Entra ASACompany Presentation, August 2018

Agenda

2

About Entra

Market and key financials

Green Bond financing

Summary

Q&A

Overview of Entra

• A leading owner, manager and developer of Norwegian office properties

• Strong, fully integrated real estate platform

• Focused on large, flexible, high-quality assets in centrally-located office markets close to public transportation hubs

• Management portfolio constitutes 87% of total sqm area, and 94% of the total value

• Solid track record and strong financial and operating profile

Key figures as of 30.06.18

3

Biskop Gunnerusgt 14 Oslo

National LibraryOslo

SundtkvartaletOslo

Number of Properties* 88

Total Area (’000s)* 1 263 sqm

Occupancy Rate (management portfolio) 96.7 %

WAULT (total portfolio) 7.4 years

Public sector tenants (share of rental income) 64 %

Property Market Value* 43.7 bn

Net Interest-Bearing Debt 17.9 bn

Interest Coverage Ratio 3,7x

Loan-to-Value 40.6 %* Total portfolio, incl project portfolio and development sites

7 4809 616

11 56713 338

15 567

18 430

22 56720 091

21 343 22 32823 740

25 885 26 809

30 850

33 619

38 890

43 410

0

5 000

10 000

15 000

20 000

25 000

30 000

35 000

40 000

45 000

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Tota

l ass

et v

alue

(NO

K m

)

Builds Powerhouse Brattørkaia

(18.200 sqm)

Strong track record of growth and value development

4

Buys and develops BG14

in Oslo

Develops Høgskolen iAkershus

Buys and developsMunch-kv.

in Oslo

Buys the National Library

Buys 1/3 ofOslo S

utvikling

Buys Havnelageret

in Oslo RehabilitatesMiddelthunsgate

29 in Oslo

BuildsNonnesetergaten 4

in Bergen

DevelopsBrattørkaiain Trondheim

BuildsPapirbredden 2

iDrammen

Rehabilitates Fr. Selmersvei

4 in Oslo

BuildsPapirbredden In Drammen

Rehabilitates Powerhouse,

Kjørbo

DevelopsRockheimiTrondheim

Buys 50% avHinna Park JV

Buys 100% avAS Lilletorget 12

Established in July 2000 as a spin-off

from Statsbygg

Buys office part of Oslo City

Buys Trondheimsporten

Buys project Schweigaardsgt16 in Oslo

Buys Skøyen-portfolio

(61.000 sqm)

Sundtkvartalet-project

finalised

Strømsveien96finalised

FinalisedMedia City Bergen(45.000 sqm)

Builds Tullinkvartalet(21.000 sqm)

64 %

36 %Public

Private

Sustainable cash flow; Premium tenants on long leases

High degree of public tenants

Diversified lease maturities with 7.4 years WAULT

Solid and diversified tenant structure

5

Tenant In % of

rent

Sector Norwegian Tax Administration 5.6 % Public The Norwegian National Rail Administration 3.9 % Public Norwegian Directorate of Health 3.9 % Public National Library of Norway 3.5 % Public Bane NOR SF 3.3 % Public Municipality Undertaking for Defence Buildings 2.0 % Public The Immigration Appeals Board 2.0 % Public Norway Post 2.0 % Public Borgarting Court of Appeal 1.8 % Public University College of Southeast Norway 1.8 % Public Circle K AS 1.6 % Private County Governor of Oslo and Akershus 1.6 % Public Bærum Municipality 1.6 % Public Norconsult AS 1.5 % Private The Norwegian Public Service Pension Fund 1.5 % Public Norwegian Petroleum Directorate 1.5 % Public Asker and Bærum Police District 1.4 % Public Oslo Municipality Undertaking for Social Services Buildings 1.4 % Public Norwegian Environment Agency 1.4 % Public Directorate of Norwegian Customs 1.4 % Public 44.8 %

Large, high-quality office portfolio in the largest cities

6

Trondheim9 %

Bergen9 %

Stavanger 5 %

Drammen5 %

Oslo, incl Sandvika74 %

Portfolio value:

NOK 44 bnProperty portfolio:

1.3 mill sqm

Management 87 %

Development8 %

Project 5%

By type (sqm)By segment (sqm)

Office 91 %

Culture 4 %Education 5%

Profitable growth

Strategy

High customer satisfaction

Enviromental leadership

Strategic target: Profitable growth

8

1 6321 772 1 760

1 8992 075

72%

79%81%

85% 87%

60%

70%

80%

90%

100%

0

500

1 000

1 500

2 000

2 500

2013 2014 2015 2016 2017

Rental income and EBIT margin Total asset value and EPRA NAV per share

26,9

30,933,6

38,9

43,4

76

89

101

127

50

70

90

110

130

150

0

10

20

30

40

50

2013 2014 2015 2016 2017

NOK mill % NOK bn NOK+ 27 % + 61 %

Strategic target: Best in class customer satisfaction

9

Portfolio occupancyCustomer satisfaction score

7274

8285 85

6972

77 7780

50

55

60

65

70

75

80

85

90

95

100

2013 2014 2015 2016 2017

Entra Industry Average (Norsk leietakerindeks)

95,8 94,6 95,096,8 97,0

50

55

60

65

70

75

80

85

90

95

100

2013 2014 2015 2016 2017

(%)

Strategic target: Environmental leadership

1010

202 199

188

171

155 152143

216222 218

205200

173

100

120

140

160

180

200

220

240

2011 2012 2013 2014 2015 2016 2017

Entra Industry Average (Enova)

Energy consumption (Kwh/sqm) Revised environmental strategy

Strong market position in Oslo

Helsfyr/Bryn

Portfolio strategy; Location І Clusters І Size І Quality

11

• Environment friendly office properties close to transportation hubs• Size and flexibility a competitive advantage

Strategic property portfolio rotationSignificant divestments over the last three years – exiting old and ineffective properties at remote locations

12

Re-investing in central and high quality assets through several large property purchases and project development

Purchased properties AreaTransaction

quarter No of sqmTransaction

valueClosing

dateBryn portfolio Oslo Q2 2018 57 000 1 100 Q3 2018

Johannes Bruns gt16/16A, Nygårdsvn 91/93 Bergen Q2 2018 - 135 Q2/Q4 2018

Nils Hansens vei 20 Oslo Q1 2018 3 150 50 03.04.2018

50 % of Sundtkvartalet Oslo Q3 2017 31 300 795 02.10.2017

Kristian Augusts gate 13 Oslo Q4 2016 3 300 155 20.01.2017

Skøyen portfolio (three properties) Oslo Q2 2016 61 000 2 529 01.09.2016

Lars Hilles gate 25 Bergen Q2 2016 5 800 53 01.09.2016

Office part of Oslo City Oslo Q4 2015 40 250 1 650 31.12.2015

Trondheimsporten Trondheim Q4 2015 28 600 163 18.12.2015

Sum 230 400 6 630

Sold properties AreaTransaction

quarter No of sqmTransaction

value Closing date

Tungasletta 2 Trondheim Q4 2017 14 800 180 31.01.2018

Middelthunsgate 29 Oslo Q4 2017 28 600 1 270 28.12.2017

Wergelandsveien 29 Oslo Q2 2017 3 373 160 30.09.2017

Akersgata 32 (Sections) Oslo Q2 2017 2 100 94 30.06.2017

Lømslands vei 23 Kristiansand Q2 2017 1 423 11 30.06.2017

Kristiansand portfolio Kristiansand Q2 2017 45 000 863 31.05.2017

Moloveien 10 Bodø Q1 2017 5 531 83 15.02.2017

Kongensgate 85/Erling Skakkesgate 60 Trondheim Q4 2016 1 769 16 31.03.2017

Kalfarveien 31 Bergen Q2 2016 8 440 85 01.02.2017

Fritznersgate 12 Oslo Q2 2016 824 53 15.09.2016

Telemarksgata 11 Skien Q2 2016 4 300 11 01.11.2016

Ringstadbekk AS Bærum Q1 2016 5 570 114 06.04.2018

Strandveien 13 Tromsø Q4 2015 11 560 158 28.01.2016

Gullfaks, Hinna Park Stavanger Q3 2015 17 900 727 30.10.2016

Keysersgate 15 Oslo Q1 2015 315 16 01.03.2015

Portfolio of six properties Moss, Skien, Lillestrøm Q1 2015 62 918 1 375 24.02.2015

Sum 214 423 5 216

Acquired large development project at Bryn in Oslo

Bryn, Oslo

13

• Current property portfolio:− 8 buildings, 57,000 square meters− Annual rent NOK 60 million, duration of ~ 4 years

• Land plot of 38,000 sqm − Expected development potential: ~120,000 sqm− Aiming for approx 50 % office and 50 % residential development

• Price: NOK 1.1 bn on closing + up to 0.3 bn when zoned

• JM to buy the residential development when zoned

New development area Excisting Entra properties

Ownership (%) LocationExpected

completionProject area

(sqm)Occupancy

(%)

Estimated total project cost*

(NOKm)

Of whichaccrued*

(NOKm)Yield on

cost**

Powerhouse Kjørbo, block 2 100 Sandvika Oct-18 3 950 100 122 113 6.4

Powerhouse Brattørkaia 17 A 100 Trondheim Mar-19 18 200 78 523 405 6.1

Tollbugata 1 A 100 Oslo Oct-19 9 000 100 460 202 5.1

Tullinkvartalet (UIO) 100 Oslo Dec-19 21 000 92 1 489 886 5.5

Holtermanns veg 1-13 100 Trondheim Jan-20 11 700 53 340 41 6.0

Total 63 850 2 934 1 648

* Total project cost (Including book value at date of investment decision/cost of land)

** Estimated net rent (fully let) at completion/total project cost (including cost of land)

Project Portfolio

14

Significant project pipeline (selected examples)

15

Ongoing projects

~ 63,850 sqm

Advanced / completed zoning

~ 150,000 sqm

Holtermannsveg 1, Trondheim

Universitetsgata 7-9, Oslo Universitetsgata 2, Oslo

Strømsveien 106, Oslo Oslo Solar (Lilletorget), Oslo Urban Mountain (BG14), Oslo

Early stage

~ 300,000 sqm

Tullinkvartalet (UiO), Oslo Brattørkaia 17, Trondheim

Schweiggardsgt 15a, Oslo

Agenda

16

About Entra

Market and key financials

Green Bond financing

Summary

Q&A

Market developmentRent and vacancy

• Economic growth picking up − Interest rates expected to increase, but also

growth in GDP and employment

• Oslo− Strong employment growth− Supply side limited next two years− Significant uplift in market rents

• Regional cities;− Increasing market rents in Bergen and

Trondheim city centre− Optimism back in Stavanger, stable rent levels

in city centre and at Hinna Park

Source: Entra consensus report, average of estimates from leading market specialists in Norwegian market. Nominal rental value growth

17

Market rental growth and vacancy in Oslo*

10,9 %8.0 %

4.6 %4.1 %

-3.0 %

1.9 %

5.1 %

7,9 %

5.7 %

3.2 %

7.1 % 7.2 % 7.4 % 7.8 %8.4 %

7.8 %7.1 %

6.4 % 6.1 % 6.2 %

-5%

0%

5%

10%

2011 2012 2013 2014 2015 2016 2017 2018e 2019e 2020e

Rental growth central Oslo assets Vacancy Oslo and Bærum

5.8 % 5.2 % 5.3 % 5.2 % 4.7 % 4.1 % 3.8 % 3.7 % 3.8 % 3.9 %

0%

2%

4%

6%

8%

2010 2011 2012 2013 2014 2015 2016 2017e 2018e 2019e

Market developmentTransactions and yields

• Well-functioning debt markets supporting the transaction market− Increasing activity in Q2

• Yields remain stable at low levels− Expected to slide upwards − Valuation effects balanced by market rent

outlook

* Source: Entra consensus report, April 2018. Estimates from leading market specialists in Norwegian market

18

Total transaction volume (NOKbn)*

Prime yield Oslo*

38 3552

4062

123

7487

72 70

0

50

100

150

2010 2011 2012 2013 2014 2015 2016 2017 2018e 2019e

517 507 526 545 558

0

100

200

300

400

500

600

Q2 17 Q3 17 Q4 17 Q1 18 Q2 18

1 446

1 031

1 251

856 843

0

200

400

600

800

1000

1200

1400

1600

Q2 17 Q3 17 Q4 17 Q1 18 Q2 18

328 307 314349 364

0

100

200

300

400

500

600

Q2 17 Q3 17 Q4 17 Q1 18 Q2 18

Key financials

Rental income (NOKm)

Net income from property management (NOKm)

Profit before tax(NOKm)

19

8 % -42 %11 %

0

0,5

1

1,5

2

2,5

3

3,5

4

20%

25%

30%

35%

40%

45%

50%

55%

Q2-

15

Q3-

15

Q4-

15

Q1-

16

Q2-

16

Q3-

16

Q4-

16

Q1-

17

Q2-

17

Q3-

17

Q4-

17

Q1-

18

Q2-

18

Loan-To-Value (left axis) ICR (right axis)

2,25%

2,75%

3,25%

3,75%

4,25%

4,75%

5,25%

Q2-

14

Q2

15

Q2

16

Q2

17

Q2

18

Q2

19

Q2

20

Q2

21

Average interest rate

Estimated interest rate using swap forward curve

Financial profile

LTV and ICRFinancing mix Development in avg. interest rate

20

0

2 000

4 000

6 000

8 000

10 000

12 000

14 000

16 000

18 000

20 000

Q2-

15Q

3-15

Q4-

15Q

1-16

Q2-

16Q

3-16

Q4-

16Q

1-17

Q2-

17Q

3-17

Q4-

17Q

1-18

Q2-

18

Bonds Commercal paper Bank

3.7

40.6

Balanced debt maturity profile and 202% capital commitment

21

826

1 700 2 0001 200

6 000

827 2 322

441

7 092

0

1 000

2 000

3 000

4 000

5 000

6 000

7 000

Q2-2018 0-1 yrs 1-2 yrs 2-3 yrs 3-4 yrs 4+ yrs

Commercial paper (NOKm) Bonds (NOKm) Bank loans (NOKm) Unutilised credit facilities and cash (NOKm)

-

1 500

2 500

910

2 000

-

500

1 000

1 500

2 000

2 500

0-1 yrs 1-2 yrs 2-3 yrs 3-4 yrs 4+ yrsUnutilised credit facilities (NOKm)

• Capital structure is a central topic within real estate as leverage is important for the equity return and the perceived risk of the business

• Assessments regarding financial risk capacity and limits to financial risk exposure is thus of high importance

• The Group manages financial risk in accordance with a framework included in the financial policy

• The main financial risks are financial leverage, financing risk, interest rate risk and credit risk

Financial risk management

22

Financial risk 30.06.2018 Financial policy

Financial leverage

Loan-to-value (LTV) 40,6% Below 50%over time

Financing risk

Financing commitments next 12m 202% Min. 100%Average time to maturity (debt) 4,8 Min. 3 yearsDebt maturities <12 months 19% Max. 30%

Interest rate riskInterest coverage ratio (ICR) 3,7 Min. 1.8xAverage time to maturity (hedges) 3,9 2-6 yearsMaturity of hedges <12 months 46% Max 50%

Credit risk / currency exposureCounterpart's credit rating Fulfilled Min. A-/A3Share of debt per counterparty 7,5% Max. 40%Currency exposure Fulfilled 0

Agenda

23

About Entra

Market and key financials

Green Bond financing

Summary

Q&A

Introduction to Green Bonds• Green bonds are broadly defined as fixed-income securities that raise

capital for a project with specific environmental benefits

• Green Bonds are designed to encourage sustainable investments

• Five pillars of the green bond framework:− Simplicity – Green Bonds are issued under the same documentation as

regular bonds− Governance/Selection process - projects are selected based on criteria set

out in the green bond framework− Credibility – second opinion of the green bond framework from

environmental specialists, i.e. CICERO− Traceability – the net proceeds will credited to earmarked accounts at the

issuers− Transparency/reporting – the issuer will report to the green bond

investors on an annually basis in the form of a “Green Bond Report”

24

Entra’s Green Bond Framework

• Entra issued its inaugural Green Bond in September 2016

• The Green Bond Framework was constructed with the intention of reinforcing the current environmental leadership of Entra

• The Green Bond Framework was revised in April 2018 to also include buildings which attain certification Breeam In-Use Excellent – as 80-90 % of the greenhouse gases are emitted during the operational phase of a building lifespan

• Entra’s revised Green Bond Framework – main qualifiers for Eligible Projects − Commercial or residential buildings with an energy use per year on a kWh/m2 basis that, at the time of approval by Entra

of that project, is at least 30 per cent lower than the Norwegian government agency Enova’s most recent annual industry average, and that meet one of the following requirements:− Commercial and residential properties with certification from BREEAM-NOR with a minimum certification of “Excellent”;− Commercial and residential properties with a minimum BREEAM In-Use certification of “Excellent”

25

Second opinion of Green Bond Framework by CICEROCICERO grades with shades of green

26

Projects and solutions that realise the long term vision of a low-carbon and climate-resilient future already today. Typically, this will entail zero-emission solutions and governance structures that integrate environment concerns into all activities. Example projects include renewable energy projects such as solar or wind

Projects and solutions that represent steps towards the long-term vision, but are not quite there yet. Example projects include sustainable buildings with good (but not excellent) energy efficiency ratings

Projects and solutions that are environmentally friendly but are not by themselves a part of the long-term vision. Example projects include energy efficiency improvements in fossil-based industry that result in short-term reductions of greenhouse gas emissions, and diesel-fueled buses

Dark green

Medium green

Light green

27

CICERO – Second opinion

CICERO – Second opinion

• Based on an overall assessment of the project types that will be financed as well as governance, reporting and transparency considerations, Entra’s Green Bond Framework gets a Dark Green shading”

“

Strengths: Weaknesses:• No significant weaknesses perceived”“• Through its strategic framework and other policies, Entra is

deeply committed to contribute to a green transition towards a low carbon society in the longer run

• Entra has proved to be an environmental leader in the building sector in Norway and has been responsible for some dark green and very innovative building projects

• Entra complies with national and international environmental requirements and takes an active responsibility for reducing negative environmental impacts beyond such requirements

• Entra also takes responsibility outside its own value chain by contributing to the sector and to the customers’ development

Potential green bond pipeline

• New university building planned for the University of Oslo, Faculty of Law

• Size: 21,000 sqm• Expected construction

period: 2017-2019• Zoning status: zoning plan

approved• Target certification:

BREEAM Excellent

Tullinkvartalet, Oslo• New office building• Size: 30-50,000 sqm• Zoning initiated• Target certification: BREEAM

Outstanding

Oslo Solar, Oslo• Size: 31,300 sqm• Occupancy: 9x % let• New office building • Project completion ultimo

2016• BREEAM-NOR Excellent

Sundtkvartalet, Oslo

• Size: 37,970 m2• Occupancy: 91 %• Main tenant: Norwegian

Tax Authority• Fully renovated in 2013• BREEAM In-Use Excellent

in 2017

Fredrik Selmers vei 4, Oslo

• Size: 14,105 sqm• Occupancy: fully let• Main tenant: :

Norwegian Environment Agency1

• New build: 2013• BREEAM In-Use

Excellent 2018

Brattørkaia 15,Trondheim

• Size: 11,700 sqm• Occupancy: 53 % pre-let

(Norwegian Tax Adm.)• New office building • Project completion primo

2019• BREEAM-NOR Excellent

Holtemannsvei 1-13, Trondheim

• Size: 6.894 sqm• Occupancy: 100 %• Main tenant: Asplan Viak• Fully renovated 2014• BREEAM NOR

Outstanding

Powerhouse, Kjørbo

• Size: 15,498 sqm• Occupancy: fully let• Main tenant: Circle K• New build: 2015• BREEAM NOR Excellent

Circle K Building, Schweigaardsgt. Oslo

• Size: 15,000 sqm• Occupancy: 78 % pre-let• Main tenant: Enova,

Teekay• New build 2019• BREEAM NOR Outstanding

Powerhouse Brattørkaia, Trondheim

• Size: 8,350 sqm• Occupancy: fully let• Main tenant: Norwegian

Business School• New build: 2017• BREEAM NOR Excellent

BI Brattørkaia, Trondheim

• Size: 4,200 sqm• Occupancy: 100%• Main tenant: Norconsult• Fully renovated 2017• BREEAM NOR Excellent

Powerhouse II, Kjørbo

NOK bn

Agenda

29

About Entra

Market and key financials

Green Bond financing

Summary

Q&A

30

Summary

• Entra is one of Norway’s leading real estate companies with a solid track record and strong financial and operating profile− Solid tenant structure with 64 % public tenants− WAULT of 7.4 years

• Attractive market dynamics within real estate going forward− Supportive macro outlook− Strong and broad uplift in market rents in Oslo− Well-functioning debt markets supporting the transaction market− Prime yield remain stable at low levels− Short term portfolio consolidation, but growth to continue − Solid development pipeline further strengthened, both short and long term

• Environmental leadership is a strategic priority for Entra− Entra is now established as a high quality green bond issuer− Entra will pursue Green Bond financing going forward, it expands the

funding base, provides attractive financing costs, and reinforces the environmental leadership

Universitetsgata 7-9, Oslo. New-build project started in Q3-18

For more information see www.entra.no/investor-relations

Tore Lia Head of Finance & TreasuryEntra ASAMobile: +47 468 10 820E-mail: tl@entra.no