Accelerated Wind Farm Development

Offshore 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

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