Matthias Bausenwein General Manager, Ørsted Asia PacificSep 05, 2018 · 1 •Headquartered in Denmark •50.1% owned by the Danish State •Listed in the Nasdaq OMX: ORSTED •5,638

018th Sep, 2018

Matthias Bausenwein General Manager, Ørsted Asia Pacific

1

• Headquartered in Denmark

• 50.1% owned by the Danish State

• Listed in the Nasdaq OMX: ORSTED

• 5,638 employees

• Revenue in 2017 DKK 59.5 bn (EUR 8.0 bn)

• EBITDA in 2017 DKK 22.5 bn (EUR 3.0 bn )

• Phase out the use of coal by 2023

•

•

•

Ørsted at a glance

* Share of the Ørsted Group’s capital employed, Annual Report 2017

Ørsted Asia Pacific, Jsep 2018

We are not just a developer, but an integrated Energy Company

Develop OperateBuild Own

Strong integrated end-to-end business model

• 25+ years in offshore wind sector

• Long-term commitment, we enter a market to stay!

• Proven track record in developing local long-term partnerships

• Always built on time, on budget!

• A trusted partner & advisor

Ørsted Asia Pacific, Sep 2018 2

3

Unparalleled experience and track recordGlobal footprint

Walney ExtensionWest of Duddon Sands

Westermost Rough

Isle of Man

Walney 1 & 2

Barrow

Burbo Bank Ext.

Burbo Bank

Gunfleet Sands 3

Gunfleet Sands 1 & 2

Lincs

London Array

Race Bank

Horns Rev 1 & 2

Hornsea 1

Anholt

Middelgrunden

Vindeby

Nysted

Borkum Riffgrund West 1&2

Borkum Riffgrund 2

Borkum Riffgrund 1

Gode Wind 1

Gode Wind 4

Gode Wind 2

Bay State Wind

24 offshore wind farms in operation

4 offshore wind farms

under construction

19Partnerships

25+ years of experience

and track record in the

offshore wind power sector

1991 2018

3.8 GWunder

construction

~ 2,300 Dedicated

employees

5.1 GW Constructed

capacity

14 million

people

with clean

electricity

~ 1,200

turbines

World's

leading

operator

Coastal Virginia

Avedøre

Under construction

In operation

Under development

Decommissioned after 25 years

Asia Pacific

Formosa 1.1Formosa 1.2

USA Europe

Greater Changhua projects

OWP West

Ocean Wind

Hornsea 2 Hornsea 3 & 4

Borssele 1&2

Ørsted Offshore Wind Power overview

Constitution Wind

Ørsted Asia Pacific, Sep 2018

Gode Wind 3

Ørsted as Global leader in offshore wind

4

Largest offshore wind power player globally todayGlobal offshore wind capacity, GW

0.30.3

3.6

Ørsted Wind Power’s scale enables cluster synergies

28% 7% 10% 9% 2% 1% 0%

Source: Bloomberg New Energy Finance, August 2018, Ørsted analysis

2%

% share of global constructed capacityConstructed Under construction

3% 4% 2%

Operational offshore wind farms

Offshore wind farms under construction

Cluster

1

4

3

2

Synergies

✓ Lower logistics costs

✓ Fewer technician hours

✓ Fewer facilities needed

✓ Lower inventory levels

• UK West coast (East Irish Sea): Barrow, Burbo Bank, Burbo Bank Extension, West of Duddon Sands, Walney 1, Walney 2, Walney Extension

• East UK North: Westermost Rough, Lincs, Race Bank, Hornsea 1, Hornsea 2

• East UK South: London Array 1, Gunfleet Sands 1, Gunfleet Sands 2, Gunfleet Sands 3

• Germany: Borkum Riffgrund 1, Borkum Riffgrund 2, Gode Wind 1, Gode Wind 2

• Danish waters: Anholt, Nysted, Horns Rev 2, Middelgrunden

Dutch waters: Borssele 1 & 2

1

2

4

5

3

Innogy

E.ONVattenfall

Iberdrola Northland

Power

Equinor

CIP

SSE

Shell

EnBW

6

WPD

1%

Van Oord

1%

5

1.3

5.1

1.9

0.80.4

0.6

3.8

0.3

0.8

0.91.1

1.91.6

0.4

0.4

0.30.7

0.1

0.6

0.6

0.9

0.4

0.3

0.30.3

0.50.30.2

0.2

2.0

0.20.2

0.1

8.9

0.5

2.2

0.2

0.8 0.70.5 0.4 0.4

6

UK 5.8 GW

Germany 1.4 GW

Denmark 1.0 GW

Netherlands 0.8 GW

China

LongyuanEneco

2% 1%


Note 1: London Array is operated by London Array Limited

World’s largest offshore wind farm - Walney Extension is bigger than twice the size of Manhattan

5 Ørsted Asia Pacific, Sep 2018

Walney Extension produces electricity to power over 600,000 UK homes.Number of turbines: 187Generation capacity: 659MWCommercial operation: September 2018

▪ The wind farm covers an area of 145 km2 in the Irish Sea, UK. ▪ Each turbine stands 190m high - about twice the height of Big Ben ▪ Orsted has pledged a Community Benefit Fund worth up to £600,000 for each of the wind

farm's 25-year expected lifespan.

Formosa 1 Project –Gaining first hand offshore wind financing experience in Taiwan

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Wind farm location

Project highlights

▪ The 1st offshore wind farm in Taiwan (demonstration project)

▪ Distance to shore: 2-6 km

▪ Water Depth: 15-32 m

▪ Capacity: 128 MW

Phase I 8 MW (2 x 4 MW) completed in Apr 2017

Phase II 120 MW (2 x 6MW) to be installed in 2019

▪ Signed Phase II PPA with TaiPower in Dec 2017

▪ Financial close in Jun 2018

Ownership structure

• Ørsted: 35%

• Swancor: 15%

• Macquarie: 50%


▪ Large-scale offshore wind power plants

▪ Distance to shore: 35-60 km

▪ Water Depth: 30-45 m

▪ Development timeline1 for 1.82 GW pipeline

900 MW awarded through grid application

▪ Onshore construction work to start 2019

▪ First power for each project: 2021+

920MW won in auction

▪ Onshore construction work to start 2023

▪ First power for each project: 2025

Greater Changhua projects –Large-scale offshore wind power plants for Taiwan’s green energy future


Ownership structure Projects highlights

• Ørsted: 100%

• Local investors and partners to come in post FID

1 subject of further permitting and final investment decision (FID)

Wind farm location

Taiwan as Ørsted’s hub for Asia Pacific has grown significantly over the last 2 years


• Established Taipei office as the APAC hub in May 2016

• APAC team growing to over 30 employees, >50% local employees

Frontrunner to develop large-scale offshore wind farms in Taiwan


Taiwan has developed into the front runner .... And will benefit tremendously


Why is that?Ambitious renewable targets, clear regulations and site selection process encourage investment in offshore wind


Fundamentals

▪ Taiwan is heavily reliant on fossil fuels and 98% of Taiwan’s total fuel supply in was imported.

▪ Taiwan has furthermore no interlinks to other countries

▪ 2/3 of Taiwan is covered by mountains and forest

▪ The sites have high wind speeds of approx. 9-11 m/s, low water depth and are relatively close to shore

Framework

Site selection was key!

Feed in Tariff ensures timely build out, and also boosts market and industry development - and paves the way for cost reduction


5.5626 5.5626

5.6076

5.7405 5.7405

6.0427

5.8498

2012 2013 2014 2015 2016 2017 2018

Feed-in-Tariff for offshore wind in Taiwan

Orsted’s auction price 2025 projects NT$ 2.548 /KWh

NT$/Kwh

Investment of 2021 CHW projects will help to establish and mature a local supply chain.

Scalable O&M

Transmission synergies

Learnings from our first Greater Changhua projects

Further cost-out in the industry towards FID by technology advances.

Stable subsidy in establishment phase (over 10 years), enabling long term lowering of prices

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Offshore wind LCOE development DEEUR / MWh (real)

0

50

100

150

200

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15

Internal use

Feed-in-tariff & introduction of fixed market premium Competitive actions

German development

German projection

GW build-out

Reliable market conditions to build-up (local) supply chain

for long term cost reductions

Maturation: Reap harvest of well managed supply chain, through intense market competition to

ensure long term competitiveness

End 2015: Stable industry with 18000 Jobs in offshore wind

created

End 2019: 10 years of

subsidy


Strong local partnerships required to realize offshore wind in Taiwan


Stable Feed-in

Tariff

Solid regulatory framework

Long-term Investment

of Developers

Localisation of Tier 1 suppliers

Cultivation of Sub-

suppliers

Local talent education &

training

Localising offshore wind in Taiwan

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Supply chain development Financing Strategy

Job creation & talent training Research & development

DD Radar Energy Storage


Leading supply chain localization in Taiwan

16

ConstructionDevelopment Operation &Maintenance

▪ Assessed over 170 local companies since 2016

▪ have signed 60 contracts with around 30 local suppliers

▪ expects to award 10 more major contracts for Greater Changhua 2021 projects within the next two months

▪ Fully funded sub-supplierweb platform to Changhua County to enage localSMEs

▪ Plan to work with localfishery association in part of O&M services

➢ Time pressure: localization plan deadline on 15th November

➢ Price & capacity: local suppliers’ maturity and capability

➢ Unclear pipeline for post 2025 projects

Challenges


Build Partnerships with Local Suppliers-Woen-Jinn as a best practice

17

NT$1 bn cable installation contract

• Hard work from both parties for past 2 years

• Ørsted set up a dedicated team of 10 specialists to support and exchange knowledge with WoenJinn, elevated their standards and expertise

• Ørsted made special financial arrangement in the contract so Woen Jinn can invest in a new cable lay vessel WJ#7

• Woen Jinn has hired 20 more staff since working with Ørsted and will recruit and train more young talents through working with universities and offer scholarships.


Key Successes to Offshore Wind Projects in Taiwan

• Regulation: long-term stable framework, transparency

• Safety: world-class QHSE, embed in business journey, value creating processes

• Trust: strong track records, world-class technical and financial capabilities to deliver

• Commitment: early investment, long-term thinking, benefits to local society

• Partnership: with government authorities, key suppliers and all stakeholders


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Documents

Matthias Bausenwein General Manager, Ørsted Asia PacificSep 05, 2018 · 1 •Headquartered in Denmark •50.1% owned by the Danish State •Listed in the Nasdaq OMX: ORSTED •5,638