Headquarters in Denmark 6200 employees including Oil amp Gas Revenue in 2016 DKK 612 bn EBITDA in 2016 DKK 191 bn Phase out the use of coal by 2023 80 Wind Power Develops constructs owns and operates ID: 808582
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Slide1
0
DONG ENERGY – LEADING THE ENERGY TRANSFORMATION
Slide2Headquarters in Denmark
6,200 employees (including Oil & Gas)
Revenue in 2016 DKK 61.2 bn
EBITDA in 2016 DKK 19.1 bn
Phase out the use of coal by 2023
80%
*
Wind Power
Develops, constructs, owns and operates
offshore wind farms in Denmark, Germany,
the Netherlands and the UK.
Development projects in Taiwan and the USA
1
4%
*
Bioenergy &
Thermal Power
Generates and sells power and heat to customers
in Denmark and Northwestern Europe
4%
*
Oil & Gas **
(discontinued operations)
Produces oil and gas from fields in Denmark, Norway and the UK
12%
* Distribution & Customer SolutionsPower distribution grid on Zealand and sale of power and gas to customers in Northwestern Europe
DONG Energy at a glance
* Share of the DONG Energy Group’s capital employed
** On 24 May 2017 DONG Energy entered into an agreement to divest its upstream oil and gas business to INEOS. This corresponds to the entire share capital of DONG Energy E&P A/S for an unconditional payment of USD 1,050 million (DKK 7 billion) on cash and debt free basis. DONG Energy will retain all cash flows until 30 June 2017
Slide32006
2016
2
Significant transformation of DONG Energy over the past decade
Business transformed
Share of capital employed
1
%
Operating profit
(EBITDA) tripled
DKK
Bn
International expansion
Share of operating profit (EBITDA)
%
2016
2006
2016
2006
16%
60%
24%
2006
2016
0%16%
84%
Excluding unallocated capital employed on DONG Energy group level
(50%)
3x
International
share
>5x
CO
2
emissions halved
g/kWh
Slide4Offshore wind is a large scale renewable technology with
growth rates exceeding other renewables
3
Fastest growing renewable technology in OECD
Installed capacity CAGR, 2014-2020
%
1
Source:
Bloomberg New Energy Finance (BNEF), H1 2017 offshore wind market outlook
Sum of utility-scale PV and small-scale PV
BNEF forecast has a more conservative build-out pace for U.S. compared to DONG Energy’s pipeline options towards 2025
Strong growth in established and new offshore wind markets
Installed Capacity, GW
+6 GW
+1 GW
+6 GW
+8 GW
2030
100.7
2025
34.5
70.92020
20052015
1.011.9
0.7%33%27%14%27%
%#
Europe
New markets
GW addition/year
CAGR
Slide5Unparalleled experience and track record
DONG Energy Wind Power geographical footprint
4
Walney Extension
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
Race Bank
Horns Rev 1 & 2
Hornsea 1
Anholt
Middelgrunden
Vindeby
Nysted
Borkum Riffgrund West 2
Borkum Riffgrund 2
Borkum Riffgrund 1
Gode Wind 1
Gode Wind 3 & 4
Gode Wind 2
Bay State Wind
22
offshore
wind farms in operation
7 offshore wind farms under construction
15
Partnerships
25+ years of experience and track record
in the offshore wind sector
1991
2017
5.0
GW
under construction
2,000
Dedicated employees
3.8 GW
Constructed capacity
7.7
million
Europeans with clean electricity
3.5 GW
World's leading operator
Coastal Virginia
Avedøre
Taipei office
Under construction
In operation
Under development
Decommissioned after 25 years
Asia Pacific
Formosa 1.1
Formosa 1.2
Boston office
USA
Europe
Greater Changhua projects
OWP West
Nördlicher Grund
Ocean Wind
Hornsea 2
Hornsea 3 & 4
Borssele 1&2
DONG Energy Wind Power Overview
Slide65
Largest offshore wind player globally today
Global offshore wind capacity
MW
% share of global installed capacity
Installed
1
Under construction
0.9
1.1
2.0
0.3
0.5
0.4
0.3
0.9
0.4
0.3
0.9
8.8
2.1
0.2
2.8
0.1
0.1
0.3
0.7
0.3
26%
8%
9%
8%
1%
1%
0%
0%
2%
4%
2%
2%
1%
Source: Bloomberg New Energy Finance, September 2017, DONG Energy analysis
If a project is executed on behalf of 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
The Global Market Leader Within Offshore Wind
Slide76
Offshore wind cost to society
(EUR/MWh)
1
Scale
Increased size of windfarms and turbines
3.6MW
2009
6.0MW
2014
8.0MW
2016
Innovation
Driving innovative solutions
Industrialisation
Standardisation and procurement for multiple projects
Digitalisation
Fully capturing new technological opportunities
Significant Cost Reductions Driven by Scale, Innovation and Industrialisation
Sources: DECC; Danish Energy Agency; Energinet.dk; NEV 1. Cost to society over the lifetime of the project used as proxy for the
levelised
costs to society. It consists of a subsidy income on top of market prices for the first years and a pure market income for the remaining years of the 25 years lifetime. Discount rate of 3.5% used to reflect society’s discount rate. Market income based on country specific public wholesale market price projections at the time of contracting. For comparability across projects a generic scope adjustment (incl. transmission and extra project development costs) has been applied.
Slide8Slide9Bay State Wind
2,000 MW potential capacity
15 miles from Martha’s Vineyard
Connecting into Massachusetts
Water depths of 100 – 125 feet
Ocean Wind
1,000 MW potential capacity
10 miles from shore
Connecting into New Jersey
Water depths of 65 – 100 feet
Coastal VA Offshore Wind
12 MW Stage 1 (demo) windfarm
22 miles from shore
Connecting into Virginia
Water depths of 80 – 100 feet
Secured project rights for ~3 GW capacity
Entered U.S. 50/50 JV for Bay State Wind
1 with Eversource in 2016Announced Coastal Virginia Offshore Wind partnership with Dominion Energy in July 2017
Offtake, grid connections and planning consents have not yet been secured
Bay State
Wind
Ocean Wind
CVOW
Coastal Virginia
Offshore Wind
DONG Energy Wind Power in the U.S.
8
Slide10DONG Energy is becoming
Ørsted
9
The way we produce energy is changing rapidly. Skillfully navigating the forces of change in the energy industry will be key to our continued success.
As of November 6, we are changing our name to
Ørsted
, after Danish scientist Hans Christian
Ørsted
.
Almost 200 years ago, Hans Christian
Ørsted
discovered electromagnetism, effectively establishing the foundations for the way we produce power today.
Hans Christian Ørsted’s ground-breaking discovery was driven by his curiosity, dedication and interest in nature. These qualities are essential for all of us to continue our journey to producing independent, economically viable green energy systems.
Slide11