Accelerated Wind Farm Development

Ørsted 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

View entire presentation