73 wind turbines in operation and under construction · commissioning of 250 turbines by 2015. Follow the Company's progress at 73 wind turbines in operation and under construction

Rabbalshede Kraft AB (publ) INTERIM REPORT JANUARY-SEPTEMBER 2013

This information was published on October 24, 2013

This is Rabbalshede Kraft Rabbalshede Kraft AB (publ) is a fast-growing player in wind power. Since being formed in 2005, Rabbalshede Kraft has been involved in the commissioning of 48 wind turbines, of which 26 wind turbines in four wind farms are proprietarily operated. An extensive project portfolio comprises the basis for growth. The Company has another 47 turbines under construction and about 300 wind turbines in the procurement, application or planning phases. Rabbalshede Kraft's overriding objective is to create value growth for the Company's shareholders - proprietarily, in partnership with other companies and through divestment - by contributing to the commissioning of 250 turbines by 2015. Follow the Company's progress at www.rabbalshedekraft.se

73 wind turbines in operation and under construction

Interim report January-September 2013 Rabbalshede Kraft AB (publ) Significant events during the third quarter, July 1, 2013 – September 30, 2013

Production for the third quarter totaled 30,070 MWh (35,163 MWh)

The average electricity price per presold MWh was SEK 353 (333)/MWh

The average price for electricity certificates and Guarantee of Origin (GoO) was SEK 191 (184)/MWh

Net sales totaled KSEK 16,341 (18,183)

Operating profit before depreciation/amortization (EBITDA) amounted to KSEK 8,705 (9,329)

The Company posted an operating loss (EBIT) of KSEK 1,285 (loss: 2,041).

The Company raised MSEK 353.7 through the preferential rights issue before issuance costs. The Company received the issue proceeds on July 16, 2013

The Company has begun construction on the Årjäng NV, Årjäng SV and Skaveröd/Gurseröd wind farms comprising a total of 33 wind turbines

For further information, please contact Thomas Linnard, CEO Rabbalshede Kraft AB (publ) Tel. +46 (0) 525 - 197 11, +46 (0) 706 100 120 Marknadsvägen 1 [email protected] SE-457 55 Rabbalshede, Sweden Fredrik Samuelsson, CFO Tel. +46 (0) 525 -197 00 Tel. +46 (0) 525 -197 13, +46 (0) 703 01 20 49 www.rabbalshedekraft.se [email protected] E-mail: [email protected] Corp. Reg. No.: 556681-4652

Key figures Q3

2013 Q3

2012 Q1- 3 2013

Q1-3 2012

Full-year 2012

Net sales 16,341 18,183 57,242 59,011 85,269

EBITDA 8,705 9,329 33,582 30,030 43,215

Operating profit (EBIT), KSEK -1,285 -2,041 4,507 -4,146 -7,619

Loss per share, SEK -0.14 -0.25 -0.40 -0.85 -1.13

Electricity production, MWh 30,070 35,163 102,533 111,118 159,785

Average sales price of electricity 353 333 356 368 364

Average income for electricity certificates, SEK/MWh 185 183 200 160 167

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Rabbalshede Kraft AB (publ) INTERIM REPORT JANUARY-SEPTEMBER 2013 Page 2 of 17

Contents For further information, please contact ......................................................................................................................... 1 Rabbalshede Kraft’s financial calendar .......................................................................................................................... 2 CEO’s statement .................................................................................................................................................................... 4 Production .............................................................................................................................................................................. 5 Prices for electricity and electricity certificates ........................................................................................................... 5 Project portfolio at September 30, 2013 ....................................................................................................................... 8 Investments ............................................................................................................................................................................ 9 Financing ................................................................................................................................................................................. 9 Hedging instruments ........................................................................................................................................................ 10 Consolidated income statement ................................................................................................................................... 12 Consolidated balance sheet ............................................................................................................................................ 13 Condensed consolidated statement of changes in shareholders’ equity ......................................................... 14 Consolidated cash-flow statement ............................................................................................................................... 14 Parent Company ................................................................................................................................................................. 14 Parent Company income statement ............................................................................................................................. 15 Statement of Parent Company’s comprehensive income ..................................................................................... 15 Profit/loss for the period................................................................................................................................................... 15 Total other comprehensive income .............................................................................................................................. 15 Total comprehensive loss for the period ..................................................................................................................... 15 Parent Company balance sheet ..................................................................................................................................... 15 Notes to the condensed financial statements ........................................................................................................... 16

Rabbalshede Kraft’s financial calendar

Year-end report for 2013 February 27, 2014 Annual General Meeting for the 2013 fiscal year April 25, 2014 Interim report January-March 2014 April 25, 2014 Interim report January-June 2014 August 21, 2014 Interim report January-September 2014 November 6, 2014 Year-end report for 2014 February 26, 2015

Press releases and financial reports can be subscribed to and downloaded on Rabbalshede Kraft’s website www.rabbalshedekraft.se.

Annual General Meeting

The Annual General Meeting for the 2013 fiscal year will be held at 2:00 p.m. on April 25, 2014, in Gothenburg, Sweden. The official notification of the Annual General Meeting will be published in Post- och Inrikes Tidningar and on Rabbalshede Kraft’s website not later than March 28, 2014. An announcement that notification has been published will be made in Dagens Industri and Göteborgs-Posten

The 2013 Annual Report will be published on Rabbalshede Kraft’s website during the week commencing March 31, 2014. The Annual Report will be available at the Company’s office in Rabbalshede as of April 4, 2014, and be distributed by traditional mail to shareholders on request.

Nomination Committee

Shareholders who would like to submit proposals to the Nomination Committee ahead of Rabbalshede Kraft’s Annual General Meeting on April 25, 2014, may do so by e-mail to [email protected] or by traditional mail to Nomination Committee, Rabbalshede Kraft, Marknadsvägen 1, SE-457 55 Rabbalshede, Sweden, not later than March 7, 2014.

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The first nine months, January-September 2013

Production from the Group´s wind farms amounted to 102,533 (111,118) MWh.

The average electricity price per presold MWh was SEK 356 (368)/MWh.

The average electricity price for electricity certificates and Guarantees of Origin was SEK 203 (162)/MWh.

Net sales totaled KSEK 57,242 (59,011).

Operating profit before depreciation/amortization (EBITDA) amounted to KSEK 33,582 (30,030).

Operating profit (EBIT) was KSEK 4,507 (loss: 4,146).

Depreciation/amortization totaled KSEK 29,075 (34,176). The Company adjusted its assessment of the useful life of the wind turbines from 20 years to 25 years, which resulted in a MSEK 8 reduction in depreciation for the period.

The Company posted a loss after tax of KSEK 18,068 (loss: 21,644).

Rabbalshede Kraft signed an agreement with Swedbank and SEB regarding bank financing, thus securing the Company’s build-out of the Årjäng NV and Årjäng SV wind farms in the Municipality of Årjäng, as well as the Skaveröd/Gurseröd wind farm in the Municipality of Tanum.

In June 2013, Manor Investment S.A. invested MSEK 171.6 in Rabbalshede Kraft through a private placement, under which Manor Investment received 14,300,000 new Series B shares at a price of SEK 12.00 per share.

The preferential rights issue that was implemented between June 24 and July 8, 2013, raised MSEK 353.7 for the Company, prior to issuance costs. The Company received the issue proceeds on July 16, 2013. The shares that were subscribed for under the issue have been registered with the Swedish Companies and Registration Office.

The Company is investing nearly MSEK 1,200 in the construction of the Årjäng NV, Årjäng SV and Skaveröd/Gurseröd wind farms, comprising a total of 33 wind turbines. The wind turbines being installed are of the V112-3 MW model. Svevia will be in charge of the construction of roads and infrastructure, including the IKN network. Construction on the wind farms began in July 2013 and will be completed by late 2014. The annual production for the three wind farms is estimated at 289 GWh.

All 14 wind turbines in the Dingle-Skogen Vind wind farm have been assembled and commissioned, and the last six wind turbines have been put into trial operation. The wind farm is scheduled to be in commercial operation by November 2013 at which time it will transition to the operational phase.

Rabbalshede Kraft has been granted an environmental permit for the Femstenaberg wind farm comprising up to 15 wind turbines (45 MW), the Brattön Sälelund wind farm comprising up to 14 wind turbines (42 MW) and the Lursäng wind farm comprising up to five wind turbines (10 MW). The wind farms have gained legal effect.

The Annual General Meeting for the 2012 fiscal year was held on April 25, 2013, in Gothenburg, Sweden.

Significant events after the end of the period

In May 2012, Rabbalshede Kraft signed an agreement with the Gothenburg Diocese concerning the sale of two of 14 wind turbines in the Dingle-Skogen wind farm. Ownership of the turbines was transferred in October 2013.

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CEO’s statement In a few weeks, Rabbalshede Kraft’s fifth wind farm, Dingle-Skogen Vind, will transition into commercial operation. All 14 wind turbines are in operation and the final adjustments are being made. The construction process exceeded our expectations and when the farm enters commercial operation, the Company’s overall production capacity will have increased by slightly more than 50 percent.

This past summer, backed by the experience gained in the aforementioned project, we embarked on our largest project to date – the Årjäng NV, Årjäng SV and Skaveröd/Gurseröd wind farms, which comprise a total of 33 wind turbines. This project is also proceeding exactly as planned. The farms are scheduled to be in trial operation in approximately one year and will be inaugurated in early 2015. Once this happens, Rabbalshede Kraft will double its current production capacity, when also including Dingle-Skogen Vind.

The new wind farms are a welcome addition. They strengthen cash flow and enable the Company to spread its overhead costs across more farms. Although electricity production is generally a capital-intensive operation, it is not staff intensive once operations are under way. Nor does wind power require fuel or waste management, as do the predominant power sources in the EU. Accordingly, growth provides economies of scale that benefit both the Company and its shareholders.

The above serves as the background for this past summer’s new share issues, which raised MSEK 525.3 prior to issuance costs and Manor Investment S.A the new majority shareholder in Rabbalshede Kraft. Having an industrial majority shareholder with extensive experience of renewable energy helps the Company advance its major project portfolio, which has been amassed methodically since 2005. Another four wind farms comprising a total of 48 turbines currently hold permits that have gained legal effect. In other words, construction on these wind farms can begin when we see fit and once financing has been secured.

The price of electricity during the third quarter rose sharply in 2013 compared with 2012. During the first nine months of the year, the average system price was SEK 333/MWh, up 30 percent year-on-year. However, this remains somewhat lower than the average price of electricity in the past five to ten years. It is worth noting that the cost of producing electricity using wind power has declined significantly more over the same time frame.

The price of electricity certificates has declined in pace with the rapid build-out of renewable electricity production. In February 2014, the Swedish Energy Agency will present a proposal to adjust the system as of 2016. The market currently expects a higher quota obligation, which would result in a higher price per electricity certificate, refer to pages 5-6 for more on electricity and electricity certificates.

This year’s weak winds, however, did in fact have an impact on our future plans. One of the effects of relying on wind power is that production can vary substantially compared with a normal year, although this will balance out in the long run. 2013 was hallmarked by high-pressure systems that resulted in unusually fantastic weather this past summer. The low-pressure systems largely passed Sweden by thus resulting in weak wind in the third quarter, just as in the first quarter. Higher temperatures also mean that the winds have a lower energy content, which has had a greater impact than usual this year.

Combined, these factors resulted in a lower level of production during the first nine months of the year, compared with the year-earlier period – 102,533 (111,118) MWh. Net sales in January-September amounted to KSEK 57,242 (59,011) and the Company posted an operating loss of KSEK 18,068 (loss: 21,644).

We have a confident outlook on the future, but also thoroughly assessing every project in the light of market. A point of focus in the next few years is to push as many permit applications forward as possible until the permits gain legal effect from the municipalities and county councils. We have 12 farms in the application phase. These applications generally require significant resources. It is thus rational to continue in 2014 to prioritize farms that are close to the construction phase and farms that have all permits in place and on which construction can begin.

Thomas Linnard, CEO


Production To date, 2013 has largely been dominated by high pressure weather and weak winds. In the first quarter, there were several extended periods of high pressure in succession during which the winds were weak and the direction of the wind was primarily northeasterly. The wind energy and production during the quarter were significantly lower than expected for a normal year. In the areas in which the Company has wind farms in operation, the energy content during the first quarter was about 70 percent of the level of previous years.

The second quarter began with two windier and more unstable months. The winds subsequently dissipated in June, when winds were mostly weak. The energy content of the wind during the second quarter was higher than during a normal year, despite a weak June.

Aside from brief periods of somewhat stronger winds, the third quarter was dominated by extended periods of high pressure and weak winds, just like the first quarter. As a result of the high-pressure systems, wind-energy content for the quarter was lower than during a normal year.

Seasonal variations and annual variations Wind-power production varies during the year, normally entailing higher electricity production during the winter season. An average wind year, known as a normal year, is based on wind measurements over at least a ten-year period. Deviations from a normal year can be very substantial during certain periods, thus impacting revenues and earnings during a single quarter or year.

Prices for electricity and electricity certificates The average price per presold MWh during the third quarter was SEK 353/MWh (330). An average of 78 percent of production was hedged during the period. Hedging takes place through contractual sales of electricity for delivery at a later date, which levels off earnings over time. As of the second quarter of 2012, the Company has been price-hedging a predetermined percentage of its production volume, thus eliminating the volume and profile risk.

Since late 2012, lower quantities of precipitation than normal have decreased the levels in the Nordic hydroelectric dams. This is the primary reason behind the increase in the price of electricity in 2013. It was particularly evident during the third quarter when the system price for the Nordic region (a weighted spot price) was SEK 311/MWh (176), up 77 percent year-on-year.

During the first nine months of the year 2012 and 2013, the difference became narrower, SEK 333/MWh (257), resulting in the price of electricity being 30 percent higher in 2013. After the end of the period, the difference between the years remained at around this level. Furthermore, the difference between the system price and the price in the four Swedish bidding areas was also significantly lower than in the preceding year through July.

In the short term, access to water in the Nordic hydroelectric dams is highly significant to the price of electricity. Accordingly, major quantities of precipitation were the single greatest factor behind the very low price of electricity in 2012. The system price was SEK 272/MWh on an annualized basis, the lowest in eleven years, adjusted for inflation.

During the fourth quarter, a continued water shortage is expected and thus higher year-on-year electricity prices, despite the quarter beginning with rain in Norway and the Swedish mountain regions. At the same time, the spot price in the four Swedish bidding areas has increased significantly more than the system prices since August, and was between SEK 387/MW and SEK 399/MW. This is a higher level than the inflation-adjusted average system prices on a ten-year horizon (SEK 382/MWh). Very high system prices in 2010 and 2011 should be seen as an exception, when the system price was SEK 506/MWh and SEK 423/MWh, respectively. These years

Production outcome , MWh Q3

2013 Q3

2012 Q1-3 2013

Q1-3 2012

Full-year 2012

Full-year 2011

Full-year 2010

Hud wind farm 5,650 8,344 21,921 25,826 37,361 38,124 32,790

Kil wind farm 3,175 4,693 11,724 13,839 19,943 20,127 15,281

Brattön wind farm 5,416 7,704 20,199 24,900 35,167 36,477 17,582

Töftedalsfjället wind farm 10,233 14,422 38,157 46,553 65,437 54,475 -

Dingle-Skogen wind farm 5,596 - 10,532 - 1,877 - -

Total 30,070 35,163 102,533 111,118 159,785 149,203 65,653

Price-hedged electricity 78% 76% 67% 65% 61% 44% 70%


were characterized by minor levels of precipitation combined with major operational issues in Swedish nuclear power plants.

During the autumn, the more normal situation in Swedish power production in 2013 contributed to a small increase in futures prices for 2014 and 2015. A decline in the price of coal, which has slowed during the autumn, was also a contributing factor. Another price-sensitive factor is the EU Emissions Trading System (EU ETS), which increased marginally after bottoming out during the past summer. A decision on a long-term solution for the EU ETS is expected during the coming winter. There are expectations in the market for a solution that benefits both the price of electricity and the EU’s climate efforts.

The electricity certificate system was introduced in Sweden in 2003 to promote the expansion of renewable energy. This is a market-based system in which the price of electricity certificates is governed by supply and demand. Producers of renewable energy receive one certificate for each MWh of renewable electricity delivered during the first 15 years that an approved plant is in commission. Buyers of these certificates are electricity suppliers (electricity vendors) and certain companies that conduct electricity trading, which are obligated to purchase electricity certificates corresponding to a proportion (quota) of their annual electricity sales or consumption.

Since 2003, the spot price has fluctuated between about SEK 140 and 380/MWh, with a downward trend from the autumn of 2009 to the spring of 2012. This was caused by a rapid expansion of renewable electricity production, which led to a surplus of electricity certificates and thus also downward pricing pressure. The price subsequently first rose and then fell until May 2013, and then stabilized at a somewhat higher level. For the week commencing October 14, 2013, the spot price was SEK 200 /MWh (188) and the futures prices were SEK 204-213/MWh (193-210) for various periods, according to Svensk Kraftmäkling.

Since 2012, Sweden and Norway have had a joint electricity certificate system. To date, the expansion of renewable energy in Norway has been sluggish, which is forcing Norwegian electricity traders subject to certificate requirements to purchase electricity certificates from Sweden. The Swedish surplus of certificates will thus decline, which is expected to positively influenced the price in the coming years.

A new quota obligation scheme is expected as of 2016. In February 2014, the Swedish Energy Agency will present a proposal for this in partnership with Norway’s Norwegian Water Resources and Energy Directorate. Expectations in the Swedish market of a higher future quota obligation is the cause of the increase in the price of electricity certificates since this past summer.

At September 30, 2013, the Company had an inventory of electricity certificates totaling 2,933 at a value of KSEK 548.

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Project portfolio Wind farms in operation Since being formed in 2005, Rabbalshede Kraft has been involved in the commissioning of 48 wind turbines, of which 26 wind turbines in four wind farms are proprietarily operated. Another 47 wind turbines are under construction.

Planning operations Establishing a wind farm from the initial preliminary study to taking it into operation takes four to seven years. Thorough preparatory work is of decisive importance to the profitability of a wind-power project and to minimize the risks. In 2010, Rabbalshede Kraft secured ISO 9001 quality certification and ISO 14001 environmental certification. The Company has adopted industrial processes in all areas of operation, from the pre-planning of wind farms to the operation and maintenance of winds farms and wind turbines. The five project phases are described below.

Phase 1: Preplanning In this phase, basic prerequisites are analyzed, such as wind conditions based on wind maps, opposing interests, ground conditions and the feasibility of grid connections and so forth. Leaseholds with land owners are also signed, which are subject to the condition that wind measurements and other analyses in the next phase remain positive.

Phase 2: Planning In the planning phase, wind measurements begin and the consultation process is initiated with the authorities, organizations and individuals affected by the establishment. This is when an Environmental Impact Assessment (EIA) is prepared, which is submitted to the relevant authority together with the application. An EIA describes the direct and indirect impact of wind power on natural and cultural environments, recreational amenities and public health

Phase 3: Application Wind farm applications that are to be assessed under the Swedish Environmental Code are submitted to the County Administrative Board where the Environmental Protection Department formulates a decision-making proposal for the operation. The County Administrative Board’s environmental testing delegation subsequently reaches a decision. A project cannot secure a permit until the municipality has granted its approval. Wind farms that are assessed under the Swedish Planning and Building Act are submitted to the relevant municipality for assessment.

Phase 4: Authorization When all permits have been granted and gained legal force, the focus is on the procurement of turbines, other engineering, electrical and contracting work, as well as financing. Electricity connection agreements are also reached with various grid companies. The wind measurements are thoroughly analyzed, which provides the basis for investment and profitability calculations.

Phase 5: Construction This phase begins with preparatory work on land and the construction of roads. Contractors are appointed for earthworks, while turbine suppliers are responsible for the assembly and commissioning of wind turbines. Electricity connections are made by the electricity companies that own the adjacent networks and paid for by Rabbalshede Kraft.


Project portfolio at September 30, 2013

Phase Project name Municipality No. of

turbines Output (MW)

Estimated production, MWh

Operation Hud Tanum 6 15 36,000

Kil Tanum 4 8 20,000

Brattön Munkedal 6 15 34,000

Töftedalsfjället Dals-Ed 10 23 61,400

Construction Dingle-Skogen Vind1) Munkedal 14 32 86,500

Årjäng NV Årjäng 9 28 78,700

Årjäng SV Årjäng 13 40 116,500

Skaveröd/Gurseröd Tanum 11 33 94,200

Authorization Brattön Sälelund Munkedal 14 42 -

Femstenaberg Strömstad 15 45 -

Sögårdsfjället Tanum 14 42 -

Lursäng Tanum 5 10 -

Authorization Vävra Berg Kungälv 5 15 -

Have not gained legal force Lyrestad Mariestad 8 24 -

Application* Årjäng NO Årjäng 12 36 -

Kyrkeröd Orust 2 6 -

Forshälla2) Uddevalla 13 39 -

Korpekullen2) Färgelanda 7 21 -

Hällevadsholm Väster Tanum 1 2,3 -

Ulvås Kungsbacka 7 21 -

Lillhärdal Åndberg3) Härjedalen 101 303 -

Månsemyr Orust 4 12 -

Stenshult2) Uddevalla 6 18 -

Ljungskile Norra Uddevalla 5 15 -

Ljungskile Hoven Uddevalla 4 12 -

Vetteberget Strömstad 2 6

Planning, preplanning 90 270

Total 388 1 133

* The projects that are under application are subject to evaluation by the municipality and/or county administrative board. Accordingly, there may be some uncertainty as to whether or not the Company will receive the permits for which it has applied. 1) The entire farm has been commissioned and the last six wind turbines have been put into trial operation. The wind farm will be in commercial operation in 2013, at which point it will move into the operation phase. In May 2012, Rabbalshede Kraft signed an agreement with the Gothenburg Diocese regarding the sale of two of the 14 wind turbines in the wind farm – ownership of the turbines was transfered in October 2013 after the end of the period. 2) In October 2010, the Swedish Armed Forces reached a decision concerning new guidelines for the assessment of wind power in the vicinity of military air bases. Sections of the project in the Municipality of Uddevalla and of the Korpekullen Project in the Municipality of Färgelanda are located in what is known as a “stop area” for Såtenäs Airport. Earlier, the projects had received a positive referral from the Swedish Armed Forces. It is unclear whether or not the new guidelines will entail limitations on build-out options 3) The Municipality of Härjedalen granted approval for the Lillhärdal Åndberg project in October 2013. The Municipality’s approval is a prerequisite for the County Council to process the application and be able to grant a permit, according to the Swedish Environmental Code.


Investments

Investments, including paid advances, totaled KSEK 504,324 during the period from January to September 2013. In all material respects, the investments pertain to the Dingle-Skogen Vind, Årjäng SV, Årjäng NV and Skaveröd/Gurseröd wind farms, and to ongoing planning work.

All 14 of the wind turbines in the Dingle-Skogen wind farm have been assembled and commissioned, and the last six wind turbines have been put into trial operation. The wind farm will be in commercial operation in November 2013, at which point it will move into the operational phase. In May 2012, Rabbalshede Kraft signed an agreement with the Gothenburg Diocese through its subsidiary Dingleskogen Vind AB regarding the sale of two of the 14 wind turbines in the Dingle-Skogen wind farm – ownership of the turbines was transferred in October.

During the third quarter, construction began on the three wind farms Årjäng NV, Årjäng SV and Skaveröd/Gurseröd, comprising a total of 33 wind turbines. The project marks the largest investment to date in the Company’s history, totaling nearly KSEK 1,200,000 of which about one-third will comprise shareholders’ equity. The wind turbines being installed are of the V112-3 MW model. Svevia will be in charge of the construction of roads and infrastructure, including the IKN network. Construction on the wind farms began in July 2013 and will be completed by late 2014. The annual production for the three wind farms is estimated at 289 GWh.

Financing

Bank loans totaled KSEK 838,234 (576,258) at September 30, 2013. The average interest rate on loans in the debt portfolio was 5.71 percent at September 30, 2013. The fixed-interest period at September 30, 2013, was 5.47 years and the capital maturity term was 4.36 years. The equity/assets ratio was 54 percent (45) at September 30, 2013. The Company’s cash and cash equivalents amounted to KSEK 400,830 (146,254) at the close of the period. The Group’s maturity structure pertaining to loans and interest rates is detailed in the table on the right

Loan Capital maturity Interest-rate maturity

Year(s) KSEK Percentage KSEK Percentage

1 25,670 3% 248,602 30%

2 29,887 4% 23,483 3%

3 33,757 4% 27,669 3%

4 39,986 5% 31,452 4%

5 251,009 30% 73,538 9%

6-10 457,925 54% 262,362 31%

11-15 0 0% 171,128 20%

Total bank loans 838,234 100% 838,234 100%

Bank fees -33,530

Interest-bearing liabilities 804,704


Hedging instruments

Rabbalshede Kraft applies hedge accounting of financial instruments in accordance with IAS 39. As a result, value changes in various derivatives acquired to hedge cash flows have to be recognized against shareholders’ equity through comprehensive income.

At September 30, 2013, the market value of the Company’s outstanding interest-rate and currency contracts represented a liability of KSEK 28,321 and a liability of KSEK 6,052, respectively.

Risks and uncertainties

Through its operations, Rabbalshede Kraft is exposed to risks. The Company is dependent on both the general economic and political climate in its business environment. For a detailed description of risks, refer to the administration report in the Annual Report for the fiscal year 2012.

In 2008, Rabbalshede Kraft AB entered into an agreement with a supplier relating to the acquisition of a total of 29 wind turbines. Of these, the Company instructed the delivery of 14 wind turbines to the Dingle-Skogen wind farm in February 2012. The advance payment in EUR that had previously been made for the 29 turbines, corresponding to KSEK 39,921 (rate 9.23), was used as an installment payment for 14 turbines. The remaining agreements for 15 wind turbines stipulate specific delivery dates, the parties intend to sign supplementary agreements specifying new delivery dates for wind farms that are scheduled further down the line. If the Company cancels the remaining 15 wind turbines, this could cost the Company MEUR 6.7, corresponding to MSEK 58.1 on the balance-sheet date.

Depreciation

In the first quarter of 2013, the Company reassessed the useful life of investments in wind turbines in accordance with IAS 16. The Company deems that the useful life corresponds with the wind turbines’ economic life. The economic life of an investment in wind turbines is 25 years, as opposed to the previous assessment of 20 years. A useful life of 25 years for investments in wind turbines is already applied by both Swedish and foreign wind-power companies. The change is applicable as of the first quarter of 2013 and resulted in a MSEK 8 reduction in depreciation according to plan for the first nine months, compared with the year-earlier period if the change had not been implemented


Group key figures

Definitions EBITDA: Operating profit before depreciation, amortization and impairments EBITDA margin: EBITDA as a percentage of net sales excl. the sale of projects EBIT: Operating profit before financial items and taxes. Earnings per share: Earnings for the period divided by the number of shares Total assets: Total value of assets held by the Company Capital employed: Total assets less non-interest-bearing liabilities Net debt: Interest-bearing liabilities less cash and cash equivalents. Return on equity: Earnings for the period/average shareholders’ equity. Return on capital employed: Profit before taxes plus financial expenses/average capital employed Equity/assets ratio: Shareholders’ equity as a percentage of total assets. Debt/equity ratio: Interest-bearing liabilities/shareholders’ equity Equity per share: Equity divided by the number of shares

Q3 2013

Q3 2012

Q1-3 2013

Q1-3 2012

Rolling 12 months

Full-year 2012

Installed output at the close of the period, MW 79 61 79 61 79 66

Electricity production during the period, MWh 30,070 35,163 102,533 111,118 151,201 159,785

Average price of electricity, electricity certificates and GoO, SEK 543 517 558 531 552 534

Number of employees at the close of the period 23 24 23 24 23 24

Net sales, KSEK 16,341 18,183 57,242 59,011 83,498 85,269

EBITDA, KSEK 8,705 9,329 33,582 30,030 46,766 43,215

EBITDA margin, % 53.3 51.3 58.7 50.9 56.0 50.7

EBIT, KSEK -1,285 -2,041 4,507 -4,146 1,033 -7,619

Return on capital employed, % (before taxes) - - - - 0.2 -

Return on equity, % - - - - - -

Earnings per share before dilution, SEK -0.14 -0.25 -0.40 -0.85 -0.64 -1.13

Earnings per share after dilution, SEK -0.14 -0.25 -0.40 -0.85 -0.64 -1.13

Average no. of shares before dilution, thousands 68,652 30,677 44,923 25,351 41,430 26,786

Average no. of shares after dilution, thousands 75,302 31,045 47,872 26,086 43,636 27,336

No. of shares at the end of the period, thousands 74,825 31,045 74,825 31,045 74,825 31,045

Sept 30,

2013 Dec 31,

2012

Total assets 2,025,905 1,277,824

Equity/assets ratio, % 54 45

Net debt, KSEK 403,874 416,715

Debt/equity ratio, multiple 0.7 1.0

Interest-bearing liabilities 804,704 562,969

Capital employed, KSEK 1,892,201 1,136,027

Shareholders’ equity, including non-controlling interests, KSEK 1,087,497 573,058

Shareholders’ equity per share, KSEK 14.53 18.46


Consolidated income statement

KSEK Note Q3

2013 Q3

2012 Q1-3 2013

Q1-3 2012

Net sales 16,341 18,183 57,242 59 011

Other operating revenues 591 885 3,335 3 002

Total revenues 16,932 19,068 60,577 62 013

Personnel costs 2 -1,196 -3,167 -5,064 -10 308

Other external costs 2 -7,031 -6,572 -21,931 -21 675

Depreciation and amortization of tangible and intangible fixed assets

-9,990 -11,370 -29,075 -34 176

Operating profit/loss -1,285 -2,041 4,507 -4 146

Financial income 351 746 904 914

Financial expenses -11,394 -8,944 -28,575 -26 135

Loss before taxes -12,328 -10,239 -23,164 -29 367

Tax 2,712 2,692 5,096 7 723

Loss for the period -9,616 -7,547 -18,068 -21 644

Earnings per share

Average no. of shares before dilution, thousands 68,652 30,677 44,923 25,351

Average no. of shares after dilution, thousands 75,302 31,045 47,872 26,086

Earnings per share before dilution, SEK -0.14 -0.25 -0.40 -0.85

Earnings per share after dilution, SEK -0.14 -0.25 -0.40 -0.85

Consolidated statement of comprehensive income

KSEK Q3

2013 Q3

2012 Q1-3 2013

Q1-3 2012

Loss for the period -9,616 -7,547 -18,068 -21,644

Other comprehensive income:

Items that will be reclassified in the income statement when specific conditions have been met:

Cash-flow hedges:

Change in fair value -17,640 -33,218 12,574 -41,569

Reversals against profit or loss 2,108 1,422 5,899 607

Transferred to cost of hedged item 6,376 - 7,220 -

Tax attributable to cash-flow hedges 2,015 8,361 -5,653 10,773

Total cash-flow hedges -7,141 -23,435 20,040 -30,189

Total -16,757 -30,982 1,972 -51,833

Items that will not be reclassified in the income statement:

Total items that will not be reclassified in the income statement

- - - -

Total comprehensive income/loss for the period -16,757 -30,982 1,972 -51,833


Consolidated balance sheet

KSEK Note Sept 30,

2013 Sept 30,

2012 Dec 31,

2012

Assets

Intangible fixed assets 36,519 37,239 37,041

Tangible fixed assets 1,519,779 993,022 1,046,602

Deferred tax assets 13,030 9,730 9,950

Long-term receivables 3 634 15 1,983

Total fixed assets 1,569,962 1,040,006 1,095,576

Intangible current assets 548 630 2,001

Accounts receivable 1,146 2,018 1,975

Prepaid costs and accrued income 10,506 15,015 14,750

Other receivables 3 42,913 3,099 17,268

Cash and cash equivalents (blocked account 165,647 KSEK) 400,830 173,089 146,254

Total current assets 455,943 193,851 182,248

Total assets 2,025,905 1,233,857 1,277,824

Shareholders’ equity

Share capital 748,249 310,448 310,448

Other capital contributions 399,527 324,932 324,860

Reserves -26,812 -46,544 -46,852

Loss brought forward including loss for the period -33,475 -7,404 -15,406

Shareholders’ equity attributable to Parent Company’s shareholders

1,087,489 581,432 573,050

Non-controlling interests 8 8 8

Total shareholders’ equity 1,087,497 581,440 573,058

Liabilities

Deferred tax assets - - -

Interest-bearing liabilities 784,003 507,374 525,718

Other long-term liabilities 3 31,192 48,583 52,514

Total long-term liabilities 815,195 555,957 578,232

Accounts payable 43,567 8,672 26,366

Current tax liability - - -

Interest-bearing liabilities 20,701 29,861 37,251

Other liabilities 3 13,814 19,682 20,774

Accrued expenses and prepaid income 45,131 38,245 42,143

Total current liabilities 123,213 96,460 126,534

Total liabilities 938,408 652,417 704,766

Total shareholders’ equity and liabilities 2,025,905 1,233,857 1,277,824

Pledged assets 1,344,441 923,416 997,624

Contingent liabilities 58,127 56,687 57,731


Condensed consolidated statement of changes in shareholders’ equity

Consolidated cash-flow statement

Condensed, KSEK Q3

2013 Q3

2012 Q1-3 2013

Q1-3 2012

Cash flow from operating activities before changes in working capital 288 2,150 10,223 7,702

Cash flow from changes in working capital -96,580 -7,705 -1,987 32,312

Cash flow from operating activities -96,292 -5,555 8,236 40,014

Investing activities

Acquisition of intangible fixed assets - - - -

Divestment of intangible fixed assets - - - -

Acquisition of tangible fixed assets, including advances -238,267 -21,616 -504,324 -55,692

Divestment of tangible fixed assets 98 - 98 577

Cash flow from investing activities -238,169 -21,616 -504,226 -55,115

Financing activities

New share issue 353,762 83,568 525,362 83,568

Issuance costs -16,531 -1,692 -16,531 -1,692

Loans raised 234,916 332 272,259 189,889

Amortization of loans -2,957 -5,832 -30,524 -175,477

Cash flow from financing activities 569,190 76,376 750,566 96,288

Cash flow for the period 234,729 49,205 254,576 81,187

Cash and cash equivalents on the opening date 166,101 123,884 146,254 91,902

Cash and cash equivalents on the closing date 400,830 173,089 400,830 173,089

Parent Company The Parent Company, Rabbalshede Kraft AB (publ.), primarily focuses on the management, coordination and operation of the Hud wind farm and development of the Group. The Parent Company is responsible for issues concerning the equities market, such as consolidated financial statements and equity market information, as well as the credit market with matters regarding borrowing and financial risk management.

Shareholders’ equity attributable to the Parent Company’s shareholders , KSEK

Sept 30, 2013

Sept 30, 2012

Dec 31, 2012

Total shareholders’ equity on the opening date 573,050 550,940 550,940

Loss for the period -18,068 -21,644 -30,200

Other comprehensive income/loss 20,040 -30,189 -30,497

Comprehensive income/loss for the period 1,972 -51,833 -60,697

New share issue 525,362 83,568 83,569

Expenses attributable to the new share issue -16,531 -1,680 1,692

Tax effect attributable to the new share issue 3,636 437 373

Change in tax rate, untaxed portion of reserve in equity - - 557

Total shareholders’ equity on the closing date 1,087,489 581,432 573,050


Parent Company income statement

KSEK Q3

2013 Q3

2012 Q1-3 2013

Q1-3 2012

Net sales 3,368 4,312 12,718 14,288

Other operating revenues 4,885 2,632 12,719 8,431

Total revenues 8,253 6,944 25,437 22,719

Personnel costs -2,964 -3,554 -9,315 -11,622

Other external costs -2,400 -2,474 -8,236 -9,057

Depreciation and amortization of tangible and intangible fixed assets -2,074 -2,626 -6,151 -8,033

Operating profit/loss 815 -1,710 1,735 -5,993

Interest income and similar items 746 842 1,070 1,235

Interest expense and similar items -1,668 -1,715 -4,723 -5,977

Loss before taxes -107 -2,583 -1,918 -10,735

Appropriations - - - -

Loss before taxes -107 -2,583 -1,918 -10,735

Tax 24 679 422 2,823

Loss for the period -83 -1,904 -1,496 -7,912

Statement of Parent Company’s comprehensive income

KSEK Q3

2013 Q3

2012 Q1-3 2013

Q1-3 2012

Profit/loss for the period -83 -1,904 -1,496 -7,912

Total other comprehensive income - - - -

Total comprehensive loss for the period -83 -1,904 -1,496 -7,912

Parent Company balance sheet

Condensed, KSEK Sept 30,

2013 Sept 30,

2012 Dec 31,

2012

Intangible fixed assets 19,475 19,643 19,601

Tangible fixed assets 231,534 236,176 234,095

Financial fixed assets 881,771 360,022 383,756

Intangible current assets 124 309 1,030

Current receivables 28,484 35,315 38,228

Cash and bank balances 85,963 107,519 65,836

Total assets 1,247,351 758,984 742,546

Restricted shareholders’ equity 748,249 310,448 310,448

Unrestricted shareholders’ equity 366,700 301,741 293,529

Untaxed reserves 500 500 500

Long-term liabilities 106,808 125,263 110,650

Current liabilities 25,094 21,032 27,419

Total shareholders’ equity and liabilities 1,247,351 758,984 742,546


Notes to the condensed financial statements

Note 1 Accounting policies The consolidated financial accounts for 2013 were prepared, similar to the 2012 year-end report, in accordance with the International Financial Reporting Standards (IFRS), as approved by the European Commission for adoption within the EU, and the Swedish Annual Accounts Act.

This interim report for the Group was prepared in accordance with IAS 34 Interim Reporting. Pertinent provisions of the Annual Accounts Act were also applied. The same accounting policies and calculation principles were applied as in the most recent Annual Report.

The interim report for the Parent Company was prepared in accordance with the Annual Accounts Act and the regulations in RFR 2 Accounting for Legal Entities.

Note 2 Personnel costs and other external costs The Company capitalizes all expenses for project-planning personnel. Overhead expenses are capitalized at an appropriate percentage for projects in the construction phase and the remaining costs impact earnings. The expenses encompass both personnel expenses and other external expenses.

Reinvoiced costs pertain to construction services on wind farms in which the Company has been the contractor in charge.

Group KSEK

Q3 2013

Q3 2012

Q1-3 2013

Q1-3 2012

Personnel costs

Personnel costs -5,162 -4,557 -14,541 -14,748

Capitalized planning personnel 1,505 1,390 4,756 4,440

Capitalized personnel in management and administration 2,461 - 4,721 -

Total -1,196 -3,167 -5,064 -10,308

Group KSEK

Q 3 2013

Q 3 2012

Q 1-3 2013

Q 1-3 2012

Other external costs

Other external costs -9,131 -6,728 -24,332 -20,724

Reinvoiced costs -146 -183 -2,361 -2,030

Capitalized other external costs 2,246 339 4,762 1,079

Total -7,031 -6,572 -21,931 -21,675

Note 3 Financial assets and liabilities

According to IFRS 7, financial instruments must be categorized in three levels based on what input data was used when making the fair-value measurement. The first level pertains to financial instruments that are quoted in an active market. The second level pertains to financial instruments that are not quoted in an active market, but where other market data can be used to obtain a measurement. The final level pertains to measurements for which there are no quoted prices or other market data. The methods for obtaining a measurement for level three primarily comprise discounted cash flows. All derivatives (electricity, interest rate and currency) belong to level 1.


Signatures/issuers of the report

Rabbalshede, October 24, 2013

Thomas Linnard CEO

Auditor’s Review Introduction

We have reviewed the consolidated financial interim information (interim report) of Rabbalshede Kraft AB (publ) at September 30, 2013, and the nine-month period that ended on this date. The Board of Directors and the President are responsible for the preparation and presentation of this interim report in accordance with IAS 34 and the Swedish Annual Accounts Act. Our responsibility is to express an opinion on this interim financial information based on our review.

Direction and scope of the review

We conducted our review in accordance with the Standard on Review Engagements SÖG 2410, Review of Interim Financial Information Performed by the Independent Auditor of the Entity. A review consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review has a different focus and a substantially more limited scope compared with the focus and extent of an audit conducted in accordance with International Standards on Auditing, ISA, and other generally accepted auditing practices.

The procedures performed in a review do not enable us to obtain a level of assurance that would make us aware of all significant matters that might be identified in an audit. Therefore, the opinion expressed on the basis of a review does not provide the same level of assurance as an opinion expressed on the basis of an audit.

Opinion

Based on our review, nothing has come to our attention that causes us to believe that the interim report has not, in all material aspects, been compiled in accordance with IAS 34 Interim reporting and the Swedish Annual Accounts Act, and for the Parent Company in accordance with the Swedish Annual Accounts Act.

Gothenburg, October 24, 2013

Ernst & Young AB

Stefan Kylebäck Authorized Public Accountant

Documents

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