/MWh £2.3-3.0m/MW £3.5-4.5m/MW £700-1,000/MWh Private and Confidential Discussion Materials AUGUSTA & CO 7th September 2018 Page 12#14Reflections from Augusta's Taiwanese M&A experience Private and Confidential Discussion Materials International equity keen to deploy ☐ Diverse interest from global players (funds, PF, utilities) Appetite from passive capital to risk share pre FID to boost returns Levered IRR targets started 200bps higher than Europe but this picture is changing fast Quality sponsor still critical as consortium partner ...however, domestic equity still cautious Quite a few Asian investors showed interest and submitted indicative bids However, local Taiwanese institutions remained in exploratory mode at that stage Market cautious that domestic debt markets can match capital need but international banks are bullish. Political framework (non-OECD): Taiwan is not part of OECD, which excludes many investors active in European offshore Regulatory changes: Important aspects such as performance bonds are evolving FIT PPA concept: Legal framework was evolving and excluded standard aspects common in Europe such as change of law, curtailment or force majeure but other legal protections compensate The positive reaction of global investors to the Taiwanese auction has been confirmed: - Largest offshore wind developers competing for projects Supply chain has eagerly embraced the opportunity Equity and debt finance moving fast to get involved AUGUSTA & CO 7th September 2018 Page 13#15A&Co Contacts AUGUSTA & CO#16Augusta & Co contacts MEADOWS HOUSE Meadows House, 2nd Floor 20-22 Queen Street London, W1J 5PP Tel: +44 (0)20 7776 0800 www.augustaco.com WAVERTO HILL ST DERBYST CHESTERFIELD HILL HERTFORD ST HAY'S MEWS AUGUSTA & CO CURZON ST CHARLES ST MARKET MEWS SHEPERD ST S CURZON ST CLARGES ST HALF MOON S WHITE HORSE ST BOLTON ST BERKELEY ST STRATTON ST PICCADILLY MAYFAIR PL DOVER ST GREEN PARK GREEN PARK 7th September 2018 Page 15 Private and Confidential Discussion Materials Disclaimer BRICK ST BRICK ST This document (the "Document") with the information contained therein is confidential and proprietary to Augusta & Co Limited ("Augusta"). It has been prepared for information purposes with the express understanding that it is to be read solely by the person to whom it is addressed and his/her professional advisers. Without prior permission of Augusta, no person accepting this document will release or reproduce (in whole or in part) this Document, discuss any information contained herein, make representations or use such information for any purpose other than to evaluate a potential involvement in the transaction proposed. Augusta is authorised and regulated by the Financial Conduct Authority in the United Kingdom. AUGUSTA & CO