Green Ribbon Commission Middelgrunden visit

Morten Melin, Vice President for EPC & Construction Management

16 June 2016

INTRODUCTION TO DONG ENERGY

DONG Energy at a glance

Bioenergy & Thermal PowerOil & GasDistribution &

Customers SolutionsWIND POWER

9.8

2.2

Exploration and production

(>100 kboe/day)

Private and commercial

gas & power sales, and

distribution

DONG ENERGY

18.5

Energy group operating in

Northwestern Europe

Employs 6,700 FTEs

6.2

Development, construction

and operation of offshore

wind farms

0.3

Electricity and heat

generation from power

stations. 44% of Danish

thermal capacity

EBITDA 2015 DKK bn

613

334

20152007

CO2 emissions halvedg/kWh

Significant transformation of DONG Energy over the past decade

Business transformedShare of capital employed2

%

EBITDA1 doubledDKK Bn

International expansionShare of EBITDA

%

9,3

18,5

2007 2015 2015

63%

12%

37%

2007

88%

24%

2015

75%

16%

9%

2007

16%

60%

1. Operating profit (EBIT) before depreciation, amortisation and impairment losses

2. Excluding unallocated capital employed on DONG Energy group level

(46%) 2.0xInternational

share >5x

Current and planned Danish offshore wind capacity

MW

4

Middelgrunden – a pioneer project at time of construction, a small

part of Danish offshore capacity today

Other installed

capacity

Middelgrunden

1,231

Planned new

capacity

1,000

40

Anholt turbines

Middelgrunden

turbines

Middelgrunden offshore wind farm

Capacity: 40MW

Turbine size: 2.0MW

Comm. year: 2001

Anholt offshore wind farm

Capacity: 400MW

Turbine size: 3.6MW

Comm. year: 2011

Kriegers Flak offshore wind farm

Capacity: 600MW

Turbine size: ?

Comm. year: 2022

Vindeby

Worlds’ first offshore wind farm

Turbine capacity:

Nr. of turbines

Rotor diameter

Distance to shore

0.45 MW

11

35 m

1.8 km

Horns Rev 1

Worlds’ first large scale offshore

wind farm

Turbine capacity:

Nr. of turbines

Rotor diameter

Distance to shore

2 MW

80

80 m

18 km

1,004 MW476 MW

5 MW

London Array

Words’ largest operational offshore

wind farm

Turbine capacity:

Nr. of turbines

Rotor diameter

Distance to shore

3.6 MW

175

120 m

20 km

Barrow

45 MW

Burbo

90 MW

DONG Energy pioneered the offshore wind industry

Nysted

166 MW

Walney I + II

367 MW

London Array

315 MW

Gunfleet Sands

173 MW

Horns Rev 2

209 MW

Total constructed capacity by DONG Energy, (MW)

Anholt

400 MW

630 MW160 MW5 MW

West of Duddon Sands

389 MW

1,371 MW

2,098 MW

2,487 MW3,009 MW

50 MW

Westermost Rough

210 MW

2018 202020192012 20142013 201620101990 2005 20172000

Vindeby

5 MW

Middelgrunden

40 MW

6,500 MW

Hornsea 1

The world’s largest offshore wind

farm once constructed

Turbine capacity:

Nr. of turbines

Rotor diameter

Distance to shore

7 MW

174

154 m

120 km

1,200 MW

Gode Wind 2

252 MW

Burbo Bank Ext.

258 MW

Race Bank

573 MW

Walney Extension

660 MW

Hornsea 1

1,200 MW

Pre-2009: Project by project Post-2009: Industrialised approach

Horns Rev 1

160 MW

Borkum Riffgrund 1

312 MW

Gode Wind 1

330 MW

In 2009, DONG Energy commenced the industrialisation of offshore

wind

6

Pre-2009

• Planned and executed

independently

Project Execution

Model

Strategic

Sourcing and

Integration of

Supply Chain

Element Post-2009

• Planned, contracted and

executed in parallel increases

standardization

• Lessons learnt across portfolio

captured and implemented

• In-house engineering expertise

Organizational

Capabilities

• Each project sourced

individually

• Bottlenecks in markets caused

challenges

• Framework agreements ensure

attractive terms and access to

manufacturing capacity

• A2SEA acquired to reduce

installation vessel bottlenecks

• Org. structured around

traditional power plant

experiences

• Org structure redesigned

around offshore wind

experiences

• Wind Power as a separate

business unit

1

2

3

DONG Energy is today a global leader

Largest offshore wind player globally todayGlobal offshore wind capacity

MW

26% 11% 9% 11% 0% 0% 1% 3%3% 1% 2%

3.009

1.273997 1.225

161 288 159

3.273

668695 400

311 111121

6,282

1.9411.692 1.625

1.064

600472 399

336 280257

% share of global installed capacityInstalled2 Under construction

Source: BNEF

1. Excluding Borkum Riffgrund 2 which is pending FID

2. If a project is executed by a lead developer managing the construction, then 100% of capacity is allocated to the lead developer. If construction is executed by an integrated joint venture,

capacity is allocated in proportion to the JV share

3. Statkraft has decided to scale down their activities in offshore wind. Current assets will be built and development projects will be brought forward to allow divestment before FID

1

3

DONG Energy’s portfolio

is larger than the three

nearest competitors

combined

8

Unparalleled experience and track record

Under construction

In operation

Under development

Walney Ext.

Walney 1 + 2

Westermost

Rough

Isle of Man

West of Duddon Sands

Barrow

Burbo Bank Ext.

Burbo Bank

Gunfleet Sands 3

Gunfleet Sands 1 + 2

Lincs

London Array 1

Race Bank

Horns Rev 1 + 2

Hornsea 1

Anholt

Middelgrunden

Vindeby

Nysted

German Cluster

Borkum Riffgrund 2

Borkum Riffgrund 1

Gode Wind 1

Gode Wind 3

Gode Wind 2

Bay State Wind

19 offshore wind farms

in operation

6 offshore wind farms

under construction

14

Partnerships

25 years of experience and track

record in the offshore wind sector1991 2016

3,273 MW

under

construction

1,800

Dedicated

employees

3,009 MW Constructed

capacity

7.5 million

Europeans

with clean

electricity

3,103 MW

World's

leading

operator

DONG Energy Wind Power activity overview

Hornsea 2 + 3 + 4

Ocean Wind

Avedøre

DONG Energy Wind Power geographical footprint

A solid integrated end-to-end business model

Identify and mature projects

Perform FEED1 + layout

Carry out site surveys

Manage consenting

processes

Bid preparation and delivery

Mature project design

Detailed design competence

on selected systems/

components

Manage sourcing and supply

Manage logistics, installation

and commissioning

Ensure asset integrity over

life-cycle

Scheduled and unscheduled

maintenance

Collect data and perform

diagnostics

Highest yield at lowest cost

Attract capital through

partnerships

Secure revenue and profit

optimisation over life-cycle

Ensure marketing of

electricity and certificates

Develop Build Operate Own

Full-time employees2~1,800

DONG Energy Wind Power core competencies

1. Front-end engineering design

2. Excluding A2SEA employees

~90 ~1,040 ~590 ~80

Ability to design and optimize projects with a 'total life-cycle cost of wind farm' mindset

Experience and expertise along the entire value chain allow for better understanding and management of risks

End-to-end model reduces LCoE through fast feedback and learning across the entire organization

From idea to realisation

10

Major institutional investors as partners

Note: private partnership in the Middelgrunden offshore wind farm not included in this chart

Walney I & II (50.1%)

367 MW (2009 / 2010)

(KIRKBI)

West of Duddon Sands (50%)

389 MW (2011)

Burbo Bank Extension (50%)

258 MW (2016)

Lincs (25%)

270 MW (2009)

Gunfleet Sands (50.1%)

173 MW (2011)

Anholt (50%)

400 MW (2011)

Horns Rev 1 (40%)

160 MW (2005)

Nysted (42.7%)

166 MW (2010)

Gode Wind 2 (50%)

252 MW (2014)

Gode Wind 1 (50%)

330 MW (2015)

Westermost Rough (50%)

210 MW (2014)

London Array (25%)

630 MW (2009 / 2014)

Borkum Riffgrund 1 (50%)

312 MW (2012)

(KIRKBI)

12