Fred. Olsen Renewables / Focus on renewable energy

David Brunt, CEO, Fred. Olsen RenewablesFebruary 2016, Haugesund

Content

Overview

First steps

Businesses:

Fred. Olsen Renewables - major player in onshore renewable generation

Fred. Olsen Windcarrier and related companies – offshore services

Other renewables businesses

Where now?

Potential for the Norwegian maritime cluster?

Business segments

62.7%

20.7%

Ganger Rolf ASA (listed OSE)

Offshore drilling Cruise Other investmentsShipping/Offshore Wind Renewable energy

NHST Media Group AS

(54.0%)

Koksa Eiendom AS

(12.6%)

Various

51.9% 100%100%100%

Fred. Olsen Energy ASA(listed OSE)

Fred. Olsen Cruise Lines Ltd.Fred. Olsen Ocean Ltd.Fred. Olsen Renewables AS

Bonheur ASA (listed OSE)

Snapshot - Renewable businesses

First activities : 1994

TODAY:

Employees (total) : ca. 800

Annual revenues (2014) : 2,3 mrd NOK

Total power delivered (2015) : ca 1,5 TWh

Onshore wind turbines : 241

Offshore installation operations : >200

Geographic reach : >20 countries

First steps

First wind farm

investments (UK)

Build

Competence,

experience

Diversify

wave & tidal

Acquire

lidar technology

Diversify

offshore first steps

Acquire & develop

offshore competence

Invest

offshore vessels

Offshore technology

Onshore wind farm investment

1994

Consultancy services

1996

Technology provider

2003

Offshore wind services

2008

Fred. Olsen Renewables (FOR)

”Cradle to grave” ownership of renewable generation assets –

primarily onshore wind

First activities mid-1990s

Completed & operate 8 industrial scale windfarms with 583

MW capacity (generation ~1.5 TWh/yr).

Largest renewables IPP* in UK; 5th largest in Europe

Development pipeline of total 2200 MW secured and under

development

Key competencies managed in-house

Total investment to date is 7.0 billion NOK

0

100

200

300

400

500

600

700

800

900

1000

GW

h

Site investigation

Development

Construction

Operation

* IPP = independent power producer

FOR Operating Assets and Near Term Projects

FOR Business Model and Project Portfolio

Development Consented Operation

Scotland

Norway

Sweden

Total portfolio

Onshore portfolio

Scotland – 85-165 MW

Crystal Rig IV

Rothes extension

Paul’s Hill extension

Windy Standard III

Norway – 300 MW

Mosjøen

Ireland – 500 MW

Codling II – 500 MW offshore

(50% owned; total 1000 MW)

Sweden – 300-500 MW

FORSCA projects

Verkanliden

1 185– 1 465 MW

685– 965 MW

Ireland

Codling Bank – 500 MW

offshore (50% owned; total

1000 MW)

Norway

Gravdal – 90 MW

Gilja – 135 MW

Gismarvik 9 MW (60%

owned of total 15 MW)

Kalvvatnan – 225 MW

Sweden

Högaliden 102 MW

1 061 MW

561 MW

Scotland

Crystal Rig – 62.5 MW

Crystal Rig II - 138.0 MW

Rothes – 50.6 MW

Rothes II – 41.4 MW

Paul’s Hill – 64.4 MW

Mid Hill – 75.9 MW

Norway

Lista – 71.3 MW

Sweden

Fäbodliden – 79.2 MW

583 MW

583 MW

Site Investigation Construction

Scotland

Windy Standard II – 75 MW

Crystal Rig III – 14 MW

89 MW

89 MW

Fred. Olsen Ocean:

Fred. Olsen Windcarrier & related companies

Transport, installation, and maintenance

services for offshore wind parks

Providing a tailored industrial solution :

Purpose built vessels & world-class

marine spread

Combined with marine and logistics

expertise and experience

Capabilities:

Large Transport & Installation projects

Major component exchange

Special projects

Heavy lift

Engineering, design and project management

Accommodation

Cargo/transportation

Fred. Olsen Windcarrier

Installation track record - overview

Butendiek

80 WTGsGlobal Tech 1

75 WTGs

Belwind

1 WTG

Bard

14 WTGs

Dogger Bank

2 Trial install.

Riffgat

30 WTGs

Preferred supplier of turbine technicians, expertise and

services

8 business units: Denmark, UK, Germany, Turkey,

Poland, Romania, South Africa, Holland

Operating on and offshore

Largest contractor in offshore wind and major player

onshore

Around 600+ experienced technicians employed

A Fred. Olsen related company

Global Wind Service

Other businesses

Fred. Olsen Windcarrier DK

Renewable energy

consulting services

69 GW

projects

328

experts

32

countries

Falling energy prices (coal & oil/gas)

Political backlash on «subsidies» -

carbon pricing would be better?

Norway/Sweden green certificate

system – diverging views on success

Paris climate agreement (COP21)

Interconnectors

Technology improvements (see next

slides)

Holy grail: «grid parity»

Where now?

Source:

Costs are falling dramatically

1000 USD/toe = 86 USD/MWh = 70 øre/kWh

…and will become directly competitive

Lessons learned & potential for Norwegian maritime cluster?

As always, build around strengths and ensure the political backing is there

Example 1: Onshore wind

Need home market, transferable skills and political drive

Early mover (Denmark!) captured technology ownership, global market and jobs

Example 2: Offshore wind

Wind, maritime & logistics competencies are central

Opportunity for Norwegian maritime/industrial cluster – taken!

Market now consolidating – opportunity gone?

Example 3: Offshore floating?

Thank you!