First-quarter 2015 presentation to analysts. Finn Bjørn Ruyter, CEO Oslo, May

First-quarter 2015 presentation to analysts Finn Bjørn Ruyter, CEO Oslo, May 7 2015

Agenda 1) First-quarter 2015 results 2) Theme: Markets 3) Appendix 2

First-quarter 2015 highlights EBITDA of NOK 777 million compared to NOK 755 million last year. Stable underlying operations in all business areas. Energy demand and power prices on a par with last year mild weather and achieved power price 0.25 NOK/kWh. Hydropower production 13 percent above normal, compared to 50 percent above normal previous year. Earnings per share of NOK 1.83 down from last year due to a positive non-recurring effect relating to a waived tax demand last year. Seasonally strong cash flow from operating activities. 3

EBITDA first-quarter 2015 and change from 2014 EBITDA Q1 2015 Change in EBITDA from Q1 2014 22 777 2 777 181 755 41 85 24 304 40 201 70 Production Heat Network Markets Other EBITDA EBITDA Q1 2014 Production Heat Network Markets Other EBITDA Q1 2015 4

Power prices against last year NOK/kWh 0,30 0,25 0,20 0,15 0,10 Jan Feb Mar Apr May Jun Jul Aug Sep Okt Nov Dec Oslo price (NO1) 2014 Oslo price (NO1) 2015 5 Source for price data:www.nordpoolspot.com og www.nasdaqomx.com/commodities April 30th, 2015.

Production NOK million Q1 2015 Q1 2014 Year 2014 Year 2013 Operating revenue 166 237 871 859 Gross margin 162 224 882 868 EBITDA 70 155 599 614 Operating profit 57 143 552 568 Power price (NOK/kWh) 0.25 0.25 0.24 0.28 Production volume (GWh) 616 817 3 452 2 845 Investments 12 3 26 26 Volume 13 percent above normal, but 201 GWh lower than the record level in Q1 2014. Price hedging contributed positively with NOK 10 million (NOK 15 million) in the quarter. High network connection costs due to power surplus in price area NO1 compared to normal power shortfall. Quarter NOK mill 200 Rolling 12 months NOK mill 750 36 percent hedging ratio next 6 months. 160 120 80 40 111 177 163 163 155 143 142 159 70 600 450 300 150 Project design of possible new generator progressing according to plan. 0 Q1 13 Q2 13 Q3 13 Q4 13 Q1 14 Q2 14 Q3 14 Q4 14 Q1 15 0 6

Hydropower Glomma waterway flow 3 000 m3/sec 2 500 2 000 1 500 1 000 500 0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2015 2014 Normal * Max. capacity utilization 7 * Normal = Median waterflow last 10 years

Production volume 400 GWh 300 200 100 0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Normal* 2014 2015 8 * Normal = 3100 GWh based on 10 years data adjusted for efficiency improvements.

Heat NOK million Q1 2015 Q1 2014 Year 2014 Year 2013 Operating revenue 439 401 952 1 153 Gross margin 256 222 529 608 EBITDA 201 161 277 329 Operating profit 166 124 70 156 Production volume (GWh) 627 620 1 547 1 711 Gross margin (NOK/kWh) 0.42 0.34 0.34 0.32 Investments 10 5 85 61 Quarter NOK mill 250 200 150 100 50 0-50 174 Q1 13 37 Q2 13 6 Q3 13 112 Q4 13 161 Q1 14 9 Q2 14-9 Q3 14 116 Q4 14 Rolling 12 months NOK mill 201 Q1 15 400 350 300 250 200 150 100 50 0 Mild weather in both this year's and last year's quarter gave low consumption. Contribution margin up 0.08 NOK/kWh from previous year. Lower costs since last year's quarter includes costs related to a large leakage. Price hedging contributed NOK 14 million (NOK 25 million). 62 percent hedging level next 6 months. 9

Production volume 300 GWh 240 180 120 60 0 Jan Feb Mar Apr May Jun Jul Aug Sep Okt Nov Dec Normal * 2014 2015 10

Network NOK million Q1 2015 Q1 2014 Year 2014 Year 2013 Operating revenue 1 071 982 4 147 4 052 Gross margin 668 600 2 829 2 498 EBITDA 304 279 1 314 1 107 Operating profit 186 156 757 619 Result effect income surpluses/(shortfalls) (93) (30) 206 (120) Investments 162 102 674 532 Purchased Network business contributes to profit growth. The integration project is proceeding as planned. Stable operations with few interruptions. AMS contracts regarding meters and installation entered. Quarter NOK mill 400 350 300 250 200 150 100 50 272 283 286 266 279 312 345 378 Rolling 12 months NOK mill 304 1 400 1 200 1 000 800 600 400 200 Expected operating profit for the year slightly lower than last year - planned income shortfall in 2015 against an income surplus of 206 million in 2014. 0 Q1 13 Q2 13 Q3 13 Q4 13 Q1 14 Q2 14 Q3 14 Q4 14 Q1 15 0 11

Markets NOK million Q1 2015 Q1 2014 Year 2014 Year 2013 Operating revenues 2 089 2 085 6 416 6 868 Gross margin 400 389 1 386 1 170 EBITDA 181 140 484 342 Operating profit 162 127 403 301 Sold volume (GWh) 5 775 5 699 17 764 17 388 Good result in electricity sales business. Gains of NOK 29 million related to the sale of historically impaired trade receivables. Number of customers and sales volumes in line with last year. Quarter NOK mill 200 150 Rolling 12 months NOK mill 600 500 400 Profit after tax of NOK 88 per customer (NOK 78). Efforts to facilitate an efficient operating and sales organization in Sweden and Finland in progress. 100 50 91 71 83 96 140 126 140 78 181 300 200 100 0 Q1 13 Q2 13 Q3 13 Q4 13 Q1 14 Q2 14 Q3 14 Q4 14 Q1 15 0 12

Net interest-bearing debt and development working capital Change in net interest-bearing debt in the quarter (NOK million) Development working capital and power prices 10 577 NOK million NOK/kWh 1 200 0.35 1 001 777 900 105 0.30 173 600 537 1 007 300 267 0.25 9 263 0 191-125 Net debt Q4 2014 EBITDA Paid interest Paid taxes Change working capital Net investments Net debt Q1 2015-300 1Q12 1Q13 1Q14 Working capital end Q1 1Q15 Power prices (NO1) 0.20 13

Solidity development last years Equity ratio (percent) Debt / EBITDA * 30% 30% 31% 31% 4.2 4.4 3.5 3.4 1Q12 1Q13 1Q14 1Q15 1Q12 1Q13 1Q14 1Q15 14 * EBITDA for core business (Production, Heat, Network, and Markets, last 12 months)

Summary of first-quarter 2015 profit Change in EBITDA from Q1 2014 Profit after tax Q1 2015 755 22 1 0 777 777 204 67 Profit per share NOK 1.83 149 357 EBITDA Q1 14 Gross margin Gain/loss financial items Operating expences EBITDA Q1 15 EBITDA Depreciation Financial expenses Tax Profit after tax Q1 2015 15 * Q1 2014 affected positively by NOK 288 million related to waived tax claims regarding Hatros.

Outlook Project design of possible new generator progressing according to plan, any investment decision expected in second half of 2015. Heat with increased sales rate for new customers that will phase out oil furnaces. Network has signed AMS contracts regarding meters and installation, and continues work on the integration process expected completed in 2015. AMS project has signed several large contracts, now working on IT systems, test programs and planning of installation. Efforts to facilitate an efficient operating and sales organization in Sweden and Finland in progress. At the end of Q1 the listed system price for deliveries of power in 2015 was 0.23 NOK/kWh compared to 0.25 NOK/kWh in 2014. 16

Agenda 1) First-quarter 2015 results 2) Theme: Markets 3) Appendix 17

Hafslund Markets Number of employees: ~ 570 Turnover in 2014: NOK 6.6 billion Operating profit in 2014: NOK 403 million Number of electricity customers: 1,074,000 Kundesenter Fakturaservice 18

Market position and goals Nordic electricity market 100% = appr. 12 mill. customers About 10% market share in the Nordic region Others 41% Hafslund 10% 12% EON 12% Vattenfall 26-27% in Norway 4% in Sweden 4% in Finland Varying degrees of maturity and competition in the markets Increased focus on benefit products Fjordkraft 4% 10% Dong 11% Fortum Goal to take clear market positions in Sweden and Finland Ambition of strong customer growth in the coming years 19 Source: TNS Gallup Energy Barometer, Various reports from the Nordic regulators, companies websites and reports, various analyzes

Customer- and profit development Number of customers 000 Operating profit NOK million 1 100 1 000 900 1 073 350 300 329 800 700 600 742 250 200 500 400 150 300 100 200 100 331 50 0 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 0 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Norway Sweden and Finland Operating profit Customer growth driven by both organic growth and acquisitions 20

Assumed regulatory changes 2016 2017 2018 2019 2020 Throughbilling Shared ICT hub Supplier centric model AMS Nordic retail market Major regulatory changes expected to affect the competitive situation in the coming years 21

Tougher competition and lower margins 22

Earnings per electricity customer - the key drivers Gross margins on electricity products Gross margin on benefit product Costs for the ongoing customer relationship Costs maintenance of the customer base 23

Examples of benefit products EL- konto Hafslund Online Grønt valg Link 24

Market position map Norway Position map Norway Largest Group brand Cheapest Best Nationwide discount actor Differentiated Local brands Multibrand strategy with distinct and clearly separate market positions 25

Market position map Sweden and Finland Position map Sweden Position map Finland Largest Largest Cheapest Best Cheapest Best Differentiated Differentiated Good base for efforts to establish clear market positions 26

Organized to realize growth plans Invoicing and collection Physical and financial power trading Strømselskap Professional forums cooperation and learning across companies Group and shared services... build strong centers of expertise and manage risks along the supply chain 27

Hafslund Markets - from regional to leading Nordic player What did we do? What are we going to do? Nordic 2020 National 2013 Regional 2007 28

Agenda 1) First-quarter 2015 results 2) Theme: Markets 3) Appendix 29

Oslo price (NO1) historic and future NOK/kWh 0.50 0.40 0.30 0.20 0.22 NOK/kWh * 0.10 0.00 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Power price - Oslo Period average 30 Source for price data: www.nordpoolspot.com og www.nasdaqomx.com/commodities April 30th, 2015. * Period average 2015-2019 is based on forward prices as of April 30th, 2015.

Group profit and loss NOK million Q1 2015 Q1 2014 Year 2014 Year 2013 Operating revenue 3 777 3 734 43 12 396 12 836 Cost of energy (2 311) (2 289) (21) (6 866) (7 867) Gross margin 1 466 1 444 22 5 530 4 970 Gain/loss financial items 11 12 (1) 116 125 Operating expenses (701) (701) 0 (2 851) (2 648) EBITDA 777 755 22 2 795 2 446 Depreciation and write-downs (204) (201) (2) (1 045) (794) Operating profit 573 554 19 1 750 1 653 Interest expences (95) (93) (2) (480) (494) Market value change loan portfolio 28 (16) 44 (73) (9) Financial expenses (67) (109) 42 (553) (503) Pre-tax profit 506 445 61 1 197 1 150 Tax (149) 112 (261) (194) (402) Profit after tax 357 557 (200) 1 003 747 Earnings per share (EPS) in NOK 1.83 2.85 (1.02) 5.14 3.83 31

Group balance sheet NOK million 2015-03-31 2014-12-31 Q4 14 2014-03-31 Intangible assets 2 962 2 970 (8) 2 630 Fixed assets 19 021 19 011 9 18 149 Financial assets 832 786 46 484 Accounts receivables and inventory 2 307 2 703 (396) 2 636 Cash and cash equivalents 1 060 742 318 2 328 Assets 26 182 26 212 (31) 26 227 Equity (incl. min. int.) 8 246 7 877 369 8 167 Allocation for liabilities 3 937 3 858 79 3 718 Long-term debt 8 188 8 692 (505) 9 202 Other current liabilities 2 186 2 668 (482) 2 220 Short-term debt 3 624 3 117 508 2 921 Equity and liabilities 26 182 26 212 (31) 26 227 Net interest-bearing debt 9 263 10 577 (1 314) 8 681 Equity ratio 31 % 30 % 1 % 31 % 32

Group cash flow NOK million Q1 2015 Q1 2014 Year 2014 EBITDA 777 755 22 2 795 Paid interests (173) (173) 0 (452) Paid tax (105) (150) 45 (58) Marketvalue changes and other liquidity adjustments (6) 3 (9) (67) Change in working capital, etc. 1 007 969 38 (64) Total cash flow from operations 1 500 1 404 96 2 154 Net operations and expansion investments (206) (130) (76) (1 896) Net purchase/sale of shares etc. 28 (16) 44 (379) Cash flow from investments activities (178) (146) (32) (2 275) Cash flow to down payments and interests 1 322 1 258 64 (121) 33

Earnings per share Per quarter NOK 2.85 ** 1.83 1.15 0.72 1.05 0.91 0.77 1.08 1.07 1.50 0.86 0.36 *** 1.06-2.97 * 2012 2013 2014 Q1 2015-0.06 3.83 5.14 1.83 34 * ** *** Profit after tax Q3 2012 negatively affected NOK 551 million relating to extraordinary write-downs and provisions. Profit after tax Q1 2014 was positively impacted by NOK 288 million related to tax waived claims regarding Hatros. Profit after tax Q3 2014 negatively affected by NOK 93 million relating to write-downs Bio-el and secondary networks Søndre Nordstrand

Capital employed and return on capital employed Capital employed NOK 21.0 billion per 31.03.2015 Return on capital employed Markets 7% 8.0% 8.3% 8.3% Production 22% Network 46% 22% 3% Heat Other 2013 * 2014 ** 2015 *** 35 * ** *** 2013 - Includes the sale of shares in Infratek with gain of NOK 90 million 2014 - Includes write-downs of Bio-El and secondary networks Søndre Nordstrand of NOK -127 million. 2015 Last 12 months

Loans portfolio data Debt maturity profile NOK million 2 000 1 000 0 1 843 1 686 1 706 1 410 1 460 401 420 400 300 Loans at maturity next 12 months NOK million 800 600 400 200 743 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Commercial paper 319 667 167 500 Bonds 300 Other loans 400 500 Q1 15 Q4 14 Bonds 73 % 73 % 0 % Commercial paper 3 % 5 % -2 % Other loans 24 % 22 % 2 % NOK million Q1 15 Q4 14 Nominal value - market value of loans (326) (354) 28 Market value interest rate and fx derivatives (48) (64) 16 Average interest incl. derivatives (%) 3.8 % 3.8 % 0.0 % Proportion of loan portfolio with fixed interest (%) 51 % 48 % 3 % Loans at maturity next quarter 986 980 6 Unused drawdown facilities 3 800 3 800 0 0 apr mai jun jul aug sep okt nov des jan feb mar Commercial paper Bonds Other loans 36

Key figures Group YTD 2015 YTD 2014 Capital matters Total assets 26 182 26 227 Capital employed 20 960 19 984 Equity 8 246 8 167 Market capitalization 11 339 9 357 Equity ratio 31 % 31 % Net interest-bearing debt 9 263 8 681 Profitability EBITDA 777 755 Earnings per share (EPS) 1.83 2.85 Cash flow per share 7.68 7.19 Heat YTD 2015 YTD 2014 Capital employed 4 698 4 957 Sales price District heating (NOK/kWh) 0.72 0.64 Gross margin (NOK/kWh) 0.42 0.34 Sales volume (GWh) 627 620 Network YTD 2015 YTD 2014 Capital employed 9 627 8 578 Regulated gross margin for the year 2 746 2 253 Excess/(under) income ytd (93) (30) NVE-capital (regulatory) 7 477 6 328 Power Generation YTD 2015 YTD 2014 Capital employed 4 537 4 504 Sales price (NOK/kWh) 0.25 0.25 Production volume (GWh) 616 817 Markets YTD 2015 YTD 2014 Capital employed 1 426 1 687 - of this working capital (116) 244 Volume power sales (GWh) 5 775 5 699 37

Shareholders as of 31.03.2015 # Shareholder Class A shares held Class B share held Total Ownership Share of voting rights 1 City of Oslo 67 525 37 343 104 868 53.7 % 58.5 % 2 Fortum Forvaltning AS 37 853 28 706 66 559 34.1 % 32.8 % 3 Kommunal Landspensjonskasse 5 201 2 848 8 049 4.1 % 4.5 % 4 MP Pensjon PK 5 1 979 1 984 1.0 % 0.0 % 5 Gjensidige Forsikring 0 1 000 1 000 0.5 % 0.0 % 6 Folketrygdfondet 60 784 844 0.4 % 0.1 % 7 Skandinaviska Enskilda Banken 20 449 469 0.2 % 0.0 % 8 Hafslund ASA 0 420 420 0.2 % 0.0 % 9 Greenwich Land Securities AS 83 314 397 0.2 % 0.1 % 10 New Alternatives Fund, Inc 328 0 328 0.2 % 0.3 % Total, 10 largest shareholders 111 075 73 843 184 918 94.7 % 96.2 % Other shareholders 4 353 5 915 10 268 5.3 % 3.8 % Total 115 428 79 758 195 186 100 % 100 % 38

Definitions Group Capital employed Equity + Net Interest-bearing debt + Net tax positions Equity ratio (in %) (Equity incl. Minority interests / Total assets) X 100 Earnings per share Cash flow per share Return on equity last 12 months Profit after tax / Average no. of shares outstanding Net cash from operations / Average no. of shares Result after tax last 12 months / Average equity (incl. Minority interests) last 12 months Return on capital employed last 12 months Operating profit last 12 months / Average capital employed last 12 months Hedge ratio Hydro power Hedge ratio District heating Ratio of the estimated production portfolio hedged in the period (excluding fixed-price contracts) Ratio of the estimated net power price exposure hedged, by: Sales reduced with electricity use and 1/3 heat pumps 39

Investor information Additional information is available from Hafslund s website: www.hafslund.no You can subscribe to Hafslund press releases Group CFO, Heidi Ulmo heidi.ulmo@hafslund.no Tel: + 47 909 19 325 Financial Director and Investor Relations contact, Morten J. Hansen mjh@hafslund.no Tel: +47 908 28 577 40