#1Orsted Investor presentation Q2 2021 12 August 2021#2DISCLAIMER This presentation contains certain forward-looking statements, including but not limited to, the statements and expectations contained in the "Financial Outlook" section of this presentation. Statements herein, other than statements of historical fact, regarding our future results of operations, financial condition, cash flows, business strategy, plans and future objectives are forward-looking statements. Words such as "targets", "believe", "expect", "aim", "intend", "plan", "seek", "will", "may", "should", "anticipate", "continue", "predict" or variations of these words, as well as other statements regarding matters that are not historical facts or regarding future events or prospects, constitute forward-looking statements. Ørsted have based these forward-looking statements on its current views with respect to future events and financial performance. These views involve a number of risks and uncertainties, which could cause actual results to differ materially from those predicted in the forward-looking statements and from the past performance of Ørsted. Although, Ørsted believes that the estimates and projections reflected in the forward-looking statements are reasonable, they may prove materially incorrect and actual results may materially differ due to a variety of factors, including, but not limited to changes in temperature, wind conditions, wake and blockage effects, and precipitation levels, the development in power, coal, carbon, gas, oil, currency and interest rate markets, changes in legislation, regulation or standards, the renegotiation of contracts, changes in the competitive environment in our markets and reliability of supply. As a result you should not rely on these forward-looking statements. Please also refer to the overview of risk factors in "Risk and Management" on p. 70 of the 2020 annual report, available at www.orsted.com. Unless required by law, Ørsted is under no duty and undertakes no obligation to update or revise any forward-looking statement after the distribution of this presentation, whether as a result of new information, future events or otherwise. Orsted#3Significant US offshore capacity awarded, and several strategic partnerships established Highlights - Q2 2021 . • Full-year EBITDA guidance maintained despite low wind speeds • Ocean Wind 2 awarded 1,148 MW 20-year OREC contract in the competitive solicitation in New Jersey • . • • • • Launched key strategic partnerships in Japan, Korea, Norway, and Scotland Closed the agreement to enter a 50/50 joint venture with PGE for the Baltica 2 & 3 offshore wind projects in Poland Closed the agreement to acquire Brookfield Renewable Ireland, a European onshore wind platform Closed the agreement with Norges Bank IM to farm-down 50% of the 752 MW offshore wind farm Borssele 1 & 2 Started constructing our first renewable hydrogen project, H2RES Commissioned Permian Energy Center in Texas, our first combined 420 MWAC solar PV and 40 MW AC storage facility Commissioned our largest onshore wind project to date, the 367 MW Western Trail wind farm in August GOWO2- GOWO2-Z01 3 Orsted#4Ørsted awarded 1,148 MW offshore wind contract in New Jersey 1,148 MW Ocean Wind 2 project • • • . • • Selected to negotiate a 20-year Offshore Renewable Energy Certificate (OREC) following a competitive solicitation The 20-year OREC price is USD 84.03 per MWh from 2029, with a 2% annual escalator (corresponding to a levelized 2017 price of USD 67 per MWh) With the award the Ocean Wind lease will be utilised to its maximum capacity of c. 2.3 GW Subject to final investment decision, Ocean Wind 2 is expected to be commissioned in 2029 Ørsted has been awarded a total of 4.1 GW offshore wind projects in the US, which unlocks significant synergies in procurement, construction, and operations In addition to the awarded capacity, Ørsted and our partners have rights to c. 4 GW of seabed leases on the US East Coast New Jersey Ocean Wind 1-75/25 JV with PSEG Ocean Wind 2 Orsted#5Ørsted construction programme and pipeline Gross renewable capacity MW Offshore Onshore Bioenergy & Other (incl. PtX) 2,543 25,197 2,080 920 -22 GW 1,142 2,368 4,659 1,714 907 2 16,510 10 GW 1,297 900 2,080 1,320 12,084 4,659 2,078 18,458 2,455 7,551 9,771 Installed capacity Q2 2021 Hornsea 2 Greater Changhua 1 & 2a Onshore wind Solar PV Hydrogen Installed and under construction US North- East cluster¹ US Mid- Atlantic cluster² German Portfolio Greater Changhua 2b & 4 Baltica 2&3 UNDER CONSTRUCTION AWARDED 5 12 GW Firm Substantiated capacity pipeline4 1. US North-East cluster: South Fork (130 MW), Revolution Wind (704 MW) and Sunrise Wind (880 MW) 2. US Mid-Atlantic cluster: Skipjack (120 MW), Ocean Wind (1,100 MW) and Ocean Wind 2 (1,148 MW) 3. German Portfolio: Gode Wind 3 (242 MW) and Borkum Riffgrund 3 (900 MW) 4. Offshore: Projects that have reached a certain level of maturity in a market with a regulatory framework such as secured consent, exclusivity through lease, secured EIA or established partnership. Onshore: Combination of land control/options and or interconnection studies/positions Orsted#6Significant number of offshore wind auctions and tenders in the coming months Q2 2021 New Jersey 2 Awarded 2,658 MW Award in Q4 2021 Maryland ~400-1,200 MW Award in H2 2021 French tender 4 900-1,050 MW Q2 2021 Poland Awarded 5,900 MW 6 Award in Q4 2021 Japanese round 1 ~1,500 MW H2 2021 UK CfD 4 Up to 12,000 MW 2021 up to 25 GW H2 2021 Rhode Island up to 600 MW H2 2021 German tender 900 MW H1 2022 Taiwan auction TBC H2 2022 German tender 900 MW H2 2021 Massachusetts 3 up to 1,600 MW H2 2021 Danish Thor tender 800-1,000 MW H1 2022 Holland Coast West ~1,500 MW H2 2021-2023 Connecticut 4 >400 MW 2022 New Jersey 3 ~1,200 MW 2022 New York 3 >800 MW 2022 onwards All auction and tender timelines and capacities based on current expectations and subject to change. Timeline reflects bid submission deadline, not time of award Orsted#7Q2 2021 - Low wind speeds offset by strong performance from Bioenergy & Other Group EBITDA increased DKK 5.2 bn - Comparable EBITDA in line DKKm Effects impacting comparability • No EBITDA from the divested Distribution, B2C, and city light businesses Q2 2020 RBC divested IFRS-9 one-off effect 2,955 -305 150 Comparable 2,800 Offshore sites -410 Offshore partnerships -103 Offshore DEVEX 124 Onshore -109 Bioenergy & Other Other Q2 2021 excl. new partnerships Borssele 1&2 farm-down Q2 2021 incl. new partnerships 648 -109 2,841 • Positive accounting effect as we ceased to report on business performance principle in 20211 5,355 8,196 Underlying effects Wind speeds in Q2 2021 (7.8 m/s) significantly lower than normal wind speeds (8.6 m/s). Impact versus normal wind speed of DKK -0.9 bn. Positive effect from ramp-up of Borssele 1 & 2 and addition of the last 400 MW of Hornsea 1 receiving CfD ⚫ Partnership earnings in Q2 2021 related to adjustments to finalised construction projects • Increased Onshore generation driven by ramp-up more than offset by lower wind speeds, higher fixed costs, minor subsequent credit loss related to the winter storm in Texas, and the gain from Oak Solar divestment in Q2 2020 • Increased earnings from CHP plants due to higher power prices and sale of ancillary services. Positive effect from revaluating our gas at storage from increasing gas prices New partnerships ⚫ DKK 5.4 bn farm-down gain from 50 % Borssele 1&2 divestment 7 1) DKK 0.2 bn in Offshore and DKK -0.05 bn between Onshore and Bioenergy & Other Orsted#8Low wind speeds in North-western Europe during H1 2021 Wind Speed Anomaly (%) Q1 2021 above average wind speeds +21 +18 +15 +12 +9 +6 +3 -3 -6 -9 -12 -15 -18 -21 ༤༞ཱ ༷༠༠༠ ཤྭཱ གྷ ས ༦ below average wind speeds 8 Source: https://aws-dewi.ul.com/knowledge-center/wind-trends-bulletins/ Q2 2021 Orsted#9Q2 2021 - Financial performance Net profit DKKm 5,544 Free cash flow DKKm CFO CAPEX Divestments 1,605 3,147 4,485 10,591 8,197 45 -3,757 -12,133 Net interest-bearing debt development DKKm 13,190 172 194 116 12,067 -1,605 -825 Q2 2020 Q2 2021 Q2 2020 Q2 2021 31 Mar 2021 Free cash flow Hybrid coupon Lease obligation additions Exchange rate adj. 30 Jun 2021 Net profit up DKK 6.4 bn . Higher EBITDA in Q2 2021 . Lower net interest expenses due to lower net debt Effective tax rate significantly impacted by the tax exempt gain from Borssele 1 & 2 farm- down • FCF totalled DKK 1.6 bn Operating cash flow including tax equity contribution from partner at Permian Energy Center Divestments relating to 50% farm-down of Borssele 1 & 2 and 25% of Ocean Wind 1, and final settlement with GIP regarding Hornsea 1 divestment Net interest-bearing debt of DKK 12.1 bn, down DKK 1.1 bn • Positive free cash flow of DKK 1.6 bn Orsted#10Q2 2021 - Financial and non-financial ratios FFO / Adj. net debt % 43 63 ROCE % 12.5 10.8 Greenhouse gas emissions (scopes 1 & 2), g CO₂e/kWh, YTD Safety Total recordable injury rate, YTD 64 56 3.7 3.1 30 Jun 2020 30 Jun 2021 30 Jun 2020 30 Jun 2021 30 Jun 2020 30 Jun 2021 30 Jun 2020 30 Jun 2021 FFO / Adj. net debt of 63% • Positively impacted by Borssele 1 & 2 farm-down • Credit metric above our target of around 25 % • • ROCE of 12.5% Increase driven by higher EBIT over the 12-month period On track to achieve average ROCE of 11-12% in 2020-2027 Reduced emissions • Decrease due to additional offshore and onshore capacity • Partly offset by higher thermal generation from coal-fuelled units where we have a regulatory obligation to make all our energy capacities available to the market 10 • TRIR of 3.1 10% reduction in injuries leading to a decline in the total recordable injury rate (TRIR) Orsted#11Implementation of the EU taxonomy Taxonomy- eligible revenue: >65% Taxonomy- eligible EBITDA: >95% Taxonomy-non-eligible Taxonomy-eligible Taxonomy- eligible CAPEX: >99% Revenue Taxonomy-eligible: Offshore, onshore, and bioenergy-based heat and power generation; renewable certificates/grants; partner revenue from construction, O&M, and power sales agreements Non-eligible: Legacy natural gas activities; fossil-based heat and power generation; power sales to end customers EBITDA Taxonomy-eligible: Offshore, onshore, and bioenergy heat and power generation; renewable certificates/grants; construction agreements and divestment gains Non-eligible: Fossil-based part of our CHP activities and gas sales business CAPEX Taxonomy-eligible: Mainly related to the construction of offshore and onshore wind farms and solar PV assets 11 Orsted#122021 guidance, strategic ambition and financial guidance 2021 guidance EBITDA without new partnerships Gross investments DKKbn 15-16 Strategic ambition and financial guidance Ambition for installed renewable capacity by 2030 ~50 GW 39-41 - Offshore ~30 GW - Onshore ~17.5 GW Business unit EBITDA FY 2021 vs. FY 2020 Direction Total CAPEX spend, 2020-2027 DKK 350 bn Offshore Significantly lower - Offshore & Hydrogen -80% Onshore Higher - Onshore -20% Bioenergy & Other Higher Average ROCE, 2020-2027 11-12% Average share of EBITDA from regulated and contracted activities, 2020-2027 -90% Average yearly increase in EBITDA from offshore and onshore assets in operation, 2020-2027 -12% Rating (Moody's/S&P/Fitch) Baal/BBB+/BBB+ FFO/Adjusted net debt threshold -25% Ambition to increase the dividend paid by a high single-digit rate compared to the dividend for the previous year up until 2025 12 Orsted#13Q&A Earnings call DK: +45 78 15 01 09 UK: +44 333 300 9268 US: +1 833 823 0590 For questions, please press 01 O Orsted#14Appendix Orsted#15Renewable capacity as of 30 June 2021 Indicator, MW FY 2020 Installed renewable capacity The installed renewable capacity is calculated as the cumulative renewable gross capacity installed by Ørsted before divestments. For installed renewable thermal capacity, we use the heat capacity, as heat is the primary outcome of thermal energy generation, and as bioconversions of the combined heat and power plants are driven by heat contracts. Decided (FID) renewable capacity Decided (FID) capacity is the renewable capacity for which a final investment decision (FID) has been made. Awarded and contracted renewable capacity The awarded renewable capacity is based on the capacities which have been awarded to Ørsted in auctions and tenders. The contracted capacity is the capacity for which Ørsted has signed a contract or power purchase agreement (PPA) concerning a new renewable energy plant. Typically, offshore wind farms are awarded, whereas onshore wind farms are contracted. We include the full capacity if more than 50% of PPAs/offtake are secured. Installed storage capacity The battery storage capacity is included after commercial operation date (COD) has been achieved. The capacity is presented as megawatts of alternating current (MW ac). Installed renewable capacity Offshore wind power Onshore wind power Solar PV power Other (incl. PtX) - Biomass, thermal heat - Biogas, power - Battery storage H1 2021 H 2020 Δ 12,084 10,460 1,624 11,318 7,551 6,820 731 7,572 1,985 1,555 430 1,658 430 10 420 10 2,118 2,075 43 2,054 2,054 2,078 2,054 3 3 3 61 21 40 21 Decided (FID) renewable capacity 4,426 3,601 825 Offshore wind power 2,220 3,038 (818) Onshore wind power 1,297 103 1,194 4,068 2,286 665 Solar PV power 907 420 487 1,077 Battery storage 40 (40) 40 Hydrogen 2 Awarded/contracted renewable capacity (no FID yet) 8,687 4,996 3,691 4,996 Offshore wind power 8,687 4,996 3,691 4,996 Sum of installed and FID capacity 16,510 14,061 2,449 15,386 Sum of installed, FID, and awarded/contracted capacity 25,197 19,057 6,140 20,382 Note: In Q2 2021, we aligned our definition of installed capacity, hence all assets (installed or FID'ed) are reported using nameplate capacity. Previously a few wind farms were reported using 'power optimised capacity' or 'export cable limit capacity'. 15 Orsted#16Forecasted renewable capacity build-out Global renewable energy capacity by technology¹ GW installed CAGR • 2% biomass • 20% Offshore wind +12 %/year 13% Small-scale PV 11% Large-scale PV Global offshore wind capacity excl. mainland China GW installed Americas Asia Pacific +24 GW/year 9% Onshore wind 1. 2. 16 3. North American renewable capacity by technology² GW installed Biomass Offshore wind +8 %/year Europe Small-scale PV 4,360 276 183 224 823 Large-scale PV Onshore wind 519 16 303 35 53 408 94 +19 GW/year 16 7 65 66 156 152 1,559 303 240 120 16 143 236 536 1,630 36 +7 GW/year 32 33 +3 GW/year 159 132 57 57 60 12 227 1,571 10 94 24 74 17 199 134 679 11 Ο 44 86 24 2020 2030 (Post-COVID-19) 2015 2020 2025 2030 2035 2015 2020 2025 2030 Excludes solar thermal, geothermal, marine, tidal, and others which combined account for less than 1% of capacity North America includes the United States and Canada. Excludes solar thermal, geothermal, marine, and tidal which combined account for less than 1% of capacity Considering 30 GW offshore wind capacity target announced by US administration (not yet passed into law) Source: BNEF New Energy Outlook 2020 for capacity of all technologies except offshore wind. Offshore wind figures from BNEF Offshore Wind Market Outlook H2 2021 for current capacity and post-COVID-19 forecasts Orsted#17Offshore wind build-out plan Installed capacity MW Under construction Awarded 1,498 18,458 1,045 920 1,142 2,368 1,714 900 9,771 1,320 7,551 Before 2025 Pending FID Siemens Gamesa Installed Hornsea 2 capacity Q2 2021 Greater Changhua 1 & 2a Decided US North- (FID'ed) and East cluster¹ US Mid- Atlantic German Portfolio³ installed cluster² Greater Changhua 2b & 4 Baltica 3 Baltica 2 capacity (2022) Country UK Taiwan US US Expected completion H1 2022 H2 2022 2025/2026 2026 Before 2030 Construction status On track On track 165 x 8 MW 111 x 8 MW Turbine Siemens Gamesa Siemens Gamesa Decided (FID'ed), installed and awarded capacity Germany Taiwan Poland Poland Before 2025, 2026, 2029 2024-2025 Pending FID Pending FID end-2021 Pending FID end-2023 Pending FID Pending FID GE 12 MW & GE 14 MW 11 MW Siemens Gamesa Turbine selection pending Turbine selection pending Turbine selection pending 17 123 1. 2. 3. US North-East cluster: South Fork (130 MW), Revolution Wind (704 MW), and Sunrise Wind (880 MW) US Mid-Atlantic cluster: Skipjack (120 MW), Ocean Wind 1 (1,100 MW) and Ocean Wind 2 (1,148MW) German Portfolio: Gode Wind 3 (242 MW) and Borkum Riffgrund 3 (900 MW) Orsted#18Offshore market development - US Massachusetts Connecticut New York Target of 3.2 GW of offshore wind capacity by 2030 target • Current auction ongoing for up to 1.6 GW of offshore wind capacity with bid award expected 17 December 2021 Target of 2 GW of offshore wind capacity by 2030, of which 1.2 GW remains available • Next auction of approx. 1 GW expected in H2 2021-2023 • Target 9 GW offshore wind by 2035 2.5 GW awarded in Q1 2021 and 4.2 GW in total New Jersey ⚫ BOEM announced a proposed sale of lease areas in the New York Bight that could unlock up to 7 GW. Sale expected to commence in H2 2021/H1 2022 • Target of 7.5 GW offshore wind capacity by 2035, of which 3.8 GW remains available following recent awards to Ocean Wind 2 and Atlantic Shores Next auction of 1.2 GW expected in 2022 Target of approx. 1.6 GW offshore wind by 2030, of which 1.2 GW remains available Maryland • Current solicitation ongoing with bid award expected by end 2021 Virginia • • • Solicitations in 2020, 2021 and 2022 to procure around 1.2 GW cumulatively Signed Clean Economy Act for development of at least 5.2 GW of offshore wind by 2034 Executive order signed establishing a non-binding 2.5 GW offshore wind target by 2026 • Executive order signed to power the state with 100% renewable energy by 2030 Rhode Island • Next auction of up to 600 MW expected in H2 2021 • First BOEM lease auction expected in 2022 California • State modeling shows approx. 10 GW of offshore wind needed to meet the legislative mandate for 100% clean power by 2045 18 All auction and tender timelines and capacities based on current expectations and subject to change Orsted#19Offshore market development - UK and Continental Europe United Kingdom Germany Netherlands ⚫ UK Government target annual build-out of 3 GW to reach 40 GW capacity by 2030, including 1 GW of floating wind by 2030 . . Leasing round in Scotland for 10 GW underway with applications due mid July 2021, results expected by end 2021/early 2022 Announcement of an upcoming leasing round for ~300 MW floating wind projects in the Celtic Sea, timing to be confirmed ⚫ CfD auction expected to open end of 2021 for up to 12 GW of low carbon capacity. Separate pots for onshore wind, solar PV, bottom-fixed and floating offshore wind • Legally fixed target for offshore wind capacity is 20 GW by 2030 and 40 GW by 2040 ⚫ First centralised tender launched in February 2021. 0.9-4 GW to be built annually from 2026 ⚫ New tender framework confirmed, introducing caps of bid levels; selection criteria in case of several zero subsidy bids to be evaluated in 2022 Government target of 11.5 GW offshore wind by 2030, and new government expected to increase target in 2021 by 5-10 GW by 2030 ⚫ Next tender of 1,520 MW for Holland Coast West with bid deadline H1 2022 • Tender for Thor (0.8-1.0 GW) in Q4 2021. Hesselø tender (0.8-1.0 GW) delayed due to complex seabed conditions Denmark ⚫ Tender for designing, building and co-owning an artificial island in the North Sea as hub for up to 10 GW offshore wind in Q1 2023 ⚫ Tenders for 5 GW of offshore wind farms in total connected to the Bornholm and North Sea Energy Hubs towards 2033 ⚫ Government ambition for tendered capacity of 8.75 GW for the period 2020-2028 France • Round 4 tender has commenced with a capacity of c. 1 GW Poland Belgium Baltic States 19 Sweden Norway • ⚫ Offshore Wind Act with aim to award 10.9 GW offshore wind by 2027 signed into law. CfD auctions in 2025 and 2027 with expected total 5 GW Allocation of approx. 2 GW towards target to construct approx. 4 GW by 2030 and MoU with Denmark for large scale offshore wind power imports ⚫ Lithuania: Draft laws for 700 MW 2024 offshore wind tender under review by Lithuanian parliament. Second tender of 700 MW planned for 2025 ⚫ Latvia and Estonia: MoU between Latvia and Estonia in place for the development of a joint offshore wind project of up to 1 GW • 100% renewable electricity target by 2040 and carbon neutrality by 2045 ⚫ National electrification and hydrogen strategies being developed. Government proposal to ease wind farm environmental permitting Proposed Offshore transmission scheme pending • Norwegian authorities have opened two areas for offshore wind projects (bottom-fixed and floating) with a max capacity of 4.5 GW to be allocated through competitive process in 2022. Details of auction model to be clarified and announced during H1 2022 All auction and tender timelines and capacities based on current expectations and subject to change Orsted#20Offshore market development - APAC Taiwan Japan South Korea 20 • Taiwan has met its target of awarding 5.5 GW to be commissioned by 2025 • 600 MW Greater Changhua 3 project ready for future auctions • Draft regulation for third round auction announced with 15 GW offshore wind target to be constructed from 2026-2035 up from previously 10GW • The third round auction is expected to take place in June 2022 • Authorities have announced a sector deal confirming 10 GW offshore wind target towards 2030 and 30-45 GW by 2040 ⚫ Bids submitted in first round auction in Japan in Choshi with TEPCO and in Noshiro and Yurihonjo with JWD/EURUS. Award expected in Q4 2021 11 areas designated as potentially suitable for development of offshore wind for 2nd round onwards with a capacity of approx. 7 GW - among these, four areas (three in West Coast and one in Kyusyu (southwest)) have been selected as promising for the 2nd round of promotional zones • 12 GW offshore wind build-out has been targeted in order to reach the 20% renewable mix towards 2030 and up to 35 % by 2040 The government announced 'Green New Deal' to fast track the build-out of renewable projects and industries ⚫ Authorities have further announced the 9th power supply demand plan in Jan. 2021 confirming renewable energy will be 77.8 GW to towards 2034 this equals 62.3 GW new renewable capacity and of those 25 GW is expected from wind power • • • Floating lidars deployed and site exclusivity secured off the coast of Incheon to collect data for potential offshore wind sites of 1.6 GW Hydrogen Act announced in February 2021 and road map for implementation will follow mid 2021 MoU with POSCO Group to expand relations and support the development of Ørsted's 1.6GW offshore wind project Other markets • Vietnamese government released draft Energy Master Plan including a minimum 3-5GW offshore wind target in 2030 and a 9-11GW target for 2035 ⚫ Ørsted has set up base in Vietnam to build local team and engage with local authorities and partners • Australian government is drafting OFW framework for introduction of legislation by Q3/Q4 2021, following which the government will undertake a number of studies to declare official zones/areas for offshore wind All auction and tender timelines and capacities based on current expectations and subject to change Orsted#21Upcoming offshore seabed auctions 21 H2 2021 Scot Wind ~ 10 GW H2 2021/H1 2022 New York Bight - 7 GW H2 2021/H1 2022 Poland - 7 GW 2022 Norway ~ 4.5 GW 2022 California ~ 4.5 GW 2022+ Hawaii TBC 2022+ Gulf of Maine TBC 2022 North Carolina TBC 2022+ Gulf of Mexico TBC All timelines and capacities based on authorities communication and subject to change. Timeline reflects bid submission deadline, not time of award Orsted#22Hydrogen project pipeline of +3GW Project Current potential (MW) Country Application Partners Westküste 100 / 1 HYSCALE100 700-2,100 2 Lingen Green Hydrogen 550 Raffinerie Heide, Hynamics, Holchim, +more bp 3 Yara Sluiskil 4 SeaH2Land 100 的慨。 1,000 {) Yara Yara, ArcelorMittal, Dow, Zeeland Refinery, North Sea Port, +more DK 1 5 H2RES 2 6 Green Fuels for Denmark 1,300 DFDS, Ballard, 7 DFDS Europe Seaways TBD Everfuel, DSV, GHS, +more Maersk, SAS, CPH Airport, 2 UK NL DFDS, DSV, +more DE Lloyd's Register, +more 8 Gigastack 100 9 Oyster 1 Offshore H2 Philips 66, ITM Power, +more ITM Power, Siemens Gamesa, Element Energy 22 Orsted#23Overview of US offshore wind federal permitting process Planning & Analysis 2 years BOEM conducts a process of area identification, environmental reviews, etc. Leasing 1-2 years BOEM conducts auctions and issues leases Federal permitting overview² Site Assessment Up to 5 years BOEM grants developer up to five years (not all time must be taken) to complete requirements Requirements include conducting site characterization surveys and submitting a Site Assessment Plan (SAP) BOEM must approve the SAP BOEM oversees a four-step process: Planning & Analysis, Leasing, Site Assessment, and Construction & Operations. It can take up to roughly a decade in total We highlight key milestones within each step This is a new process for BOEM, who have yet to permit any Projects under this federal process Submit COP for NOI 6 months Developer submits a Construction and Operations Plan (COP) before the five-year site assessment period expires BOEM issues a Notice of Intent (NOI) once it deems the developer's COP submission as Complete and Sufficient BOEM may issue an Initiation of Action Notice (IAN) -2-3 months before issuing its NOI. This can provide an indication on timing Construction & Operations - 2 years Construction and Operations Plan (COP) ~ 2 years BOEM's issuance of the NOI starts the ~2-year clock for BOEM to approve the COP, disapprove it, or approve it with modifications. If the COP is approved, then the developer has its final federal permitting needed to start construction Environmental Impact Statement (EIS) < 2 years BOEM prepares a Draft Environmental Impact Statement (EIS) and a Final EIS. BOEM explores alternatives to the proposed COP A Record of Decision (ROD) is issued at the end of this process. This is not the final approval but is a framework for any further required reviews, site-specific actions, or broad regional mandates Final Permit Approvals < 2 years BOEM coordinates inter-agency approval. Approval timing varies per agency, but the last approval deadline is 90 days after the ROD. This generally coincides with the COP approval Approvals come from: NOAA,3 The US Army Corps of Engineers, the Fish and Wildlife Service, and the Environmental Protection Agency 23 1: BOEM stands for the Bureau of Ocean Energy Management 2: State-level permitting processes vary across states and typically run concurrent with the federal process 3: NOAA stands for National Oceanic and Atmospheric Administration Orsted#24Onshore build-out plan Installed capacity MW Under construction 302 298 227 367 2,455 62 62 430 518 4,659 Installed capacity Western Trail Muscle Shoals Haystack Lincoln Land Kennoxhead 1 Old 300 Helena Energy Center1 Q2 2021 Decided (FID'ed) and installed capacity Region ERCOT, TX SERC, AL SPP, NE MISO, IL Scotland, UK ERCOT, TX ERCOT, TX Expected Q3 2021 Q3 2021 Q4 2021 Q4 2021 Q1 2022 Q2 2022 Q2 2022 completion Status Commissioned August 2021 On track On track On track On track On track On track Platform Wind Offtake Solar PV PPA with solution PPAs with PepsiCo & Nucor Tennessee Valley PepsiCo Target & Wind PPAs with Wind Wind Solar PV N/A PPA with Amazon PPA signed Authority (TVA) Hormel Foods 24 1. Helena Energy Center consists of 268 MW onshore wind and 250 MW AC Solar PV Wind & Solar PV PPAs with Henkel & Target Orsted#25Sustainability and ESG at Ørsted Green leadership In Q2 2021, 93 % of our energy generation was green. We target 99% green energy generation by 2025. . By 2025, we aim to be carbon neutral (scopes 1-2) by reducing ≥ 98 % of our carbon emissions vs. 2006, and by eliminating or covering the remaining <2% with offset projects certified to remove atmospheric carbon. • By 2040, we aim to reach net-zero emissions across our entire carbon footprint (scopes 1-3), with a midway target to reduce our scope 3 emissions by 50% by 2032. • In 2021, we have placed a ban on landfilling of wind turbine blades. • No later than 2030, all projects commissioned must have net positive biodiversity impact. g CO₂e/kWh 500 450 400 350 300 250 200 150 100 50. о 2005 Contributing to the global goals THE GLOBAL COMPACT WE SUPPORT SCIENCE BASED TARGETS Ørsted is an active and LEAD participant of the UN Global Compact and adheres to its ten principles for responsible business behaviour. Our targets are approved by the Science Based Targets initiative to help keep global warming below 1.5 °C and are the most ambitious science-based targets in our sector. Catalysing the green energy transformation With our core business, we aspire to have a transformational impact on SDG 7 on affordable and clean energy and SDG 13 on climate action: Ørsted actual AFFORDABLE AND CLEAN ENERGY Ørsted carbon neutral target 2010 2015 2020 2025 Ensure access to affordable, reliable, sustainable and modern energy for all ESG ratings of Ørsted Rating agency Score Benchmark CDP DISCLOSURE HEIGHT ACTION A A LIST 2020 CLIMATE Highest possible rating and recognised as a global leader on climate action MSCI AAA Highest possible rating for four consecutive years Corporate ESG Performance B+ Prime RATED BY ISS ESG‣ PLATINUM CLIMATE 13 ACTION Take urgent action to combat climate change and its impacts 2021 ecovadis Sustainability Rating 80 No. 1 of all utilities and awarded highest possible 'Prime' status Platinum Medal for being among top 1% of companies assessed by EcoVadis 25 Orsted#26ESG Performance Green Share Total heat and power generation Q1 2021 Energy source, % Scope 1 and 2 Emissions Scope 1 and 2 greenhouse gas emissions, g CO₂e/kWh Scope 3 Emissions Scope 3 greenhouse gas emissions, million tonnes CO2e Offshore wind Coal Onshore wind Biomass Natural gas 37% 9% 4% Green share 87% SCIENCE BASED TARGETS -98% 462 37% 29.2 25.3 -50% SCIENCE BASED TARGETS 5.3 14.6 58 59 20 10 FY 2006 FY 2020 Q1 2021 FY 2023 FY 2025 FY 20181 FY 2020 Q1 20212 FY 2032 13% 1) 2018 is adjusted base year 26 2) Scope 3 is an absolute emission in tonnes Orsted#27Group - Financial highlights FINANCIAL HIGHLIGHTS EBITDA ⚫ Offshore Q2 2021 Q2 2020 A FY 2020 FY 2019 A DKKm 8,196 2,956 177% 18,124 17,484 4% 7,527 2,361 219% 14,750 15,161 (3%) • Onshore 178 312 (43%) 1,131 786 44% Bioenergy & Other 503 185 172% 2,136 1,495 43% Operating profit (EBIT) 6,237 1,129 452% 10,536 10,052 5% Total net profit 5,544 (825) n.a. 16,716 6,044 177 % Operating cash flow 3,147 8,197 (62%) 16,466 13,079 26% Gross investments (12,133) (3,757) Divestments 10,591 45 n.a. 19,039 223% (26,967) (23,305) 3,329 16% 472% Free cash flow continuing operations 1,605 4,485 (64%) 8,538 (6,897) n.a. Net interest-bearing debt 12,067 22,272 (46%) 12,343 17,230 (28%) FFO/Adjusted net debt¹ % 62.9 43.4 20%p 48.3 31.0 17%p ROCE¹ % 12.5 10.8 2%p 9.7 10.6 (1%p) 27 1) Last 12 months Orsted#28Offshore - Financial highlights FINANCIAL HIGHLIGHTS EBITDA Q2 2021 Q2 2020 A FY 2020 FY 2019 A Wind speed (m/s), offshore wind farms DKKm 7,527 2,361 219% 14,750 15,161 (3%) • Sites, O&Ms and PPAs 2,368 2,578 (8%) 15,476 13,750 13% • Construction agreements and 12.5 10.5 9.9 9.8 9.4* 8.4 8.6 7.8 5,648 396 n.a. divestment gains 1,593 3,765 (58%) • Other, incl. project development (489) (613) (20%) (2,319) (2,354) (1%) KEY BUSINESS DRIVERS Q1 Q2 Q3 Q4 FY Power generation TWh 2.5 2.6 (4%) 15.2 12.0 27% Wind speed m/s 7.8 8.4 (7%) 9.8 9.2 7% Availability % 93 Load factor % 29 22 95 55 (2%p) 94 93 1 %p ■ 2020 ■2021 "Normal wind year" The wind speed indicates how many metres per second the wind has blown in the areas where we have offshore wind farms. The weighting is based on our generation capacity 32 32 (3%p) 45 42 3%p * Indicates m/s for full year 2021 (if Q3 and Q4 follows the normal wind year) Decided (FID) and installed GW 9.8 9.9 (1%) 9.9 9.9 0% capacity* Installed capacity* GW 7.6 6.8 12% 7.6 6.8 11% Generation capacity** GW 4.0 3.8 5% 4.4 3.6 21% In Q2 2021, we aligned our definition of installed capacity, hence all assets (installed or FID'ed) are reported using nameplate capacity. Previously a few wind farms were using 'power optimised capacity' or 'export cable limit capacity' We have improved the accuracy of our offshore wind speed calculations in 2021 and restated 2020 wind speed data to support comparison. In 2021 we have used an improved input data set for calculating wind speeds for offshore wind farms. Previously individual wind speed measuring points covered several wind farms and were reported for an average hub height. Now each offshore wind farm has its own specific wind speed measuring point for the actual wind farm height. For comparison reasons we have also updated the actual and normal wind speed data reported for 2020 using the new more detailed wind speed datasets. * Installed capacity: Gross offshore wind capacity installed by Ørsted before divestments 28 ** Generation capacity: Gunfleet Sands and Walney 1 & 2 are consolidated according to ownership interest. Other wind farms are financially consolidated Orsted#29Onshore - Financial highlights FINANCIAL HIGHLIGHTS Q2 2021 Q2 2020 A FY 2020 FY 2019 A Wind speed (m/s), US onshore wind farms EBITDA DKKm 178 312 (43%) 1,131 786 44% ⚫ Sites (5) 103 n.a. 451 466 (3%) 8.0 • Production tax credits and tax attributes 312 268 16% 1,004 628 60% 7.5 7.7 7.3 8.0 7.6 7.4* 6.7 Other, incl. project development (129) (59) 119% (324) (308) 5% KEY BUSINESS DRIVERS Power generation TWh 2.0 1.6 25% 5.7 3.5 64% Q1 Q2 Q3 Q4 FY Wind speed, US m/s 7.3 8.0 (9%) 7.6 7.3 4% ■2020 2021 "Normal wind year" Availability, US wind % 97 96 1%p 96 98 (2 %p) Availability, US solar PV % 00 90 n.a. n.a. n.a. n.a. n.a. Load factor, US wind do % 45 49 (4 %p) 45 Load factor, US solar PV % 29 n.a. n.a. n.a. n.a. n.a. 476 45 0%p The wind speed indicates how many metres per second the wind has blown in the areas where we have onshore wind farms. The weighting is based on our generation capacity * Indicates m/s for full year 2021 (if Q3 and Q4 follows the normal wind year) Installed capacity GW 2.5 1.6 50% 1.7 1.0 67% 29 Orsted#3030 30 Bioenergy & Other - Financial highlights FINANCIAL HIGHLIGHTS EBITDA Q2 2021 Q2 2020 A FY 2020 FY 2019 A DKKm 503 185 172% 2,136 1,495 43% • CHP plants 351 152 131% 1,111 1,152 (4%) • Gas Markets & Infrastructure 232 (190) n.a. 411 390 5% ⚫ LNG n.a. (957) n.a. ⚫ Distribution, B2C, and city light 305 n.a. 926 1,280 (28%) • Other, incl. project development (80) (82) (2%) (312) (370) (16%) KEY BUSINESS DRIVERS Heat generation Power generation Degree days TWh 1.1 1.0 10% 6.7 8.3 (20%) TWh 1.5 0.9 67% 4.4 4.6 (4%) # 487 436 12% 2,432 2,399 1% Orsted#31Currency and energy exposure Currency exposure Q3 2021 - Q2 2026 DKKbn Before hedging After hedging 70.5 GBP1 20.7 Risk after hedging, DKKbn GBP: 20.7 sales position USD: 0.9 purchase position TWD: 17.2 sales position 17.9 17.2 Energy exposure Q3 2021 - Q2 2026 DKKbn Before hedging After hedging 38.4 11.5 0.0 0.3 0.2 -0.9 -0.2 -2.4 USD2 TWD2 Power Gas Oil Effect of price +10% Effect of price -10% Risk after hedging DKKbn Effect of price +10% Effect of price -10% +2.1 -0.1 +1.7 -2.1 Power: 9.3 sales position +0.9 -0.9 +0.1 Gas: 0.3 sales position +0.0 -0.0 -1.7 Oil: 0.2 sales position +0.0 -0.0 31 1. The GBP exchange rate for hedges impacting EBITDA in 2021 and 2022 is hedged at an average exchange rate of DKK/GBP 8.4 and 8.2. 2. For USD and TWD we manage our risk as a natural time spread between front-end capital expenditures and long-end revenue. Orsted#32Capital employed Capital employed, DKKm Intangible assets and property and equipment Equity Investments and non-current receivables Net working capital, work in progress H1 2021 FY 2020 H1 2020 138,459 122,249 114,496 106,685 902 1,928 2,241 1,044 6,463 9,775 10,030 8,756 FY 2019 Capital employed by segment %, H1 2021 Offshore Onshore Bioenergy & Other Net working capital, tax equity (8,338) (7,246) (7,588) (4,587) Net working capital, capital expenditures (4,991) (4,040) (9,121) (3,304) 1% Net working capital, other items 1,699 2,228 1,092 2,540 17% Derivatives, net (11,466) (209) 2,454 782 Assets classified as held for sale, net 654 793 8,182 8,211 Decommissioning obligations (7,768) (7,002) (6,490) (6,158) Other provisions (6,811) (6,861) (6,168) (6,443) 109.0 Tax, net 451 (771) (334) (253) DKKbn Other receivables and other payables, net (277) TOTAL CAPITAL EMPLOYED 108,977 (1,172) 109,672 (591) 108,237 (481) 106,792 32 32 82% Orsted#33FFO/Adjusted net debt calculation Funds from operations (FFO), DKKm EBITDA* H1 2021 FY 2020 H1 2020 21,423 18,124 18,489 Change in provisions and other adjustments 606 (403) (1,003) Reversal of gain (loss) on divestment of assets (5,196) (805) (878) Income tax paid (952) (1,118) (1,296) Interests and similar items, received/paid (1,301) (1,829) (1,439) Reversal of interest expenses transferred to assets (545) (449) (377) 50% of coupon payments on hybrid capital (215) (245) (278) Dividends received and capital reductions FUNDS FROM OPERATION (FFO) 46 18 15 13,866 13,293 13,233 Adjusted interest-bearing net debt, DKKm H1 2021 FY 2020 H1 2020 Total interest-bearing net debt 12,067 12,343 22,272 Orsted 50% of hybrid capital 8,992 6,616 6,616 Cash and securities, not available for distribution 977 1,485 1,628 ADJUSTED INTEREST-BEARING NET DEBT 22,036 20,444 30,516 FFO / ADJUSTED INTEREST-BEARING NET DEBT 62.9% 65.0% 43.4% *Last 12 months - EBITDA according to business performance up until end of 2020 33 Orsted#34Debt overview Total gross debt 30 June 2021, DKKbn Effective funding costs - Gross debt Cost of debt (%) Modified duration (%) Avg. time to maturity (years) Bond loans 2.9 8.3 9.8 18.2 62.9 Bank loans 0.9 0.3 1.7 Total 2.8 7.8 9.2 29% 3.8% 5.7 9% 39.0 2.5 4% 36.5 3.1% 2.8% 2.8% 2.8% 37.2 38.1 39.0 36.8 58% 27.5 Gross debt Repo loans Hybrids Total 2018 34 Bank Loans Bond loans 2019 2020 Q1 2021 Q2 2021 Gross debt (DKKbn) Average effective interest rate (excl. hybrid) Maturity profile DKKbn 4.7 3.3 2021 0.1 0.1 0.1 + 3.9 1.4 0.0 13.8 6.1 5.6 2027 2028 2029 2030-2034 2035+ Bank loans Bond loans Orsted#35Hybrid capital in short Hybrid capital can broadly be defined as funding instruments that combine features of debt and equity in a cost-efficient manner: • • • Hybrid capital encompasses the credit- supportive features of equity and improves rating ratios Perpetual or long-dated final maturity (1,000 years for Ørsted) Absolute discretion to defer coupon payments and such deferrals do not constitute default nor trigger cross-default Deeply subordinated and only senior to common equity Without being dilutive to equity holders (no ownership and voting rights, no right to dividend) Hybrids issued by Due to hybrid's equity-like features, rating agencies assign equity content to the hybrids when calculating central rating ratios (e.g. FFO/NIBD). The hybrid capital increases Ørsted's investment capacity and supports our growth strategy and rating target. Ørsted has made use of hybrid capital to maintain our ratings at target level in connection with the merger with Danish power distribution and production companies back in 2006 and in recent years to support our growth in the offshore wind sector. Accounting treatment • • • Hybrid bonds are classified as equity Coupon payments are recognised in equity and do not have any effect on profit (loss) for the year Coupon payments are recognised in the statement of cash flows in the same way as dividend payments For further information see note 6.3 in the 2020 Annual Report Accounting treatment² Ørsted A/S¹ Principal amount 6.25% hybrid due 3013 EUR 350 m Туре Hybrid capital (subordinated) First par call Coupon Jun. 2023 2.25% Green hybrid due 3017 EUR 500 m 1.75% Green hybrid due 3019 EUR 600 m 1.50% Green hybrid due 3021 EUR 500 m Hybrid capital (subordinated) Hybrid capital (subordinated) Hybrid capital (subordinated) Nov. 2024 Dec. 2027 Feb. 2031 2.50% Green hybrid due 3021 GBP 425 m Hybrid capital (subordinated) Feb. 2033 Fixed during the first 10 years, first 25bp step-up in Jun. 2023 Fixed during the first 7 years, first 25bp step-up in Nov. 2029 Fixed during the first 8 years, first 25bp step-up in Dec. 2032 Fixed during the first 10 years, first 25bp step-up in Feb. 2031 Fixed during the first 12 years, first 25bp step-up in Feb. 2033 100% equity 100% equity 100% equity 100% equity 100% equity 35 Ταχ treatment Debt tax-deductible coupon payments Debt tax-deductible coupon payments Debt tax-deductible coupon payments Debt tax-deductible coupon payments Debt - tax-deductible coupon payments 1. All listed on Luxembourg Stock Exchange and rated Baa3 (Moody's), BB+ (S&P) and BBB- (Fitch). The four Green hybrids are furthermore listed on the Luxembourg Green Exchange (LGX) 2. Due to the 1,000-year structure Rating treatment 50% equity, 50% debt 50% equity, 50% debt 50% equity, 50% debt 50% equity, 50% debt 50% equity, 50% debt Orsted#36Ørsted's outstanding bonds Bond Type Issue date Maturity Face Value Principal amount Coupon Coupon payments Green bond Allocated to green projects (DKKm) Avoided emissions (t CO2/year) attributable to the bonds Senior Unsecured Senior Unsecured Dec. 2009 Sep. 2012 16 Dec. 2021 19 Sep. 2022 EUR 500m EUR 750m EUR 272m EUR 517m 4.875% Every 16 Dec. 9. No n/a n/a Senior Unsecured Senior Unsecured Nov. 2017 Apr. 2010 26 Nov. 2029 EUR 750m EUR 750m 9 Apr. 2040 GBP 500m GBP 500m 2.625% Every 19 Sep. 1.5% 5.750% Every 9 Apr. No n/a n/a Every 26 Nov. Yes 5,499 632,000 No n/a n/a Senior Unsecured Jan. 2012 12 Jan. 2032 GBP 750m GBP 750m 4.875% Every 12 Jan. No n/a n/a Senior Unsecured May 2019 17 May 2027 GBP 350m GBP 350m 2.125% Every 17 May Yes 2,968 346,000 Senior Unsecured May 2019 16 May 2033 Senior Unsecured/CPI-linked May 2019 Senior Unsecured Nov. 2019 Senior Unsecured Nov. 2019 16 May 2034 19 Nov. 2026 19 Nov. 2034 GBP 300m GBP 250m TWD 4,000m GBP 300m 2.5% Every 16 May Yes 2,518 283,000 GBP 250m 0.375% Every 16 May & 16 Nov. Yes 1,800 198,000 TWD 4,000m 0.92% Every 19 Nov. Yes 882 76,000 TWD 8,000m TWD 8,000m 1.5% Every 19 Nov. Yes 1,765 152,000 Senior Unsecured Nov. 2020 13 Nov. 2027 Senior Unsecured Senior Unsecured Nov. 2020 13 Nov. 2030 Nov. 2020 Hybrid capital Jun. 2013 TWD 4,000m TWD 4,000m 0.6% TWD 3,000m 13 Nov. 2040 TWD 8,000m 26 Jun. 3013 EUR 700m Every 13 Nov. Yes 500 43,000 TWD 3,000m 0.7% Every 13 Nov. Yes 661 57,000 TWD 8,000m 0.98% Every 13 Nov. Yes 1,000 86,000 EUR 350m 6.25% Every 26 Jun. No n/a n/a Hybrid capital Nov. 2017 24 Nov. 3017 EUR 500m EUR 500m 2.25% Every 24 Nov. Yes 3,674 423,000 Hybrid capital Dec. 2019 9 Dec. 3019 EUR 600m EUR 600m 1.75% Every 9 Dec. Yes 2,800 413,000 Hybrid capital Feb. 2021 18 Feb. 3021 EUR 500m EUR 500m Hybrid capital Feb. 2021 18 Feb. 3021 GBP425m GBP425m 1.50% 2.50% Every 18 Feb. Yes n/a n/a Every 18 Feb. Yes n/a n/a 36 Ørsted's Green Finance Framework, allocated the dark green shading in the Second Opinion from CICERO Shades of Green, includes Green Bonds, Green Loans and other types of green financing instruments. Ørsted applies green proceeds exclusively for the financing of eligible projects, currently offshore wind projects. Besides the outstanding Green Bonds, Ørsted additionally has a TWD 25bn Green RCF to finance the construction of the offshore wind projects in Taiwan. Orsted#37Financing strategy 37 At Ørsted, we have a centralised financing strategy utilizing our strong balance sheet and diverse portfolio. The strategy supports: • • • . • • A capital structure supportive of our BBB+ rating ambition Concentration of and scale in financing activities Cost efficient financing based on a strong parent rating Optimal terms and conditions and uniform documentation Transparent and simple debt structure No financial covenants and restrictions on operating arrangements Corporate market more stable and predictable than project finance market Avoidance of structural subordination The financing strategy optimizes the effect of a fully integrated cash pool where cash at practically all of the company's more than 200 subsidiaries is made available for the company's financing and liquidity purposes. Financing of activities at subsidiary level is provided by Ørsted A/S in a standardised and cost-efficient setup. Widespread use of project financing is not considered cost-efficient and dilutes the creditworthiness of the company. Orsted#38Currency risk management General principles . Highly certain cash flows are hedged Cost-of-hedging is minimized by netting of exposures in the portfolio of projects, as well as use of construction contracts and debt in local currencies. Managing outright long risk • • Operations: 5-year minimum hedging staircase mandate by the Board of Directors with 100% in year 1 - declining to 20% in year 5. The hedging staircase is a compromise between stabilizing cash flows in the front-end and ensuring a balanced FFO/NIBD. Beyond the 5-year horizon the currency exposures are to some extent hedged with foreign-currency debt. Managing time-spread risk (new markets) • Construction period: Hedge 100 % of year 1 currency cash flow risk by swapping the exposure to a year with the same currency revenue. In new markets the capital expenditures beyond year 1 are netted with future revenue in the same currency. 38 Orsted#39Interest rate and inflation risk management Assets and debt allocation Illustrative 100% Total Contracts: Inflation-indexed UK ROC and CfD, awarded CfD projects in Poland Risk management: Prioritised for shareholders Objectives of interest rate and inflation risk management 1. Protect long-term real value of equity by offsetting interest and inflation risk exposure embedded in assets by allocating debt with similar, but opposite risk exposure 2. Cost of funding optimized by actively managing debt portfolio 3. Cost of hedging minimised by using natural portfolio synergies between assets, allowing matching of up to 100% of asset value with appropriate debt Framework for risk management . Merchant Fixed Nominal • Bioenergy, Markets, merchant power revenue Open exposure until hedged Subsidised or hedged power, PPAs in Continental Europe, United states and Taiwan Derisked with fixed nominal debt and derivatives. . Assets divided into risk categories based on nature of inflation and interest rate risk exposure Simple risk metrics are used to match assets with appropriate debt within each category Fixed nominal-category has first priority for debt allocation to protect shareholders against inflation Inflation-indexed revenues reserved to service equity return for shareholders thereby to a large extent protecting the real value of equity against fluctuations in inflation 39 Orsted#40Energy risk management Risk picture • . • We manage energy market risks to protect Ørsted against price volatility and to ensure stable and robust financial ratios that support our growth strategy For Offshore, a substantial share of energy production is subsidized through either fixed tariffs or green certificates. Remaining exposure is hedged at a declining rate up to five years Onshore mitigate their power exposure by entering into long-term power sales agreements and commodity hedges Markets & Bioenergy manage their market risk actively by hedging with derivatives in the energy markets up to five years Offshore exposure 14% Onshore exposure Hedging of open exposure • • Open energy exposure is reduced actively Minimum hedging requirements are determined by the Board of Directors. In the first two years, a high degree of hedging ensures stable cash flows The degree of hedging is declining in subsequent years. This is due to: 1) reduced certainty about long-term production volumes and 2) increasing hedging costs in the medium to long term: both spread costs and potential cost of collateral Offshore minimum power hedging requirement 100 40 86% 25% 75% Subsidized exposure Market exposure Power purchase agreements Market exposure Note: expected exposure 2021-2025, as of 31/12/2020 75 50 25 0 1 2 3 4 5 Years Note: actual hedging level is significantly higher Orsted#41Love your home Orsted Allan Bødskov Andersen Head of Investor Relations [email protected] Alex Morgan Lead Investor Relations Officer [email protected] Rasmus Hærvig Senior Manager [email protected] Sabine Lohse Senior Investor Relations Officer [email protected] Henriette Stenderup IR Coordinator [email protected] Orsted