1. Copyright Houmoller Consulting © Introduction Anders Plejdrup Houmøller CEO, Houmoller Consulting ðThis PowerPoint presentation is animated üIt’s recommended to run the animation when viewing the presentation. ðOn most computers, you can start the animation by pressing F5. üNow the presentation moves one step forward, when you press Page Down. It moves one step backward, when you press Page Up. March 23, 20141

2. Copyright Houmoller Consulting © March 23, 20142 The Nordic System Price – 1 ðIn this presentation, the term “Nordic” refers to the countries Denmark, Finland, Norway and Sweden. ðThe System Price is the common price, we would have in the Nordic area, if there were no grid bottlenecks in the area covered by the four countries üHence the System Price is a virtual price. üHowever, the System Price is used as the underlying reference for most of the Nordic financial power contracts As the System Price is a convenient common reference for two players operating in two different Nordic countries.

3. Copyright Houmoller Consulting © March 23, 20143 The Nordic System Price – 2 ðConcerning the pictures at the next two slides: üThere is no correction for inflation – the prices are nominal terms. üThe red and the blue curves must be regarded as two independent pictures As the currency rate NOK-EUR has fluctuated during the period from 1999 to 2014 ðThe number for the annual turn-over at the Nordic whole-sale market is only a rough estimate of the average turn-over.

4. Copyright Houmoller Consulting © May 4 th, 1992 – March 15 th,2014.Nominal terms Moving 7-days average The Nordic System Price 0 80 160 240 320 400 NOK/MWh 0 10 20 30 40 50 60 70 80 90 100 110 EUR/MWh 9395979901030507091113 Wet year Spring flood Autumn flood Wet year Wet Dry year Cold weather Dry year Dry and cold Dry and cold Cold and low Swedish nuclear power output Dry and cold 4 Annual turnover at the Nordic whole-sale market: about EUR 15 billion (about USD 20 billion)

5. Copyright Houmoller Consulting © The Nordic System Price 0 5 10 15 20 25 30 35 40 45 50 55 EUR/MWh 0 40 80 120 160 200 240 NOK/MWh Nominal terms May 3 rd, 1993 – March 24 th, 2014 Moving 365 days average (moving annual average) 94969800020406081012 5

6. Copyright Houmoller Consulting © Thank you for your attention! 6 Anders Plejdrup Houmøller Houmoller Consulting Tel. +45 28 11 23 00 anders@houmollerconsulting.dk www.houmollerconsulting.dk