Slides
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Corporate Factbook November 2025
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Table of contents 1 Vattenfall Group Overview and Strategy 3 Governance 21 2 Operating Segments Customers & Solutions 26 31Power Generation 39Wind 50Distribution 2 Financials3 ESG and Credit ratings ESG Green financing Sustainability deep-dives 4 Hedging, debt and funding 56 64 68 74
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Overview and Strategy
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24% 38% 24% 15% Power Generation Wind Customers & Solutions Distribution 38% 35% 18% 9% 0% This is Vattenfall 1 Breakdown excludes other and eliminations 4 In Brief • Vattenfall is a leading European energy company • We want to enable the fossil freedom that drives society forward • We are driving the transition to a more sustainable energy system through growth in renewable production and climate smart energy solutions for our customers • A business model of an integrated utility, as being active in generation, flexibility, distribution, sales, services, optimisation and trading. • 100 per cent owned by the Swedish State • Our long-term credit ratings are BBB+ stable outlook by S&P and A3 stable outlook by Moody’s 1.0 Million Electricity grid customers 20,665 Employees 0.6 Million Heat customers 2.4 Million Gas customers 7.7 Million Electricity customers • Sweden • Netherlands • Denmark • United Kingdom • Germany Main markets CO2 emissions & renewable capacity Electricity generation breakdown by technology, 2024 Underlying EBITDA breakdown by segment, 20241 0 1 000 2 000 3 000 4 000 5 000 6 000 7 000 0 30 60 90 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 MW Mtonnes Installed renewable capacity (MW) CO2 emissions (Mtonnes) 99.6 TWh Activities in the Value Chain Upstream TransmissionProduction Distribution Trading Retail Services Active Inactive SEK 38.8 bn Nuclear Hydro Wind Fossil Biomass
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5 Location of our operations and major plants Wind Biomass Hydro Gas Nuclear Solar District heating Largest facilities marked with a black circle Hollandse Kust Zuid Dan Tysk Kriegers Flak Vesterhav Syd and Nord Horns Rev 3 Sandbank Thanet Uppsala Amsterdam Harsprånget Stornorrfors Ringhals Forsmark See pages below for additional information on our main production plants: Heat (page 29), Nuclear (page 33), Hydro (page 36) & Wind (page 48 & 49)
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Vattenfall’s value chain 6 Electricity generation and supply Electricity goes through three main steps before it can be used by end customers: generation, transmission, and distribution. Generation is typically a competitive market both in terms of energy sources and the number of actors. The transmission grid is typically a national monopoly while regional and local grids are regulated monopolies. Heat generation and supply District heating systems transport hot water in underground pipe networks to heat up buildings. The water is kept in a closed loop, which means that it is returned to the heating plant, re-heated, and re-used in the network. District heating networks can manage supply and demand by storing and releasing heat to meet actual demand. Heat can also be integrated from third- party sources such as waste heat from industrial processes and data centres that is fed into the heat network. Two integrated energy systems In so-called power-to-heat plants, excess electricity from e.g. wind and solar can be used in an e-boiler to generate heat. Plants used for district heating can also produce electricity. These are called combined heat and power (CHP) plants and the co-generation makes more efficient use of the utilised fuel. Electricity from CHP plants are typically fed directly into the grid.
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Operating segments We report our operations broken down by the Group’s operating segments: Customers & Solutions, Power Generation, Wind and Distribution. The operating segments reflect our Business Area organisational structure except for the Power Generation segment, which is divided into the Generation and Markets Business Areas Number of Employees1 Customers & Solutions Responsible for our customer relations, heat plants and gas-fired condensing plants as well as sales of electricity, gas, heat and energy services. • A market leader in Sweden and the Netherlands. A total of 5.1 million electricity and gas contracts in Germany with a leading position as electricity supplier in Berlin and Hamburg. • Operates 75,413 e-mobility charging points in Sweden, Germany, the Netherlands, and Norway. • Partnerships with cities for the realisation of carbon reduction plans, supported by a track record of meeting previous reduction targets • Heat production and distribution systems used as platforms to integrate other energy solutions, like district cooling, e-mobility charging solutions, wind, and solar. Operating segment overview H1 2025 7 Net Sales: SEK 95,794 mn (50% of total3) Underlying EBITDA: SEK 4,177 mn (16% of total) Underlying EBIT4: SEK 2,850 mn (18% of total) 1 Full-time equivalents 2 Pertains mainly to Staff Functions and Shared Service Centres 3 Calculation excludes eliminations 4 Operating profit excluding items affecting comparability Power generation Responsible for Vattenfall’s hydro and nuclear power operations as well as business and optimisation and trading operations, including certain large business customers. • Operates a portfolio with 5.5 GW nuclear power capacity and 11.2 GW hydro power capacity across Sweden, Finland, and Germany • One of Europe’s largest producers of fossil-free electricity, with 21.2 TWh from nuclear power and 18.0 TWh from hydro power in half year (Jan-Jun) 2025 • Provides professional asset optimisation services and market access and is a leading player in commodities trading and power purchase agreements in northwestern Europe. Net Sales: SEK 76,453 mn (40% of total3) Underlying EBITDA: SEK 11,515 mn (45% of total) Underlying EBIT4: SEK 9,028 mn (57% of total) Power Generation 5,586 Customers & Solutions 5,589 Wind 1,819 Distribution 4,398 Other2 3,585
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Operating segment overview H1 2025 (Cont’d) 8 Distribution Responsible for Vattenfall’s electricity distribution operations in Sweden and the UK, as well as Vattenfall’s maintenance service business. Provides Power-as-a-Service where we own and operate electrical- , storage- and charging infrastructure on long-term contracts. • Leading operator of regional electricity distribution grids and among the top three largest actors in local grids in Sweden • Distributes over 50% of the electricity in Sweden • Approximately 1,000,000 business and private customers in Sweden • Unit for operation and ownership of new grids in the UK established in 2017 Net Sales: SEK 10,010 mn (5% of total1) Underlying EBITDA: SEK 3,257 mn (13% of total) Underlying EBIT2: SEK 1,559 mn (10% of total) 1 Calculation excludes eliminations 2 Operating profit excluding items affecting comparability Wind Responsible for development, construction and operation of Vattenfall’s wind farms as well as for large-scale solar power plants and batteries. • One of the largest producers of onshore wind power in Denmark and the Netherlands • One of the largest producers of offshore wind power in the world excl. China. • 7.8 TWh of electricity generated from 6.6 GW in operated capacity • Strong wind, solar and battery pipeline with 2.2 GW in construction and over 3.1 GW in mature stage development • Forerunner in innovative solutions in solar and batteries, such as co-location. Net Sales: SEK 10,347 mn (5% of total1) Underlying EBITDA: SEK 6,530 mn (26% of total) Underlying EBIT2: SEK 2,293 mn (15% of total)
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Financial characteristics per operating segment 9 Operating segment Key drivers for earnings Characteristics of earnings and cash flow Customers & Solutions For the customer business the difference in sourcing costs compared to sales price (gross margin) and development in the customer base. For the condensing business the spread between the electricity prices and the fuel costs with emission allowance. For the heat business the spread between heat price and generation and distribution costs as well as temperature effects impacting the demand. Earnings stabilising after a couple years of favourable sourcing. Heat’s contribution has declined due to divested business activities, condensing’s contribution has declined due to reduced generation capacity. Power Generation A function of spot price, generation volume, electricity price area differentials, hedge ratio and hedge price Large outright power price exposure is offset by hedging activites, thereby reducing volatility Wind A function of existing subsidies schemes rolling off, net new capacity added, the achieved power price rewarded to new capacity, technological development and synergies Growing contribution on the back of new capacity Distribution Largely a function of regulatory asset base (RAB), regulatory WACC, and the efficiency of the operations Stable
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A strategy based on an “integrated utility logic” To enable the fossil freedom that drives society forward We believe being active in the whole value chain is strategically important: 10 It increases our competitive advantage in eg. wind auctions, by enabling stable revenues through Corporate PPAs with our customers Access to renewable volumes on the customer side differentiates us from competitors as fossil-free electricity becomes more scarce The ability to optimise dispatch across both customer loads and supply brings optimal value of a total portfolio Diversifying and reducing total portfolio risk means lower cost of capital and an ability to take on more debt
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Strategic focus area Strategic targets to 2025 Actual 2024 Actual 2023 Progress FY 2024 Comments Driving decarbonisation with our customers & partners Customer engagement, absolute Net Promoter Score (NPS)1: +18 +15 +11 Increase in NPS mainly as a result of improvements in the Dutch customer business following lower prices Securing a fossil-free energy supply CO2 Emissions Intensity2: ≤86 gCO2e/kWh 50 69 Improvement due to lower fossil-based generation, mainly due to divestment of the heat business in Berlin Empowering our people Lost Time Injury Frequency (LTIF)3: ≤1.0 1.3 1.5 Above target levels. Further actions required to enhance safety Employee Engagement Index4: ≥75% 823 803 Outcome above target level after continued improved performance with more engaged employees Delivering high-performing operations Funds from operations (FFO) /Adjusted Net Debt5: 22-27% 49.2% 21.5% Above target interval as a result of lower adjusted net debt, mainly due to net received margin calls, the divestment of the heat operations in Berlin and the sale of offshore wind power projects ROCE6: ≥8% 12.4% 5.3% Outcome above target mainly due to positive changes in market value of energy derivatives and capital gains from divestment of offshore wind power projects Strategic targets 2025 1 Reported on an annual basis 2 Consolidated value including the heat business in Berlin until the sale on the 2nd of May 2024. Includes CO2 and other greenhouse gases such as N2O and SF6, as well as indirect emissions from electricity and heat use (scope 2). The target for 2025 is to be on track to achieving the 1.5° C target by 2030, according to SBTi 3 Rolling 12-month values. LTIF (Lost Time Injury Frequency) is expressed in terms of the number of lost time work injuries per 1 million hours worked. The metric pertains only to Vattenfall employees 11 4 Documentation for measurement of target achievement is derived from the results of an employee survey, which is conducted on an annual basis 5 Rolling 12-months values 6 Rolling 12-month values. The Return on capital employed based on underlying operating profit amounted to 6.3%
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Strategic targets 2030 Strategic focus area Strategic targets to 2030 Actual 2024 Progress FY 2024 Comments Driving decarbonisation with our customers & partners Customer engagement, Net Promoter Score (NPS)1: 20 +15 Increase in NPS (+11 in 2023) mainly as a result of improvements in the Dutch customer business following lower prices. Securing a fossil-free energy supply Mt. Absolute CO2 emissions (includes scope 1, 2 and 3)2: 18.2 24.6 Total emissions reduced compared to 25.8 in 2023 due to more fossil- free electricity sales. Motivating and empowering our people Total recordable injury frequency (TRIF+) with a zero fatality threshold3: <2.0 3.5 Outcome above target level. Further actions required to enhance safety performance. Employee Engagement Index4: 86 86 Outcome in line with target, continued efforts to maintain employee engagement. Driving diverse leadership5: 40% 34 While we are still below the target set for 2030, we are making significant strides in this area. Delivering high-performing operations Funds from operations (FFO) / Adjusted Net Debt6: ≥25% 41.5%8 Above target interval as a result of lower adjusted net debt, mainly due to the divestment of the heat operations in Berlin and the sale of offshore wind power projects. ROCE excl. items affecting comparability7: ≥8% 5.4%9 Outcome below target mainly due to lower underlying EBIT. 1 Reported on an annual basis. 2 Total absolute CO2e emissions including Scope 1, 2 and 3, as covered by Vattenfall’s 2040 Net Zero targets validated by SBTi. 3 Per 1 million hours worked. This metric includes both Vattenfall employees and contractors. In case of fatality, this target can not be achieved. 4 Documentation for measurement of target achievement is derived from the results of the My Opinion employee survey, which is conducted on an annual basis. 5 This metric is measured by the Female Manager Ratio, which reflects progress toward gender diversity in leadership. 6 Rolling 12-month values. Capital structure metric based on proportional fund from operations excluding dividend attributable to non- controlling interests. Adjusted net debt is excluding margin calls. 7 Rolling 12-month values. Profitability metric based on underlying EBIT excluding items affecting comparability. 8 The value has been adjusted compared with information previously published in Vattenfall’s financial reports. 9 The value was restated to 5.4% from 6.3% in Q1 2025.
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Financial targets Financial targets Targets over a business cycle1 Outcome 2024 Comment Profitability Return on capital employed, excl. items affecting comparability: ≥8%2 5.4%5 Outcome below target level due to lower underlying operating profit partially due to provisions for nuclear power. Capital structure FFO/adjusted net debt3: ≥25% 41.5%6 Above target interval as a result of lower adjusted net debt, mainly due to the divestment of the heat operations in Berlin and the sale of offshore wind power projects. Dividend policy Dividend: 40%–70% of adjusted net profit4 7.0 billion SEK A dividend of SEK 7 billion has been paid to the owner. 1 The financial targets are set over a business cycle (5-7 years). The table below outlines the 2024 outcomes for these targets. 2 Based on underlying EBIT excluding items affecting comparability and average capital employed. 3 Metric based on funds from operations excluding dividend attributable to non -controlling interests. Adjusted net debt is excluding margin calls. 4 Adjusted net profit is excluding fair values and return from nuclear waste fund. The updated dividend policy takes into accou nt future developments in capital structure and investment needs. 5 The value was restated to 5.4% from 6.3% in Q1 2025. 6 The value has been adjusted compared with information previously published in Vattenfall’s financial reports.
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Vattenfall in figures Strong balance sheet and attractive growth opportunities 14 FFO/adjusted net debt 1 2020 2021 2022 2023 2024 Target: ≥25% 41.5% Underlying Return on Capital Employed 2 2020 2021 2022 2023 2024 Target: ≥8% 5.4% 2020 2021 2022 2023 2024 20,655 2020 2021 2022 2023 2024 99.6 2020 2021 2022 2023 2024 7,000 Dividend (M SEK) 3 Number of FTE Electricity generation (Twh) 2020 2021 2022 2023 2024 30,468 Investments (M SEK) 1 From 2024 the outcome is reported according to the new definition of the capital structure target. The new definition is based on adjusted FFO (Funds From Operations), excluding minority shares, and the adjusted net debt excludes margin calls. 2 The ROCE has been adjusted and restated retroactively for the 2024 value. Before the adjustment, it was reported as 6.3%. Starting from Q1 2025, From Q1 2025, changes in fair values of energy derivatives as well as inventory revaluation for proprietary trading activities are recognised in the underlying operating profit to better reflect the overall trading performance. 3 From 2024, the outcome is reported in accordance with the new dividend policy. The dividend policy is based on adjusted net profit, excluding fair values and return from the nuclear waste fund. The updated dividend policy is meant to be forward looking and takes into account future developments in capital structure and investment needs.
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Development of underlying EBIT FY 2024 Decrease from C&S and Wind partly offset by higher earnings in Power Generation and Distribution Change in FY 2024 vs. FY 2023 Highlights 15 9.2 3.1 6.5 1.5 -0.3 2023 6.6 4.0 5.9 2.6 0.7 2024 Customers & Solutions Power Generation Wind Distribution Other 20.0 19.8 Breakdown per operating segment SEK bn SEK bn • Customers & Solutions: decrease partly driven by increased regulatory costs in the German customer business, and partly by lower gas prices impacting the heat business • Power Generation: positive effect mainly from price hedging in the Nordic region, which counteracted the lower electricity prices and, together with lower price area differences, contributed to a higher achieved electricity price in the Nordics • Wind: lower electricity prices, higher costs and depreciation mainly due to new assets • Distribution: higher revenues. The comparison is to a great extent affected by the temporary reduction of the electricity grid tariff during the second half of 2023 20.0Underlying EBIT 2023 -2.6Customers & Solutions 1.0Power Generation -0.7Wind 1.1Distribution 1.1Net other effects Underlying EBIT 2024 19.8
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104 bn SEK 37% 31% 27% 4% 1% The Netherlands, 38 bn SEK Germany, 33 bn SEK Sweden, 28 bn SEK United Kingdom, 4 bn SEK Denmark, 1 bn SEK 104 bn SEK 69% 13% 10% 8% Wind power, 72 bn SEK Electricity distribution, 13 bn SEK Heat supply, 10 bn SEK Other, 9 bn SEK 170 bn SEK 45% 24% 11% 9% 6%4% Wind power, 77 bn SEK Electricity distribution, 41 bn SEK Other, 19 bn SEK Heat supply, 16 bn SEK Hydro power, 11 bn SEK Nuclear power, 6 bn SEK 170 bn SEK 47% 26% 22% 3% 1% Sweden, 80 bn SEK The Netherlands, 44 bn SEK Germany, 37 bn SEK United Kingdom, 6 bn SEK Denmark, 2 bn SEK Other, 1 bn SEK TI UI EI 0 50 100 150 61% 29% 10% 104 bn SEK 49 bn SEK 17 bn SEK Growth Maintanance Replacement Growth capex per technology Total capex 2025-2029 Investment plan 2025-2029 Total capex 16 Total capex per technology 1 170 bn SEK Total capex per country Growth capex per country 1 Mainly E-mobility, facility and IT investments 2 Mainly E-mobility 2
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Major investment projects Decided on and in progress 1 17 1 All numbers in the table reflect the status as per 31 December 2024 2 Production from onshore wind estimated to 2.6 GWh/MW installed, from offshore wind to 3.5 GWh/MW installed, and from solar to 1.0 GWh/MW installed. Resulting production is compared against grid average emission factors which will decline over time as the energy system decarbonises. Actual production emission factors and savings will vary. Other projects are compared to project -specific reference cases. 3 The project is EU taxonomy-eligible and aligned 4 Develop-to-sell project Project Country Type Capacity Est. CO2 reduction2 (ktonnes) Vattenfall’s share (%) Completion Total investment Bruzaholm3 Wind onshore / Battery 139 MW 2 100% 2025 2,360 MSEK Velinga3 Wind onshore 67 MW 1 100% 2025 1,182 MSEK Battery Toledo3 Battery 55 MW n/a 50% 2025 43 MEUR Nauen3,4 Solar 46 MW 11 100% 2025 25 MEUR E-boiler Diemen Electricity as fuel 150 MWth n/a 100% 2025 45 MEUR E-mobility - Netto3 E-mobility n/a n/a 100% 2025 86 MEUR E-mobility - Bünting3 E-mobility n/a n/a 100% 2025 56 MEUR
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Significant shift in production portfolio With growing capacity of wind and solar power and fossil fuels being phased out Electricity generation mix Milestones 2017 - Phase out of lignite with closure of Klingenberg CHP plant in Berlin, Germany. Inauguration of Pen y Cymoedd onshore wind farm in Wales 2018 - Phase out of peat in Uppsala, Sweden and the start of SamEnergi (third party integration of commercial heat surpluses to district heating networks) 2019 - Closure of coal-fired Hemweg-8 power plant in Amsterdam (NL) 2020 - Closure of coal-fired Moorburg power plant in Hamburg (DE) and opened Princess Ariane Wind Farm, the largest Dutch Onshore wind farm 2021 - Kriegers Flak in Denmark operational as Scandinavia’s largest wind farm 2022 - Inauguration of Vattenfall’s largest onshore wind farm, Blakliden Fäbodberget, in Sweden - Inauguration of the biobased heat plant Carpe Futurum enabling a complete phase out of peat in the Swedish operations 2023 - Inauguration of South Kyle onshore wind farm in the UK and Hollandse Kust Zuid in the Netherlands 2024 - Sale of the heat business in Germany to the State of Berlin completed and inauguration of Vesterhav Nord and Syd offshore wind farms in Denmark 18 49% 9% 18% 23% 35% 24% 38% 1% 3% 2015 0% 2024 Biofuel waste Nuclear Hydro Wind Fossil Installed wind and solar capacity 2015-2024 0 1 000 2 000 3 000 4 000 5 000 6 000 7 000 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
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2017 2018 2019 2020 2021 2022 2023 2024 2030 target 2040 target 52.9 24.6 18 <5 S 1-2 Own operations Scope 3.3d - Electricity sales Scope 3.11 - Sold fossil fuels Rest of scope 3 Carbon removalsChange since 2017 -53% Vattenfall emission baseline, status and targets, Mton CO2e Validated, science-based 2040 Net-Zero targets • Covering emission scopes 1-3, complete with near-term 2030 targets1. • Complemented by internal target on 65% total emission reduction 2030 Vattenfall’s roadmap to Net Zero 1Near term target excludes rest of scope 3 emissions The main drivers of the reduction have been fossil decommission and fossil-free sales 19
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CO2 emissions cut throughout the value chain 20 Focus on emissions related to fuel sourcing through phase out of fossil fuels and increased supplier requirements Decarbonising key emission drivers such as steel and concrete by circularity measures and the use of fossil free alternatives. Partnerships to enable fossil-free value chains, e.g., HYBRIT and Cemvision. Suppliers Phase out of fossil fuels in own operations: • Replacing fossil gas with biogas or hydrogen • Reducing overall production volumes in fossil-based assets as more fossil-free come online • Integration of third-party waste heat, heat pumps and storages in district heating Own operations Secure volumes of fossil-free electricity for customers, by sourcing fossil-free electricity. Transition fossil gas sold to end customers by: • Introducing and offering fossil-free gas such as biogas • Offering alternative heat sources such as heat pumps and district heating Customers ~4 Mt 2024 ~3 Mt 2024 ~17 Mt 2024
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Governance
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State Ownership State Ownership Policy 2025 State-Ownership-Policy-2025 22 Vattenfall is a state-owned company Vattenfall AB is wholly owned by the Swedish state. This means that the State ownership policy of Sweden is applicable to Vattenfall. In this ownership policy, the Government sets out important principles and overriding objectives for the management and governance of state-owned enterprises. Conditions for state ownership, Relationship between the Government and the Riksdag (Swedish parliament) The State’s shares in state-owned enterprises are at the disposal of and administered by the Government within the framework of what the Riksdag has decided. However, the Riksdag’s authorisation is required for the acquisition of shares, other increases in the State’s shareholdings, equity infusions, or changes in an enterprise’s public policy assignment. The Riksdag’s authorisation is also required to reduce the State’s shareholdings in enterprises where the State holds at least half of the votes, but also in cases where the Riksdag has decided otherwise for a particular enterprise. Shares have to be acquired and sold on a commercial basis, unless special reasons preclude this. The Government reports to the Riksdag on its management of state-owned enterprises in an annual report. Following a notification to the board of directors, members of the Riksdag have the right to attend and ask questions at the general meetings of majority state-owned enterprises, including any subsidiaries, that have at least 50 employees. Articles of association In the articles of association, the owners establish the business purpose of the enterprise’s operations and certain limits for its operations. The business purpose of the operations of majority state-owned enterprises is based on decisions of the Riksdag. Owner directives The owners can issue instructions to the enterprise through a resolution in the general meeting. In state-owned enterprises, owner instructions are mainly used when an enterprise has a public policy assignment from the Riksdag, receives budget appropriations, or is being restructured; and also in the context of deregulation or other similar material changes. The content of the owner instructions has to be concrete and clear. If the enterprise has a public policy assignment, the owner instructions have to specify how this assignment will be financed, reported and tracked. Public policy goals are used to enable evaluation and tracking to ensure that the public policy assignments decided by the Riksdag are being performed well. The public policy targets have to make clear the cost of performing the public policy assignment, and thereby the conditions for the enterprise’s economic value creation. The owner is responsible for developing the public policy goals in dialogue with the enterprise, which are then established in an owner instruction.
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Articles of Association Articles of Association. The Governance Structure 23 Vattenfall AB is wholly owned by the Swedish state. Ultimately, the Swedish Parliament decides on the assignment for Vattenfall AB. Through a general meeting resolution on the content of the Articles of Association, the shareholder (the owner via its representative) in turn makes decisions on the company’s operations. The Government has established the Swedish state’s ownership policy and the principles for state-owned companies, which are decided on at the General Meeting. In accordance with the Swedish state’s ownership policy, the company’s financial targets are also decided on by a general meeting. The object for the Company’s activities is to generate a market rate of return by, directly or indirectly through subsidiaries and associated companies: a. operating a commercial energy business that enables the company to be among the leaders in developing environmentally sustainable energy production, b. carry on trading with products and services within branches that are promoting, supporting or supplementing the energy business, mainly within the IT and telecom branches, as well as products and services related to subscription, c. carry on contracting and consulting activities mainly within the energy sector, d. own and administer real estate, shares and other securities associated to the aforesaid business activities, e. on behalf of the Group carry on capital and liquidity management operations and engage in trading securities, and carry on other activities consistent there with. Owner via the AGM Board of Directors CEO and Executive Group Management Business Areas and Staff Functions according to the organisational structure Remuneration Committee Auditor Audit Committee Internal Audit
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President and CEO Anna Borg Senior VP, CFO Kerstin Ahlfont Senior VP, Strategic Development Andreas Regnell Senior VP, Communications Åsa Jamal Senior VP, General Counsel and Secretary to the board of Directors Jonas Bengtsson Senior VP, People & Culture Åsa Jamal (Acting) Operating segment Customers & Solutions Senior VP Alexander van Ofwegen Operating segment Wind Senior VP Catrin Jung Senior VP, Generation Johan Dasht Operating segment Power Generation Senior VP, Markets Sjur Jensen (Acting) Operating segment Distribution1 Senior VP Annika Viklund 1 The electricity distribution operations are unbundled from Vattenfall’s other operations in accordance with Swedish and British legislation. The head of Business Area distribution is therefore not a member of the EGM. Vattenfall Executive Group Management
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Employee representative Robert Lönnqvist Employee representative Rolf Ohlsson Employee representative Jeanette Regin Employee representative (deputy) Joel Hersan Employee representative (deputy) Anders Bohlin Employee representative (deputy) Christer Gustafsson Vattenfall Board of Directors 25 Chairman of the Board Mats Granryd Board member Nina Linander Board member Christian Levin Board member Fredrik Rystedt For more info: see page 68-69 in the Annual- and Sustainability Report 2024 Board member Ingemar Engkvist Board member Carola Puusteli Board member Pär Ekeroth
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Customers & Solutions
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Customers & Solutions1 Providing sustainable energy solutions and services to retail and business customers 1 As per 1 January 2024 Customers & Solutions includes Heat, hence 2023 data has been consolidated in retrospect. Heat Berlin, divested in May 2024, is excluded from all figures. 2Operating profit excluding items affecting comparability 27 Overview • Strong incumbent positions in core markets with solid, semi-regulated revenue streams • A growing customer base with high loyalty • Attractive growth prospects supported by urbanisation trend and increasing regulatory support for low carbon heating • Strong expertise across the full energy value chain means that we can offer simple integrated solutions to satisfy increasingly sophisticated customer needs • Considerable contributions to realise carbon reduction plans/target of cities where we operate heat assets/networks • Well-developed IT infrastructure keeps operations cost-effective • Our public charging network - InCharge - is one of the largest in northern Europe Key data1Highlights 11.7 million electricity, gas and heat contracts in Europe end of 2024 106.5 TWh of electricity sold in 2024 65,800 connected charging points for electric vehicle end of 2024 FY 2024 FY 2023 Net sales (SEK bn) 189.0 235.2 External net sales (SEK bn) 175.5 215.6 Underlying EBIT2 (SEK bn) 6.6 9.2 Sales of electricity (TWh) 106.5 113.5 - of which, private customers 27.3 27.6 - of which, resellers 27.0 36.3 - of which, business customers 52.2 49.6 Sales of gas (TWh) 50.4 44.1 Net Promoter Score (NPS)3 +15 +11 3 NPS is a tool for measuring customer loyalty and for gaining an understanding of customers’ perceptions of Vattenfall’s products and services. Weighted 90% from Customer business line and 10% from Heat business line
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Electricity- and gas Customers We sell electricity to 7.7M customers in our key markets of Sweden, NL, Germany – as well as in Norway, Finland, and France. Gas sales occur in our continental markets. Decarbonisation, and being a partner to the customer as they go through the energy transition, is the key strategic focus. 1 More information available on page 196 in Vattenfall’s Annual and sustainability report 2024 28 2 8 BU Customers Nordics BU Customers Netherlands BU Customers Germany/France Nordics Netherlands Germany / France Sales of electricity, B2C Twh 8.9 5.6 15.9 Sales of electricity, B2B Twh 43.7 11.8 20.4 Electricity contracts, in mn 1.1 1.9 4.6 Sales of gas, Twh - 34.3 16.2 Gas contracts, in mn - 1.6 0.7 Overview of electricity- and gas sales and contracts1
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The Netherlands 29 Power and heat plants Vattenfall ownership share Fuel Capacity heat (MW) Capacity electricity (MW) Diemen 100% 815 684 Almere 100% 517 0 A'dam South East 100% 501 2 WPW 50% 310 * 2 Arnhem 100% 215 * 0 Leiden 100% 150 * 0 Rotterdam 100% 150 * 0 Velsen 100% 105 869 Nijmegen 100% 87 * 0 Lelystad 100% 51 * 0 Hemweg 100% 0 440 Ede 100% 10 * 0 Gas Steam Biomass Electric * This includes third party contracted capacity **Temporary energy center. Overview of largest heat and condensing plants Sweden Power and heat plants Vattenfall ownership share Fuel Capacity heat (MW) Capacity electricity (MW) Uppsala 100% 814 27 Drefviken 100% 326 19 Nyköping 100% 185 35 Vänersborg 100% 80 0 Motala 100% 65 4 Ludvika 51% 50 * 0 Gotland Visby 75% 44 * 155 * United Kingdom Power and heat plants Vattenfall ownership share Fuel Capacity heat (MW) Capacity electricity (MW) Castle Park 100% 6 0 Broughton House 100% 5 0 100 Temple St 100% 4 1 Gardiner Haskins 100% 4 0 Shawfair 50% 9 0 Brentcross Town** 100% 6 0
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E-Mobility Customers Vattenfall is enabling fossil-free transportation in Sweden, The Netherlands, and Germany 30 Market footprint Connected Charging Capacity (mW) 0 100 200 300 400 500 600 H1 2021 H1 2022 H1 2023 H1 2024 H1 2025 Sweden The Netherlands Germany Volume growth over the past 4 years Key partners
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Power Generation
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Power Generation One of Europe’s largest providers of fossil-free electricity 1 The value has been adjusted compared with information previously published in Vattenfall’s financial reports, see note 1 Accounting policies, risks and uncertainties. 32 Overview • Largest segment by power production volume in Vattenfall, contributing to our position as Europe’s second largest provider of fossil-free electricity • Century-long roots in hydro power and a leading position in Sweden's hydro power development • Major owner of nuclear power with vast experience of nuclear operations, decommissioning and management of radioactive waste and spent nuclear fuel • One of the leading energy trading companies in Europe offering reliable, responsible and flexible access to all relevant commodity wholesale markets • Sourcing of gas, biomass and carbon credits for Vattenfall and third parties • Maximising value and managing risk by optimising and dispatching as well as hedging of Vattenfall's assets and sales positions • Proprietary trading within the risk mandate set by Vattenfall's Board of Directors • Offer PPAs to renewable asset owners and offer fossil- free energy to large customers Key data FY 2024 FY 2023 Net sales (SEK bn) 169.9 207.5 External net sales (SEK bn) 44.9 37.8 Underlying EBIT (SEK bn) 4.0 3.1 Electricity generation (TWh) 72.6 73.5 - of which, hydro 36.1 36.1 - of which, nuclear 37.4 37.4 Customer sales of electricity (TWh) 8.5 11.3 - of which, resellers 6.6 9.4 - of which, business customers 1.9 1.9 Highlights 5.5 GW nuclear power 11.2 GW hydro power
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Nuclear power *Whereof inoperational capacity: Ringhals 1 (881 MW) & Ringhals 2 (900 MW) 33 Nuclear Power Plant list Nuclear Power Plant Country Installed Capacity (MW) Vattenfall ownership share Pro Rata Share of Installed Capacity (MW) Co-Owners Commission Year Final operating year Operation status Decommissioning status Ringhals Sweden 3,967* 70.4% 2,793 Sydkraft Nuclear Power AB (29.6%) Ringhals 1: 1976; Ringhals 2: 1975; Ringhals 3: 1981; Ringhals 4: 1983 Ringhals 2: 2019; Ringhals 1: 2020 In operation Ringhals 1 & 2: Shutdown, in pre-decommissioning planning Forsmark Sweden 3,271 66.0% 2,159 E.ON (8.5%) and Mellansvensk Kraftgrupp (25.5%) Forsmark 1: 1980; Forsmark 2: 1981; Forsmark 3: 1985 - In operation - Brunsbüttel Germany 771 66.7% 514 E.ON (33.3%) 1977 2007 Offline Decommissioning mode Krümmel Germany 1,346 50.0% 673 E.ON (50.0%) 1984 2011 Offline Planned to initiate decommissioning in 2021 Stade Germany 640 33.3% 213 PreussenElektra GmbH (66.7%) 1972 2003 Offline Undergoing decommissioning since Oct 2005 Brokdorf Germany 1,410 20.0% 282 PreussenElektra GmbH (80.0%) 1986 2021 Offline Decommissioned in 2021 Vattenfall’s nuclear power plants • Vattenfall owns eleven nuclear reactors. Seven reactors are located in Sweden (four at Ringhals, three at Forsmark), and four in Germany (Brunsbüttel, Krümmel and minority stakes in Brokdorf and Stade) • Five of our reactors are in commercial operation in Sweden • Our last operational nuclear asset in Germany, Brokdorf, was decommissioned at year-end 2021 • Vattenfall’s nuclear power generation in 2024 amounted to 37.9 TWh (37.4). Combined availability was 80.4% (80.5%) Offline In operation Sweden Germany Forsmark Ringhals Brunsbüttel Krümmel Stade Brokdorf
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New Nuclear Why Vattenfall wants to invest in nuclear & Roadmap 34 It aligns with our strategic direction Develop Videberg Kraft AB Continue site development Select supplier Apply for risk-sharing Further formalise the collaboration with Industrikraft Submit application Refine and submit the risk-sharing application Acquire properties and continue work related to the nature reserve Supplier selection following an in- depth evaluation Applications in accordance with the Environmental Code and the Nuclear Technology Act Path toward new nuclear It is a key component of the energy systemIt is part of our core business
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Sweden Germany 36% 27% 32% 8% Final repository Decommissioning and dismantling2 Other 110,1 SEK billion Remaining post-operational costs for the entire Swedish nuclear fleet Swedish Nuclear Fuel and waste Management Company (SKB) Nuclear power operators Swedish Nuclear Waste Fund The fair value of the the Swedish Nuclear Waste Fund was SEK 77,8 billion Vattenfall Group’s share was SEK 55,7 billion as end December 2024 Payments based on generated kWh Swedish National Debt Office decides on disbursements from the fund Nuclear power operators Decommissioning and dismantling German state Transport Intermediate storage Final repository The financing system for post-operational nuclear costs Financial implications of the various steps in the financing systems in Sweden and Germany 2 Decommissioning and dismantling are the responsibility of the nuclear power operators and are not included in SKB’s operations 35 Financial implications EBIT Funds from operations (FFO) Adjusted net debt (AND) Valuation of nuclear provisions Provision value depreciated over operating life-time of nuclear power plant1 N/A Included in AND Payments to the Swedish Nuclear Waste Fund No impact Negative impact through payment to the Swedish Nuclear Waste Fund Increase fund balance (offset AND) Decommissioning activities No impact FFO neutral AND neutral In Sweden Nuclear power plant owners in Sweden are obligated to finance the costs for dismantling and management of spent nuclear fuel. The financing is handled by payment of fees for each generated kWh to the Swedish Nuclear Waste Fund, which manages paid-in funds. The fund also reimburses owner for the payment to SKB (responsible for long term safe-handling of radioactive waste) meeting the obligation based on Swedish law. In Germany Following the nuclear accident in Fukushima, Japan in 2011, Germany’s government decided to shut down all the 17 nuclear power plants by 2022. The German state took over the responsibility for interim and final storage of low and intermediate level spent nuclear fuel in 2017, funded by the contributions that the NPP operators paid to state-controlled fund. The German Federal Council must agree on a suitable location for permanent storage of spent nuclear fuel by 2031 and final repository by 2050. The spent nuclear fuel and radioactive waste must be stored in interim storage close to the nuclear power plant. Financial implications EBIT Funds from operations (FFO) Adjusted net debt (AND) Valuation of nuclear provisions Non-operating plants – change in provision valuation directly impacts EBIT N/A Included in AND Decommissioning activities N/A Negative impact AND neutral Intermediate storage & encapsulation 1 For reactors no longer in operation, nuclear provisions has an immediate effect on EBIT
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Hydro power 36 Hydro overview • Vattenfall owns and operates hydro power plants, most of which are located in Sweden (79 sites). Additional sites are located in Germany (pumped storage, 8 sites), Finland (9 sites) and the Netherlands (1 site). In 2024, Vattenfall’s hydro power plants’ capacity of 11.2 GW generated 31.1 TWh (32.8 TWh in 2023). In response to the increasing value of dispatchable production, investments in our hydro power stations have focused on refurbishments and upgrades that increase availability and flexibility. We are also undertaking a number of initiatives to reduce the negative effects of hydro power on ecosystems and biodiversity. Project Turbine Type Country River Installed Capacity (MW) Vattenfall ownership share Pro Rata Share of Installed Capacity (MW) Commission Year Harsprånget Francis Sweden Lule älv 871 100% 871 1951 Letsi Francis Sweden Lule älv 486 100% 486 1967 Messaure Francis Sweden Lule älv 463 100% 463 1963 Porjus Francis Sweden Lule älv 430 100% 430 1915 Stornorrfors Francis Sweden Ume älv 604 74% 447 1958 Finland Germany Netherlands Sweden Kymijoki Lule älv Kalajoki Nurmonjoki Obere Saale Skellefte älv Elbe Große Mittweida Dalälven Koitajoki Rhine Bode Schwarza Ljungan & Gimån Göta älv Ume älv Ångermanälven Indalsälven Upperuds älv River stream installed capacity (MW) 4135 1268 999 1844 Lule älv Ume älv Ångermanälven Others Total: 8,246 84 28 Koitajoki Others Total: 136 1060 1050 675 Schwarza Große Mittweida Others Total: 2,785 24 Rhine Total: 24 Hydro Power Plant Pumped Storage Goldisthal Francis/Ossberger Germany Schwarza 1,060 100% 1,060 2004 Markersbach Francis/OssbergerGermany Große Mittweida 1,050 100% 1,046 1981 Hohenwarte II Francis Germany Obere Saale 320 100% 320 1966 Hydro PowerPumped storage Major Hydro Power Plants
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The inherent flexibility of hydro power 37 Swedish electricity production (daily resolution) year 2024 *Combined heat and power plant (CHP) Swedish electricty production (hourly resolution), one week in 2024 2024-04-22 00:00 2024-04-28 24:00 2024-01-01 2024-12-31 5 10 15 20 25 GWh/h 0 GWh/h 5 10 15 Hydro Nuclear CHP* Wind Solar 0 Hydro Nuclear CHP* Wind Solar 20 Flexible hydro power plays a central role decarbonising the energy system The intensified focus on climate change and CO2 emissions has contributed to significant growth of renewable energy sources. However, the variability of wind and solar power makes it more challenging to balance the energy system. Flexible hydro power offers its huge reservoirs of stored water as a giant “green” battery. This capacity can be increased by upgrading existing plants and building new pumped-storage plants. The valuable balancing capabilities of hydro power could be utilised even more by increasing the transfer capacity of the Swedish power grid in north-south direction. The below graphs show how hydro can Real-time balancing Quarter-hourly variations Multi-day variations Seasonal variations Yearly variations Balancing services Intraday & day-ahead markets Day-ahead market Forwards, markets for futures Forwards, markets for futuresAncillary services Hydro power Fluctuations on the energy market Market mechanisms Up and downward regulation
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Major deals on Corporate PPAs and PPAs Since 2023 our contracted volume has increased to 8.15 TWh of renewable electricity (Corporate PPAs). 38 Contracted volume CPPA: 8.15 TWh Vattenfall will provide wind power to steel company Salzgitter Flachstahl from 980 MW offshore wind farm Nordlicht I over a tenor of 15 years. The wind farm is located in the North Sea. Vattenfall will provide solar power to PASM, energy supplier for the Telekom Group,from 76 MW solar farm Tützpatz over a tenor of 10 years. The solar farm is located in Mecklenburg-Vorpommern.97 GWh 307 GWh Vattenfall will provide wind power to chemical company Basell Polyfine from 980 MW offshore wind farm Nordlicht I over a tenor of 15 years. The wind farm is located in the North Sea.450 GWh
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Wind
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Wind One of the biggest renewable energy players in Europe 1 Operating profit excluding items affecting comparability Overview • Strong position within Offshore Wind with an extensive pipeline • A pioneer within Offshore Wind from the outset and a leader in the reduction of levelised cost of energy • One of the largest producers of Onshore Wind power in Denmark and the Netherlands • Highly experienced team managing all key processes with close supplier collaboration along the value chain • Strong platform and project execution track record • Reputation as a trustworthy partner helps securing financing and off-takers • Front-runner on innovative solutions within Solar PV & Batteries such as co-location with wind farms and shared infrastructure Key dataHighlights 4.5 GW installed Offshore Wind capacity 2 GW installed Onshore Wind capacity ~13 GW Solar PV and battery pipeline (all stages) FY 2024 FY 2023 Net sales (SEK bn) 21.6 25.4 External net sales (SEK bn) 4.2 8.5 Underlying EBIT1 (SEK bn) 5.9 6.5 Electricity generation (TWh) 17.1 13.8 40
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United Kingdom In operation: 1,385 MW Horns Rev 1&3 Sandbank Aberdeen Bay Kriegers Flak Vesterhav Alpha Ventus Kentish Flats Extension Lillgrund DanTysk Thanet Kentish Flats Ormonde 9 1 2 5 Hollandse Kust Zuid 1-4 Netherlands In operation: 2,104 MW Germany In operation: 737 MW Denmark In operation: 1,710 MW Sweden In operation: 773 MW South Kyle 1 As of June 2025 4.5 GW Installed Offshore Wind capacity 2.0 GW Installed Onshore Wind capacity 118 MW Installed Battery capacity Offshore Wind assets # Number of Solar & Battery assets per countryOnshore Wind assets Pen y Cymoedd Ray Edinbane Clashindarroch Swinford Westküste Juktan Blakliden Fäbodberget Location not accurate due to simplification Stor-rotliden Haringvliet Princess Ariane Princess Alexia Overview of our wind, solar and battery assets 158 MW Installed Solar PV capacity 41
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Growing capacity of wind, solar and battery assets Pre-2010 2011-2015 2016-2020 2021-2024 Selected 2025 FIDs Installed capacity by year commissioned 2003 Horn’s Rev 1 was installed in Denmark and became “The birth of large-scale offshore wind” 2017 Battery@Ray was installed in the UK and became our first battery asset 2020 Our first solar asset was installed in the Netherlands 2023 Hollandse Kust Zuid wind farm is in NL and is our largest offshore wind farm to date Onshore Offshore Solar Batteries Nordlicht 1 & 2 1.6 GW Onshore 77 MW Co-located solar & battery clusters 500 MW 2015 Clashindarroch was inaugurated in Scotland and became “a milestone in onshore wind.” 2015 DanTysk is one of the first large offshore wind farms in the German North Sea 2022 Blakliden Fäbodberget is our largest onshore wind farm to date 1987 Westküste onshore park was installed and became Germany’s first wind park 42 New projects in the past 15 years have increase our installed capacity of wind, solar and battery assets. The graph above shows some of our milestone projects over the years.
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Growth pipeline of ~36 GW: projects under development and construction Offshore Wind 4.7 2.0 2.0 1.6 0.8 Pipeline (GW) Large-scale Solar and Batteries Onshore Wind 7.3 2.8 2.2 0.8 Pipeline (GW) Pipeline (GW) 5.8 5.3 1.1 0.3 0.10.1 11.1 1.4 0.2 Solar Batteries Total: 11.1 GW Total: 13.1 GW Total: 12.7 GW Solar: 7.0 GW, Batteries: 5.7 GW Note: numbers may not add up due to rounding; selected countries; includes minority / partner shares; OFS are TG1-2; ONS and SoBa are TG0-2; data as of April 2025 43
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Nordlicht: Germany'slargest offshore wind farm 44 Revenue de-risking ongoing All major supplier contracts signed Foundation manufacturing commenced Vattenfall may in the future look to partner again for the projects Prepare for construction of Nordlicht 1, planned to start in 2026 Planned COD: 2028 (Nordlicht 1), 2029 (Nordlicht 2) 1.6 GW OFS, 100% VF owned with FID in March 2025 • Nordlicht 1: 1.0 GW, unconditional FID • Nordlicht 2: 0.6 GW, FID conditional on permit receipt, expected by end of 2025
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BA Wind reduces project risks by securing revenues and sharing costs with equity partners and suppliers Secure revenues • Diversified, secure revenue stack using PPAs with corporate partners and offtakers in addition to regulatory mechanisms, e.g., CfDs or ancillary services Share equity stakes • Reduced capital intensity and shared risk to increase project viability • Target equity positions in offshore wind of 50% or more Partner with suppliers • Simplify (e.g., tender requirements), standardise (e.g., industry standards) and share risks with our suppliers • Innovate with suppliers for a sustainable supply chain Low-carbon steel MoU with Dillinger to accelerate the use of CO2-reduced steel From blades to skies Vattenfall announces circular partnership with Gjenkraft and EVI Bruzaholm 10-year agreement for Volvo to purchase half of the electricity produced Nordlicht 1 15-year deal with Salzgitter Group to supply 300 GWh per year from 2028 Zeevonk 50/50 partnership with Copenhagen Infrastructure Partners (CIP) Hollandse Kust Zuid BASF holds a 24.3% stake and Allianz owns 25.2% Examples 45
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46 Country Name Founding year/ Status/Technology Overview Time period SDE++/ CfD1 Founding year: 2011 Status: in force Eligible technology2: • Provides a feed-in-premium subsidy that covers the financial gap between the cost of the subsidised sustainable technology and the cost of the fossil alternative, e.g., difference between wholesale electricity prices and cost of electricity from renewable sources • The budget is based on an auction system, where the lowest bidder receives the premium • Total budget of SDE++ 2024: at least € 11,5 billion • In 2024 a clawback mechanism is introducedto reduce risk on oversubsidizing. Only received subsidies can be clawed back. • Aim is to replace the SDE++ by a two-way CfD from 2027 onwards for wind and solar developments. • Premium is paid for a period of up to 15 years EEG Founding year: 2000 Status: in force Eligible technology: • A tendering process with prices set by competitive auctions, where projects receive contracts to sell the produced electricity at the bid price.Note thatmarketing schemes for Offshore, Onshore and Solar PVare diverging. • Bids are based on floating market premium • Market Premium: reference value of the respective renewable energy plant minus its technology-specific market value • Market premium is paid for a period of 20 years 2 sided CfDs Founding Year: 2023 • A two-sided CfD guarantees RES producers a fixed strike price: they receive top-ups if market prices fall below but pay back surplus if prices rise. The EEG law historically funded RES through feed-in tariffs and market premiums. • Typically, 20 years from the start of electricity generation of project. The Electricity Certificate System Founding year: 2003 Status: in force Eligible technology: • The demand for certificates is regulated by a quota system, which is fixed in proportion to total electricity use (energy intensive industry is exempted) • The electricity producer receives a certificate for each MWh from renewable sources and sells it to electricity consumers on the open market • Since December 2021, the Electricity Certificate system is closed for new plants. • The system will be entirely closed by 2036 1A Contract for difference (CfD) guarantees power providers a strike price: if the market price is lower, they receive a top-up, and if higher, the excess profit is shared with the government, stabilizing revenue against hourly market fluctuations. Overview of current regulatory regimes 2 including other renewable sources and CO 2 abatement technologies such as biomass, geothermal, aquathermal, CCS, heat pumps, e-boilers, hydrogen, etc.
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47 Country Name Founding year/ Status/Technology Overview Time period CfD Founding year: 2019 Status: in force Eligible technology: • A settlement price is guaranteed to the Offshore power provider. The support is based on the difference between agreed and market price • New tender round in 2026; revised tender conditions; end to state co-ownership • Maximum of 20 years (after the wind farm has been connected to the grid) Feed-in premium Founding year: 2009 Status: in force Eligible technology: • Since 2020, all onshore solar and wind run at merchant risk. However, projects before 2020 receives subsidies equivalent to the difference between the spot market price and the fixed support income. Vattenfall has disinvested from onshore wind and solar development. Four existing onshore wind farms receive subsidies. • Depends on the type of technology and date of commissioning CfD Founding year: 2014 Status: in force Eligible technology: • A Contract for Difference (CfD) is a private law contract between a renewable electricity generator and the CfD counterparty – Low Carbon Contracts Company (LCCC) • There is an open seabed leasing round “Celtic Sea Floating Offshore Wind Leasing Round 5” for 12GW; • Some challenges in recent CfD Allocation Rounds (e.g., AR5 in 2023), where OFS wind projects failed to secure contracts due to low strike prices and inflationary pressures. Adjustments are being made to strike price indexing and auction design to attract more bids. • CfD contracts are awarded for a period of 15 years, index linked to CPI CfD Founding year: 2010 Status: in force Eligible technology: • Post 2024, future projects will most certainly have a mix of CfD and PPA (70% - 30% ventilation). • 20 years, partially indexed on labour and industrial production Overview of current regulatory regimes
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Main projects BA Wind in our 5 core countries 48 Offshore Onshore Solar Batteries * cPPA stands for Commercial Power Purchase Agreement. For these projects, BA Wind has signed a contract with a partner for the sale of contractually agreed amount of MW per year, for a fixed period of time (usually ranging between 10 -15 years) Support Pro Rata scheme DE Nordlicht I 980 - 100% 980 2028 FID received in March 2025 DE Nordlicht II 630 - 100% 630 2028 FID received in March 2025 SE Bruzaholm 139 100% 139 2025/2026 Under construction, cPPA* signed SE Velinga 60 100% 60 2026 Under construction SE Battery@Bruzaholm 38 100% 38 2025/2026 Under construction DE Silberstedt 23 100% 23 2025 Develop2Sell project; under construction, cPPA* signed DE Neubrandenburg 84 100% 84 2026 Develop2Sell project; under construction, cPPA* signed DE Nauen 46 100% 46 2025 Develop2Sell project; under construction, cPPA* signed DE Martensdorf 94 100% 94 2026 FID received in June 2025 DE Döbrichau 70 100% 70 2026 FID received in June 2025 DE Bärwalde 18 100% 18 2026 FID received in June 2025 In construction 2.182 2182 NL Zeevonk (Ijmuiden Ver Beta) 2.000 50% 1000 2030 Bid awarded in June 2024, partnering with CIP UK Muir Mhor (Scotwind) 750 CfD 50% 375 2030 Under development with consenting and permitting progressing to ensure participation in the CfD bid, JV with Fred Olsen DE Wolfsberg 17 EEG 100% 16,8 2026 Develop2Sell project. FID planned for May 2025 GB Clashindarroch II 63 CfD 100% 63 2028 Conditional FID GB Ourack 250 55% 137,5 2028 Permit granted and irrevocable DE Battery @ Tützpatz 50 100% 50 2025 FID planned for 2025 In development (in mature stage) 3.130 1642 Owner- ship (% ) Commission- ing Current statusCountry Name Capacity (MW)
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Wind & Solar - Installed capacity (MW1) Q2 2025 1 Capacity in operation: total capacity of the wind farms that Vattenfall has an ownership or is responsible for the operation. Minority shares included as 100% 2 Asset divested but in operation by Vattenfall under Asset Management Agreement (AMA) 3 Assets on VF Hydro’ sites, but operated by BA Wind 49 100% Solar Onshore Offshore Batteries Total Ownership % Pro Rata 100% Ownership % Pro Rata 100% Ownership % Pro Rata 100% - 623 685 77 1.385 Thanet 100% 300 300 Kriegers Flak 100% 605 605 Hollandskust Zuid 51% 770 1.509 - 196 1.514 - 1.710 Ormonde 51% 77 150 Horns Rev 3 100% 407 407 Princess Ariane 100% 184 184 65 515 1.509 15,00 2.104 Aberdeen 100% 96 96 Horns Rev 1 60% 95 158 Princess Alexia 100% 122 122 - 638 110 25,00 773 Kentish Flats 100% 90 90 Vesterhav 100% 344 344 Windplan Blauw 100% 77 77 93,4 7,0 636,0 1,0 737 Kentish Flats Extension 100% 50 50 Klim (98%) 98% 66 67 A16 / Klaverspoor 100% 34 34 Total (MW) 158 1.978 4.454 118 6.709 South Kyle (AMA²) 0% - 240 Nørrekær Enge 1 99% 30 30 Slufterdam 100% 29 29 Pen Y Cymoedd 100% 228 228 Rejsby Hede 100% 23 23 Moerdijk 100% 27 27 Ray 100% 54 54 Hagesholm 100% 23 23 Haringvliet 100% 22 22 Edinbane 100% 41 41 Tjæreborg Enge 100% 17 17 Echteld 100% 8 8 Batteries Clashindarroch 100% 37 37 Bajlum (89%) 89% 13 15 Oom Kees 100% 6 6 Solar Swinford 100% 22 22 DræbyFed 100% 9 9 Oudendijk 100% 5 5 Onshore Battery@Ray 100% 55 55 Ejsing (97%) 97% 7 7 Haringvliet 100% 38 38 Offshore Battery@PyC 100% 22 22 Lyngmose 100% 5 5 Kooypunt 100% 12 12 1.071 1.385 1.643 1.710 Velsen 100% 2 2 Hemweg 100% 2 2 Pro Rata Solar Onshore Offshore Batteries Total Ownership % Pro Rata 100% Ownership % Pro Rata 100% Diemen 100% 1 1 0 383 612 77 1.071 Lillgrund 100% 110 110 DanTysk 51% 147 288 Symbizon 100% 1 1 0 192 1.451 0 1.643 Blakliden + Fäbodberget 30% 106 353 Sandbank 51% 147 288 Decentral Solar installations 100% 8 8 65 515 770 15 1.364 Stor-Rotliden 0% - 78 Alpha Ventus 26% 16 60 Alexia 100% 3 3 0 209 110 25 345 Grönhult (AMA²) 50% 34 67 Westküste 20% 1 7 Haringvliet 100% 12 12 87 1 309 1 399 Högabjär-Kärsås 50% 19 38 Tützpatz 100% 77 77 1.965 2.104 Total (MW) 152 1.301 3.252 118 4.822 Höge Väg 50% 18 37 Decentral Solar installations 100% 10 10 Hjuleberg 50% 18 36 Geesthacht³ 0% - 2 Juktan 50% 14 29 Markersbach Damm³ 0% - 4 Toledo 100% 25 25 Ingredion 100% 1 1 345 773 345 737 Installed capacity (MW) Installed capacity (MW) United Kingdom Denmark The Netherlands Sweden Germany Installed capacity (MW) United Kingdom Denmark United Kingdom Sweden Germany Denmark The Netherlands The Netherlands Sweden Germany Installed capacity (MW) Installed capacity (MW)
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Distribution
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We accelerate fossil freedom for our customers through sustainable electrical infrastructure 1 Operating profit excluding items affecting comparability 2 SAIDI: System Average Interruption Duration Index 3 SAIFI: System Average Interruption Frequency Ind 4 Key data does not include Vattenfall Services Nordic (2024) Distribution - overview 51 Overview • Largest operator of regional electricity distribution grids in Sweden and top-3 position in local grids • Regulated business with stable demand • Demand set to grow – Vattenfall grids are located in areas with population growth and strong demand for industrial electrification • Enabler of the energy transition by connecting renewable production to the grid • The business area also includes the construction, service and maintenance business in Sweden as well as offerings in the unregulated Power-as- a-Service (PaaS) Key data4Highlights ~1,000,000 household and business customers ~139,000 km of electricity grids SEK 10.2 billion in investments 2024 SEK 91 billion RAB 2024 FY 2024 FY 2023 Net sales (SEK bn) 13.9 11.1 External net sales (SEK bn) 13.2 10.4 Underlying EBIT1 (SEK bn) 2.6 1.5 Investments (SEK bn) 10.2 7 SAIDI2 (minutes/customer) 123 132 SAIFI3 (number/customer) 1.92 1.91 RAB (SEK bn) 91 89
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Vattenfall own and operate regional and local electricity grids ~1,000,000 customers *Includes only Vattenfall Eldistribution AB. Based on reported data EI, transited energy excl. grid losses (2023) Market share* • Regional network 54% • Local network 16% Vattenfall Eldistribution's regional network Vattenfall Eldistribution's local network We own, build and operate electricity grids for our private and business customers Largest operator of regional grids in Sweden. One of the three largest owners of local grids Over 50% of the electricity used in Sweden is distributed through our electricity grid Our mission is to maintain and operate our electricity grid and to connect new customers while ensuring reliability and cost-effectiveness Electricty price area 1 Electricty price area 2 Electricty price area 3 Electricty price area 4 Västerbergslagens electricity grid
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Electricity grids are the backbone of the energy system, enabling the energy transition 1Energimyndigheten, Huvudrapport Myndighetsgemensam uppföljning av samhällets elektrifiering, 2024 Forecast – Total electricity demand (Sweden)1 ~140 ~340 2024 2045 TWh Electricity demand will increase due to growth in society, electrification of industry and transport and new electricity intensive business The amount of renewable energy in the system increases at the same time. However, the pace of the transition has become more uncertain due to geopolitical and economical uncertainties but the direction is clear. Main drivers for Vattenfall Distribution connected to the energy transition Large customer demand Continued high inflow of new requests to connect to our grids. Capacity need and reinvestments to increase grid capacity Increased need for capacity in together with aging grid assets requires reinvestmens to enable the energy transition. Swedish TSO’s growth plans for the swedish transmission system The TSO plans for both growth and reinvestmens which drives significant investments in our regional grids.
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Obligations as a regulated DSO ▪ Obligation to connect customers ▪ Fair & transparent grid fees ▪ Responsible for metering ▪ Quality of supply Swedish electricity grid companies operates on a regulated market An electricity grid company operates on a natural monopoly market where the grid company holds a network concession in a specific geographical area in Sweden. The network concession is a permit that gives the electricity grid company the exclusive right to build and operate power lines within that area. The regulator, the Swedish Energy Markets Inspectorate, supervises the grid company to ensure that obligations are fulfilled. *DSO= Distribution System Operator.
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Swedish DSOs revenues are regulated ▪ Since 2012, the revenues of electricity grid companies are regulated by the Energy Markets Inspectorate (Ei), which establishes a revenue framework for each regulatory period that sets the maximum allowed revenue for the company’s grid operations. As a general rule, a regulatory period consists of four years. ▪ This creates a cap on the tariff revenues that grid companies can collect from their customers, and the purpose of the revenue cap regulation is to ensure that electricity grid companies operate efficiently at low costs, receive a reasonable return, and provide customers with a fair price for the grid service, among other objectives. ▪ The revenue cap, as shown in the image on the right, is primarily composed of capital costs, ongoing controllable costs, and ongoing non-controllable costs. Flexibility costs Ongoing costs Controllable costs Reduction for efficiency Non- controllable costs Capital costs Depreciation (linear) and return (real WACC) Incentive adjustment Outage costs Regulatorisk kapitalbas (anskaffningsvärden) Regulatory capital base Allowed revenues *The present regulatory model is valid until 31st of December 2027.
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Hedging, debt and funding H1 2025
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Price hedging 1 Nordic: SE, DK, FI 2 Achieved prices from the spot market and hedges. Includes Nordic (SE, DK, FI) hydro, nuclear and wind power generation 57 Estimated Nordic1 volume hedge ratio (%) and indicative prices 55% 38% 17% 2025 2026 2027 Average indicative Nordic hedge prices in EUR/MWh 48 40 40 Achieved prices2 - Nordic portfolio Vattenfall's price hedging strategy is primarily focused on the Nordic generation assets because the primary risk exposure is linked to base production of nuclear power and hydro power. The degree of hedging is highest for the next few years and decreases thereafter. Hedging is mainly based on the Nordic system price (SYS) while delivery takes place in the price areas where generation assets are located. The achieved price in the second quarter 2025 decreased compared with the second quarter 2024 primarily due lower market prices. YTD 2025 YTD 2024 Q2 2025 Q2 2024 FY 2024 39 45 39 40 42
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Debt development 140,5 123,9 153,9 176,8 124,9 121,1 106,6 121,1 114,1 80,0 80,3 84,6 78,2 79,2 -37,6 -29,3 -116,0 3,9 41,1 48,4 38,2 68,4 53,7 14,4 3,2 -2,8 4,6 9,7 106,4 139,4 111,5 122,3 82,5 125,1 108,7 117,4 107,2 75,5 69,1 79,0 83,5 81,4 -150 -100 -50 0 50 100 150 200 31.03.22 30.06.22 30.09.22 31.12.22 31.03.23 30.06.23 30.09.23 31.12.23 31.03.24 30.06.24 30.09.24 31.12.24 31.03.25 30.06.2025 58 Net debtGross debt Adjusted net debt Net debt increased by SEK 12.5 bn to SEK 9.7 bn compared with the level at 31 December 2024. Adjusted net debt increased by SEK 2.4 bn to SEK 81,4 bn compared with the level at 31 December 2024. For the calculation of adjusted net debt, see slide 21. SEK bn
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Reported and adjusted net debt 59 Reported net debt (SEK bn) 30 Jun. 2025 31 Dec. 2024 Hybrid capital 21.2 21.9 Bond issues and liabilities to credit institutions 41.7 43.0 Short-term debt, commercial papers and repo 0.1 3.9 Liabilities to associated companies 0.4 0.4 Liabilities to owners of non-controlling interests 7.3 6.8 Lease liabilities 7.4 7.2 Other liabilities 1.1 1.4 Total interest-bearing liabilities 79.2 84.6 Reported cash, cash equivalents & short-term investments 68.9 87.1 Loans to minority owners of foreign subsidiaries 0.7 0.2 Net debt 9.7 -2.8 Adjusted net debt (SEK bn) 30 Jun. 2025 31 Dec. 2024 Total interest-bearing liabilities 79.2 84.6 50% of Hybrid capital -10.6 -10.9 Present value of pension obligations 26.9 27.9 Dismantling and other environmental provisions 16.3 16.5 Provisions for nuclear power (net) 42.4 44.8 Less margin calls received treasury -0.4 -0.6 Less liabilities to owners of non-controlling interests -7.3 -6.8 = Adjusted interest-bearing liabilities 146.5 155.4 Reported cash, cash equivalents & short-term investments 68.9 87.1 Less margin calls energy trading 0.3 -6.9 Unavailable liquidity -4.2 -3.8 = Adjusted interest-bearing assets 65.1 76.4 = Adjusted net debt 81.4 79.0
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Breakdown of gross debt 1 EMTN= Euro Medium Term Notes 60 • All public debt is issued by Vattenfall AB. • The main part of debt portfolio has no currency exposure that has an impact on the income statement. Debt in foreign currency is either swapped to SEK or booked as hedge against net foreign investments. • No structural subordination. Total debt: SEK 79.2 bn (EUR 7.1 bn) External market debt: SEK 71.5 bn (EUR 6.4 bn) Debt issuing programmes Size (EUR bn) Utilization (EUR bn) EUR 10bn Euro MTN 10.0 3.7 EUR 10bn Euro CP 10.0 0.1 Total 20.0 3.8 EMTN Hybrid capital Lease Liabilities to owners of non-controlling interests Other liabilities Margin calls (CSA) 53% 27% 9% 9% 1% 1%
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Debt maturity profile1 1 Short term debt (commercial paper and repo’s: 0.0), loans from associated companies, loans from owners of non -controlling interests, margin calls received (CSA) and valuation at fair value are excluded. Currency derivatives for hedging debt in foreign currency are included. 61 30 Jun. 2025 31 Dec. 2024 Duration (years) 3.8 4.5 Average time to maturity (years) 4.2 4.8 Average interest rate (%) 3.7 3.6 Net debt (SEK bn) 9.7 -2.8 Available group liquidity (SEK bn) 64.7 83.3 Undrawn committed credit facilities (SEK bn) 22.3 22.9 Cumulative maturities excl. undrawn back-up facilities 2025- 2027 2028- 2030 From 2031 Debt incl. hybrid capital 33.3 15.8 14.1 % of total 53% 25% 22% 11,1 9,8 10,6 11,5 0,1 6,0 1,5 0,2 2,6 9,8 22,3 2025 2027 2029 2031 2033 2035 2037 2039 2041 2043 2045 Hybrid capital (first call date) Debt (excl. hybrid cap) Undrawn back-up facilities SEK bn
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Liquidity position 1 German nuclear ”Solidarvereinbarung” 1.1 SEK bn, Margin calls paid (CSA) 2.3 SEK bn, Insurance “Provisions for claims outstanding” 0.8 SEK bn. 2 Excluding loans from minority owners and associated companies. 62 Group liquidity SEK bn Cash and cash equivalents 25.9 Short term investments 43.0 Reported cash, cash equivalents & short- term investments 68.9 Unavailable liquidity1 -4.2 Available liquidity 64.7 Committed credit facilities Facility size, EUR bn SEK bn RCF (2027) 2.0 22.3 Total undrawn 22.3 Debt maturities2 SEK bn Within 90 days 0.0 Within 180 days 10.6
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Nuclear provisions 63 Reactor1 Net capacity (MW) Start (year) Vattenfall share (%) Vattenfall provisions, SEK bn (IFRS accounting) Vattenfall provisions, SEK bn (pro rata) Sw nuclear waste fund SEK bn (Vattenfall pro rata share) Ringhals 1 879 1976 70.4 Ringhals 2 809 1975 70.4 Ringhals 3 1,070 1981 70.4 Ringhals 4 942 1983 70.4 Total Ringhals: 44.0 Total Ringhals: 44.02 Forsmark 1 984 1980 66.0 Forsmark 2 1,120 1981 66.0 Forsmark 3 1,170 1985 66.0 Total Forsmark: 40.0 Total Forsmark: 26.4 Total Sweden 6,974 - 88.53 72.83 47.54 Brunsbüttel 771 1977 66.7 10.7 7.1 Brokdorf 1,410 1986 20.0 - 2.7 Krümmel 1,346 1984 50.0 7.5 7.5 Stade5 640 1972 33.3 - 0.2 Total Germany 4,167 - - 18.1 17.5 Total SE & DE 11,141 106.7 90.2 1 Five reactors are in commercial operation in Sweden; Ringhals 3 & 4 and Forsmark 1, 2 & 3. Ringhals 1 & 2 and all reactors in Germany are taken out of commercial operation. Stade is being dismantled. 2 Vattenfall is 100% liability of Ringhals decommissioning, while owning only 70.4% 3 Total provisions in Sweden (IFRS accounting) include provisions of SEK 0.2 bn (pro rata SEK 0.2 bn) related to Ågesta, SEK 3.9 bn (pro rata SEK 2.1 bn) related to SVAFO and SEK 0.4 bn (pro rata SEK 0.0 bn) related to SKB. 4 Vattenfall’s share of the Nuclear Waste Fund. IFRS consolidated value is SEK 57.1 bn.
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ESG and Credit Ratings
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Environmental, social and governance (ESG) ratings Vattenfall is assessed by several sustainability rating agencies on its ESG performance 65 We aim to be as open and transparent as possible in our sustainability reporting and we are proud to be highly ranked for our sustainability performance. The below table shows the agencies we actively engage with and our most recent rating scores Rating Agency Rating focus Score Latest assessment The leading system globally for disclosing environmental data for investors, companies, cities, states and regions. B. A-level rating achieved in 14 of 16 sub-categories. April 2025 An online platform that enables companies to monitor the performance of their supply chains by providing supplier sustainability ratings. Score: 82 / 100. "Platinum rating" April 2025 ESG rating mainly for the investment community. The assessment spans over a range of ESG issues that are analysed on the basis of up to 100 rating criteria, most of them sector specific. Score: B / A+ December 2022 ESG rating mainly for the investment community. Uses methododology to identify industry leaders and laggards. Ranks companies according to their ESG risk exposure and how well they manage those risks relative to peers. Score AAA/AAA December 2024 ESG rating mainly for the investment community. Uses a two-dimensional materiality framework that measures a company’s exposure to industry-specific material risks and how well a company is managing those risks. Score: Medium Risk July 2025
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Credit ratings overview 1 Rating factors in a one notch uplift given that Vattenfall is 100% owned by the Swedish state 66 • “Vattenfall AB's credit profile is supported by the high share of contracted and regulated earnings, estimated at 40-45% of underlying EBITDA over the period to 2029; the group’s scale and geographical diversification across well-developed markets in Europe; its low carbon exposure; and its prudent financial policy, evidenced by a track record of moderate dividend payouts and reflected in strong leverage metrics, expressed as Moody's-adjusted funds from operations (FFO)/net debt of around 50% as of the last 12 months to June 2025 (LTM June 2025).” • “The stable outlook reflects our expectation that Vattenfall will record solid cash earnings over 2025-29, allowing the company to fund most of its CAPEX from its own cash flow; and that the company will maintain a prudent financial policy, enabling it to at least meet our guidance of FFO/net debt of 25%, as required for the BCA of baa1” • “In our view, Vattenfall should be able to maintain its strong credit ratios on the back of divestments, and further supported by our expectation of higher achieved power prices.” • “The stable outlook reflects our assumption that Vattenfall’s share of EBITDA from regulated operations will be at least 15%-20% over 2024-2026, excluding subsidized wind. If the share of regulated earnings is diluted further, we believe that this risk to increase earnings volatility. At the same time, Vattenfall’s generation fleet is expected to produce almost 100TWh annually. We forecast FFO to debt to increase to about 35%-40% in 2024, from 26% in 2023, and FFO to debt to also remain above 30% in 2025 and 2026.” • “Capex will shape credit ratios in 2025-2027. Despite the temporary decline in investments in 2024, we view Vattenfall’s investment program as ambitious and likely to be the main driver of its credit ratios in 2025-2027. The strategy for 2024-2025 points to SEK 65 billion of investment, already a historical high. In the coming period, we expect investments will increase further such that FFO to debt approaches the group’s financial policy range of 22%-27%.” Long term rating: A31 Short term rating: P-2 Outlook: Stable Latest publication: 17 September 2025 Long term rating: BBB+1 Short term rating: A-2 Outlook: Stable Latest publication: 5 December 2024
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Vattenfall credit highlights 67 BBB+ stable outlook by S&P and A3 stable outlook by Moody’s 100 per cent owned by the Swedish State Regulated and predictable cash flow from electricity distribution and district heating Experienced player in renewables and one of the leaders in wind power generationSignificant growth in renewable production and climate smart energy solutions A significant transformation has already happened Leading towards sustainable production A leading European energy company with activities across the value chain
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Green financing
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Vattenfall’s green financing framework Use of proceeds - eligible categories with examples of technologies1 1 The complete green financing framework can be found on Vattenfall’s website: green_financing_framework_220913.pdf (vattenfall.com) 69 Energy efficiency • Smart grids • District heating • Power to heat Renewable energy • Solar power • Wind power • Hydro power • Geothermal power • Bio power • Hydrogen • Heat/cool using waste heat Transmission and distribution of electricity • Transmission and distribution of electricity Clean transportation • Infrastructure for clean transportation
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Green bond investor report Investments under Vattenfall’s Green Bond Framework, as of year-end 20241 70 Category Project/country Type Capacity/ impact Est. CO2 reduction (ktonnes)2 Vattenfall's share Start/ completion Total investment 2024 2023 Total Renewable energy and related infrastructure Hollandse Kust Zuid 1–4 / Netherlands Wind offshore 1,509 MW 1,563 51% 2020/2024 2,600 MEUR 410 13,004 13,413 MSEK Kriegers Flak / Denmark Wind offshore 604 MW 345 100% 2019/2021 7,600 MDKK 0 9,694 9,694 MSEK Vesterhav-projects / Denmark Wind offshore 344 MW 89 100% 2022/2023 657 MEUR 1,131 6,068 7,199 MSEK Princess Ariane / Netherlands Wind onshore 180 MW 113 100% 2018/2020 220 MEUR 0 1,348 1,348 MSEK Bruzaholm /Sweden Wind onshore 139 MW 3 100% 2023/2025 2,360 MSEK 1,256 226 1,482 MSEK Velinga / Sweden Wind onshore 67 MW 1 100% 2024/2026 1,182 MSEK 330 0 330 MSEK Battery Toledo / Sweden Battery 55 GW 33% 2024/2025 43 MEUR 206 206 MSEK Industry projects HYBRIT / Sweden Fossil-free steel Pilot project – 33% 2019/2021 858 MSEK 0 480 480 MSEK Total 3,332 30,819 34,151 MSEK Outstanding green bonds 25,217 MSEK 1 The reporting of spend relating to green bonds has been updated from 2023 with the aim to be fully comparable with other, financial reporting of the projects. This is reflected in all active projects above, including for historic investments, i.e. accured expenses and not cash flow 2 Production from onshore wind estimated to 2.6 GWh/MW installed, from offshore wind to 3.5 GWh/MW installed, and from solar to 1.0 GWh/MW installed. Resulting production is compared against grid average emission factors which will decline over time as the energy system decarbonises. Actual production emission factors and savings will vary. Other projects are compared to project-specific reference cases.
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Dark green shading by CICERO The complete second opinion from CICERO is available on Vattenfall’s website: https://group.vattenfall.com/siteassets/corporate/investors/funding_ratings/doc/green_finan cing_second_opinion_may_2022.pdf 71 “Vattenfall has a clear strategic commitment to become fossil free within a generation with clear, timebound quantitative targets for greenhouse gas emission intensities validated by the Science Based Targets initiative as aligning with a 1.5 degree C warming scenario” “Based on the overall assessment of the projects that will be financed under this framework, and governance and transparency considerations, Vattenfall’s green financing framework receives a CICERO Dark Green shading and a governance score of Excellent.” Categories Green shading Renewable energy Dark Green Energy efficiency Medium to Dark Green Transmission and distribution of electricity Dark Green Clean transportation Dark Green
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HYBRIT HYBRIT – towards the world’s first fossil-free steel 72 What is HYBRIT? • HYBRIT – short for Hydrogen Breakthrough Ironmaking Technology – is a joint venture between Vattenfall, SSAB (steel) and LKAB (mining and minerals). The aim is to create a completely fossil-free value chain from mine to finished steel, with fossil-free pellets, fossil-free electricity and hydrogen • In 2021 the world's first fossil-free steel was manufactured and delivered by SSAB to Volvo Group, introducing fossil-free steel in its trucks • In 2022, SSAB made a policy decision to convert the entire Nordic production system to fossil-free iron ore and scrap-based steel production. Since then, SSAB has made investment decisions for the transition of the production facilities in Oxelösund and Luleå in Sweden • LKAB is developing a project to transition its production in Malmberget to hydrogen direct reduced iron. In the 1st step 1.35 Mt/year and in the 2nd and 3rd step an additional 1.35 Mt and 2.7 Mt respectively, in total 5.4 Mt/year Why is this important? • The steel industry is one of the highest CO2-emitting industries, accounting for 7% of global and 10% of Swedish total CO2 emissions • Steel demand is set to grow due to population and urbanisation → carbon footprint of the industry needs to be addressed Main project phases 2020 2025 2030 2035 2016–2017 Pre-feasibility Study 2018–2024 Pilot Phase • 2018–2020 Pilot line design and building phase • 2021–2024 Pilot line trials 2026– Demonstration Plant Trials Financing and timeline The total cost for the pilot phase was estimated to more than SEK 2 billion, with the Swedish Energy Agency contributing about SEK 600 million towards the pilot phase. The three owners, SSAB, LKAB and Vattenfall, each would contribute one third of the remaining costs, together approximately 70% of the total investment. The Swedish Energy Agency has earlier contributed SEK 60 million to the pre-feasibility study and a four-year-long research project. In 2024, the HYBRIT initiative reported the results of six years of research to the Swedish Energy Agency, entering a new phase focused on the large-scale industrialisation of the technology. After the pilot phase, HYBRIT Development AB continues to own the intellectual property and run the pilot plants on assignment basis. UN SDG’s
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HYBRIT vs traditional steel production 73 Pelletsing Steel makingIron making Crude steel CO2 CO2 CO2 as a byproduct CO2Oxygen Coal Coke plant CokeFossil fuels H20 Instead of CO2 as a byproduct Iron ore Iron ore pellets Iron ore pellets Sponge iron Liquid iron H20 H2 Fossil free electricity Hydrogen gas HYBRIT: Sponge iron is produced by using hydrogen gas as the main reductant. Hydrogen reacts with iron oxides to form water instead of CO2. The hydrogen used is green hydrogen i.e. produced by electrolysis of water using fossil-free electricity Traditional ore-based steelmaking: Reduction reactions in ironmaking represent around 85 to 90 per cent of the total CO2 emissions
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Sustainability deep-dives
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A strategy and purpose that reflects UN’s agenda 2030 Vattenfall’s strategy is driving our contribution to the UN’s Global Sustainable Development Goals (SDGs) 75 Local Global Indirect Vattenfall‘s contribution to the UN Sustainable Development Goals Strategic SDGs with global impact Responsible operations SDGs with local impact Responsible supply chain SDGs with indirect impact Vattenfall contributes to the goals through its commercial operations. Contributions to these goals have global impacts and are the result of implementing our strategy, in particular when it comes to climate change and consequences for the energy system. Vattenfall contributes to the goals through its ways of working. Our responsible operations contribute locally, whether in the form of e.g., health & safety or internal diversity standards, or working to have a net positive contribution to biodiversity at our external operating sites. Vattenfall contributes to the goals through its engagement and influence in the value chain via suppliers and partners. By engaging only with suppliers and partners who meet our social and environmental standards, we ensure that they make positive contributions to the goals that are most relevant for developing countries, as exemplified here.
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Execution of our strategy contributes the most to six prioritised goals 76 Overview • In 2016, Vattenfall identified the most relevant SDG’s for the business, where we can have the greatest global impact • These remain valid internally, as reflected in our strategy, as well as for our stakeholders, as confirmed by our materiality analysis Examples of contribution to our selected SDGs by sub-category SDG 7.2 Target: By 2030, substantially increase the share of renewable energy in the global energy mix. Example: Vattenfall has continued to grow and develop its fossil free energy pipeline that span various renewable energy sources and technologies, such as wind farms, solar parks, and battery storage. Currently, Vattenfall operates 6.6 GW of capacity in wind and solar power. SDG 12.2 & SDG 12.5 Target: By 2030, achieve sustainable management and efficient use of natural resources. Example: Vattenfall strives to maximise the value of resources in its value chain, such as using excess heat from various third parties for local heating networks or recycling or repurposing old wind turbine blades. Target: By 2030, substantially reduce waste generation through prevention, reduction, recycling and reuse. Example: More than 95 per cent of residual products from our combustion plants are sold for re-use mainly to the construction industry. SDG 9.4 Target: By 2030, upgrade infrastructure and retrofit industries to make them sustainable. Example: Vattenfall has developed and maintained energy infrastructure for years. Hence, sustainable retrofitting activities, such as those in our heat operations in the Netherlands or upgrades, like those in our hydro operations, are core to our business. SDG 13.1 Target: Strengthen resilience and adaptive capacity in relation to climate -related hazards and natural disasters. Example: Climate risks are part of our ERM. Some examples of climate adaptation measures include strengthening our hydro power dams and weatherproofing our grid infrastructure against anticipated future climate risks. SDG 11.6 Target: By 2030, reduce the adverse environmental impact of cities Example: We operate 66,000 charging points, install heat pumps in homes, and develop microgrids for communities to enable the decarbonisation of cities and their surroundings. SDG 17.17 Target: Encourage and promote effective public, public-private and civil society partnerships, building on the experience and resourcing strategies of partnerships. Example: Together with a plethora of academia, public, and private partners, Vattenfall has magnified its impact. From creating international responsible business conduct agreements to evaluating the feasibility of new nuclear power, these partnerships drive society forward.
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Material topics based on 2024 DMA 77 In 2024, Vattenfall conducted a Double Materiality Assessment, in accordance with the ESRS 1 guidelines. The DMA was executed by a dedicated project team comprising experts from various domains including Sustainability, Environment, Risk, Legal, and Finance, and supported by an extended team of representatives from all business areas. 2024 DMA • Once material impacts, risks and opportunities (IROs) were identified, group-level experts assessed the IROs based on criteria according to the ESRS guidelines. The individual scores were combined into a single score per IRO. • In a 2nd phase, 8 workshops were held with 64 representatives from across the business. The information from these workshops was used by the project team to recalibrate the scores. • In a 3rd phase, a total of 22 internal (including executive group management) and 4 external key selected stakeholders were interviewed, to gather input on the recalibrated scores from an overall company perspective. The feedback from the individual interviews was used to recalibrate the scores into the final assessment.
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78 Developing the world’s first fossil- free steel Investigation of opportunities for electrification to enable fossil-free fuel production Investigating joint investments in new fossil free energy production in Sweden One of Northern Europe’s largest charging network for e-vehicles 24/7 matching fossil-free energy for data centers Supporting development of near zero emission cement and a future demand commitment Developing flexible solutions for grid stability Green guaranteed energy delivery large customers, e.g. Co-operation for e-mobility Industry partnerships offshore wind: HKZ and Zeevonk Industrial partnerships for a fossil-free society Together with our partners, we pave the way for a new generation of transports, industries and materials Excess heat from algae cultivation to heat households
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Respect for human rights throughout our value chain ensures we create value in a sustainable way Tools, processes and actions to respect human rights 79 Supplier risk assessment tool Supplier screening and self-assessment questionnaires Audits & corrective action plans Code of Conduct for Suppliers & Partners Supplier capacity building & engagement Upstream & suppliers Stakeholder consultation, in particular indigenous people Local community funds MyOpinion, H&S maturity H&S contractor management Just transition & responsible decommissioning Operations Screening large B2B customers Assessing potential partners or acquisition targets Evaluating & minimising product end-of-life impacts Downstream & customers We aim to go beyond compliance and deliver positive impact through sustainability in tenders, industry initiatives (WindEurope, SolarPowerEurope), supplier collaboration and capacity building, and value chain deep dives.
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Working for a Nature-Inclusive Energy Transition We are committed to contribute to halting and reversing biodiversity loss A nature-inclusive energy transition At Vattenfall, our commitment to a nature inclusive energy transition drives us to continuously explore ways to integrate biodiversity into our operations and land management. We aim to develop solutions that provide benefits for both nature and society. Thus, our belief is that co-existence between nature and energy. production is possible. Mitigation, restoration and nature-based solutions • Actively avoiding and mitigating impacts • Implementing nature restoration and nature-based solutions Innovation and biodiversity R&D • Active R&D to ensure a robust scientific foundation for implementation of mitigating actions and solutions • Ensuring innovation in planning and design, developing solutions providing benefits for both nature and society Accelerate partnership and collaboration • Actively seeking opportunities to collaborate with others to achieve a broader impact Vattenfall contributes to a Nature-Inclusive Energy Transition: Examples of activities Hollandse Kust Zuid SeaLab An offshore research platform for monitoring and testing nature- inclusive designs, aiming to boost biodiversity around offshore wind farms Dancing rods Vattenfall R&D is testing bio- based foam rods that sway like seaweed to guide salmon safely past hydropower turbines Waterway restoration in Forsmark Vattenfall is restoring fish routes at Forsmark through the historic dam system, opening 800 hectares of watercourses for biodiversity recovery
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Contributing to biodiversity throughout our operations Examples of measures 81 Biotope restoration and species protection Preserve and manage biodiversity and enhance recreation values Identify new solutions to reduce environmental impact of hydro power production Knowledge building activities includes both research and pilot studies Hydro power “Laxeleratorn” is a unique, large-scale laboratory for hydro power-related environmental and hydraulic experiments that was inaugurated in 2018. It combines knowledge of biology and hydraulics to find solutions that allow and attract fish to safely pass by the power plant with the smallest possible effect on operations. During 2022 and 2023 several initiatives were ongoing. An AI-based fish recognition system is used in the fish ladder in the hydropower plant Stornorrfors in northern Sweden to count and register properties of salmon and trout individuals providing valuable knowledge on behaviour of the fish and status of fish populations. To improve downstream migration of fish several activities was ongoing using both pumps to direct water flows and net as physical barriers to guide the migration. Restore peat land functioning and carbon storage Wind power We have been carrying out habitat restoration work at two of our sites in the UK. In Pen y Cymoedd a larger scale peat land restoration work (up to 1400 ha) began in late 2021 and will continue for several years to come. At the Aberdeen offshore wind farm in Scotland, Vattenfall has conducted a pilot study of specific birds’ flight paths during the summer of 2022 to test a promising new technology – a video camera and an AI-based solution from the Norwegian start-up Spoor. Maintenance of habitats and protecting species Power distribution Clearance work for power lines opens meadow-like fields for threatened and rare species, like the butterfly marsh fritillary. With GIS mapping and field inventories, important biodiversity hotspots have been identified, and tailored maintenance plans have been developed for each of the 980 identified hotspots. The tailored maintenance has been conducted on 30% of the hotspots in 2023, and the target is to have introduced the approach at 100% of the hotspots by 2026. Aim Business area Examples Avoiding sea bird collisions
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Towards a circular economy We are committed to enable sustainable use of resources and contribute to a circular economy 82 Circular innovation We will collaborate with partners to develop circular business models solving the key resource issues in society and rethink our customer value propositions so they are circular by design. Circular capabilities We will build circular awareness and capabilities within Vattenfall to apply a circular approach when facing operational challenges. Circular assets We will embed circularity into the design and management of assets to reduce use of resources, extend the lifetime of assets and recycle valuable resources. Circular sourcing We will collaborate proactively with suppliers to secure the future supply of resources, reduce resource consumption and switch towards circular sourcing to fast forward our journey to fossil freedom. Examples of activities Recycling excess heat In the initiative Samenergi, Vattenfall collaborates with SMEs, like cold stores and data centres to help them recycle excess heat and utilise it in the district heating network. Reusing substation buildings As part of our efforts to reduce environmental impact, Vattenfall Eldistribution test circular construction and reuse of existing secondary substation buildings in a pilot project launched early 2024. Creating demand for near-zero cement Vattenfall and CemVision have partnered to develop and supply near-zero emission cement, potentially reducing CO2 emissions by 95% compared to traditional cement by 2030. Vattenfall’s Circular Economy Framework: A circular economy is based on the principles of keeping products and materials in use, designing out waste and pollution, and using regenerative natural systems. It is a sustainable alternative to the current ‘take-make-dispose’ linear economic system. The transition to a more circular economy is central to the Green Deal – EU’s policy road map towards a low-carbon, sustainable society. In circular systems, focus is on extending the life-time of products and materials, sharing and pooling of resources, repairing, reusing and recycling to create closed-loop systems, and utilising smart designs to minimise resource input and the generation of waste, pollution and CO2 emissions.
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We are adapting to a changing climate We continuously monitor, invest in and modernise our assets to ensure safety and resilience 1 For more info see page 89-90 in Vattenfall’s Annual- and sustainability report 2024 83 ▪ There is increasing urgency linked to climate change and the reduction of emissions needs to accelerate. Climate change affects Vattenfall through both physical effects on our assets and operations, and through changes associated with the transition to a fossil-free society. We are committed to building a future where everyone can choose fossil-free ways to move, make and live and have a high focus on adapting to change. ▪ Vattenfall discloses climate related risks and opportunities in accordance with the European Sustainability Reporting Standards (ESRS)1. Ensuring security of supply and resilient operations We have assessed physical effects of climate change on Vattenfall’s operations, considering both intermediate (+2ºC) and high-end (+4ºC) climate scenarios. Vattenfall is generally well equipped to adapt to a changing climate. Where relevant, measures and margins are adjusted to account for larger changes and variability. Examples of measures to ensure resilient operation include adapting hydropower dams to be able to manage larger future flows, ensuring cooling solutions for exposed infrastructure, and weather-proofing the distribution grid. Vattenfall will continue to have strong focus on management of climate risks, through e.g. scenario analyses and increased focus on supply chain aspects. Climate change affects Vattenfall Today, the world is about 1 ºC warmer than preindustrial levels and it is rising. Climate change leads to physical changes in parameters such as temperature, rainfall and sea level. This will affect Vattenfall’s assets and operations. As an example, changes in the frequency and magnitude of extreme weather events such as strong winds, flooding or forest fires can lead to infrastructure damage. Similarly, changes to rainfall and snowmelt affects river flows, which has relevance for our hydropower production, planning and dam safety aspects. Vattenfall continuously works to improve the safety and robustness of our operations.
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Promoting responsible business practices throughout the supply chain For more info: See page 111-115 in Vattenfall’s Annual and Sustainability Report 2024 84 Nuclear fuel Natural gas Waste & biomass Goods and services Number of counterparties Number of sustainability site audits conducted at (potential) suppliers Number of audit findings related to value chain workers’ H&S Screenings conducted Initial risk assessment Potential suppliers are screened against sanction lists and adverse media coverage. Suppliers are assessed by country risk and product or service category risk. For high- risk suppliers, a sustainability audit is required. Corrective actions Findings may trigger follow-up measures and an investigation. The supplier addresses the findings by providing and implementing a corrective action plan. Monitoring A risk-based monitoring and re-screening strategy is implemented to monitor active suppliers. A surveillance audit is conducted on active suppliers who are classified as high-risk suppliers at least every three years. If records are found during screening, sustainability experts evaluate the finding. For an on-site audit, the supplier’s compliance with our sustainability requirements is evaluated. Counterparty screenings, sustainability audits, and findings Due diligence process for suppliers and partners Key actions in 2024 • Collective actions on improving worker welfare Vattenfall took part in two collective actions aimed at addressing H&S risks and ensuring worker welfare during the construction and operations of energy generation sites, run by the German Energy Sector Dialogue and the International Responsible Business Conduct Agreement (IRBC) for the Renewable Energy Sector respectively. Both multi-stakeholder initiatives have a focus on particularly vulnerable groups such as migrant workers. The two initiatives have collaborated in developing a toolbox of measures to identify and address human rights and risks. • Gap analysis on internal compliance procedures Vattenfall engaged with a third party to conduct a gap analysis of our enhanced due diligence process. The external partner has reviewed and evaluated our internal procedure that we use to investigate suppliers that provide selected high-risk product categories more thoroughly, and based on the gaps identified, recommended improvements to live up to current and upcoming legislation as well as deliver positive impact. ScreeningAudit Investigation Number of screening findings related to value chain workers’ H&S 25,932 3,869 4 48 131 173 168 N/A 42 N/A N/A N/A N/A N/A N/A 12 20 2 4 8