Untitled

Interim financial report

First nine months 2021

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Interim financial report

First nine months 2021

Management’s review

Overview

CEO’s review 3

At a glance 7

Outlook 8

Results Q3 9

Business units’ results 15

Performance highlights 21

Quarterly overview 22

Results 9M 11

Financial statements

Consolidated financial statements

Consolidated statements of Income 9M 24

Consolidated statements of Income Q3 25

Consolidated balance sheet 26

Consolidated statement of shareholders equity 27

Consolidated statement of cash flows 28

Notes

1. Basis of reporting 29

2. Business performance 30

3. Segment information 31

4. Revenue 34

5. Other operating income and expenses 36

6. Financial income and expenses 36

7. Acquisition of enterprises 37

8. Gross and net investments 38

9. Reserves 38

10. Tax on profit (loss) for the period 39

11. Market risks 40

12. Fair value measurement 41

13. Interest-bearing debt and FFO 42

Management statement

Statement by the Executive Board and the

Board of Directors

Forward-looking statements 44

Contents

Earnings call

In connection with the presentation of the interim

financial report an earnings call for investors and

analysts will be held on Wednesday, 3 November

2021 at 14:00 CET:

Denmark: +45 78 15 01 08

International: +44 333 300 9035

USA: +1 844 625 1570

The earnings call can be followed live here:

https://edge.media-server.com/mmc/p/v757tb3e

Presentation slides will be available prior to the

earnings call and can be downloaded here:

orsted.com/financial-reports

Further information

Group Communication

Martin Barlebo

Tel.: +45 99 55 95 52

Investor Relations

Allan Bødskov Andersen

Tel.: +45 99 55 79 96

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Management’s review

Interim financial report First nine months 2021

We are very pleased that our robust business

model and active approach to risk manage-

ment ensured that the highly volatile gas and

power prices, especially during Q3 2021, only

had a limited impact on our financial results

and financial position, which remain strong.

The majority of our power price exposure from

wind and solar generation is locked in through

subsidy contracts and long-term PPAs. We

hedge the remaining exposure throughout a

five-year time-horizon. However, as our CHP

plants are hedged to a lower extent, we have

been able to benefit from the high power

prices and attractive spreads on biomass-

based power generation. Our net cash outflow

from margin payments on unrealised hedge

positions has been limited, and our trading

department has done a great job navigating us

well through these unusual market conditions

with a positive outcome for Ørsted.

We maintain our full-year EBITDA guidance of

DKK 15-16 billion. Our EBITDA guidance does

not include earnings from new partnerships

during the year, which means that the gain

from the Borssele 1 & 2 farm-down is excluded

from our full-year guidance. Furthermore, gains

from the farm-down of 50 % of Greater

Changhua 1 and 50 % of Borkum Riffgrund 3, if

they are closed in Q4 2021, are excluded from

the guidance.

Our green share of heat and power generation

amounted to 89 % in 9M 2021 in line with the

same period last year. The negative effect

Financials

Our operating profit (EBITDA) totalled DKK

16.0 billion, of which the gain from the 50 %

farm-down of Borssele 1 & 2 amounted to DKK

5.3 billion. Thus, EBITDA excluding new part-

nerships amounted to DKK 10.7 billion, a

decrease of DKK 2.4 billion compared to the

same period last year.

In most of the third quarter, we continued to

see lower wind speeds than normal, which had

an adverse impact on our operational earn-

ings. Earnings from wind and solar assets in

operation amounted to DKK 10.3 billion for the

first nine months of the year. This was a de-

crease of DKK 1.3 billion compared to 9M 2020

despite ramp-up of generation from new

operating assets and the receipt of CfDs for

the last 400 MW of capacity from Hornsea 1.

The total effect from lower wind speeds in 9M

2021 amounted to approx. DKK 2.5 billion

compared to 9M 2020 and DKK 1.7 billion

compared to a normal wind year.

Our underlying business maintained solid

availability rates during the first nine months,

and we continued to see exceptionally good

performance by our CHP plants. Furthermore,

we had high earnings from our gas business

due to a positive one-off effect in connection

with the renegotiation of gas purchase con-

tracts together with strong underlying perfor-

mance in a very volatile and bullish gas mar-

ket where we were able to optimise purchase

from our long-term gas contracts.

CEO’s review

Our robust business model, active approach to risk management, and

strong earnings in ‘Bioenergy & Other’ ensured good financial results

despite low wind speeds and unusual market conditions.

We are on track to meet our full-year guidance.

Financials

Our operating profit (EBITDA) for the first

nine months of the year amounted to DKK

16.0 billion (including new partnerships), a

DKK 2.9 billion increase compared to the

same period last year.

Earnings from wind and solar assets in oper-

ation amounted to DKK 10.3 billion for the

first nine months of the year, a decrease of

DKK 1.3 billion compared to 9M 2020 due to

continued significantly lower wind speeds.

Strong performance by our largely biomass

fuelled CHP plants and in our gas business.

We reiterate our EBITDA guidance of DKK

15-16 billion excluding new partnerships, and

reiterate our gross investments guidance of

DKK 39-41 billion.

Our green share of heat and power genera-

tion amounted to 89 %.

Sustainability achievements

First energy company to get our 2040 scope

1-3 net-zero target approved as science

based.

Construction and operational progress

Good progress on the construction of

Hornsea 2 in the UK and Greater Changhua 1

& 2a in Taiwan.

Commissioned our second solar PV asset,

Muscle Shoals in Alabama, US.

Business development

Signed an agreement with Glennmont Part-

ners to farm-down 50 % of the 900 MW

German wind project Borkum Riffgrund 3.

Signed long-term power purchase agree-

ment (PPA) on Borkum Riffgrund 3 with RE-

WE (100 MW).

Received notice of intent (NoI) for our Sunrise

Wind Project in New York, US.

Signed memorandum of understanding

(MoU) with T&T group in Vietnam to launch

a strategic collaboration on offshore wind.

Signed a letter of intent (LoI) with ZE PAK to

participate in the upcoming seabed lease

auction in Poland.

Highlights

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Management’s review

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Interim financial report

First nine months 2021

2024 and 2025, respectively. Both projects will

be powered by Siemens Gamesa’s 11 MW

offshore wind turbines.

In September, we commissioned our second

solar PV asset, Muscle Shoals, in Alabama. The

solar PV farm has a capacity of 227 MW

and

expands our geographic footprint into the

rapidly growing south-east solar market.

Power generation from Muscle Shoals is fully

contracted under a long-term utility PPA with

Tennessee Valley Authority (TVA), which

entails an attractive incremental source of

stable earnings.

We are currently constructing Haystack, Old

300 and Helena Energy Center in the US.

Haystack is our 298 MW onshore wind project

in Nebraska, adjacent to Plum Creek, and

construction is expected to be completed at

the end of the year. Our 430 MW

Solar

Center Old 300 and our Helena Energy Center

project consisting of a 250 MW

solar phase

and a 268 MW wind phase are both located in

Texas. The current ‘forced labor’ allegations

towards a number of solar panel suppliers in

China, as well as other issues related to poten-

tial increases in US tariffs on Chinese goods,

has caused a slowdown of solar panel deliver-

ies into the US, which is likely to delay the

commissioning of Old 300 and the solar phase

of Helena Energy Center from the previously

expected H1 2022 timeline to later in the year.

We are comfortable that the solar panel

suppliers used by Ørsted are not tied to

‘forced labor’ and we have signed up for the

Solar Industry Forced Labor Prevention

Pledge, which is an industry led initiative that

will develop a solar supply chain traceability

protocol to identify the source of primary raw

materials and tracking their incorporation into

from lower wind speeds was offset by in-

creased biomass-fuelled heat and power

generation driven by higher heat demand (due

to colder weather), higher prices and spreads,

which also led to higher condensing power

generation based on biomass.

Construction and operational progress

We are constructing two of the largest off-

shore wind farms in the world, Hornsea 2 and

Greater Changhua 1 & 2a, which are both on

track to be commissioned in 2022.

At Hornsea 2 we have now successfully in-

stalled all foundations, as well as 142 of the

array cables, and 116 out of the 165 turbines.

We expect to have first power later this year

when the offshore transmission asset gets

connected to the grid, and to commission the

wind farm during H1 2022.

At Greater Changhua 1 & 2a, we have success-

fully installed 11 jacket foundations out of 111.

We continue to make good progress in all

areas of the construction, and installation of

wind turbines and array cables is expected to

commence in February 2022. However, Taiwan

continues to be affected by COVID-19 re-

strictions, which could potentially affect the

construction schedule and eventually lead to

possible delays.

Furthermore, we signed monopile foundation

contracts with Steelwind Nordenham and

Bladt Industries for Gode Wind 3 and Borkum

Riffgrund 3. The two suppliers will be manufac-

turing a total of 107 monopile foundations for

the German projects, including the foundation

for the offshore substation for Gode Wind 3.

Subject to FID, Gode Wind 3 and Borkum

Riffgrund 3 are expected to be completed by

In October, we signed an agreement to farm-down 50 % of

the 900 MW German wind project Borkum Riffgrund 3 to

Glennmont Partners. We have signed long-term power pur-

chase agreements on Borkum Riffgrund 3 with REWE (100

MW), Covestro (100 MW), and Amazon (250 MW).

”

the solar modules.

In Europe, we are constructing two onshore

wind farms, Kennoxhead 1 (62 MW) in Scotland

and Lisheen 3 (29 MW) in Ireland. Lisheen 3 is

adjacent to the existing Lisheen 1 & 2 projects

which together form the large scale 89 MW

cluster. Both wind farms are expected to reach

COD in 2022.

Business development

Offshore

In August, the US Bureau of Ocean Energy

Management (BOEM) released its notice of

intent (NoI) for our Sunrise Wind project in New

York, thereby launching the formal environ-

mental review. We are very pleased to have

reached this important permitting milestone

for Sunrise Wind. All projects in our US offshore

portfolio (except the recently awarded Ocean

Wind 2 project) have now received NoI, and

our large-scale offshore portfolio, comprising

the Revolution Wind, Sunrise Wind, and Ocean

Wind 1 projects, remains on track to be fully

commissioned by 2025.

In October, we signed an agreement to farm

down 50 % of the 900 MW German wind

project Borkum Riffgrund 3 to Glennmont

Partners, one of Europe’s largest fund manag-

ers, exclusively investing in clean energy

infrastructure and already our partner at

Gode Wind 1. As part of the agreement, we

will construct the wind farm under a full-

scope EPC contract, perform operations and

maintenance services for 20 years, and

provide a route to market for the power

generated. We have signed long-term power

purchase agreements on Borkum Riffgrund 3

with REWE (100 MW), Covestro (100 MW), and

Amazon (250 MW), and we have an advanced

pipeline of additional PPAs. The divestment is

subject to final investment decision (FID)

which is expected by the end of 2021. Closing

of the divestment is expected in Q4 2021 or

Q1 2022.

In October, we submitted several joint pro-

posals for offshore wind transmission to

support New Jersey’s ambitious clean energy

goals, together with our strategic partner,

PSEG. The Coastal Wind Link proposals will

provide reliable, resilient and cost-effective

Management’s review

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Interim financial report

First nine months 2021

infrastructure to the state as thousands of

megawatts of new, clean renewable energy

come onto the grid.

In Vietnam, we signed a memorandum of

understanding (MoU) with T&T Group, a

leading Vietnamese cross-industry company,

to launch a strategic collaboration on off-

shore wind in Vietnam. With more than 3,200

km of coastline and high consistent wind

speeds, Vietnam has some of the best condi-

tions for developing offshore wind in Asia

Pacific. This is a major step for Ørsted in

establishing a strong foothold in Vietnam and

in showcasing our aspiration to be a reliable

long-term partner in this country.

In Poland, we signed a letter of intent with ZE

PAK, an important player in the Polish energy

sector with ambitious renewable energy

targets, to participate in the upcoming auc-

tion for seabed leases in the Baltic Sea.

Together with ATP, Denmark's largest institu-

tional investor, we plan to bid for the Danish

North Sea energy island which is expected to

be tendered in 2023. To add to this visionary

ambition for developing renewable energy at

an unprecedented scale, we now bring three

world-leading industrial construction experts

to support our bid: Aarsleff, Bouygues, and

Van Oord.

Hydrogen

We continue to see strong momentum within

renewable hydrogen worldwide, and since

the publication of our H1 2021 report, we have

continued to make significant progress in our

renewable hydrogen pipeline.

The Green Fuels for Denmark (GFDK) project,

which is uniting some of the strongest part-

ners in the Danish transport and energy

sector to fulfil Denmark’s ambitious vision for

a large-scale production of renewable

hydrogen and green fuels, reached a signifi-

cant milestone as the project was named an

Important Project of Common European

Interest (IPCEI) in the EU programme by the

Danish authorities. Thus, GFDK will be one of

only two Danish projects appointed to

receive support from the Danish fund ear-

marked to support the development of

renewable hydrogen and green fuels. Now,

we await the final IPCEI approval by the EU.

Furthermore, our Lingen Green Hydrogen

project with bp and the HySCALE100 project

have both been shortlisted for IPCEI status

by the German state and are progressing

well.

In the US, we signed an MoU with Williams,

one of the largest pipeline operators in the

US, to evaluate potential jointly developed

clean energy projects. Through the MoU, we

are identifying ways to leverage Ørsted’s

wind, solar, and hydrogen expertise with

Williams’ natural gas infrastructure and

processing experience to co-develop hydro-

gen or synthetic natural gas facilities. As part

of this agreement, we are exploring a large-

scale wind energy, electrolysis, and synthetic

gas-via-methanation co-development in

western Wyoming where Williams owns

significant land area and natural gas infra-

structure.

Bioenergy & Other

In March 2020, the Copenhagen Maritime

and Commercial Court ruled in favour of

Elsam (now Ørsted) in the legal action

brought against Elsam in 2007 by 1,106

Danish plaintiffs, claiming damages for losses

allegedly incurred as a consequence of a

violation of the Danish competition rules in

the period from 1 July 2003 to 31 December

2006. The Court ruled that the plaintiffs

were bound by the outcome of the previous

cases between Elsam and the Danish compe-

tition authorities concerning the same ques-

tion where Elsam in the end was acquitted of

the authorities’ allegation that Elsam had

violated the competition rules. The Court did

therefore not go into any substantive assess-

ment of the claims. In September 2021, the

High Court of Western Denmark overturned

this ruling because it did not agree that the

plaintiffs should be bound by the outcome in

the cases initiated by the Danish competition

authorities, and the case was therefore

referred to the Copenhagen Maritime and

Commercial Court for a substantive assess-

ment. The decision by the High Court does

not change our view that we have not violat-

ed any laws and does therefore not provide

grounds for a provision.

Burbo Bank, Irish Sea, UK

Management’s review

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Interim financial report

First nine months 2021

Sustainability achievements

In October, the Science-Based Target initia-

tive (SBTi) approved our scope 1-3 net zero

target for 2040. We are honoured to be the

first energy company, and one of only seven

companies, in the world to have our net zero

target approved as science based. As part of

the approval, we have committed to:

–

Reduce our absolute scope 3 GHG emis-

sions from use of sold products by 90%

compared to 2018.

–

Reduce our scope 1-3 GHG emissions from

our entire renewable energy portfolio to

2.9 g CO

/kWh (99% vs 2018), of which no

more than 1 g CO

/kWh related to scope

1-2 emissions.

In October, we signed a EUR 2.0 billion 5-year

sustainability-linked syndicated revolving

credit facility with two 1-year extension

options. To help drive the efforts to meet our

ambitious sustainability targets, the interest

margin will be adjusted based on our ability

to meet two of our predefined strategic

sustainability targets on an annual basis.

Employees

It is very important for us to attract, develop,

and retain the best talent, and our people

remain the most important assets in Ørsted.

As we continue to see challenges regarding

the COVID-19 pandemic around the world,

many of our employees are still significantly

impacted in their daily lives. I would like to

take this opportunity to acknowledge and

thank all our employees for the great job

they have been doing throughout the entire

pandemic, including how they have all

adapted to the new challenges and ways of

working.



Mads Nipper

Group President and CEO

Equally important, we continued to see a

positive trend in our safety performance,

measured by total recordable incident rate

(TRIR) which decreased from 3.8 to 3.0 in 9M

2021.

On 15 September, we announced that Neil

O’Donovan has been appointed as CEO of

the Onshore business. We are very pleased

to welcome Neil to the Executive Commit-

tee, and we strongly believe that Neil is the

best person to take over the leadership of

Ørsted Onshore and to accelerate Onshore’s

growth journey. With a strong technical

foundation in engineering, a proven track

record in successful project development,

and a great commercial focus, Neil has been

instrumental in taking Onshore to where it is

today.

2020 2021

2020 2021 2020 2021

8/44

Management’s review

Interim financial report First nine months 2021

EBITDA

EBITDA in 2021, excluding new partnership

agreements, is expected to be DKK 15-16 bil-

lion. We still expect an outcome in the low end

of the guided range, which is unchanged rela-

tive to the guidance in the H1 2021 report. This

guidance is based on an assumption of normal

wind speeds in the remainder of the year.

Our directional guidance for Bioenergy & Oth-

er has changed from ‘Higher’ to ‘Significantly

higher’, mainly due to higher earnings from our

CHP plants and gas business.

The directional guidance for Offshore is

‘Significantly lower’, which is unchanged rela-

tive to the guidance in the H1 2021 report.

The directional guidance for Onshore is

‘Higher’, which is unchanged relative to the

guidance in the annual report for 2020.

Gross investments

Gross investments in 2021 are expected to

amount to DKK 39-41 billion, which is un-

changed relative to the guidance in the H1

2021 report.

Our EBITDA guidance for the Group is the prevailing guidance, whereas the directional earnings development

per business unit serves as a means to support this. Higher/lower indicates the direction of the business unit's

earnings relative to the results for 2020 excl. RBC.

Business performance principle. From 2021, we are reporting according to IFRS (see more on page 30).

Excluding the Danish power distribution, residential customer, and city light businesses (RBC).

Excluding new partnerships, relative to 2020, excluding RBC.

Outlook 2021, DKK billion

2020

realised

Guidance

3 Feb 2021

Guidance

29 Apr 2021

Guidance

12 Aug 2021

EBITDA 18.1

15-16 15-16

15-16

Offshore 14.8

Lower Lower

Significantly

lower

Onshore 1.1 Higher Higher Higher

Bioenergy & Other 2.1 Lower Lower Higher

Gross investments 27.0 32-34 32-34 39-41

2020 realised,

excl. RBC

1,2

17.2

14.8

1.1

1.2

Guidance

3 Nov 2021

15-16

Significantly

lower

Higher

Significantly

higher

39-41

Outlook 2021

Borssele 1&2, North Sea,

The Netherlands

9/44

Management’s review

Interim financial report First nine months 2021

EBITDA

Operating profit (EBITDA) totalled DKK 3.0

billion compared to DKK 3.4 billion in Q3 2020.

The decrease of DKK 0.4 billion was mainly

due to lower earnings from our operating wind

assets as a result of lower wind speeds

throughout our portfolio. This was partly off-

set by good performance at our CHP plants

and our gas business.

Earnings from wind and solar assets in opera-

tion were DKK 1.0 billion lower than in the

same period last year and amounted to DKK

2.4 billion. Ramp-up of generation from Plum

Creek, Willow Creek, Western Trail, Muscle

Shoals, and Permian Energy Center combined

with the addition of the last 400 MW of

Hornsea 1 receiving CfDs in April and a positive

effect from ceasing to report according to the

business performance principle in 2021 contrib-

uted positively to our site earnings. However,

this was more than offset by significantly low-

er wind speeds across especially our offshore

portfolio (approx. DKK 0.8 billion compared to

Q3 2020), higher TNUoS tariffs following the

divestment of the offshore transmission asset

at Hornsea 1 in Q1 2021, and lower earnings

from Horns Rev 2 due to the subsidy period

ending in October 2020.

EBITDA from our CHP plants increased by DKK

0.4 billion and amounted to DKK 0.5 billion.

The increase was mainly due to higher power

prices and spreads, which also led to higher

generation.

EBITDA from Gas Markets & Infrastructure

increased by DKK 0.6 billion and amounted

to DKK 0.8 billion. The increase was mainly

due to the renegotiation of gas purchase

contracts together with strong underlying

performance in a very volatile and bullish gas

market where we were able to optimise pur-

chase from our long-term gas contracts.

Financial income and expenses

Net financial income and expenses amounted

to DKK -0.4 billion in Q3 2021 compared to

DKK -0.3 billion in Q3 2020. The higher net

expenses were mainly due to Q3 2020 being

positively impacted by interest regarding tax

and by capital adjustments on the bond port-

folio which were a loss in Q3 2021 versus a

gain in Q3 2020. This was partly offset by a

positive effect from exchange rate adjust-

ments.

Tax and tax rate

Tax on profit for the period amounted to

DKK 0.2 billion in Q3 2021 compared to DKK

0.1 billion in Q3 2020. The effective tax rate in

Q3 2021 was 27 %.

Profit for the period

Profit for the period totalled DKK 0.5 billion,

DKK 11.5 billion lower than in Q3 2020. The

decrease was mainly due to the DKK 11.1 bil-

lion gain from the divestment of our distribu-

tion, residential customer, and city light busi-

nesses in August 2020.

Results Q3

Financial results, DKKm Q3 2021 Q3 2020 %

Revenue

14,510 10,041 45 %

EBITDA

2,984 3,360 (11 %)

Depreciation and amortisation

(1,939) (2,095) (7 %)

Operating profit (loss) (EBIT)

1,045 1,265 (17 %)

Gain (loss) on divestment of enterprises

(22) 11,139 n.a.

Financial items, net

(351) (282) 24 %

Profit before tax

671 12,124 (94 %)

Tax on profit (loss) for the period

(184) (108) 70 %

Tax rate

27% 1% 26 %p

Profit (loss) for the period

487 12,034 (96 %)

Plum Creek, Wayne

County, Nebraska, US .

Management’s review

10/44

Interim financial report

First nine months 2021

Cash flow and net debt, DKKm Q3 2021 Q3 2020 %

Cash flows from operating activities

246 1,941 (87 %)

EBITDA

2,984 3,360 (11 %)

Change in derivatives

486 222 119 %

Change in provisions

(915) (119) 669 %

Reversal of gain (loss) on divestments of assets

52 32 63 %

Other items

(7) (4) 75 %

Interest expense, net

39 (430) n.a.

Paid tax

(168) (4) 4100 %

Change in work in progress

(610) (84) 626 %

Change in tax equity partner liabilities

2,041 376 443 %

Change in other working capital

(3,656) (1,408) 160 %

Gross investments

(8,757) (9,263) (5 %)

Divestments

7 20,506 (100 %)

Free cash flow

(8,504) 13,184 n.a.

Net debt, beginning of period

12,067 22,272 (46 %)

Free cash flow from continuing operations

8,504 (13,184) n.a.

Free cash flow from discontinued operations

- (970) n.a.

Dividends and hybrid coupon paid

115 110 5 %

Addition of lease obligations

164 92 78 %

Exchange rate adjustments, etc.

361 (439) n.a.

Net debt, end of period

21,211 8,216 158 %

Interest bearing receivables re. O&G divestment

- 335 n.a.

Cash flows from operating activities

Cash flows from operating activities totalled

DKK 0.2 billion in Q3 2021 compared to DKK

1.9 billion in Q3 2020. The decrease of DKK 1.7

billion was mainly driven by a lower EBITDA,

margin payments on hedges, and a higher

spend to fill the gas storages due to the ex-

treme increase in gas prices in Q3 2021. This

was partly offset by higher tax equity contri-

butions in Q3 2021 related to our onshore

wind farm Western Trail and our solar PV

farm Muscle Shoals in the US. Furthermore,

the cash flows were positively impacted by

lower net receivables due to the lower vol-

umes generated.

Investments and divestments

Gross investments amounted to DKK 8.8 bil-

lion against DKK 9.3 billion in Q3 2020. The

main investments in Q3 2021 were:

– offshore wind farms (DKK 6.0 billion), in-

cluding Greater Changhua 1 & 2a in Tai-

wan, Hornsea 2 in the UK, Ocean Wind 1,

and the north-east cluster (Sunrise Wind,

Revolution Wind and South Fork) in the

US.

– onshore wind and solar PV farms (DKK

2.6 billion), including the construction of

Permian Energy Center, Old 300 Solar,

Muscle Shoals, Haystack, and Kennox-

head 1.

Installation of 1,000th offshore

wind turbine at Hornsea 2, UK

11/44

Management’s review

Interim financial report First nine months 2021

Financial results

Revenue

Power generation from wind and solar assets

increased by 4 % and totalled 14.9 TWh in 9M

2021. Ramp-up of generation from Borssele 1 &

2, Sage Draw, Plum Creek, Willow Creek, West-

ern Trail, Muscle Shoals, and Permian Energy

Center was partly offset by significantly lower

wind speeds across our portfolio.

Thermal power generation increased by 52 %

and amounted to 4.8 TWh, driven by favoura-

ble market conditions for power generation as

well as an increased demand for ancillary ser-

vices. Heat generation amounted to 5.4 TWh,

up 22 % compared to the same period last

year, mainly due to colder weather.

Our renewable share of generation was 89 %

in 9M 2021 in line with the same period last

year, as the lower wind share was offset by a

larger part of the thermal generation being

biomass-fuelled.

Revenue amounted to DKK 47.0 billion. The 27

% increase relative to 9M 2020 was primarily

due to the significantly higher gas and power

prices across all markets and the divestment

of the offshore transmission asset at Hornsea 1

in 2021. This was partly offset by low wind

speeds in 9M 2021 and the 2020 divestments

of the LNG and Danish distribution, residential

customer, and city light businesses (RBC).

EBITDA

Operating profit (EBITDA) totalled DKK 16.0

billion, of which the gain from the 50 % farm-

down of Borssele 1 & 2 amounted to DKK 5.3

billion. Thus, EBITDA excluding new partner-

ships amounted to DKK 10.7 billion, a decrease

of DKK 2.4 billion compared to the same peri-

od last year.

Earnings from wind and solar assets in opera-

tion amounted to DKK 10.3 billion, a decrease

of DKK 1.3 billion compared to the same period

last year. Ramp-up of generation from Bors-

sele 1 & 2, Sage Draw, Plum Creek, Willow

Creek, Western Trail, Muscle Shoals, and Per-

mian Energy Center combined with the addi-

tion of CfDs for the last 400 MW of capacity

from Hornsea 1 and a positive effect from

ceasing to report according to the business

performance principle in 2021 (approx. DKK 0.7

billion) contributed positively to our site earn-

ings. However, this was more than offset by

significantly lower wind speeds across our

offshore portfolio (approx. DKK 2.5 billion com-

pared to the same period last year), higher

TNUoS tariffs following the divestment of the

offshore transmission asset at Walney Exten-

EBITDA

DKK 16.0 billion

Offshore



Onshore



Bioenergy & Other



15 %

5 %

80 %

Results 9M

Ceasing the use of business performance

With the implementation of IFRS 9 in 2018, it has become significantly easier to apply IFRS hedge accounting to

our commodity hedges. We have concluded that IFRS 9 can replace our business performance principle, and

therefore, we are reporting based on IFRS only from 1 January 2021.

At the end of 2020, the value of our business performance hedges deferred to a future period amounted to DKK

-2.7 billion, of which DKK -1.1 billion relates to 2021. This net loss has already been recognised in the income state-

ment under IFRS in previous years, as we have not previously applied hedge accounting for these. Consequently,

for the period 2021-2025, EBITDA (according to IFRS) will be higher with a similar amount compared to what the

business performance EBITDA would have been in the same period if we had continued to report based on this

principle. For 9M 2021, EBITDA according to IFRS was DKK 0.8 billion higher than if we had kept reporting accord-

ing to the business performance principle. The main part of the amount was related to site EBITDA in Offshore

and the remaining part was related to our CHP plants and gas activities in Bioenergy & Other.

Throughout the management’s review, we will use business performance as comparable numbers for 2020 for a

better like-for-like comparison, while our consolidated financial statements will be reported after IFRS only. Read

more in note 2 ‘Business Performance’.

In addition, see more info in the annual report for 2020 in the financial outlook section on page 16, and in notes 1.4

and 1.6 on pages 88 and 90, respectively.

Financial results, DKKm 9M 2021 9M 2020 %

Revenue

47,007 37,042 27 %

EBITDA

16,043 13,121 22 %

Depreciation and amortisation

(5,828) (5,676) 3 %

Operating profit (loss) (EBIT)

10,215 7,445 37 %

Gain (loss) on divestment of enterprises

(58) 11,122 n.a.

Financial items, net

(1,236) (2,068) (40 %)

Profit before tax

8,916 16,507 (46 %)

Tax on profit (loss) for the period

(1,287) (1,954) (34 %)

Tax rate

14% 12% 2 %p

Profit (loss) for the period

7,629 14,527 (47 %)

- New partnerships

5,296 - n.a.

- EBITDA excl. new partnerships

10,747 13,121 (18 %)

Management’s review

12/44

Interim financial report

First nine months 2021

sion in mid-2020 and Hornsea 1 in Q1 2021, low-

er earnings from Horns Rev 2 due to the subsi-

dy period ending in October 2020, and lower

ROC recycle prices.

EBITDA from partnerships amounted to DKK

5.1 billion and was primarily related to the 50 %

farm-down of Borssele 1 & 2, whereas earnings

from existing partnerships amounted to DKK

-0.2 billion, a decrease of DKK 2.0 billion com-

pared to the same period last year which saw

high earnings related to the Hornsea 1 trans-

mission asset. The 9M 2021 results were nega-

tively impacted by a DKK 0.8 billion warranty

provision towards our partners related to cable

protection system issues at some of our off-

shore wind farms.

The divested RBC businesses contributed DKK

0.9 billion to EBITDA in 9M 2020.

EBITDA from our CHP plants amounted to DKK

1.5 billion, an increase of DKK 0.7 billion com-

pared to the same period last year. The in-

crease was mainly due to higher realised pow-

er prices together with higher sales of ancillary

services and higher heat and power generation.

EBITDA from our gas business also contributed

with high earnings of DKK 1.1 billion in 9M 2021,

an increase of DKK 1.0 billion compared to the

same period last year. The positive effect was

driven by the renegotiation of gas purchase

contracts and strong underlying performance,

especially in Q3 2021, in a very volatile and

bullish gas market. 2020 was impacted by a

provision for bad debt in our B2B business to

cover the COVID-19-related default risk among

our customers.

EBIT

EBIT increased by DKK 2.8 billion to DKK 10.2

billion in 9M 2021, primarily as a result of the

higher EBITDA, only partly offset by higher

depreciation driven by more wind farms in

operation.

Financial income and expenses

Net financial income and expenses amounted

to DKK -1.2 billion compared to DKK -2.1 billion

in 9M 2020. The lower net expenses were

mainly due to loss on interest rate swaps in

connection with the termination of local pro-

ject financing and related swaps in the US last

year and a positive effect from exchange rate

adjustments, partly offset by capital losses on

the bond portfolio and higher return on tax

equity due to more onshore farms in opera-

tion.

Tax and tax rate

Tax on profit for the period amounted to DKK

1.3 billion, DKK 0.7 billion lower than in the

same period last year. The effective tax rate

was 14 %, and it was significantly impacted by

the tax-exempt gain of DKK 5.3 billion from

the 50 % farm-down of Borssele 1 & 2. Tax for

9M 2021 was further reduced by a DKK 0.9

billion change in uncertain tax positions (UTP)

due to updated management assessments

and the increase of the UK tax rate from 19 %

to 25 % from 2023. This was partly offset by

the recognition of deferred tax liabilities relat-

ed to initial tax equity contributions from Per-

mian Energy Center, Muscle Shoals, Western

Trail, and our US offshore portfolio.

Profit for the period

Profit for the period totalled DKK 7.6 billion,

DKK 6.9 billion lower than in 9M 2020. The

decrease was primarily due to the DKK 11.1

billion gain from the divestment of our distri-

bution, residential customer, and city light

businesses in 2020, partly offset by the gain

from the 50 % farm-down of Borssele 1 & 2

and from lower net financial expenses and

tax expenses.



Taxonomy-eligible KPIs

The taxonomy-eligible share of revenue was

above 65 %, whereas the shares of our

EBITDA and gross investments was above

90 % and 99 % respectively, in 9M 2021. The

non-eligible part of our revenue primarily

concerned our long-term legacy activities

related to sourcing and sale of gas (20 % of

revenue in 9M 2021), Danish CHP plants,

where approx. a quarter of the CHP plants’

generation is based on fossil fuels, and sale

of power to end-users (activity currently not

covered by the taxonomy). We expect the

share of taxonomy-eligible revenue to in-

crease in the coming years.

Read more about the new reporting frame-

work, EU Taxonomy, in the first half year

2021 report on page 5 and in note 1.5 in the

ESG performance report for the first nine

months 2021.

Management’s review

13/44

Interim financial report

First nine months 2021

Investments and divestments

Gross investments amounted to DKK 27.6

billion against DKK 18.3 billion in 9M 2020. The

main investments in 9M 2021 were:

–

offshore wind farms (DKK 16.4 billion), in-

cluding Greater Changhua 1 & 2a in Tai-

wan, Hornsea 2 in the UK and our portfolio

of US projects as well as payments related

to Baltica 2 & 3 in Poland through the

50/50 joint venture with PGE.

–

onshore wind and solar PV farms (DKK 10.9

billion), including the acquisition of

Brookfield Renewable Ireland, and the

construction of Permian Energy Center,

Old 300, Muscle Shoals, Western Trail,

Helena Energy Center, Haystack, and Ken-

noxhead 1.

Divestments amounted to DKK 10.6 billion in

9M 2021 and were mainly related to the 50 %

farm-down of Borssele 1 & 2 with proceeds

(NIBD impact) of DKK 9.3 billion. Furthermore,

we received proceeds from the divestment of

a 25 % ownership interest in Ocean Wind 1 to

New Jersey’s Public Service Enterprise Group

(PSEG) and final settlement with Global Infra-

structure Partners (GIP) regarding Hornsea 1.

Interest-bearing net debt

Interest-bearing net debt totalled DKK 21.2

billion at the end of September 2021 against

DKK 12.3 billion at the end of 2020. The in-

crease was mainly due to dividend and hybrid

coupon payments of DKK 5.3 billion, a nega-

tive free cash flow of DKK 5.5 billion and ex-

change rate adjustments.

Cash flows and net debt

Cash flows from operating activities

Cash flows from operating activities totalled

DKK 11.5 billion in 9M 2021 compared to DKK

9.7 billion in 9M 2020. The increase of DKK 1.8

billion was mainly driven by a cash inflow from

work in progress in 9M 2021 versus a cash out-

flow in 9M 2020. Furthermore, the cash flows

were positively impacted by lower net receiva-

bles due to the lower volumes generated. This

was partly offset by a lower cash flow from

tax equity contributions than in 9M 2020, a

higher spend to fill the gas storages, higher

initial margin payments for conducting busi-

ness at clearing houses due to the increasing

power and gas prices, and higher net margin

payments on unrealised hedges.

The net margin payments (part of ‘Change in

derivatives’) amounted to DKK -1.4 billion in 9M

2021, but had opposite effects in Offshore (DKK

5.8 billion outflow related to power hedges)

and Bioenergy & Other (DKK 4.4 billion inflow,

primarily related to gas hedges in our end-

customer business activities). In contrast,

‘Change in derivatives’ was positively impacted

by changes in the market value of our gas stor-

age hedges.

In 9M 2021, we had a net cash inflow from work

in progress of DKK 3.1 billion, mainly from the

divestment of the Hornsea 1 offshore transmis-

sion asset (DKK 5.0 billion), partly offset by

construction work on the offshore transmission

asset at Hornsea 2. In 9M 2020, we had a net

cash outflow of DKK 2.1 billion, mainly from

supplier payments related to the construction

of Hornsea 1 for partners and the offshore

transmission assets at Hornsea 2, partly offset

by the divestment of the offshore transmission

asset at Walney Extension.

Cash flow and net debt, DKKm 9M 2021 9M 2020 %

Cash flows from operating activities

11,480 9,710 18 %

EBITDA

16,043 13,121 22 %

Change in derivatives

11 (292) n.a.

Change in provisions

(270) (484) (44 %)

Reversal of gain (loss) on divestments of assets

(5,626) (1,256) 348 %

Other items

(53) (11) 382 %

Interest expense, net

(597) (1,593) (63 %)

Paid tax

(1,354) (1,357) (0 %)

Change in work in progress

3,144 (2,099) n.a.

Change in tax equity partner liabilities

2,660 3,268 (19 %)

Change in other working capital

(2,478) 413 n.a.

Gross investments

(27,555) (18,328) 50 %

Divestments

10,567 20,558 (49 %)

Free cash flow

(5,508) 11,940 n.a.

Net debt, beginning of period

12,343 17,230 (28 %)

Free cash flow from continuing operations

5,508 (11,940) n.a.

Free cash flow from discontinued operations

- (926) n.a.

Dividends and hybrid coupon paid

5,369 5,031 7 %

Addition of lease obligations

587 239 146 %

Issuance of hybrid capital, net

(4,356) - n.a.

Exchange rate adjustments, etc.

1,760 (1,760) n.a.

Net debt, end of period

21,211 8,216 158 %

Interest bearing receivables re. O&G divestment

- 342 n.a.

Equity

Equity was DKK 79.2 billion at the end of

September 2021 against DKK 97.3 billion at

the end of 2020. The reduction was driven

by unrealised losses on the hedge reserve for

power hedges and, to some extent, gas

hedges due to the significantly increasing

prices, especially during Q3 2021. At the end

of September 2021, the post-tax hedging and

currency translation reserves amounted to a

loss of DKK 26 billion.

Management’s review

14/44

Interim financial report

First nine months 2021

Credit metric (FFO/adjusted net debt)

The funds from operations (FFO)/adjusted net

debt credit metric was 42 % at the end of Sep-

tember 2021 against 80 % in the same period

last year.

Non-financial results

Green share of heat and power generation

The green share of energy generation amount-

ed to 89 % in 9M 2021, in line with the same

period last year, but with a lower net contribu-

tion from our operating offshore (-10 %-points)

and onshore (+4 %-points) assets, and a higher

share of biomass-fuelled heat and power gen-

eration (+7 %-points).

Power generation from our operating offshore

and onshore assets only increased by 4 % as

generation from new capacity was offset by

lower wind speeds. In contrast, thermal-based

heat and power generation increased by 35 %

driven by higher heat demand (due to colder

weather), higher prices, and spreads, which

also led to higher condensing power genera-

tion.

Greenhouse gas emissions

Despite of the unchanged green share of gen-

eration, the greenhouse gas intensity from our

heat and power generation and other operat-

ing activities (scope 1 and 2) decreased to 64 g

e/kWh in 9M 2021 against 69 g CO

e/kWh

in 9M 2020. This was due to biomass being

used as fuel for a larger part of the condensing

power generation.

Greenhouse gas emissions from our supply

chain and sales activities (scope 3) decreased

by 26 % to 14.3 million tonnes in 9M 2021, driv-

en by 32 % lower gas sales following the di-

Capital employed

Capital employed was DKK 100.4 billion at the

end of September 2021 against DKK 109.7 bil-

lion at the end of 2020, as the before-

mentioned unrealised losses on power and gas

hedges more than outweighed new invest-

ments.

The value of our derivatives at the end of Sep-

tember 2021 amounted to DKK -35.5 billion

against DKK -0.2 billion at the end of 2020.

During Q3 2021 the value decreased by DKK

-24.1 billion.

Financial ratios

Return on capital employed (ROCE)

Return on capital employed (ROCE, last 12

months) was 12.9 % at the end of 9M 2021. The

increase of 3.5 percentage points compared to

the same period last year was attributable to

the higher EBIT over the 12-month period.

vestment of the LNG activities in 2020. This

was partly offset by higher emissions related

to new onshore assets being commissioned.

Safety

In 9M 2021, we had 54 total recordable inju-

ries (TRIs), of which 32 injuries were related to

contractors’ employees. This was a decrease

of 8 injuries compared to the same period

last year or a 13 % reduction. The number of

hours worked was 17.7 million hours, an in-

crease of 9 % compared to 9M 2020. During

9M 2021, the total recordable injury rate

(TRIR) decreased from 3.8 in 9M 2020 to 3.0

in 9M 2021.

Key ratios, DKKm, % 9M 2021 9M 2020 %

ROCE

12.9 9.4 4 %p

Adjusted net debt 31,180 16,123 93 %

FFO/adjusted net debt

42.3 79.9 (38 %p)

See page 89 in the annual report for 2020 for definition.

Restated number for 9M 2020. See note 13 for adjusted definition.

Capital employed

Offshore



Onshore



Bioenergy & Other



DKK 100 billion

(2 %)

18 %

84 %

15/44

Management’s review

Interim financial report First nine months 2021

Highlights

– Signed agreement with Glennmont Part-

ners to farm down 50 % of the 900 MW

German offshore wind project Borkum

Riffgrund 3.

– Received notice of intent (NoI) for Sunrise

Wind in New York.

– Completed installation of all foundations

and array cables at our 1.3 GW offshore

wind farm Hornsea 2.

– Signed memorandum of understanding

with T&T Group to launch a strategic col-

laboration in Vietnam.

– Green Fuels for Denmark was named an

Important Project of Common European

Interest (IPCEI) in the EU programme by the

Danish authorities.

– Signed letter of intent with ZE PAK to par-

ticipate in the upcoming seabed lease auc-

tion in Poland.

Financial results Q3 2021

Power generation decreased by 28 % relative

to Q3 2020, primarily due to significantly low-

er wind speeds, the divestment of 50 % of

Borssele 1 & 2 in May 2021, and a slightly lower

availability. The lower availability was mainly

due to WTG outages at Hornsea 1, partly off-

set by higher availability in Denmark and Ger-

many.

Wind speeds amounted to a portfolio average

of 7.6 m/s, which was lower than in Q3 2020

(8.6 m/s) and the normal wind speeds expected

in the third quarter (8.3 m/s).

Revenue increased by 43 % to DKK 9.2 billion.

Revenue from offshore wind farms in opera-

tion decreased by 18 % to DKK 3.4 billion,

mainly driven by the lower power generation,

whereas revenue from power sales more than

tripled to DKK 5.7 billion, due to the higher

power prices despite lower volumes sold.

There was no significant revenue from con-

struction agreements in Q3 2021. In Q3 2020,

revenue was primarily related to the construc-

tion of Coastal Virginia, and the completion of

Hornsea 1.

EBITDA decreased by DKK 1.3 billion and

amounted to DKK 1.3 billion.

EBITDA from Sites, O&M, and PPAs amounted

to DKK 1.8 billion in Q3 2021. The 40 % de-

crease was due to the earlier-mentioned lower

power generation following a third quarter

with very low wind compared to Q3 last year

(approx. DKK 0.8 billion and approx. DKK 0.6

billion vs. a normal wind year). Furthermore,

higher TNUoS tariffs following the divestment

of the offshore transmission asset at Hornsea 1

in Q1 2021 and lower earnings from Horns Rev

2 due to the subsidy period ending in October

2020 contributed to the lower earnings. Power

portfolio earnings decreased due to higher

balancing costs and lower volumes. This was

only partly offset by the addition of the last

400 MW of Hornsea 1 receiving CfDs in April

together with a positive effect from ceasing to

report according to the business performance

principle in 2021.

We had no significant EBITDA from partner-

ships in Q3 2021.

Financial results Q3 2021 Q3 2020 % 9M 2021 9M 2020 %

Business drivers



Decided (FID'ed) and installed capacity

9.8 9.9 (1 %) 9.8 9.9 (1 %)

Installed capacity

7.6 6.8 11 % 7.6 6.8 11 %

Generation capacity

4.0 4.1 (3 %) 4.0 4.1 (3 %)

Wind speed

m/s

7.6 8.6 (11 %) 8.7 9.8 (11 %)

Load factor

27 35 (8 %p) 35 42 (7 %p)

Availability

93 94 (1 %p) 94 94 0 %p

Power generation

TWh

2.3 3.2 (28 %) 9.4 10.3 (9 %)

Denmark

0.4 0.5 (18 %) 1.3 1.6 (16 %)

United Kingdom

1.3 1.9 (35 %) 5.1 6.7 (23 %)

Germany

0.5 0.5 (3 %) 1.4 1.6 (18 %)

The Netherlands

0.2 0.2 (20 %) 1.5 0.3 336 %

Other

0.0 0.1 (22 %) 0.1 0.1 (50 %)

Power sales TWh 4.8 6.3 (24 %) 16.2 20.6 (21 %)

Power price, LEBA UK

GBP/MWh

164.1 38.1 330 % 109.6 34.2 221 %

British pound

DKK/GBP

8.7 8.2 6 % 8.6 8.4 2 %

Financial performance

Revenue

DKKm

9,156 6,395 43 % 31,381 23,734 32 %

Sites, O&M and PPAs

3,415 4,186 (18 %) 12,444 13,536 (8 %)

Power sales

5,658 1,780 218 % 13,517 6,652 103 %

Construction agreements

4 200 (98 %) 5,139 3,249 58 %

Other

79 229 (66 %) 281 297 (5 %)

EBITDA

DKKm

1,304 2,629 (50 %) 12,777 10,622 20 %

Sites, O&M, and PPAs

1,822 3,012 (40 %) 9,076 10,526 (14 %)

Construction agreements and divestment gains (9) 247 n.a. 5,066 1,742 191 %

Other, incl. project development (509) (630) (19 %) (1,365) (1,646) (17 %)

Depreciation

DKKm

(1,425) (1,710) (17 %) (4,474) (4,570) (2 %)

EBIT

DKKm

(121) 919 n.a. 8,303 6,052 37 %

Cash flow from operating activities

DKKm

(5,644) 89 n.a. 863 2,874 (70 %)

Gross investments

DKKm

(6,041) (6,633) (9 %) (16,401) (13,727) 19 %

Divestments

DKKm

16 (24) n.a. 10,685 (165) n.a.

Free cash flow DKKm

(11,669) (6,568) 78 % (4,853) (11,018) (56 %)

Capital employed DKKm

83,648 90,835 (8 %) 83,648 90,835 (8 %)

O&M: Operation and maintenance agreements, PPAs: Power purchase agreements

In Q2 2021, we aligned our definition of installed capacity, hence all assets (installed or FID’ed) are reported using

nameplate capacity. Previously a few wind farms were reported using ‘power optimised capacity’ or ‘export cable limit

capacity

2020 numbers have been restated. See note 2.5 in our ESG Performance Report.

Offshore

Management’s review

16/44

Interim financial report

First nine months 2021

EBITDA from other activities, including project

development, amounted to DKK -0.5 billion

and was slightly lower than in the same period

last year.

Cash flows from operating activities consisted

of a cash outflow of DKK 5.6 billion in Q3 2021,

which was DKK 5.7 billion lower than in Q3

2020. The decrease was driven by the signifi-

cantly higher power prices leading to large

margin payments on unrealised financial instru-

ments. Furthermore, the lower EBITDA contrib-

uted to the negative year-on-year develop-

ment in cash flows together with funds tied up

in work in progress from the construction of the

offshore transmission asset at Hornsea 2.

These negative effects were only partly offset

by lower receivables due to lower volumes

generated.

Gross investments amounted to DKK 6.0 billion

and mainly related to Hornsea 2, Greater

Changhua 1 & 2a, Ocean Wind 1, and the north-

east cluster (Sunrise Wind, Revolution Wind

and South Fork) in the US.

Financial results 9M 2021

Power generation decreased by 1.0 TWh rela-

tive to 9M 2020, as the significantly lower wind

speeds, the divestment of 50 % of Borssele 1 &

2 in May, and the curtailments were only partly

offset by the ramp-up of generation from Bors-

sele 1 & 2.

Wind speeds amounted to a portfolio average

of 8.7 m/s, which was both below a normal

wind year (9.3 m/s) and last year (9.8 m/s), with

low wind throughout the year. Availability

ended at 94 %, which was in line with 9M 2020.

Revenue increased by 32 % to DKK 31.4 billion.

Revenue from construction agreements in-

creased by DKK 1.9 billion due to the divest-

ment of the offshore transmission asset at

Hornsea 1 in March 2021. In 9M 2020, revenue

was primarily related to the divestment of

the offshore transmission asset at Walney

Extension, the construction of Coastal Virgin-

ia, and the completion of Hornsea 1.

Revenue from offshore wind farms in opera-

tion amounted to DKK 12.4 billion, a DKK 1.1

billion decrease compared to the same peri-

od last year due to the earlier-mentioned

lower power generation. Revenue from pow-

er sales increased by DKK 6.9 billion due to

significantly higher power prices despite low-

er volumes sold.

EBITDA increased by 20 % relative to 9M

2020 and amounted to DKK 12.8 billion.

The increase was driven by EBITDA from

partnerships, which amounted to DKK 5.1

billion and primarily related to the 50 %

farm-down of Borssele 1 & 2, resulting in a

gain from new partnerships of DKK 5.3 billion.

This was partly offset by a DKK 0.8 billion

warranty provision towards our partners

related to cable protection system issues at

some of our offshore wind farms in Q1 2021.

EBITDA from Sites, O&M, and PPAs amount-

ed to DKK 9.1 billion in 9M 2021. The DKK 1.5

billion decrease was due to the earlier-

mentioned impact on generation from lower

wind speeds (approx. DKK 2.5 billion com-

pared to last year and approx. DKK 1.7 billion

compared to a normal wind year). Further-

more, higher TNUoS tariffs following the di-

vestment of the offshore transmission assets

at Walney Extension in mid-2020 and

Hornsea 1 in Q1 2021, lower ROC recycle pric-

es, and lower earnings from Horns Rev 2 due

to the subsidy period ending in October 2020

contributed to the lower earnings. This was

only partly offset by ramp-up of generation

from Borssele 1 & 2 and the addition of CfDs

for the last 400 MW of generation from

Hornsea 1 together with a positive effect

from ceasing to report according to the busi-

ness performance principle in 2021 (DKK 0.7

billion).

EBITDA from other activities, including pro-

ject development, amounted to DKK -1.4

billion, DKK 0.3 billion lower than in the same

period last year, and was mainly related to

project development costs.

Cash flows from operating activities

amounted to DKK 0.9 billion, which was DKK

2.0 billion lower than in 9M 2020. The de-

crease was driven by the significantly higher

power prices leading to large margin pay-

ments on unrealised financial instruments

(DKK 5.8 billion in 9M 2021). Furthermore, the

lower EBITDA (excluding the gain from the

50 % farm-down of Borssele 1 & 2 where

proceeds are included in the divestment cash

flow) contributed to the negative develop-

ment in cash flows. These negative effects

were only partly offset by lower receivables

due to lower volumes generated and less

funds tied up in work in progress.

12.5

8.4

8.6

10.6

10.0

10.5

7.8

7.6

9.2*

Q1 Q2 Q3 Q4 FY

2020 2021 "Normal wind year"

Wind speed, (m/s) for our offshore wind farms

The wind speed indicates how

many metres per second the

wind has blown in the areas

where we have offshore wind

farms. The weighting is based

on our generation capacity.

* Indicates m/s for full year

2021 (if Q4 follows the normal

wind year).

In 9M 2021, we had a net cash inflow from

work in progress of DKK 3.1 billion, mainly

from the divestment of the Hornsea 1 off-

shore transmission assets, only partly offset

by construction work regarding the offshore

transmission assets at Hornsea 2. In 9M 2020,

we had a net cash outflow of DKK 2.1 billion,

mainly from supplier payments related to the

construction of Hornsea 1 for partners and the

offshore transmission assets at Hornsea 2,

partly offset by the divestment of the off-

shore transmission asset at Walney Extension.

Gross investments amounted to DKK 16.4

billion and were mainly related to Greater

Changhua 1 & 2a, Hornsea 2, our US portfolio,

and Baltica 2 & 3.

Divestments amounted to DKK 10.7 billion in

9M 2021 and were mainly related to the 50 %

farm-down of Borssele 1 & 2 with proceeds

(NIBD impact) of DKK 9.3 billion. Furthermore,

we had proceeds from the divestment of a 25

% ownership interest in Ocean Wind 1 to New

Jersey’s Public Service Enterprise Group

(PSEG) and final settlement with Global Infra-

structure Partners (GIP) regarding Hornsea 1.

2020 numbers have been restated. See note 2.5 in our ESG Performance Report.

17/44

Management’s review

Interim financial report First nine months 2021

Highlights

– Commissioned Muscle Shoals solar PV farm

in Alabama in September.

– Signed an MoU with Williams in the US to

co-develop hydrogen.

Financial results Q3 2021

Power generation from our operating onshore

assets increased by 61



% relative to Q3 2020.

The increase was due to ramp up of generation

from the onshore wind farms Willow Creek,

Plum Creek and Western Trail and the solar PV

farms Permian Energy Center and Muscle

Shoals. In Q3 2021, the wind speed across the

portfolio was 6.2 m/s, which was lower than

both last year (6.7 m/s) and for a normal wind

year (6.8 m/s).

Revenue was up DKK 0.1 billion relative to Q3

2020 and amounted to DKK 0.4 billion. The

increase was mainly due to increased power

generation as a result of the newly commis-

sioned wind and solar PV farms mentioned

above. This was partly offset by negative ef-

fects from lower wind speeds and ceasing to

report according to the business performance

principle in 2021.

EBITDA for Q3 2021 amounted to DKK 0.4

billion, DKK 0.1 billion higher than in the same

period last year. The increase was caused by

the higher generation, partly offset by higher

fixed costs due to the expansion of the busi-

ness, M&A costs in connection with the acquisi-

tion of Brookfield Renewable Ireland (BRI) and

higher project development costs.

Cash flows from operating activities increased

by DKK 1.8 billion compared to the same peri-

od last year. The increase was mainly due to

large tax equity contributions in Q3 2021 from

Western Trail and Muscle Shoals, only partly

offset by a tax equity contribution from Wil-

low Creek in Q3 2020.

Gross investments amounted to DKK 2.6 bil-

lion in Q3 2021 and were related to the con-

struction of Old 300, Haystack, Muscle Shoals,

Helena Energy Center and Kennoxhead 1.

Financial results 9M 2021

In 9M 2021, power generation from our operat-

ing onshore assets increased by 41 % com-

pared to 9M 2020, amounting to 5.5 TWh. The

increase was driven by the commissioning of

our wind farms Sage Draw, Plum Creek, and

Willow Creek in 2020, Western Trail in 2021,

and the solar PV farms Permian Energy Center

and Muscle Shoals in 2021. Wind speeds across

the US portfolio amounted to 7.1 m/s, which

was both lower than in the same period last

year (7.4 m/s) and for a normal wind year (7.6

m/s). Availability for our wind assets ended at

96 %, in line with the same period last year.

Availability for our solar assets was 95 %, ad-

versely impacted by substation outages and

testing at Permian Energy Center.

Revenue was up DKK 0.1 billion relative to 9M

2020 and amounted to DKK 0.6 billion. The

Financial results Q3 2021 Q3 2020 % 9M 2021 9M 2020 %

Business drivers



Decided (FID'ed) and installed capacity GW

4.6 2.7 69 % 4.6 2.7 69 %

Installed capacity GW

3.0 1.7 83 % 3.0 1.7 83 %

Wind speed

m/s

6.4 6.7 (5 %) 7.1 7.4 (4 %)

Load factor, wind

33 36 (3 %p) 41 43 (2 %p)

Availability, wind

98 97 1 %p 96 96 0 %p

Power generation

TWh

1.9 1.2 61 % 5.5 3.9 41 %

US dollar

DKK/USD

6.3 6.4 (1 %) 6.2 6.6 (6 %)

Financial performance

Revenue

DKKm

406 263 54 % 633 560 13 %

EBITDA

DKKm

413 308 34 % 819 807 1 %

Sites

285 176 62 % 324 352 (8 %)

Production tax credits and tax attributes

307 213 44 % 902 690 31 %

Other, incl. project development

(179) (81) 121 % (407) (235) 73 %

Depreciation

DKKm

(261) (133) 96 % (590) (340) 74 %

EBIT

DKKm

152 175 (13 %) 229 467 (51 %)

Cash flow from operating activities

DKKm

2,465 625 294 % 2,876 3,787 (24 %)

Gross investments

DKKm

(2,639) (2,462) 7 % (10,919) (3,943) 177 %

Divestments

DKKm

- - n.a. - 114 n.a.

Free cash flow

DKKm

(174) (1,837) (91 %) (8,043) (42) n.a.

Capital employed

DKKm

17,301 9,711 78 % 17,301 9,711 78 %

US, wind

1.4 1.2 16 % 4.7 3.9 19 %

US, solar PV

0.3 - n.a. 0.7 - n.a.

Europe

0.1 - n.a. 0.1 - n.a.

Load factor, solar PV

27 - n.a. 28 - n.a.

Availability, solar PV

98 - n.a. 95 - n.a.

Onshore

US only.

Management’s review

18/44

Interim financial report

First nine months 2021

increase was due to the higher power genera-

tion. This was partly offset by lower prices for

the part of the portfolio not covered by PPAs,

the winter storm period in Q1 2021, lower wind

speeds, and a negative effect from ceasing to

report according to the business performance

principle in 2021.

EBITDA for 9M 2021 was in line with the same

period last year and amounted to DKK 0.8

billion. The increased power generation was

offset by higher fixed costs due to the expan-

sion of the business, M&A cost in connection

with the acquisition of BRI, and higher project

development costs. Additionally, 9M 2020 was

positively impacted by a gain from the divest-

ment of Oak Solar.

Cash flows from operating activities decreased

by DKK 0.9 billion compared to the same peri-

od last year. The decrease was mainly due to

large tax equity contributions from Sage Draw

and Plum Creek in 9M 2020 as well as more

funds tied up in net working capital, only partly

offset by tax equity contributions from Permian

Energy Center, Western Trail, and Muscle

Shoals in 9M 2021.

Gross investments amounted to DKK 10.9 bil-

lion in 9M 2021 and were related to the acquisi-

tion of Brookfield Renewable Ireland (DKK 4.6

billion) as well as the construction of Permian

Energy Center, Old 300, Muscle Shoals, West-

ern Trail, Helena Energy Center, Haystack, and

Kennoxhead 1.

7.5

8.0

6.7

8.0

7.6

7.7

7.3

6.4

7.3*

Q1 Q2 Q3 Q4 FY

2020 2021 "Normal wind year"

Wind speed US, (m/s) for our onshore wind farms

The wind speed indicates how

many metres per second the

wind has blown in the areas

where we have onshore wind

farms. The weighting is based

on our generation capacity.

* Indicates m/s for full year

2021 (if Q4 follows the normal

wind year).

Willow Creek,

Butte County, South Dakota, US.

19/44

Management’s review

Interim financial report First nine months 2021

Financial results Q3 2021

Power generation was 74 % higher than in Q3

2020, primarily driven by higher prices and

higher biomass-fuelled spreads. Heat genera-

tion increased by 25 % in Q3 2021, mainly due

to a breakdown of a non-Ørsted district heat-

ing facility, leading to Ørsted providing more

heat to the Greater Copenhagen area.

Revenue increased by 54 % compared to Q3

2020 and amounted to DKK 6.6 billion. The

increase was driven by six times higher average

gas prices and almost three times higher aver-

age power prices, which led to higher revenue

in our gas and power sales businesses. Further-

more, we had higher revenue from our CHP

plants due to the higher power generation and

higher Danish power prices. This was partly

offset by the divestment of our RBC businesses

in August 2020 and the divestment of our LNG

activities in December 2020.

EBITDA amounted to DKK 1.2 billion compared

to DKK 0.4 billion in Q3 2020.

EBITDA from CHP plants was DKK 0.4 billion

higher than in the same period last year, total-

ling DKK 0.5 billion in Q3 2021. The increase

was mainly due to higher power prices and

generation in Denmark as mentioned above

combined with higher earnings from the sales

of ancillary services.

EBITDA from Gas Markets & Infrastructure in-

creased by DKK 0.6 billion relative to the same

period last year, amounting to DKK 0.8 billion

in Q3 2021. The positive effect was driven by

the renegotiation of gas purchase contracts in

Q3 2021 together with strong underlying per-

formance in a very volatile and bullish gas

market where we were able to optimise pur-

chase from our long-term gas contracts.

EBITDA from our distribution, residential cus-

tomer, and city light businesses amounted to

DKK 0.1 billion in Q3 2020. This was not re-

peated due to the divestment in August 2020.

Cash flows from operating activities amount-

ed to DKK 2.9 billion in Q3 2021. The increase

of DKK 2.0 billion was driven by the significant-

ly higher gas prices leading to receipt of large

margin payments on unrealised financial in-

struments. The higher EBITDA also contributed

positively to the development. This was partly

offset by a significantly higher spend to fill our

gas at storage due to the increasing gas prices

during Q3 2021.

Financial results 9M 2021

Power generation was 52 % higher than in 9M

2020, driven by higher prices, higher biomass-

fuelled spreads, and an increased demand for

ancillary services. Heat generation increased

by 22 % in 9M 2021, mainly due to colder

weather in January and April.

Revenue increased by 22 % compared to 9M

2020 and amounted to DKK 19.1 billion. The

increase was driven by a significant increase in

gas and power prices. Furthermore, we saw

Financial results Q3 2021 Q3 2020 % 9M 2021 9M 2020 %

Business drivers 

 

Degree days Number

81 106 (24 %) 1,893 1,607 18 %

Heat generation TWh

0.4 0.3 25 % 5.4 4.4 22 %

Power generation

TWh

1.0 0.6 74 % 4.8 3.1 52 %

Gas sales

TWh

13.6 23.2 (41 %) 47.6 69.9 (32 %)

Power sales

TWh

2.2 2.4 (10 %) 6.7 9.0 (27 %)

Gas price, TTF

EUR/MWh

47.4 7.7 517 % 30.2 7.6 299 %

Power price, DK

EUR/MWh

96.3 34.0 183 % 68.1 25.2 170 %

Green dark spread, DK

EUR/MWh

4.6 (0.4) n.a. (2.7) (9.3) (71 %)

Green spark spread, DK

EUR/MWh

(19.3) 8.6 n.a. (10.2) 0.7 n.a.

Financial performance

Revenue DKKm

6,551 4,261 54 % 19,138 15,665 22 %

EBITDA

DKKm

1,206 375 222 % 2,331 1,493 56 %

CHP plants

460 93 395 % 1,487 765 94 %

Gas Markets & Infrastructure

808 201 302 % 1,059 22 4714 %

Distribution, B2C, and city light

- 145 n.a. - 926 n.a.

Other, incl. project development

(62) (64) (3 %) (215) (220) (2 %)

Depreciation

DKKm

(194) (198) (3 %) (588) (598) (2 %)

EBIT

DKKm

1,012 177 472 % 1,743 895 95 %

Cash flow from operating activities

DKKm

2,881 882 227 % 7,174 3,256 120 %

Gross investments

DKKm

(72) (152) (53 %) (161) (575) (72 %)

Divestments

DKKm

(48) 20,529 n.a. (251) 20,609 n.a.

Free cash flow

DKKm

2,761 21,259 (87 %) 6,762 23,290 (71 %)

Capital employed

DKKm

(1,700) 3,351 n.a. (1,700) 3,351 n.a.

Bioenergy & Other

Management’s review

20/44

Interim financial report

First nine months 2021

higher revenue from our CHP plants due to

higher power prices in Denmark. This was

partly offset by the divestment of our RBC

businesses in August 2020, the LNG activities

in December 2020, and part of our B2B busi-

ness on 1 March 2021.

EBITDA amounted to DKK 2.3 billion, DKK 0.8

billion above 9M 2020.

EBITDA from CHP plants was 94 % higher

than in the same period last year, totalling

DKK 1.5 billion in 9M 2021. The increase was

mainly due to higher power prices and gener-

ation combined with higher earnings from

ancillary services and a positive effect from

ceasing to report according to the business

performance principle in 2021.

EBITDA from Gas Markets & Infrastructure

amounted to DKK 1.1 billion in 9M 2021, a DKK

1.0 billion increase relative to the same period

last year. The positive effect was driven by

the renegotiation of gas purchase contracts

and strong underlying performance especial-

ly in Q3 2021 in a very volatile and bullish gas

market. In 2020, we were negatively affected

by a provision for bad debt in our B2B busi-

ness to cover the COVID-19-related default

risk among our customers.

EBITDA from our distribution, residential cus-

tomer, and city light businesses amounted to

DKK 0.9 billion in 9M 2020. This has not been

repeated due to the divestment in 2020.

Cash flows from operating activities amount-

ed to DKK 7.2 billion in 9M 2021. The increase

of DKK 3.9 billion was driven by the signifi-

cantly higher gas prices leading to receipt of

large margin payments on unrealised finan-

cial instruments (DKK 4.4 billion in 9M 2021).

The higher EBITDA also contributed positive-

ly to the development. This was partly offset

by a significantly higher spend to fill our gas

at storage and a higher initial margin pay-

ments for clearing houses due to the increas-

ing gas and power prices.

Gross investments amounted to DKK 0.2

billion in 9M 2021 and mainly related to rein-

vestments at our CHP plants.

Asnæs bioplant,

Kalundborg, Denmark.

21/44

Management’s review

Interim financial report First nine months 2021

Financials, DKKm

9M 2021 9M 2020 2020

Income statement (BP

comparables)

Revenue

47,007 37,042 52,601

EBITDA

16,043 13,121 18,124

Offshore

12,777 10,622 14,750

Sites, O&M and PPAs

9,076 10,526 15,476

Construction agreements and divestment gains

5,066 1,742 1,593

Other, incl. project development

(1,365) (1,646) (2,319)

Onshore

819

807

1,131

Bioenergy & Other

2,331 1,493 2,136

Other activities

116 199 107

Operating profit (loss) (EBIT)

10,215

7,445

10,536

Profit (loss) for the period

7,629 14,527 16,716

Income statement (IFRS comparables)

Revenue

47,007 36,956 50,151

EBITDA

16,043 13,496 16,598

Depreciation and amortisation

(5,828) (5,676) (7,588)

Operating profit (loss) (EBIT)

10,215 7,820 9,010

Gain (loss) on divestment of enterprises

(58) 11,122 10,831

Net financial income and expenses

(1,236) (2,068) (2,524)

Profit (loss) before tax

8,916 16,882 17,324

Tax

(1,287) (2,034) (1,776)

Profit (loss) for the period

7,629 14,822 15,537

Balance

Assets

261,892 194,567 196,719

Equity

79,150 96,472 97,329

Shareholders in Ørsted A/S

58,129 80,450 81,376

Non-controlling interests

3,037 2,790 2,721

Hybrid capital

17,984 13,232 13,232

Interest-bearing net debt

21,211 8,216 12,343

Capital employed

100,361 104,688 109,672

Additions to property, plant, and equipment

26,900 20,321 28,442

Cash flow

Cash flow from operating activities

11,480 9,710 16,466

Gross investments

(27,555) (18,328) (26,967)

Divestments

10,567 20,558 19,039

Free cash flow

(5,508) 11,940 8,538

Financial ratios

Return on capital employed (ROCE)

, % 12.9 9.4 9.7

FFO/adjusted net debt

, % 42.3 79.9 65.0

Number of outstanding shares, end of period, '000

420,175 420,066 420,068

Share price, end of period, DKK

849 875 1,244

Market capitalisation, end of period, DKK billion

357 368 522

Earnings per share (EPS) (BP

), DKK 16.8 33.8 38.8

Dividend yield, %

- - 0.9

Q3 2021

14,510

2,984

1,304

1,822

(9)

(509)

413

1,206

1,045

487

14,510

2,984

(1,939)

1,045

(22)

(351)

671

(184)

487

261,892

79,150

58,129

3,037

17,984

21,211

100,361

11,477

246

(8,757)

(8,504)

12.9

42.3

420,175

849

357

1.1

Q3 2020

10,041

3,360

2,629

3,012

247

(630)

308

375

1,265

12,034

8,762

2,455

(2,095)

360

11,139

(282)

11,219

11,329

194,567

96,472

80,450

2,790

13,232

8,216

104,688

5,477

1,941

(9,263)

20,506

13,184

9.4

79.9

420,066

875

368

28.6

Business drivers 9M 2021 9M 2020 2020

Offshore

Decided (FID'ed) and installed capacity

, GW 9.8

9.9 9.9

Installed capacity, GW

7.6 6.8 7.6

Generation capacity, GW

4.0 4.1 4.4

Wind speed

, m/s 8.7

9.8 10.0

Load factor, %

35 42 45

Availability, %

94 94 94

Power generation, TWh

9.4 10.3 15.2

Power sales, TWh

16.2 20.6 29.2

Onshore

Decided (FID'ed) and installed capacity, GW

4.6 2.7 3.4

Installed capacity, GW

3.0 1.7 1.7

Wind speed

, m/s 7.1 7.4 7.6

Load factor, wind

, % 41 43 45

Availability, wind

, % 96 96 96

Power generation, TWh

5.5 3.9 5.7

Bioenergy & Other

Degree days, number

1,893 1,607 2,432

Heat generation, TWh

5.4 4.4 6.7

Power generation, TWh

4.8 3.1 4.4

Power sales, TWh

6.7 9.0 11.6

Gas sales, TWh

47.6 69.9 90.3

People and environment

Employees (FTE), end of period number

6,672 6,120 6,179

Total recordable injury rate (TRIR)

3.0 3.8 3.6

Fatalities, number

0 0 0

Green share of energy generation, %

89 89 90

GHG intensity, g CO

e/kWh (scope 1 & 2) 64 69 58

GHG emissions, Mtonnes (scope 3)

14.3 19.4 25.3

Q3 2021

9.8

7.6

4.0

7.6

2.3

4.8

4.6

3.0

6.4

1.9

0.4

1.0

2.2

13.6

6,672

3.0

4.4

Q3 2020

9.9

6.8

4.1

8.6

3.2

6.3

2.7

1.7

6.7

1.2

106

0.3

0.6

2.4

23.2

6,120

3.8

6.3

Load factor, solar PV, %

28 - 27 - -

Availability, solar PV, %

95 - 98 - -

Performance highlights

Income statement

The income statement (BP

comparables)

shows business performance numbers for

2020 to form a better like-for-like compari-

son, in line with the comparison numbers

used throughout the management’s review.

Business performance.

EBIT (last 12 months)/average capital employed.

FFO last 12 months. Net debt including 50% of hybrid capital and

cash and securities not available for use (with the exception of repo

transactions). Numbers for 2020 and 2021 have been restated.

See

note 13 for adjusted definition.

Nameplate capacity from Q2 2021.

2020 numbers restated. See note 2.5 in our ESG Performance Report.

US only.

YTD.

22/44

Management’s review

Interim financial report First nine months 2021

Quarterly overview

Financials, DKKm

2021

2020

2019

Income statement (BP

comparables)



Revenue 13,553 18,944 15,559 10,041 11,625 15,376 18,679

EBITDA 8,196 4,863 5,003 3,360 2,956 6,805 4,613

Offshore 7,527 3,946 4,128 2,629 2,361 5,632 4,048

Sites, O&M and PPAs 2,368 4,886 4,950 3,012 2,578 4,936 4,626

Construction agreements and

divestment gains

5,648 (573) (149) 247 396 1,099 51

Other incl. project development (489) (367) (673) (630) (613) (403) (629)

Onshore 178 228 324 308 312 187 165

Bioenergy & Other 503 622 643 375 185 933 490

Other activities (12) 67 (92) 48 98 53 (90)

Operating profit (loss) (EBIT) 6,237 2,933 3,091 1,265 1,129 5,051 2,169

Profit (loss) for the period 5,544 1,598 2,189 12,034 (825) 3,318 896

Income statement (IFRS comparables)



Revenue 13,553 18,944 13,195 8,762 9,962 18,232 19,815

EBITDA 8,196 4,863 3,102 2,455 1,592 9,449 5,260

Depreciation and amortisation (1,959) (1,930) (1,912) (2,095) (1,827) (1,754) (1,876)

Impairment losses - - - - - - (568)

Operating profit (loss) (EBIT) 6,237 2,933 1,190 360 (235) 7,695 2,816

Gain (loss) on divestment of enterprises (72) 36 (291) 11,139 (3) (14) (13)

Net financial income and expenses (466) (419) (456) (282) (1,010) (776) (644)

Profit (loss) before tax 5,698 2,547 442 11,219 (1,245) 6,908 2,162

Tax (154) (949) 258 92 (625) (1,501) (733)

Profit (loss) for the period 5,544 1,598 715 11,329 (1,886) 5,379 1,400

Balance sheet



Assets 223,791 210,972 196,719 194,567 193,124 193,636 192,860

Equity 96,910 96,541 97,329 96,472 85,930 89,015 89,562

Shareholders in Ørsted A/S 75,842 75,835 81,376 80,450 69,789 72,728 73,082

Non-controlling interests 3,084 2,722 2,721 2,790 2,909 3,055 3,248

Hybrid capital 17,984 17,984 13,232 13,232 13,232 13,232 13,232

Interest-bearing net debt 12,067 13,190 12,343 8,216 22,272 27,084 17,230

Capital employed 108,977 109,731 109,672 104,688 108,203 116,098 106,792

Additions to property, plant, equipment 8,954 6,469 8,121 5,477 10,011 4,833 6,560

Cash flow



Cash flow from operating activities 3,147 8,087 6,756 1,941 8,197 (428) 4,816

Gross investments (12,133) (6,665) (8,639) (9,263) (3,757) (5,308) (8,816)

Divestments 10,591 (31) (1,519) 20,506 45 7 402

Free cash flow 1,605 1,391 (3,402) 13,184 4,485 (5,729) (3,598)

Financial ratios



Return on capital employed (ROCE)

, % 12.5 7.5 9.7 9.4 10.8 11.0 10.6

FFO/adjusted net debt

, % 62.9 59.4 65.0 35.6 43.4 37.8 31.0

Number of outstanding shares, end of period, '000 420,175 420,068 420,068 420,066 419,985 419,985 419,985

Share price, end of period, DKK

880 1,025 1,244 875 765 666 689

Market capitalisation, end of period, DKK billion 370 430 522 368 321 280 290

Earnings per share (EPS) (BP

), DKK 12.9 2.8 5.0 28.6 (2.7) 7.9 1.1

2021

14,510

2,984

1,304

1,822

(9)

(509)

413

1,206

1,045

487

14,510

2,984

(1,939)

1,045

(22)

(351)

671

(184)

487

261,892

79,150

58,129

3,037

17,984

21,211

100,361

11,477

246

(8,757)

(8,504)

12.9

42.3

420,175

849

357

1.1

Business drivers

2021

2020

2019

Offshore



Decided (FID'ed) and installed capacity

, GW 9.8 9.9 9.9 9.9 9.9 9.9 9.9

Installed capacity, GW

7.6 7.6 7.6 6.8 6.8 6.8 6.8

Generation capacity, GW

4.0 4.4 4.4 4.1 3.8 3.6 3.6

Wind speed

, m/s

7.8 10.5 10.6 8.6 8.4 12.5 10.0

Load factor, %

29 50 53 35 32 60 50

Availability, %

93 95 94 94 95 93 93

Power generation, TWh

2.5 4.5 4.8 3.2 2.6 4.6 3.9

Power sales, TWh

4.5 6.9 8.6 6.3 5.5 8.8 7.7

Onshore



Decided (FID'ed) and installed capacity, GW

4.6 3.9 3.4 2.7 2.1 2.1 2.1

Installed capacity, GW

2.5 1.7 1.7 1.7 1.6 1.3 1.0

Wind speed

, m/s

7.3 7.7 8.0 6.7 8.0 7.5 7.3

Load factor, wind

, %

45 45 50 36 49 44 46

Availability, wind

, %

97 93 95 97 96 95 98

Power generation, TWh

2.0 1.6 1.8 1.2 1.6 1.1 1.0

Bioenergy & Other



Degree days, number

487 1,325 825 106 436 1,065 882

Heat generation, TWh

1.1 3.9 2.3 0.3 1.0 3.1 3.0

Power generation, TWh

1.5 2.3 1.3 0.6 0.9 1.6 1.6

Power sales, TWh

2.2 2.3 2.6 2.4 3.0 3.6 4.1

Gas sales, TWh

15.1 18.9 20.3 23.2 20.1 26.7 36.7

People and environment



Employees (FTE) end of period, number

6,472 6,311 6,179 6,120 6,731 6,608 6,526

Total recordable injury rate (TRIR)

3.1 3.0 3.6 3.8 3.7 3.6 4.9

Fatalities, number

0 0 0 0 0 0 0

Green share of energy generation, %

93 87 93 90 86 90 90

GHG intensity, g CO

e/kWh (scopes 1 & 2)

51 59 34 83 84 53 44

GHG emissions, Mtonnes (scope 3)

4.6 5.3 5.9 6.3 5.5 7.6 10.7

2021

9.8

7.6

4.0

7.6

2.3

4.8

4.6

3.0

6.4

1.9

0.4

1.0

2.2

13.6

6,672

3.0

4.4

Load factor, solar PV, %

27 29 - - - - - -

Availability, solar PV, %

98 90 - - - - - -

Income statement

The income statement (BP

comparables)

shows business performance numbers for

2020 to form a better like-for-like compari-

son, in line with the comparison numbers

used throughout the management’s review.

Business performance.

EBIT (last 12 months)/average capital employed.

FFO last 12 months. Net debt including 50% of hybrid capital and

cash and securities not available for use (with the exception of repo

transactions). Numbers for 2020 and 2021 have been restated.

See

note 13 for adjusted definition.

Nameplate capacity from Q2 2021.

2020 numbers restated. See note 2.5 in our ESG Performance Report.

US only.

YTD.

23/44

Management’s review

Interim financial report First nine months 2021

Consolidated

financial statements

First nine months 2021

1 January – 30 September

24/44

Consolidated financial statements

Interim financial report First nine months 2021

Discontinued operations related to our Oil & Gas

business which was sold to INEOS in 2017. We ended

the reporting on discontinued operations as of

columns are no longer included in our financial

reporting.

Compared with the business performance principle,

the 9M 2021 IFRS EBITDA was positively impacted

by DKK 812 million from hedge values that would

have been recognised as a loss under business

performance. However, as this loss has already

been recognised in prior periods under IFRS, 9M 2021

was not impacted.

See note 2 ’Business performance’ for more

information.

Accounting policies

Cease the use of business performance as of

1 January 2021

From 1 January 2021, we only report IFRS numbers.

Thus, the business performance and adjustment

1 January – 30 September

31 December 2020. Provisions regarding tax indemni-

fications and payments related to the Fredericia

stabilisation plant (DKK 705 million) were transferred

to continuing operations at 31 December 2020.

Value adjustments for the period in 9M 2021 are

mainly due to losses on power hedges as a

consequence of the increase in power prices, and to a

lesser extent, losses on currency and inflation hedges.

Consolidated statements of income

Statement of comprehensive income, DKKm 9M 2021 9M 2020

Profit (loss) for the period 7,629 14,822

Other comprehensive income:

Cash flow hedging:

Value adjustments for the period (36,733) (1,526)

Value adjustments transferred to income statement 2,977 521

Value adjustments transferred to balance sheet (86) -

Exchange rate adjustments:

Exchange rate adjustments relating to net investments in foreign enterprises 3,846 (4,863)

Value adjustment of net investment hedges (2,244) 2,337

Tax:

Tax on hedging instruments 6,782 174

Tax on exchange rate adjustments (19) 522

Other:

Share of other comprehensive income of associated companies, after tax 6 2

Other comprehensive income (25,471) (2,833)

Total comprehensive income (17,842) 11,989

Comprehensive income for the period is attributable to:

Shareholders in Ørsted A/S (18,517) 11,819

Interest payments and costs, hybrid capital owners of Ørsted A/S 575 326

Non-controlling interests 100 (156)

Total comprehensive income (17,842) 11,989

Note Income statement, DKKm 9M 2021 9M 2020

4 Revenue 47,007 36,956

Cost of sales (31,099) (18,300)

Other external expenses (3,699) (4,239)

Employee costs (3,125) (3,163)

Share of profit (loss) in associates and joint ventures 55 30

5 Other operating income 7,143 2,427

5 Other operating expenses (239) (215)

Operating profit (loss) before depreciation,

amortisation, and impairment losses (EBITDA) 16,043 13,496

Amortisation, depreciation, and impairment losses on

intangible assets, and property, plant, and equipment (5,828) (5,676)

Operating profit (loss) (EBIT)

10,215 7,820

Gain (loss) on divestment of enterprises (58) 11,122

Share of profit (loss) in associates and joint ventures (5) 8

6 Financial income 3,003 2,074

6 Financial expenses (4,239) (4,142)

Profit (loss) before tax

8,916 16,882

10 Tax on profit (loss) for the period (1,287) (2,034)

Profit (loss) for the period from continuing operations

7,629 14,848

Profit (loss) for the period from discontinued operations

- (26)

Profit (loss) for the period

7,629 14,822

Profit (loss) for the period is attributable to:

Shareholders in Ørsted A/S 7,074 14,509

Interests and costs, hybrid capital owners of Ørsted A/S 575 326

Non-controlling interests (20) (13)

Profit (loss) per share

, DKK:

From continuing operations 16.8 34.6

From discontinued operations - (0.1)

Total profit (loss) per share 16.8 34.5

Diluted profit (loss) per share corresponds to profit (loss) per share, as the dilutive effect of the share incentive

programme is less than 0.1 % of the share capital.

25/44

Consolidated financial statements

Interim financial report First nine months 2021

1 July – 30 September

Consolidated statements of income

Statement of comprehensive income, DKKm Q3 2021 Q3 2020

Profit (loss) for the period 487 11,329

Other comprehensive income:

Cash flow hedging:

Value adjustments for the period (23,974) (445)

Value adjustments transferred to income statement 594 7

Value adjustments transferred to balance sheet (38) -

Exchange rate adjustments:

Exchange rate adjustments relating to net investment in foreign enterprises 489 (603)

Value adjustment of net investment hedges (267) 226

Tax:

Tax on hedging instruments 4,936 77

Tax on exchange rate adjustments 65 46

Other:

Share of other comprehensive income of associated companies, after tax (3) 9

Other comprehensive income (18,198) (683)

Total comprehensive income (17,711) 10,646

Comprehensive income for the period is attributable to:

Shareholders in Ørsted A/S (17,717) 10,646

Interest payments and costs after tax, hybrid capital owners of Ørsted A/S - -

Non-controlling interests 6

Total comprehensive income (17,711) 10,646

Note Income statement, DKKm Q3 2021 Q3 2020

4 Revenue 14,510 8,762

Cost of sales (9,345) (3,764)

Other external expenses (1,593) (1,772)

Employee costs (910) (1,048)

Share of profit (loss) in associates and joint ventures (4) 19

5 Other operating income 413 326

5 Other operating expenses (87) (68)

Operating profit (loss) before depreciation,

amortisation, and impairment losses (EBITDA) 2,984 2,455

Amortisation, depreciation, and impairment losses on

intangible assets, and property, plant, and equipment (1,939) (2,095)

Operating profit (loss) (EBIT) 1,045 360

Gain (loss) on divestment of enterprises (22) 11,139

Share of profit (loss) in associates and joint ventures (1) 2

6 Financial income 1,033 717

6 Financial expenses (1,384) (999)

Profit (loss) before tax 671 11,219

10 Tax on profit (loss) for the period (184) 92

Profit (loss) for the period from continuing operations 487 11,311

Profit (loss) for the period from discontinued operations - 18

Profit (loss) for the period 487 11,329

Profit (loss) for the period is attributable to:

Shareholders in Ørsted A/S 490 11,331

Interests and costs, hybrid capital owners of Ørsted A/S - -

Non-controlling interests (3) (2)

Profit (loss) per share, DKK:

From continuing operations 1.1 26.9

From discontinued operations - 0.0

Total profit (loss) per share 1.1 26.9

26/44

Consolidated financial statements

Interim financial report First nine months 2021

Assets and liabilities classified as held for sale

Assets classified as held for sale at 30 September

2021 comprised our oil pipe system in Denmark.

Consolidated balance sheet

Note Assets, DKKm

30 September

2021

31 December

2020

30 September

2020

Intangible assets 1,330 639 581

Land and buildings 6,186 5,574 5,190

Production assets 88,993 86,184 84,078

Fixtures and fittings, tools, and equipment 559 507 543

Property, plant, and equipment under construction 52,886 29,345 26,246

Property, plant, and equipment 148,624 121,610 116,057

Investments in associates and joint ventures 643 555 539

Other securities and equity investments 222 209 220

12 Derivatives 5,142 3,023 1,601

Deferred tax 12,820 6,784 8,432

Other receivables 2,543 1,925 3,311

Other non-current assets 21,370 12,496 14,103

Non-current assets 171,324 134,745 130,741

Inventories 14,906 14,739 13,213

12 Derivatives 23,018 3,086 3,821

Contract assets 2 30 175

Trade receivables 6,271 6,732 7,044

Other receivables 7,484 3,720 3,047

Receivables from associates and joint ventures - - 160

Income tax 1,023 852 1,028

12 Securities 30,136 25,173 27,292

Cash 6,375 6,178 5,852

Current assets 89,215 60,510 61,632

Assets classified as held for sale 1,353 1,464 2,194

Assets 261,892 196,719 194,567

Note Equity and liabilities, DKKm

30 September

2021

31 December

2020

30 September

2020

Share capital 4,204 4,204 4,204

9 Reserves (27,553) (1,956) (2,279)

Retained earnings 81,478 74,294 78,525

Proposed dividends - 4,834 -

Equity attributable to shareholders in Ørsted A/S 58,129 81,376 80,450

Hybrid capital 17,984 13,232 13,232

Non-controlling interests 3,037 2,721 2,790

Equity 79,150 97,329 96,472

Deferred tax 3,588 2,187 3,766

Provisions 13,789 12,475 12,518

Lease liabilities 4,892 4,455 4,119

13 Bond and bank debt 30,327 34,374 33,053

12 Derivatives 19,202 1,456 940

Contract liabilities 3,289 3,650 3,706

Tax equity liabilities 10,044 6,780 7,669

Other payables 1,276 374 498

Non-current liabilities 86,407 65,751 66,269

Provisions 533 1,388 731

Lease liabilities 698 599 641

13 Bond and bank debt 23,139 2,392 2,827

12 Derivatives 44,487 4,862 3,008

Contract liabilities 486 480 461

Trade payables 15,182 9,742 9,803

Tax equity liabilities 1,434 1,187 599

Other payables 4,832 6,082 5,053

Income tax 4,869 6,220 6,134

Current liabilities 95,660 32,952 29,257

Liabilities 182,067 98,703 95,526

Liabilities relating to assets classified

as held for sale 675 687 2,569

Equity and liabilities 261,892 196,719 194,567

27/44

Consolidated financial statements

Interim financial report First nine months 2021

* See note 9 ‘Reserves’ for more information about reserves.

Consolidated statement of shareholders equity

In February 2021, we issued two new hybrid capital

bonds with a nominal amount of EUR 500 million

and GBP 425 million with a fixed annual coupon of

1.50 % (until 2031) and 2.50 % (until 2033), respec-

tively. Both maturing in 3021.

In addition, we redeemed EUR 350 million of our

3013 hybrid capital bond in February 2021.

‘Cash-flow hedging’ is impacted by large losses on

hedges, mainly power hedges, due to the increase

in power prices and, to a lesser extent, by losses on

currency, gas, and inflation hedges.

2021 2020

DKKm

capital Reserves*

Retained

earnings

Proposed

dividends

Share-

holders in

Ørsted A/S

Hybrid

capital

Non-con-

trolling

interests

Total

Group

capital Reserves*

Retained

earnings

Proposed

dividends

Share-

holders in

Ørsted A/S

Hybrid

capital

Non-con-

trolling

interests

Total

Group

Equity at 1 January 4,204 (1,956) 74,294 4,834 81,376 13,232 2,721 97,329 4,204 413 64,051 4,414 73,082 13,232 3,248 89,562

Comprehensive income

for the period:

Profit (loss) for the period - - 7,074 - 7,074 575 (20) 7,629 - - 14,509 - 14,509 326 (13) 14,822

Other comprehensive income:

Cash-flow hedging - (33,842) - - (33,842) - - (33,842) - (1,005) - - (1,005) - - (1,005)

Exchange rate adjustments - 1,482 - - 1,482 - 120 1,602 - (2,383) - - (2,383) - (143) (2,526)

Tax on other comprehensive income - 6,763 - - 6,763 - - 6,763 - 696 - - 696 - - 696

Share of other comprehensive income

of associated companies, after tax - - 6 - 6 - - 6 - - 2 - 2 - - 2

Total comprehensive income - (25,597) 7,080 - (18,517) 575 100 (17,842) - (2,692) 14,511 - 11,819 326 (156) 11,989

Coupon payments, hybrid capital - - - - - (268) - (268) - - - - - (326) - (326)

Tax, hybrid capital - - - - - 89 - 89 - - - - - - - -

Additions, hybrid capital - - - - - 7,327 - 7,327 - - - - - - - -

Disposals, hybrid capital - - - - - (2,971) - (2,971) - - - - - - - -

Dividends paid - - 4 (4,834) (4,830) - (298) (5,128) - - 4 (4,414) (4,410) - (302) (4,712)

Purchases of treasury shares - - - - - - - - - - (58) - (58) - - (58)

Additions, non-controlling interests - - 83 - 83 - 514 597 - - - - - - - -

Other changes - - 17 - 17 - - 17 - - 17 - 17 - - 17

Equity at 30 September 4,204 (27,553) 81,478 - 58,129 17,984 3,037 79,150 4,204 (2,279) 78,525 - 80,450 13,232 2,790 96,472

28/44

Consolidated financial statements

Interim financial report First nine months 2021

Change in work in progress

‘Change in work in progress’ consists of elements in

contract assets, contract liabilities, and construction

management agreements related to construction of

offshore wind farms and construction of offshore

transmission assets as well as the related trade

payables.

Statement of cash flows

Our supplementary statement of gross and net

investments appears from note 8 ’Gross and net

investments’ and free cash flow (FCF) from note 3

’Segment information’.

’Cash’ according to the balance sheet as at

30 September 2021 includes ’Cash, not available

for use’, amounting to DKK 166 million, and ’Bank

overdrafts that are part of the ongoing cash

management’ amounting to DKK 1 million.

Consolidated statement of cash flows

Note Statement of cash flows, DKKm 9M 2021 9M 2020 Q3 2021 Q3 2020

16,043 13,496 2,984 2,455

2 - (375) - 905

11 (292)

486 222

(270) (484) (915) (119)

(5,626) (1,256) 52 32

(53) (11) (7) (4)

3,144 (2,099) (610) (84)

2,660 3,268 2,041 376

(2,478) 413 (3,656) (1,408)

2,339 2,848

1,406 522

(2,936) (4,441)

(1,367) (952)

(1,354) (1,357)

(168) (4)

Operating profit (loss) before

depreciation, amortisation, and

impairment losses (EBITDA), IFRS Change

in derivatives, business performance

adjustments

Change in derivatives, other adjustments

Change in provisions

Reversal of gain (loss) on divestment of

assets

Other items

Change in work in progress

Change in tax equity partner liabilities

Change in other working capital

Interest received and similar items

Interest paid and similar items

Income tax paid

Cash flows from operating activities

11,480 9,710 246 1,941

Purchase of intangible assets,

and property, plant, and equipment (22,866) (18,312) (8,737) (9,304)

Sale of intangible assets, and property,

plant, and equipment 10,126 71 (51) (9)

7 Acquisition of enterprises

(2,370) - (11) (1)

Divestment of enterprises

(189) 20,488 (44) 20,510

Purchase of other equity investments

(14) (11) 1 -

Purchase of securities

(7,510) (19,606) (445) (15,473)

Sale/maturation of securities

2,210 8,808 564 558

Change in other non-current assets

55 18 30 18

Transactions with associates and

joint ventures (29) (181) (3) (134)

Dividends received and capital reduction

28 7 - 7

Cash flows from investing activities (20,559) (8,718) (8,696) (3,828)

Note Statement of cash flows, DKKm 9M 2021 9M 2020 Q3 2021 Q3 2020

15,723 2,827

8,858 2,499

(1,309) (2,192)

20 (1,215)

(340) (353)

(156) (127)

(268) (326)

- -

(2,971) -

- -

7,327 -

- -

(4,830) (4,410) - -

- (58) - -

292 (343) (38) (115)

(137) (114)

(162) (117)

(3,636) 1,872 (1,459) (504)

Proceeds from raising of loans

Instalments on loans

Instalments on leases

Coupon payments on hybrid capital

Repurchase of hybrid capital

Proceeds from issuance of hybrid capital

Dividends paid to shareholders in Ørsted

A/S

Purchase of own shares

Transactions with non-controlling

interests

Net proceeds from tax equity partners

Change in collateral related to

derivatives

Cash flows from financing activities

9,851 (3,097) 7,063 421

Cash flows from continuing operations 772 (2,105)

(1,387) (1,466)

Cash flows from discontinued operations - 926

- 970

Total net change in cash and cash

equivalents for the period 772 (1,179) (1,387) (496)

Cash and cash equivalents at the

beginning of the period 5,210 6,459 7,551 5,879

Total net change in cash and cash

equivalents 772 (1,179) (1,387) (496)

Exchange rate adjustments of cash and

cash equivalents 226 33 44 (70)

Cash and cash equivalents

at 30 September 6,208 5,313 6,208 5,313

29/44

Consolidated financial statements

Interim financial report First nine months 2021

Definitions of alternative performance

measures can be found on page 89 of the

annual report for 2020.

This interim financial report contains selected

accounting policies and should therefore be

read in conjunction with the annual report for

2020.

Cease the use of business performance as of

1 January 2021

From 1 January 2021, we only report IFRS

numbers. Thus, the business performance and

adjustment columns are no longer included in

our financial reporting. This will simplify our

reporting and avoid potential conflicts with

future reporting requirements for alternative

performance measures.

See note 2 ‘Business performance’ for more

information.

Implementation of new or changed

accounting standards and interpretations

IASB has issued amended standards which

have not yet entered into force, and which

have consequently not been incorporated into

the consolidated financial statements for 2021.

None of these amended standards and

interpretations are expected to have any

significant impact on our financial statements.

Key accounting estimates and judgements

On 9 June 2021, we acquired all of the

membership interests in the onshore

This section provides an overall description of

our accounting policies as well as an overview

of the impact of new and amended accounting

standards and interpretations, if any.

Accounting policies

Ørsted is a listed public company, headquar-

tered in Denmark.

This interim financial report for the first nine

months of 2021 comprises the interim financial

statements of Ørsted A/S (the parent

company) and any subsidiaries controlled by

Ørsted A/S.

The interim financial report has been prepared

in accordance with the International Financial

Reporting Standards (IFRS), IAS 34 ’Interim

Financial Reporting’ as adopted by the EU, and

further requirements in the Danish Financial

Statements Act (Årsregnskabsloven) for the

presentation of quarterly interim reports by

listed companies.

The interim financial report for the first nine

months of 2021 follows the same accounting

policies as the annual report for 2020, except

for any new, amended, or revised accounting

standards and interpretations (IFRSs) endorsed

by the EU, effective for the accounting period

beginning on 1 January 2021.

Any new or amended standards and interpre-

tations that may impact Ørsted are presented

in the section below.

1. Basis of reporting

renewable platform Brookfield Renewable

Ireland, effectively gaining control of the

company.

We made a number of estimates and

judgements when we recognised the assets

and liabilities as a result of the acquisition. The

accounting estimates and judgements, which

may entail a risk of material adjustments in

subsequent years, are listed below. Except for

the below mentioned accounting estimate for

purchase price allocations in business

combinations, the assessment of the key

accounting estimates and judgements are the

same as in the annual report for 2020.

Purchase price allocations in business

combinations

When we apply the acquisition method for

business combinations, by nature this involves

judgement in assessing the fair value of

identifiable assets and liabilities. Fair value

calculations are based on a number of

estimates regarding WACC and expected

future cash flows from financial budgets and

forecasts which include a number of

assumptions and estimates. These

assumptions include future market conditions,

market prices of power, estimated discount

rates, estimated useful lives of the projects,

etc. The market prices applied are based on

available forward prices for a period of up to

five years and our best estimate of long-term

prices for the remainder of the period.

30/44

Consolidated financial statements

Interim financial report First nine months 2021

At the end of 2020, the value of our business

performance hedges deferred to a future

period was DKK -2.7 billion, of which

DKK -1.1 billion relate to 2021. This net loss was

recognised in the income statement under IFRS

in previous years, as we have not previously

applied hedge accounting.

Consequently, for the period 2021-2025,

EBITDA (according to IFRS) will be higher by a

similar amount compared to what the

business performance EBITDA would have

been if we had continued to report based on

this principle.

For 9M 2021, EBITDA according to IFRS was

DKK 812 million higher than if we had kept

reporting according to the business

performance principle. This amount primarily

related to site EBITDA in Offshore and the

remaining part related to our CHP plants and

gas activities in Bioenergy & Other.

With the implementation of IFRS 9 in 2018, it

has become significantly easier to apply IFRS

hedge accounting to our commodity hedges.

We have concluded that IFRS 9 can replace

our business performance principle, and we

have therefore reported based only on IFRS

from 1 January 2021.

Among other things, IFRS 9 has made it easier

to apply hedge accounting by the removal of

the 80-125 % effectiveness requirement, as

compliance can be difficult in connection with

proxy hedging. For example, we use proxy

hedging to hedge our power exposure

4-5 years into the future with gas hedges due

to illiquidity in the market for power hedges

with this time horizon.

Since we did not apply IFRS hedge accounting

in 2020, the IFRS 2021 numbers are not fully

comparable to the IFRS 2020 numbers. There-

fore, we use EBITDA according to the business

performance principle in 2020 as comparable

for EBITDA in the ‘Management’s review’ for

2021.

2. Business performance

Offshore technicians at Walney,

the Irish Sea, the UK.

9M 2020

DKKm

Business

performance Adjustments IFRS

Revenue 37,042 (86) 36,956

Cost of sales (18,761) 461 (18,300)

Operating profit (loss) before depreciation, amortisation,

and impairment losses (EBITDA) 13,121 375 13,496

EBIT 7,445

375

7,820

Tax on profit (loss) for the period (1,954) (80) (2,034)

Profit for the year 14,527 295 14,822

31/44

Consolidated financial statements

Interim financial report First nine months 2021

The column ’Other activities/eliminations’ primarily

covers the elimination of inter-segment transactions.

It also includes income and costs, assets and

liabilities, investment activity, taxes, etc., handled at

Group level.

Including the elimination of other activities, the total

elimination of intra-group revenue amounts to

DKK 6,092 million, which primarily relates to our

Shared Functions services as well as our B2B

business activities.

3. Segment information

9M 2021

Income statement, DKKm Offshore Onshore

Bioenergy

& Other

Reportable

segments

Other

activities/

eliminations Total

External revenue 26,541 656 19,777 46,974 33 47,007

Intra-group revenue 4,840 (23) (639) 4,178 (4,178)

Revenue 31,381 633 19,138 51,152 (4,145) 47,007

Cost of sales (19,974) (16) (15,248) (35,238) 4,139 (31,099)

Employee costs and other external expenses (4,656) (721) (1,571) (6,948) 124 (6,824)

Gain (loss) on disposal of non-current assets 5,626 - - 5,626 - 5,626

Additional other operating income and expenses 346 923 11 1,280 (2) 1,278

Share of profit (loss) in associates and joint ventures 54 - 1 55 - 55

EBITDA 12,777 819 2,331 15,927 116 16,043

Depreciation and amortisation

(4,474) (590) (588)

(5,652)

(176)

(5,828)

Impairment losses

- - -

Operating profit (loss) (EBIT) 8,303 229 1,743 10,275 (60) 10,215

Key ratios

Intangible assets, and property, plant, and equipment 103,451 37,088 8,051 148,590 1,364 149,954

Equity investments and non-current receivables 525 34 151 710 172 882

Net working capital, work in progress 7,062 - - 7,062 - 7,062

Net working capital, tax equity - (10,744) - (10,744) - (10,744)

Net working capital, capital expenditures (7,009) (661) (20) (7,690) - (7,690)

Net working capital, other items 4,657 (54) 516 5,119 72 5,191

Derivatives, net (21,045) (4,413) (11,211) (36,669) 1,140 (35,529)

Assets classified as held for sale, net - - 694 694 - 694

Decommissioning obligations (5,802) (1,167) (1,294) (8,263) - (8,263)

Other provisions (3,903) (64) (1,276) (5,243) (816) (6,059)

Tax, net 5,458 (2,690) 2,686 5,454 (68) 5,386

Other receivables and other payables, net 254 (28) 3 229 (752) (523)

Capital employed at 30 September 83,648 17,301 (1,700) 99,249 1,112 100,361

Return on capital employed (ROCE), % - - - - - 12.9

Cash flow from operating activities 863 2,876 7,174 10,913 567 11,480

Gross investments (16,401) (10,919) (161) (27,481) (74) (27,555)

Divestments 10,685 - (251) 10,434 133 10,567

Free cash flow (FCF) (4,853) (8,043) 6,762 (6,134) 626 (5,508)

32/44

Consolidated financial statements

Interim financial report First nine months 2021

Profit (loss) and cash flows are

shown only for continuing

operations.

The column ‘Other activities/

eliminations’ primarily covers the

elimination of inter-segment

transactions. It also includes

income and costs, assets and

liabilities, investment activity,

taxes, etc., handled at Group level.

Including the elimination of other

activities, the total elimination of

intra-group revenue amounts to

DKK 5,113 million, which primarily

relates to our Shared Functions

services as well as our B2B, B2C,

and power distribution businesses

activities.

3. Segment information (continued)

9M 2020

Income statement, DKKm Offshore Onshore

Bioenergy

& Other

Reportable

segments

Other

activities/

eliminations

Business

performance Adjustments IFRS

External revenue 20,438 565 15,915 36,918 124 37,042 (86) 36,956

Intra-group revenue 3,296 (5) (250) 3,041 (3,041)

- - -

Revenue 23,734 560 15,665 39,959 (2,917) 37,042 (86) 36,956

Cost of sales (9,800) (13) (11,850) (21,663) 2,902 (18,761) 461 (18,300)

Employee costs and other external expenses (4,807) (464) (2,359) (7,630) 228 (7,402) - (7,402)

Gain (loss) on disposal of non-current assets 1,199 34 37 1,270 (14) 1,256 - 1,256

Additional other operating income and expenses 266 690 - 956 - 956 - 956

Share of profit (loss) in associates and joint ventures 30 - - 30 - 30 - 30

EBITDA 10,622 807 1,493 12,922 199 13,121 375 13,496

Depreciation and amortisation

(4,570) (340) (598)

(5,508)

(168)

(5,676)

Impairment losses

- - -

Operating profit (loss) (EBIT) 6,052 467 895 7,414 31 7,445 375 7,820

Key ratios

Intangible assets, and property, plant, and equipment 86,402 20,477 8,304 115,183 1,455 116,638 - 116,638

Equity investments and non-current receivables 1,837 - 200 2,037 151 2,188 - 2,188

Net working capital, work in progress 10,121 - - 10,121 - 10,121 - 10,121

Net working capital, tax equity - (7,761) - (7,761) - (7,761) - (7,761)

Net working capital, capital expenditures (5,080) (106) (31) (5,217) - (5,217) - (5,217)

Net working capital, other items 5,804 14 (3,352) 2,466 135 2,601 - 2,601

Derivatives, net 8 (356) 1,351 1,003 471 1,474 - 1,474

Assets classified as held for sale, net - - (359) (359) - (359) - (359)

Decommissioning obligations (4,878) (461) (1,320) (6,659) - (6,659) - (6,659)

Other provisions (3,788) - (2,053) (5,841) (749) (6,590) - (6,590)

Tax, net 826 (1,991) 600 (565) 125 (440) - (440)

Other receivables and other payables, net (417) (105) 11 (511) (797) (1,308) - (1,308)

Capital employed at 30 September 90,835 9,711 3,351 103,897 791 104,688 - 104,688

Of which, capital employed for discontinued operations (651) - (651)

Of which, capital employed for continuing operations 105,339 - 105,339

Return on capital employed (ROCE), % - - - - - 9.4 - -

Cash flow from operating activities 2,874 3,787 3,256 9,917 (207) 9,710 - 9,710

Gross investments (13,727) (3,943) (575) (18,245) (83) (18,328) - (18,328)

Divestments (165) 114 20,609 20,558 - 20,558 - 20,558

Free cash flow (FCF) (11,018) (42) 23,290 12,230 (290) 11,940 - 11,940

33/44

Consolidated financial statements

Interim financial report First nine months 2021

Profit (loss) and cash flows are

shown only for continuing

operations.

The column ‘Other activities/

eliminations’ primarily covers the

elimination of inter-segment

transactions. It also includes

income and costs, assets and

liabilities, investment activity,

taxes, etc., handled at Group level.

Including the elimination of other

activities, the total elimination of

intra-group revenue amounts to

DKK 2,268 million (Q3 2020:

DKK 1,673 million), which primarily

relates to our Shared Functions

services as well as our B2B

businesses. For Q3 2020, it also

relates to our B2C, and power

distribution business activities as

well.

3. Segment information (continued)

Q3 2020, Income statement and FCF, DKKm

External revenue 5,372 263 4,288 9,923 118 10,041 (1,279) 8,762

Intra-group revenue 1,023 - (27) 996 (996)

- - -

Revenue 6,395 263 4,261 10,919 (878) 10,041 (1,279) 8,762

Cost of sales (1,947) (18) (3,144) (5,109) 971 (4,138) 374 (3,764)

Employee costs and other external expenses (1,915) (149) (724) (2,788) (32) (2,820) - (2,820)

Gain (loss) on disposal of non-current assets (18) - - (18) (14) (32) - (32)

Additional other operating income and expenses 95 212 (18) 289 1 290 - 290

Share of profit (loss) in associates and joint ventures 19 - - 19 - 19 - 19

EBITDA 2,629 308 375 3,312 48 3,360 (905) 2,455

Depreciation and amortisation (1,710) (133) (198) (2,041) (54) (2,095) - (2,095)

Impairment losses - - - - - - - -

Operating profit (loss) (EBIT) 919 175 177 1,271 (6) 1,265 (905) 360

Cash flow from operating activities 89 625 882 1,596 345 1,941 - 1,941

Gross investments (6,633) (2,462) (152) (9,247) (16) (9,263) - (9,263)

Divestments (24) - 20,529 20,505 1 20,506 - 20,506

Free cash flow (FCF) (6,568) (1,837) 21,259 12,854 330 13,184 - 13,184

Q3 2021, Income statement and FCF, DKKm Offshore Onshore

Bioenergy

& Other

Reporting

segments

Other

activities/

eliminations

Business

performance Adjustments IFRS

External revenue 7,257 429 6,785 14,471 39 14,510

Intra-group revenue 1,899 (23) (234) 1,642 (1,642)

Revenue 9,156 406 6,551 16,113 (1,603) 14,510

Cost of sales (6,173) (7) (4,810) (10,990) 1,645 (9,345)

Employee costs and other external expenses (1,678) (299) (545) (2,522) 19 (2,503)

Gain (loss) on disposal of non-current assets (52) - - (52) - (52)

Additional other operating income and expenses 55 313 10 378 - 378

Share of profit (loss) in associates and joint ventures (4) - - (4) - (4)

EBITDA 1,304 413 1,206 2,923 61 2,984

Depreciation and amortisation (1,425) (261) (194) (1,880) (59) (1,939)

Impairment losses - - - - - -

Operating profit (loss) (EBIT) (121) 152 1,012 1,043 2 1,045

Cash flow from operating activities (5,644) 2,465 2,881 (298) 544 246

Gross investments (6,041) (2,639) (72) (8,752) (5) (8,757)

Divestments 16 - (48) (32) 39 7

Free cash flow (FCF) (11,669) (174) 2,761 (9,082) 578 (8,504)

34/44

Consolidated financial statements

Interim financial report First nine months 2021

Revenue amounted to DKK 47,007 million.

The increase of 27 % relative to 9M 2020 was

primarily due to the significantly higher gas

and power prices across all markets and the

divestment of the offshore transmission asset

at Hornsea 1 in 2021. This was partly offset by

lower wind speeds in 9M 2021, the 2020

divestments of the LNG business, the Danish

distribution, residential customer, and city light

businesses (RBC), and the divestment of the

offshore transmission asset at Walney

Extension in 2020.

4. Revenue

On 1 January 2021, we implemented hedge

accounting on our commodity and related currency

hedges. Accordingly, our hedges are presented in the

same line item as the hedged exposure. For example,

when we hedge generation of power, any gain (loss)

related to the hedges is presented in the line item

‘Generation of power’.

Revenue, DKKm Offshore Onshore

Bioenergy &

Other

activities/

eliminations

9M 2021

total Offshore Onshore

Bioenergy &

Other

activities/

eliminations

9M 2020

total

Sale of gas - - 9,227 - 9,227 - - 5,613 4 5,617

Generation of power 4,952 665 3,525 - 9,142 3,123 362 1,261 - 4,746

Sale of power 13,457 - 3,287 (4,220) 12,524 6,428 - 4,392 (3,025) 7,795

Revenue from construction of offshore wind farms 5,139 - - - 5,139 3,249 - - - 3,249

Generation and sale of heat and steam - - 1,881 - 1,881 - - 1,899 - 1,899

Distribution and transmission - - 297 (1) 296 - - 1,463 (3) 1,460

Other revenue 1,870 - 153 (3) 2,020 1,728 4 544 66 2,342

Total revenue from customers, IFRS 25,418 665 18,370 (4,224) 40,229 14,528 366 15,172 (2,958) 27,108

Government grants 5,903 77 461 - 6,441 8,575 22 251 - 8,848

Economic hedging - - - - - 1,792 184 (486) 405 1,895

Miscellaneous revenue 60 (109) 307 79 337 24 (59) (982) 122 (895)

Total revenue, IFRS 31,381 633 19,138 (4,145) 47,007 24,919 513 13,955 (2,431) 36,956

Adjustments (1,185) 47 1,710 (486) 86

Total revenue, business performance 23,734 560 15,665 (2,917) 37,042

Timing of revenue recognition from customers, IFRS

At a point in time 20,052 665 7,172 (4,224) 23,665 8,055 366 2,323 (2,958) 7,786

Over time 5,366 - 11,198 - 16,564 6,473 - 12,849 - 19,322

Total revenue from customers, IFRS 25,418 665 18,370 (4,224) 40,229 14,528 366 15,172 (2,958) 27,108

35/44

Consolidated financial statements

Interim financial report First nine months 2021

4. Revenue (continued)

Revenue, DKKm Offshore Onshore

Bioenergy &

Other

activities/

eliminations

Q3 2021

total Offshore Onshore

Bioenergy &

Other

activities/

eliminations

Q3 2020

total

Sale of gas - - 3,803 (4) 3,799 - - 1,698 (1) 1,697

Generation of power 1,576 316 1,219 - 3,111 1,100 140 421 -

1,661

Sale of power 5,917 - 766 (1,822) 4,861

1,744 - 1,333 (955) 2,122

Revenue from construction of offshore wind farms 4 - - - 4

200 - - - 200

Generation and sale of heat and steam - - 272 - 272

- - 297 - 297

Distribution and transmission - - 140 - 140

- - 335 (1) 334

Other revenue 677 - 42 20 739 797 (22) 91 105 971

Total revenue from customers, IFRS 8,174 316 6,242 (1,806) 12,926 3,841 118 4,175 (852) 7,282

Government grants 1,242 72 68 - 1,382 2,454 5 47 - 2,506

Economic hedging - - - - - (515) 152 (206) 189 (380)

Miscellaneous revenue (260) 18 241 203 202 36 (35) (653) 6 (646)

Total revenue, IFRS 9,156 406 6,551 (1,603) 14,510 5,816 240 3,363 (657) 8,762

Adjustments 579 23 898 (221) 1,279

Total revenue, business performance 6,395 263 4,261 (878) 10,041

Timing of revenue recognition from customers, IFRS

At a point in time 6,929 316 3,012 (1,806) 8,451 2,479 118 688 (852) 2,433

Over time 1,245 - 3,230 - 4,475 1,362 - 3,487 - 4,849

Total revenue from customers, IFRS 8,174 316 6,242 (1,806) 12,926 3,841 118 4,175 (852) 7,282

36/44

Consolidated financial statements

Interim financial report First nine months 2021

5. Other operating

income and expenses

Gain on divestment of assets primarily relates

to the 50 % farm-down of Borssele 1 & 2 in

May, resulting in a gain from new partnerships

of DKK 5.3 billion. Remaining gains were

related to earnings from finalised construction

projects.

In 9M 2020, gain on divestment of assets was

mainly related to the Hornsea 1 offshore

transmission asset where we lowered our

assumption regarding the preferred bidder’s

expected return requirement.

Other compensation is primarily compensa-

tions regarding outages and curtailments

from TenneT, the German grid operator.

The increase in ’US tax credits and tax equity

income’ was mainly due to commissioning of

new onshore wind farms in 2020 which have

had full impact in 202 1 as well as commission-

ing of new onshore wind and solar farms in

2021.

6. Financial income

and expenses

The table shows net financial income and expenses

corresponding to our internal control.

Exchange rate adjustments and hedging contracts

entered into to hedge currency risks are presented

net under the item ’Exchange rate adjustments, net’.

Net financial income and expenses, DKKm 9M 2021 9M 2020 Q3 2021 Q3 2020

Interest expenses, net (684) (986) (275) (100)

Interest expenses, leasing (159) (137) (58) (40)

Interest element of provisions, etc. (313) (336) (112) (115)

Tax equity partner's contractual return (490) (346) (181) (137)

Capital losses on early repayment of loans and

interest rate swaps - (373) - (4)

Value adjustments of derivatives, net 132 (110) 15 (38)

Exchange rate adjustments, net 627 209 337 14

Value adjustments of securities, net (518) (69) (140) 62

Other financial income and expenses 169 80 63 76

Net financial income and expenses (1,236) (2,068) (351) (282)

Other operating income, DKKm 9M 2021 9M 2020 Q3 2021 Q3 2020

Gain on divestment of assets 5,754 1,342 - 10

Other compensation 296 195 67 68

US tax credits and tax equity income 902 690 307 213

Miscellaneous operating income 191 200 39 35

Total other operating income 7,143 2,427 413 326

Other operating expenses, DKKm 9M 2021 9M 2020 Q3 2021 Q3 2020

Loss on divestment of assets 128 86 52 42

Miscellaneous operating expenses 111 129 35 26

Total other operating expenses 239 215 87 68

37/44

Consolidated financial statements

Interim financial report First nine months 2021

Since the acquisition date, BRI has contributed

with a revenue of DKK 84 million and a loss

after tax of DKK 101 million. If the acquisition

had been made on 1 January 2021, the first

nine months revenue would have been

DKK 497 million, and loss after tax would

have been DKK 122 million.

As part of the acquisition process, we have

incurred costs of DKK 49 million which have

On 9 June 2021, we acquired all of the

membership interests in Brookfield Renewable

Ireland (BRI), Brookfield Renewable’s onshore

wind business in Ireland and the UK, at an

enterprise value of DKK 4,617 million. With the

acquisition of BRI, Ørsted enters the European

onshore market. BRI’s management team

continues to run the business, which will be

incorporated into our Onshore business unit

over time.

been expensed in our income statement in the

Onshore segment.

The fair values of the assets and liabilities

acquired are not considered final until

12 months after acquisition date.

We made no acquisitions in 9M 2020.

7. Acquisition of enterprises

Cash flows used for acquisitions, DKKm BRI Other 9M 2021 9M 2020 Q3 2021 Q3 2020

Fair value at time of acquisition:

Other intangible assets than goodwill 452 - 452 - - -

Property, plant, and equipment 5,182 - 5,182 - - -

Joint ventures 33 - 33 - - -

Trade receivables 236 - 236 - - -

Other receivables 163 - 163 - - -

Cash 146 - 146 - - -

Interest-bearing debt (2,273) - (2,273) - - -

Provisions (47) - (47) - - -

Derivatives (456) - (456) - - -

Deferred tax (634) - (634) - - -

Other liabilities (312) - (312) - - -

Net assets acquired 2,490 - 2,490 - - -

Goodwill - - - - - -

Purchase price 2,490 - 2,490 - - -

Cash, available and acquired (142) - (142) - - -

Contingent consideration 11 11 22 - 11 1

Cash flow used for acquisition of enterprises 2,359 11 2,370 - 11 1

Purchase price 2,490 - 2,490 - - -

Adjustments for cash (146) - (146) - - -

Adjustments for interest-bearing debt 2,273 - 2,273 - - -

Enterprise value 4,617 - 4,617 - - -

38/44

Consolidated financial statements

Interim financial report First nine months 2021

9. Reserves

8. Gross and net

investments

Service and opera-

tion vessel Edda

Mistral at Hornsea

1 off the Yorkshire

coast, the UK.

’Value adjustments of hedging reserve’ in 9M 2021

are mainly a result of losses on power hedges due

to the increase in power prices, and to a lesser

extent, losses on currency, gas, and inflation hedges.

Reserves 2020, DKKm

Foreign

currency

translation

reserve

Hedging

reserve

Total

reserves

Reserves at 1 January 2020 168 245 413

Exchange rate adjustments (4,720) - (4,720)

Value adjustments of hedging reserve - 811 811

Value adjustments transferred to:

Revenue - 41 41

Financial income and expenses - 480 480

Tax:

Tax on hedging and currency adjustments 1,036 (340) 696

Movement in comprehensive income for the period (3,684) 992 (2,692)

Total reserves at 30 September (3,516) 1,237 (2,279)

Gross and net investments, DKKm 9M 2021 9M 2020 Q3 2021 Q3 2020

Cash flow from investing activities (20,559) (8,718) (8,696) (3,828)

Dividends received and capital reductions

reversed (28) (7) - (7)

Purchase and sale of securities, reversed 5,300 10,798 (119) 14,915

Loans to associates and joint ventures, reversed - 158 - 158

Sale of non-current assets, reversed (9,998) (20,559) 59 (20,501)

Interest-bearing debt in acquired enterprises (2,274) - (1) -

Restricted cash in acquired enterprises 4 - - -

Gross investments (27,555) (18,328) (8,757) (9,263)

Transactions with non-controlling interests

in connection with divestments 569 (1) 66 5

Sale of non-current assets 9,998 20,559 (59) 20,501

Divestments 10,567 20,558 7 20,506

Net investments (16,988) 2,230 (8,750) 11,243

Reserves 2021, DKKm

Foreign

currency

translation

reserve

Hedging

reserve

Total

reserves

Reserves at 1 January 2021 (3,829) 1,873 (1,956)

Exchange rate adjustments 3,726 - 3,726

Value adjustments of hedging reserve - (38,977) (38,977)

Value adjustments transferred to:

Revenue - 2,942 2,942

Financial income and expenses - 35 35

Property, plant, and equipment - (86) (86)

Tax:

Tax on hedging and currency adjustments (513) 7,276 6,763

Movement in comprehensive income for the period 3,213 (28,810) (25,597)

Total reserves at 30 September (616) (26,937) (27,553)

39/44

Consolidated financial statements

Interim financial report First nine months 2021

Tax on profit (loss) for the period

Tax on profit (loss) was DKK 1,287 million in

9M 2021 compared to DKK 2,034 million in

9M 2020. The effective tax rate for the first

nine months of 2021 was 14 %.

The effective tax rate was affected by the

farm-down of Borssele and recognition of

deferred tax liabilities in the US related to tax

equity partnerships for offshore wind farms in

our north-east cluster, for Ocean Wind 1, and

for the onshore assets Permian Energy Center,

Western Trail Wind, and Muscle Shoals. The

deferred tax liabilities for the offshore wind

farms will increase until COD.

Effective tax rate

The estimated average annual tax rate for the

’Remaining Ørsted business’ and ’Other adjustments’

is 8 % compared to 22 % for the full-year of 2020.

The estimated average tax rate is impacted by

movements in uncertain tax positions.

‘Other adjustments’ include changes in tax rates,

movements in uncertain tax positions, tax concerning

previous years, and non-recognised tax losses.

The effective tax for 9M 2020 is calculated on the

basis of the profit (loss) before tax from continuing

operations.

Accounting policies

Effective tax rate

The estimated average annual tax rate is

separated based on regions and into two different

categories: a) ordinary business activities and

b) gain (loss) on divestments and impacts from tax

equity contributions.

10. Tax on profit (loss) for the period

Also, the effective tax rate was affected by

an updated management assessment on

uncertain tax positions and the enacted

increase of the UK tax rate from 19 % to 25 %.

Tax controversies

On 28 April 2021, Ørsted received a draft

administrative decision from the Danish Tax

Agency in relation to the development of the

offshore wind farm Race Bank. In line with its

administrative decision from 1 December

2020 regarding the Walney Extension and

Hornsea 1 offshore wind farms where the

Danish Tax Agency claimed DKK 5.1 billion in

additional taxes, the Danish Tax Agency

claims that Ørsted Wind Power A/S has not

acted at arm’s length terms when charging

fees for technical development services

provided to the Race Bank project company.

If the draft decision is finalised, it entails an

additional Danish tax payment of DKK 2.5

billion plus interest for the income year 2015.

As part of the process, Ørsted is given time

and the opportunity to make submissions

before the Danish Tax Agency makes a final

decision in the matter.

In response to the tax risks connected to

cross-border activities, including the current

controversy regarding the pricing of technical

development service fees, we have made

tax-related provisions in accordance with

IAS 12 and IAS 37 as well as relevant

interpretation, such as IFRIC 23. The provisions

have been calculated on the basis of

differences in tax rates and statistical risks of

suffering economic or legal double taxation.

9M 2021 9M 2020

Tax for the period, DKK

Profit (loss)

before tax Tax Tax in %

Profit (loss)

before tax Tax Tax in %

Deferred tax liability, tax equity contributions (1,168) n.a. (1,053) n.a.

Gain (loss) on divestment of enterprises 5,355 - n.a. 11,122 - n.a.

Other adjustments 576 n.a. 95 n.a.

Remaining Ørsted business 3,561 (695) 20% 5,760 (1,076) 19%

Effective tax for the period 8,916 (1,287) 14% 16,882 (2,034) 12%

Q3 2021 Q3 2020

Tax for the period, DKK

Profit (loss)

before tax Tax Tax in %

Profit (loss)

before tax Tax Tax in %

Deferred tax liability, tax equity contributions (308) n.a. (168) n.a.

Gain (loss) on divestment of enterprises - - n.a. 11,122 - n.a.

Other adjustments 208 n.a. 118 n.a.

Remaining Ørsted business 671 (84) 13% 97 142 -146%

Effective tax for the period 671 (184) 27% 11,219 92 -1%

40/44

Consolidated financial statements

Interim financial report First nine months 2021

For USD and NTD, we manage our

risk to a natural time spread bet-

ween front-end capital expenditures

and long-term revenue. In the five-

year horizon, we are therefore seeing

that our hedges increase our net

exposure to USD, but in the longer

horizon, our hedges reduce the USD

risk.

We do not deem EUR to constitute a

risk, as we expect Denmark to

maintain its fixed exchange-rate

policy.

Our power exposure before and

after hedging have increased

significantly due to the increase in

power prices.

Our energy exposures are reduced

significantly due to hedging.

Energy exposure 1 October 2021 - 30 September 2026

DKKbn

Currency exposure 1 October 2021 - 30 September 2026

DKKbn

11. Market risks

The table shows the time of the

transfer of the market value of

hedging contracts to EBITDA.

Due to the increase in power prices,

we have seen large losses on power

hedges. The losses will be countered

by higher sales prices on our future

power production.

Expected value for recognition in EBITDA, DKKbn

Market risk management

Our most significant market risks relate to:



energy prices



foreign exchange rates



interest and inflation.

We manage market risks to protect Ørsted

against market price volatility and to ensure

stable and robust financial ratios that support

our growth strategy as well as protect the

value of our assets. In the short- to medium-

term horizon, we primarily hedge future prices

using derivatives to reduce cash flow

fluctuations after tax. Minimum hedging levels

are determined by the Board of Directors. In

the first two years, we are almost fully

hedged. The degree of hedging declines in

subsequent years. For more details on our

market risks, please see note 7.1 ’Market risks’

in the annual report for 2020.

41/44

Consolidated financial statements

Interim financial report First nine months 2021

CFO. The market value developments are

monitored on a continuous basis and reported

to the Executive Committee.

’Quoted prices’ comprise gas and derivatives

that are traded in active markets. Where

derivatives are traded in an active market, we

generally have daily settlements, which is why

the market value is zero.

‘Observable input’ comprises securities and

derivatives, for which valuation models with

Valuation principles and key assumptions

In order to minimise the use of subjective

estimates or modifications of parameters

and calculation models, it is our policy to

determine fair values based on the external

information that most accurately reflects the

market values. We use pricing and benchmark

services to increase data quality.

Market values are determined by the Risk

Management function which reports to the

The table shows the move-

ments during the year in the

total market value (assets

and liabilities) of derivatives

valued on the basis of non-

observable inputs.

The main non-observable

input is German power pri-

ces in the period 2025-2034.

The avarage power price for

the period is estimated at

EUR 75.11 per MWh, based

on an inflation-adjusted

extrapolation of the obser-

vable price. An increase or

decrease in the German

power prices of 10 % would

impact the fair value by +/-

DKK 790 million.

12. Fair value measurement

observable inputs are used to measure fair

value. The majority of our securities are quoted

Danish mortgage or government bonds. Since

these are not always traded on a daily basis,

we are valuing these based on market interest

rates for similar bonds. ‘Non-observable input’

primarily comprises long-term contracts on the

purchase or sale of power and gas. The fair

values are based on assumptions, including the

long-term prices of power and gas as well as

risk premiums in respect of liquidity and

market risks. Since there are no active markets

for long-term prices, the fair value has been

determined through an estimate of future

prices.

Normally, the energy price can be observed for

a maximum of five years in the power market,

after which an active market no longer exists.

Beyond the five-year horizon, the energy price

is thus projected on the basis of the observable

forward prices for years one to five.

Assets Liabilities

Fair value hierarchy

DKKm Inventories Securities Derivatives Derivatives

2021

Quoted prices 2,901 - 25,688 32,776

Observable input - 30,136 2,022 26,365

Non-observable input - - 450 4,548

Total 30 September 2021 2,901 30,136 28,160 63,689

2020

Quoted prices 635 - 3,365 2,630

Observable input - 27,292 1,803 1,282

Non-observable input - - 254 36

Total 30 September 2020 635 27,292 5,422 3,948

Derivatives valued on the basis of

non-observable input, DKKm 2021 2020

Market value at 1 January (82) 236

Value adjustments through profit or loss (449) 147

Value adjustments through other

comprehensive income (2,751) -

Sales/redemptions 59 (233)

Purchases/issues (878) 68

Transferred to observable input 3 -

Market value at 30 September

(4,098)

218

Non-observable input per commodity

price input, DKKm 2021 2020

German power prices (2,297) -

Irish power prices (682) -

Other power prices (835) 43

Gas prices (284) 175

Total (4,098) 218

42/44

Consolidated financial statements

Interim financial report First nine months 2021

Comparative figures

are restated in

accordance with the

new definition of FFO

and adjusted interest-

bearing net debt

(NIBD).

Adjusted definition of FFO and adjusted

interest-bearing net debt (NIBD)

We have adjusted our definition of FFO and

adjusted NIBD to better align with the rating

agencies.

Generally, we are now adjusting FFO for the

cash flow effects instead of the profit and loss

effects. Further, adjusted NIBD no longer

includes the decommissioning obligation.

Market value of bond and bank debt

At 30 September, the market values of bond

and bank debts were DKK 41.6 billion and

DKK 17.4 billion, respectively.

Interest-bearing net debt totalled DKK 21,211 million

at 30 September 2021, which was an increase of

DKK 8,868 million relative to 31 December 2020. The

main changes in the composition of our net debt

compared to 31 December 2020 was an increase in

bank debt of DKK 15,480 million, which was partly

countered by an increase in securities of DKK 4,963

million. The increase in bank debt is mainly related

to an increase in short-term repo loans.

The table shows

which items are

included in the

adjusted interest-

bearing debt.

13. Interest-bearing debt and FFO

We have adjusted our

target FFO/adjusted

NIBD from above

30 % to above 25 %

to be in line with the

rating agencies.

Funds from operations (FFO) LTM

DKKm

30 September

2021

31 December

2020

30 September

2020

EBITDA

21,047 18,124 17,734

Change in provisions and other

adjustments

(403) (214)

Reversal of gain (loss) on divestment

of assets

(5,175)

(805) (840)

Income tax paid (1,115) (1,118) (1,300)

Interest and similar items,

received/paid

(834) (1,829) (1,855)

Reversal of interest expenses

transferred to assets

(616) (449) (372)

50 % of coupon payments on

hybrid capital

(215) (245) (278)

Dividends received and

capital reductions

39 18 7

Funds from operations (FFO) 13,203 13,293 12,882

Last 12 months.

EBITDA according to business performance up until the end of 2020.

Adjusted interest-bearing net debt

DKKm

30 September

2021

31 December

2020

30 September

2020

Total interest-bearing net debt 21,211 12,343 8,216

50 % of hybrid capital 8,992 6,616 6,616

Cash and securities not available

for distribution, excluding repo loans 977 1,485 1,291

Total adjusted interest-bearing

net debt 31,180 20,444 16,123

Funds from operations (FFO)/

adjusted interest-bearing net debt

30 September

2021

31 December

2020

30 September

2020

Funds from operations (FFO)/

adjusted interest-bearing net debt 42.3 % 65.0 % 79.9 %

Interest-bearing debt and interest-bearing assets

DKKm

30 September

2021

31 December

2020

30 September

2020

Interest-bearing debt:

Bank debt 17,422 1,942 4,426

Bond debt 36,044 34,824 31,454

Total bond and bank debt 53,466 36,766 35,880

Tax equity liability 734 721 508

Lease liability 5,590 5,054 4,760

Other interest-bearing debt 626 1,906 1,195

Total interest-bearing debt 60,416 44,447 42,343

Interest-bearing assets:

Securities 30,136 25,173 27,292

Cash 6,375 6,178 5,852

Receivables from associates and joint ventures - - 160

Other receivables 2,694 753 823

Total interest-bearing assets 39,205 32,104 34,127

Total interest-bearing net debt 21,211 12,343 8,216

43/44

Consolidated financial statements

Interim financial report First nine months 2021

The Board of Directors and the Executive

Board have today considered and approved

the interim financial report of Ørsted A/S for

the period 1 January - 30 September 2021.

The interim financial report which has not

been audited or reviewed by the company’s

independent auditors has been prepared in

accordance with IAS 34 'Interim Financial

Reporting' as adopted by the EU and addition-

al requirements in the Danish Financial State-

ments Act. The accounting policies remain

unchanged from the annual report for 2020.

In our opinion, the interim financial report

gives a true and fair view of the Group's

assets, liabilities, and financial position at

30 September 2021 and of the results of the

Group's operations and cash flows for the

period 1 January - 30 September 2021.

Furthermore, in our opinion, the Management's

review gives a fair presentation of the devel-

opment in the Group's operations and finan-

cial circumstances, of the results for the peri-

od, and of the overall financial position of the

Group as well as a description of the most

significant risks and elements of uncertainty

facing the Group.

Over and above the disclosures in the interim

financial report, no changes in the Group's

most significant risks and uncertainties have

occurred relative to the disclosures in the

annual report for 2020.

Skærbæk, 3 November 2021

Mads Nipper

Group President and CEO

Marianne Wiinholt

CFO

Thomas Thune Andersen

Chairman

Jørgen Kildahl

Henrik Poulsen

Ole Henriksen*

Lene Skole

Deputy Chairman

Julia Elizabeth King

Dieter Wemmer

Daniel Tas Sandermann*

Lynda Armstrong

Peter Korsholm

Benny Gøbel*

*Employee representative

Executive Board:

Board of Directors:

Statement by the Executive Board

and the Board of Directors

Martin Neubert

CCO and Deputy Group CEO

44/44

Consolidated financial statements

Interim financial report First nine months 2021

Forward-looking statements

This report contains certain forward-looking

statements, including, but not limited to, the

statements and expectations contained in the

‘Outlook’ section of this report (p. 8).

Statements herein, other than statements of

historical facts, regarding our future results

related to operations, financial condition, cash

flows, business strategy, plans, and future

objectives are forward-looking statements.

Words such as ‘target’, ‘believe’, ‘expect’, ‘aim’,

‘intend’, ‘plan’, ‘seek’, ‘will’, ‘may’, ‘should’

‘anticipate’, ‘continue’, ‘predict’, or variations of

these words as well as other statements

regarding matters that are not historical facts,

or that regards future events or prospects

constitute forward-looking statements.

We have based these forward-looking

statements on our current views with respect

to future events and financial performance.

These views involve a number of risks and

uncertainties which could cause actual results

to differ materially from those predicted in the

forward-looking statements and from our past

performance.

Although we believe that the estimates and

projections reflected in the forward-looking

statements are reasonable, they may prove

materially incorrect, and actual results may

materially differ due to a variety of factors.

These factors include, but are not limited to,

market risks, development and construction of

assets, changes in temperature, wind

conditions, wake and blockage effects,

precipitation levels, the development in power,

coal, carbon, gas, oil, currency, and interest

rate markets, changes in legislation,

regulations, or standards, the renegotiation of

contracts, changes in the competitive

environment in our markets, security of supply,

cable break-downs, or other disruptions.

Read more about the risks in note 7 ‘Risk

management’ in this report, in the annual

report for 2020, and in the section ‘Risk and

risk management’ in the Management’s review

in the annual report for 2020 available at

http://www.orsted.com.

Unless required by law, we are under no duty

and undertake no obligation to update or

revise any forward-looking statements after

the distribution of this report, whether as a

result of new information, future events, or

otherwise.

Willow Creek, Butte

County, South Dakota,

the US.

24/44

Management’s review

Interim financial report First nine months 2021

Ørsted A/S

CVR no. 36213728

Kraftværksvej 53

DK-7000 Fredericia

Tel.: +45 9955 1111

orsted.com

Group Communication

Martin Barlebo

Tel.: +45 9955 9552

Investor Relations

Allan Bødskov Andersen

Tel.: +45 9955 7996

Front page image

Cooper and Leah, offshore technicians,

Barrow in Furness, UK

Publication

3 November 2021