Orsted A/S : Annual report summary

Ørsted Summary 2020

Annual report and sustainability report

2

Ørsted

Our vision

Let's create a world that runs entirely on green energy

In 2021, we were ranked the most sustainable energy company in the world in the Corporate Knights Global 100 Index

Summary 2020

3

Chairman's statement

Enabling the world's green transformation

The decisions our global society takes to- day, and in the next few years, determine whether we pass a habitable planet on to future generations. Science recommends that we halve global carbon emissions by 2030 to have a chance of limiting the temperature rise to 1.5˚ C and mitigating the risk of irreversible tipping points in our global ecosystems.

In 2020, we saw positive progress. Many governments raised their carbon emission reduction targets and further reinforced their build-out plans for renewable energy production capacity. Several large companies also set targets for their decarbonisation and acted firmly to make their business models more sustainable. Targets and actions by both governments and corporations bode well for our planet, but to limit the increase in temperature to 1.5  ̊C, even more decisive action is needed.

Our target is to become a fully carbon- neutral company by 2025. In 2020,

we continued the build-out of our green power generation capacity both onshore and offshore. We also initiated

a range of renewable hydrogen projects. Renewable hydrogen will enable sectors like cement, ammonia, heavy road transport, aviation, and shipping to transition to fossil-free energy. Like it was for offshore wind, innovation and industrialisation in renewable hydrogen are required to bring down costs, making the new green fuels competitive.

This year, we divested our downstream retail customer and power distribution businesses, which marks another big step in the renewable energy trans-

formation. Our vision is a world that runs entirely on green energy. Ørsted wants to partner with countries and compa- nies, helping them to leave fossil fuels behind, and in 2020, we saw a breakthrough for comprehensive long-term green power purchase agreements.

The COVID-19 pandemic affected everybody in 2020. We are a safety-first company, and during the pandemic, our priority has been the health and well-being of our employees, their families, and the communities which we are a part of. Thanks to our careful and talented staff, Ørsted's operations have remained stable, and our development and construction projects have moved forward according to plan during the pandemic. All employees have adapted impressively to new routines and pushed through with projects, despite sudden and unforeseen obstacles. We will continue to closely follow the situation in the markets where we operate and will continue adhering to national guidelines and regulations to help minimise the spread of the pandemic and keep our employees and partners safe.

Even in this time of significantly increased global uncertainty, Ørsted's business model has demonstrated its resilience. We were able to raise our financial guidance in March and maintained it throughout the year. EBITDA for the year amounted to DKK 18.1 billion, thereby exceeding our expectations and resulting in a ROCE of 10 %. Profit for the year amounted to DKK 16.7 billion, significantly impacted by the gain from divestment of our power distribution activities. The Board of Directors recommends paying a dividend of DKK 11.5 per share, corresponding to DKK 4.8 billion.

On behalf of the Board of Directors, I would like to thank the employees and management of Ørsted for an outstanding effort during a period of global uncertainty and for keeping us on track towards creating a world that runs entirely on green energy.

I would also like to express special thanks to former CEO Henrik Poulsen for his exemplary leadership in the past eight years during which Ørsted was transformed completely from a financially challenged, regional, fossil-based energy company to a highly profitable global leader in renewable energy. Our company is stronger than ever and - even more important - has developed a promising platform for continued growth.

With Mads Nipper on board as our new CEO from this January, we remain as committed as ever to staying at the forefront of the global energy transformation and to offering cost-effective green energy solutions and enabling governments and companies to power the world with green energy.

Thomas Thune Andersen

Chairman

4

Ørsted

We are very satisfied with our strategic progress and results in 2020, and I am grateful for the support and professionalism of our customers and partners.

I am keenly aware that only together, we can do great things and live up to our high ambitions. We maintain a leading position in a global high-growth market and have built a strong and financially sustainable pipeline, laying the path for future growth.

Mads Nipper

CEO

Summary 2020

5

CEO's review

2020 showed very strong results, both operationally and financially. Although the world is in the midst of a global pandemic crisis, our business model has proved resilient. 2020 also showed great strategic progress.

Highlights 2020

Financials

• Operating profit (EBITDA) increased by 4 % to DKK 18.1 billion.
• EBITDA from offshore and onshore wind farms in operation increased by 14 % to DKK 16.9 billion.
• ROCE was 10 %.

Operations

• Stable operations throughout the year despite the COVID-19 pandemic.
• Green share of heat and power generation increased from 86 % to 90 %.
• Borssele 1 & 2, our first Dutch offshore wind farm, was commissioned.
• The onshore wind farms Sage Draw, Plum Creek, and Willow Creek were successfully commissioned.
• Our Renescience plant in the UK was commissioned.

Business development

• Signed agreements to farm-down 50 % of the offshore wind farms Greater Changhua 1 and 25 % of Ocean Wind 1.

• Signed corporate power purchase agreements (CPPAs) with TSMC for our offshore wind project Greater Changhua 2b & 4 in Taiwan and with Amazon for Borkum Riffgrund 3 in Germany. The first being the largest- ever renewable energy CPPA.
• We took FID on the onshore wind farm Western Trail and the Old 300 Solar Center in Texas.
• We acquired and took FID on the solar project Muscle Shoals in Alabama and the onshore wind project Haystack in Nebraska.
• We secured funding for three renewable hydrogen projects, one in the UK, one in Germany, and a joint project consortium in the EU. We also entered into three additional renewable hydrogen partnerships in the Netherlands, Denmark, and Germany, respectively.
• We divested the Danish power distribution, residential customer, and city light businesses which resulted in a gain of DKK 10.9 billion.
• The divestment of our LNG business was completed, and an agreement to divest our B2B business in the UK was signed.

Financial results

In 2020, our operating profit (EBITDA) amounted to DKK 18.1 billion, a 4 % increase compared to last year.

Earnings from our offshore and onshore wind farms in operation increased by 14 %. This was driven by ramp-up of green power generation from Hornsea 1, Borssele 1 & 2, Lockett, Sage Draw, Plum Creek, and Willow Creek and receipt of CfDs of another 400 MW of Hornsea 1 from April. Futhermore, we had higher wind speeds in 2020.

These positive effects were partly offset by lower earnings from trading related to hedging of our power exposures, which generated very high earnings in 2019, and adverse COVID-19 related im- pacts. The latter mainly manifested itself in the UK power prices due to a lower demand for electricity. This led to higher balancing tariffs (BSUoS) from National Grid and lower ROC recycle prices. Fur- thermore, we saw hours with negative prices in the UK from April to July.

We are on track to meet our target of an average yearly increase in EBITDA from offshore and onshore wind farms and solar farms in operation of 20 % from 2017 to 2023.

The divestment of our Danish power distribution, residential customer, and city light businesses resulted in proceeds of DKK 20.5 billion with a gain of DKK 10.9 billion which will be deployed into our global renewable energy build-out plan.

Our green share of heat and power generation continued to increase and reached a new high of 90 %.

6

Ørsted

Return on capital employed (ROCE) was 10 % for 2020, in line with our target.

COVID-19

Since the outbreak of COVID-19, our Corporate Crisis Management Organisation (CCMO) has met regularly, focusing on the health and safety of our employees and on ensuring business continuity. During 2020, we had 146 confirmed infected colleagues and fortunately no casualties from COVID-19. We continue to do our utmost to keep our colleagues safe across our locations. Our asset base has been fully operational, and we maintained normal availability rates at our offshore and onshore wind farms and CHP plants throughout 2020. Construction of our projects largely progressed according to plan, both in Europe, Asia Pacific, and the US. The construction project most affected by COVID-19 was the offshore wind farm Hornsea 2, due to delays in the offshore topside construction at a shipyard in Singapore which was temporarily closed. However, we do not expect the delay to affect the commissioning date.

Offshore

2020 was a good year for our offshore business with many significant milestones and achievements, although with some headwind in the US.

In December, we commissioned the

752 MW Dutch wind farm Borssele 1 & 2 on schedule and within budget. The wind

farm deploys 94 Siemens Gamesa 8 MW wind turbines, making it the largest- ever built in the Netherlands, and will supply renewable energy to 1 million households. During the construction of Borssele 1 & 2, we passed a significant milestone by installing Ørsted's offshore wind turbine number 1,500.

In North America, the 12 MW Coastal Virginia demonstration project, which we have constructed for Dominion Energy as an EPC contractor, was com- missioned. The offshore wind farm is the first-ever to receive federal permits and be installed in US federal waters.

We are installing foundations at our

1,386 MW offshore wind project Hornsea 2 in the UK. At our 900 MW offshore wind project Greater Changhua 1 & 2a in Taiwan, we are preparing for installation of foundations which will commence in the first quarter of 2021. Both wind farms are expected to be commissioned in 2022 and will become the largest offshore wind farms in their respective regions.

In December, we signed an agreement to farm down 50 % of the 605 MW offshore wind farm Greater Changhua 1 to CDPQ, a Canadian pension fund, and Cathay PE, a Taiwanese private equity fund. The farm-down is the largest-ever renewable energy M&A transaction in Taiwan and underpins the attractiveness of our offshore wind assets in Asia Pacific.

We selected Siemens Gamesa as preferred wind turbine supplier for our 900 MW Borkum Riffgrund 3 and 242 MW Gode Wind 3 projects. Subject to final investment decision, both projects will deploy 11 MW wind turbines with 200-metre rotors. In addition, we signed a 10-year corporate power purchase agreement (CPPA) with Amazon to buy 250 MW of the output from Borkum Riffgrund 3. This is our first offshore wind PPA with

a global tech company and the largest offshore wind CPPA in Europe.

In July, we signed a CPPA with Taiwan- based TSMC, the world's largest semiconductor foundry. TSMC will offtake the full generation from our 920 MW offshore wind farm Greater Changhua 2b & 4, making it the largest-ever renewable energy CPPA. The 20-yearfixed-price contract period will start once the wind farm reaches commercial operation, expectedly in 2025 or 2026, subject

to grid availability and Ørsted's final investment decision.

In December, we entered into an agreement with New Jersey's Public Service Enterprise Group (PSEG) to sell a 25 % ownership interest in our 1.1 GW offshore wind development project Ocean Wind 1. The project is the first large-scale offshore wind farm in New Jersey.

In March, we entered into an agreement with TEPCO to establish a joint venture

Events 2020

April - June	July	August	September	October

Onshore	Onshore	Markets & Bioenergy
Sage Draw, Texas,	Muscle Shoals, Alabama,	Divestment of Danish
commissioned	acquired and FID'ed	power distribution,
(338 MW)	(227 MWac), expected	residential customer,
Onshore	COD in 2021	and city light businesses
Offshore	to SEAS-NVE completed
Plum Creek, Nebraska,
Renewable hydrogen
commissioned	CPPA with Taiwan-based
(230 MW)	TSMC to offtake full	Funding secured together
	generation from Greater	with partners for renewable
	Changhua 2b & 4	hydrogen project Westküste
	(920 MW)	100 in Germany

Onshore	Onshore
Willow Creek, South	Haystack, Nebraska,
Dakota, commissioned	acquired and FID'ed
(103 MW)	(298 MW), expected
Onshore	COD in 2021
Markets & Bioenergy
Western Trail, Texas,
FID'ed (367 MW),	Renescience plant,
expected COD in 2021	the UK, commissioned
	Renewable hydrogen
	Collaboration with Yara
	on developing project to
	replace fossil hydrogen
	with renewable hydrogen
	in ammonia production

Summary 2020

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company for offshore wind in Japan, with the intention of working towards a joint bid in the first Japanese auction, now expectedly this year.

In December, we were granted consent to move into the final development phase of the offshore wind farm Hornsea 3 by the UK Secretary of State for the Department for Business, Energy & Industrial Strategy. The offshore wind farm has a potential capacity of more than 2.4 GW and is adjacent to our offshore wind farms Hornsea 1 and Hornsea 2, off the East Coast of the UK. With the consent granted, the wind farm will be able to enter the next UK auction round for a contract for difference (CfD), expectedly in 2021.

Our pipeline of US offshore development projects is moving forward, but we are still waiting for the US Bureau of Ocean Energy Management (BOEM) to decide on the preferred wind farm layout for the build-out of offshore wind for our north-eastern projects

in our New England lease areas.

Furthermore, while we are still waiting for clarity concerning the federal permitting process for our projects, there are positive signs that the bottleneck will be resolved imminently. We had expected to receive the 'notices of intent' (NOIs) from BOEM for our advanced-stage development projects following the

release and public comment process regarding the Vineyard Wind Supplemental Environmental Impact Study in 2020. While that did not happen, we are starting to see some promising signs of movement. The timely issuance of the draft 'environmental impact statement' (EIS) on 4 January 2021 for our South Fork project bodes well. So does the announcement of the 'initiation of action notice' (IAN) (a prelude to NOIs issuance) for the Ocean Wind 1 project. All signs from the incoming Joe Biden Administration indicate they will support a timely, predictable permitting regime.

Revolution Wind, Ocean Wind 1, Skipjack Wind, and Sunrise Wind will likely be delayed beyond the previously expected 2023 and 2024 construction years. We have flexibility in the timeline for all four projects, and we have been able to make good progress on other project milestones in the meantime. However, until there is a clear timeline from BOEM, we cannot solidify our construction schedules.

With regards to South Fork Wind, we remain comfortable with our previously communicated timeline with COD in late 2023.

Despite the permitting delays, we remain confident that we can deliver our US project portfolio with satisfactory value creation, which is supported by the commitment to rapid clean energy

deployment from the Joe Biden Administration, the US Treasury's recent announcement of a 10-year continuity safe harbour for offshore wind in addition to a new 30 % ITC level for projects starting construction in

2017-2025, which will help expand tax credit eligibility. We continue to see solid long-term growth and value creation potential in US offshore wind.

In 2020, we made progress towards a greener future based on renewable hydrogen. We continuously pursue opportunities within industrial-scale production of renewable hydrogen, and during 2020 and early 2021, we have secured funding for three projects, one in the UK, one in Germany, and a joint consortium in the EU. We also entered into an additional three partnerships, one in Germany, one in the Netherlands, and one in Denmark.

Our most recent hydrogen partnership was agreed with British energy company bp in November and will comprise a

50 MW electrolyser plant at bp's Lingen Refinery in Germany. The plant is expected to be operational in 2024 and will replace approx. 20 % of the fuel-based hydrogen from the refinery. The project is the first stage towards a long-term ambition to build a capacity of more than 500 MW of renewable hydrogen at Lingen. This would replace the entire production of fuel-based hydrogen at the refinery.

November

Onshore

Old 300, Texas, FiD'ed (430 MWac), expected COD in 2022

Renewable hydrogen

Agreement with bp to develop a potential large-scale renewable hydrogen project in Germany

(November)

Markets & Bioenergy Agreement to balance 40 % of the power generated from Dogger Bank

December	(December)	(December)
Offshore	Offshore	Markets & Bioenergy
Borssele 1 & 2,	CPPA with Amazon	Divestment of our
the Netherlands,	to buy output from	LNG business to Glencore
commissioned	Borkum Riffgrund 3	Ørsted
(752 MW)	(250 MW) signed
Appeal against decision
Offshore	Offshore
from the Danish Tax
Farm-down of 50 %	Agreement with PSEG	Agency on Danish
of Greater Changhua 1	signed to sell 25 %	taxation of two offshore
to CDPQ and Cathay	of the offshore wind	wind farms in the UK
PE signed	development project
	Ocean Wind 1

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Ørsted

In December, we were granted consent to move into the final development phase of the offshore wind farm Hornsea 3.

Furthermore, we joined forces with Yara, the world's leading fertiliser company, to develop a pioneering project aiming at replacing fossil hydrogen with renewable hydrogen in the production of ammonia with the potential to abate more than 100,000 tonnes of CO2 per year.

Onshore

In 2020, we saw strong traction in our Onshore business, underpinned by the commissioning of three new wind farms, the acquisitions of two late-stage projects, and the decision to construct another onshore wind farm and a solar farm.

During the year, we successfully commissioned the three US onshore wind farms Sage Draw, Plum Creek, and Willow Creek, located in Texas, Nebraska, and South Dakota, respectively.

In July, we acquired the 227 MWac solar project Muscle Shoals in Alabama, US. The project is expected to be commissioned in Q3 this year and will become the largest solar energy asset in the south-eastern US. The project is eligible for 30 % ITC and has a fully contracted 20-year utility PPA. The project further diversifies the geographic footprint

of our asset base by establishing a foothold in the rapidly growing southeastern solar market.

In September, we took final investment decision on constructing the onshore wind farm Western Trail in Texas. This greenfield project has a capacity of

367 MW and is eligible for 100 % PTC when commissioned, expectedly during Q3 this year.

In October, we acquired the late-stage 298 MW onshore development project

Haystack. The wind project is located very close to our onshore wind farm Plum Creek in Nebraska, also residing in the South-West Power Pool (SPP) area. With the acquisition, we further expanded our footprint into this market which will play an important part in our growth in North America and diversify our portfolio.

In November, we also took final investment decision on constructing the Old 300 Solar Center which is a 430 MWac solar project also located in Texas with 30 % ITC eligibility. We expect Old 300 to be commissioned during Q2 2022.

In addition, we are currently constructing the combined solar (420 MWac) and storage (40 MWac) project Permian Energy Center in Texas, US. The project is progressing according to plan, and we expect Permian to be commissioned by mid-2021 with 30 % ITC eligibility.

With the completion of Sage Draw, Plum Creek, and Willow Creek and the addition of Muscle Shoals, Western Trail, Haystack, and Old 300 Solar Center, we now have 3.4 GW of combined onshore wind and solar PV in operation or under construction, and we remain very satisfied with the expansion of our onshore business.

Markets & Bioenergy

During 2020, we continued streamlining our Markets & Bioenergy business.

In August, we completed the divestment of our Danish power distribution, residential customer, and city light businesses to SEAS-NVE (now Andel). The divestment marks an important strategic milestone for Ørsted, and the proceeds will be deployed into our global renewable energy build-out plan.

In December, we completed the divestment of our LNG activities to Glencore, and in September, we signed an agreement to divest the vast majority of our UK B2B customer portfolio to Total Gas

• Power. We will keep some of our stra- tegic long-term partners and customers to whom we deliver risk management products. We expect the transaction to close in Q1 2021.

In November, we signed a 15-year route- to-market agreement with SSE Renewables and Equinor to balance power generation from their offshore wind farm Dogger Bank in the UK. The contract is the largest balancing agreement won in a competitive tender process in the UK market. Under the agreement, Ørsted will be responsible for trading and balancing 40 % of the 960 MW generated from the first two phases of the wind farm, when completed in 2026. The agreement will add further scale to our portfolio and underlines our position as a leading green energy trading company in the UK.

In mid-October, the Renescience waste-recycling plant in Northwich, the UK, was successfully commissioned after passing the final performance test. With the commissioning of Renesci- ence Northwich, we reached another important milestone. We will continue to monitor the plant's performance, while exploring the broader commercial potential of this recycling technology.

In March, the Copenhagen Maritime & Commercial Court decided to close the action for damages, ruling in Ørsted's favour. The action related to a claimed abuse of a dominant position on the market for wholesale of physical electricity in western Denmark from 2003 to 2006. However, the action will continue

Summary 2020

in 2021 as the claimants have decided to appeal the case to the Danish Western High Court.

Other significant events

In 2018, seven bearers of the Ørsted name filed a subpoena to prevent our use of the name. In May 2019, the Co- penhagen Maritime & Commercial Court ruled in favour of Ørsted. Following the ruling, the plaintiffs decided to appeal the case. In November 2020, the Danish Supreme Court also ruled in favour of Ørsted, and the case is now closed.

We are very pleased that the ruling of the Supreme Court upholds our right to use the Ørsted name. It was chosen as a tribute to Hans Christian Ørsted, one of the greatest Danish scientists of all time. He discovered electromagnetism 200 years ago and thus laid the foundation for how we produce electricity.

In December, we received an administrative decision from the Danish Tax Agency requiring Danish taxation of our British offshore wind farms Walney Extension and Hornsea 1. The claim amounted to DKK 5.1 billion, plus inter- est, in addition to the taxes we have already paid in Denmark. According to the decision, Ørsted is to be taxed in Denmark on the full future value of the two offshore wind farms, despite the fact that they are developed, owned, and operated by British subsidiaries of the Ørsted group and are taxed in the UK. We disagree with the decision which in our view is based on a misconception of the risks and value creation in our business model for developing, con- structing, and operating offshore wind farms and have appealed it to the Danish Tax Appeals Agency. Furthermore, we have taken steps to ensure that the Danish and UK tax authorities initiate negotiations to avoid Ørsted being subjected to double taxation, if necessary, by referring the case to an independent arbitration panel.

Employees

Our talented people remain the most important assets in Ørsted, and on behalf of the Executive Committee, I would like to take this opportunity to acknowledge and thank all our employees for

the great job they have been doing throughout the year, including how they have all adapted to the new challenges in the wake of the COVID-19 pandemic.

It is very important for us to attract, develop, and retain the best talent, and we strongly believe in the value of a diverse workforce. We aspire to create an environment where everyone, whatever their personal background, can thrive, perform, and grow. Therefore, we were also pleased to see that the 2020 employee satisfaction survey, People Matter, showed a record-high satisfaction and motivation score of 78 out of 100, placing Ørsted in the top 10 % of our external benchmark.

New corporate structure

On 28 January, we announced a change to our organisational structure which will take effect from 4 February.

The change entails moving from a business unit structure to a more functional structure where the commercially focused functions from the current business units Offshore and Markets

• Bioenergy will be brought together
  under the leadership of Martin Neubert who will become CCO, Deputy CEO, and member of the Executive Board.

The operationally focused functions will be brought together under a new COO as Anders Lindberg has decided to take on a new position outside Ørsted. The COO will report to Mads Nipper.

As a consequence of the new corporate structure, Morten H. Buchgreitz has decided to leave the company. Both Anders and Morten have done a tremendous job during their tenure in Ørsted, and we owe them great gratitude.

Onshore will remain a separate business unit. The Onshore business differs from the rest of Ørsted when it comes to technological maturity and business model, and we believe that Onshore will be best positioned to realise its full potential as a separate business unit.

We are making these changes in our organisation to establish an even stronger customer and market focus,

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to further strengthen the focus on EPC and operations, and to support the scaling of our organisation as we continue our strong growth trajectory in the years to come.

Externally, we will continue to report Offshore and Onshore financials as we do today. This means that Offshore will continue to include our hydrogen activities. Bioenergy, our legacy gas activities, and Renescience will be reported in a separate segment called Bioenergy & Other.

Concluding remarks from the new CEO

We are very satisfied with our strategic progress and results in 2020, and I am grateful for the support and professionalism of our customers and partners. I am keenly aware that only together, we can do great things and live up to our high ambitions. We maintain a leading position in a global high-growth market and have built a strong and financially sustainable pipeline, laying the path for future growth.

I am proud of and humbled by the Board of Directors' trust in me to succeed Henrik Poulsen as CEO of Ørsted. Creating a world that runs entirely on green energy is a vision close to my heart. I also want to thank the Executive Committee and all Ørsted employees for a warm welcome.

I am deeply impressed and inspired by the passion and motivation I have encountered throughout the entire company, and it makes me excited for what we can achieve. I am confident that Ørsted can stay a globally leading renewable energy producer, both offshore and onshore. I am convinced that Ørsted, as the world's most sustainable energy company, has the potential to be a global catalyst for systemic change, accelerating the green energy transition and how companies operate.

Mads Nipper

Group President and CEO

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Ørsted

Performance highlights

Profits and returns

Operating profit (EBITDA)

DKKbn

  New partnerships

18.1	30.0	17.5	18.1
2018	2019	2020

Profit for the year (continuing operations)

DKKbn

• New partnerships
• RBC divestment

16.7	19.5		16.7
	6.1
2018	2019	2020

Return on capital employed (ROCE)

%

  New partnerships

10	32
	11	10
2018	2019	2020

In 2020, we maintained stable operations despite the pandemic and achieved an underlying EBITDA exceeding our expectations at the beginning of the year. This was mainly driven by an increase in generation from our offshore and onshore wind farms.

Profit for the year was DKK 16.7 billion. The significant increase compared to 2019 was due to the divestment of our Danish power distribution, residential customer, and city light businesses (RBC), resulting in a gain of DKK 10.9 billion.

ROCE was 10 % for the year, which was in line with our target of an average ROCE of approx. 10 % for the Group in the period 2019-2025.

In 2018, ROCE was significantly impacted by the 50 % farm-down of Hornsea 1.

Cash flow and balance sheet

Gross investments	Interest-bearing net debt
DKKbn	DKKbn

			27.0			17.2	12.3
	24.5	23.3
27.0				12.3	-2.2
2018	2019	2020	2018	2019	2020

The gross investments reached DKK 27.0 billion,	Our net debt decreased to DKK 12.3 billion,
a record-high level, driven by an increase in our	mainly due to the divestment of our Danish
construction activity, both offshore and onshore.	power distribution, residential customer,
Gross investments are slightly below our guid-	and city light businesses, resulting in proceeds
ance, mainly due to timing across years.	of DKK 20.5 billion.

Credit metric (FFO/adjusted net debt¹)

%

69
48	31	48
2018	2019	2020

The credit metric 'funds from operations' (FFO) relative to adjusted net debt amounted to 48 % in 2020, well above our target of around 30 %.

Environment

Green share of generation

%

	Social
Installed renewable capacity	Safety
GW	Total recordable injury rate (TRIR)

90	75	86	90
2018	2019	2020

The green share of our heat and power generation continued to increase to a new high of

90 %, following continued ramp-up of our offshore and onshore wind capacity and lower heat and power generation based on fossil fuels.

11.3	8.3	9.9	11.3
2018	2019	2020

Installed green capacity increased by 14 % to

11.3 GW in 2020 due to the commissioning of the offshore wind farm Borssele 1 & 2 and the three onshore wind farms Sage Draw, Plum Creek, and Willow Creek.

3.6	4.7	4.9	3.6
2018	2019	2020

We continue to have a strong focus on the safety and well-being of our employees. We are progressing satisfactorily towards our target of 2.9 by 2025.

1 Interest-bearing net debt, including 50 % of hybrid capital and securities not available for use (with the exception of repo transactions), present value of lease obligations (up until 2018), and decommissioning obligations less deferred tax.

Summary 2020

11

Our strategic aspiration and growth platform

Our global leadership position in offshore wind and strong North American position in onshore wind and solar photovoltaics (PV) provide a solid foundation for tapping into the significant growth opportunities in renewable energy and for realising our aspiration of becoming a global green energy major.

Our growth	Europe			North America			Asia Pacific
platform
Offshore
			Maintain leadership
wind
	Explore growth
Onshore wind			Build strong			Explore growth
and solar PV	opportunities			position			opportunities
	Execute projects and pursue
Renewable
hydrogen	scale-up opportunities

Ørsted develops, constructs, owns, and operates wind farms, solar farms, and energy storage facilities, and we own and operate bioenergy plants.

In addition to our generation activities, Ørsted engages in partnerships and develops projects related to the production of renewable hydrogen. Finally, we bring our power and heat to market and engage in trading activities to secure offtake and provide energy solutions to our customers.

We are the largest offshore wind constructor in the world, and we are market leader in each of the four regions where we operate: the UK, Continental Europe, North America, and Asia Pacific, excluding mainland China. Our strategic ambition is to maintain a market-leading position in all regions where we operate.

Our onshore wind and solar PV business is expanding rapidly, and we are now among the five largest US constructors in terms of new capacity additions

in 2020. Our strategic ambition is to further strengthen our position in North America by building a diverse onshore wind and solar PV portfolio. In addition, we continue to monitor onshore growth opportunities in Europe and Asia Pacific.

We see increasing political support in Europe for the development of renewable hydrogen. When produced with renewable power, hydrogen offers a solution for decarbonising industries such as ammonia, steel, refining, and heavy transport where direct electrification is difficult or impossible. However, renewable hydrogen is currently not cost-competitive with fossil-based

alternatives. Significant challenges must be overcome to create and scale a hydrogen market, requiring action from both policymakers and companies.

Our capital allocation

In November 2018, we announced our strategic plan to invest DKK 200 billion from 2019 to 2025, with more than 95 % earmarked for our growth platform in offshore wind, onshore wind, and solar PV, the balance being dedicated to our Markets & Bioenergy activities. We have invested DKK 50 billion over the course of 2019 and 2020, primarily in Offshore and Onshore construction activities which total DKK 35 billion and DKK 13 billion, respectively.

12

Ørsted

On track to becoming carbon-neutral in 2025

A world that runs entirely on green energy starts with ourselves. Last year, we set two ambitious carbon reduction targets for our company: to become carbon-neutral in our energy generation and operations by 2025 and in our entire carbon footprint by 2040.

In a decade, we have transformed

our business from being one of Europe's most carbon-intensive energy companies to a global green energy leader. Now, we are on track to becoming carbon-neutral in our energy generation and operations (scopes 1 and 2) by 2025, making us the first major energy company to transform from fossil fuels and reach net-zero emissions.

To reach carbon neutrality, we will reduce our carbon emissions with at least 98 % by replacing fossil fuels, including coal, with green energy. The remaining 2 % come from a variety of sources where it

We are on track to becoming carbon-neutral already in 2025

Carbon intensity of energy generation and operations (scopes 1 & 2)

g CO2e/kWh
500
400
300
200
100
0
2010	2015	2020	2025	2030	2035	2040	2045	2050

Science Based Targets initiative's 1.5 °C pathway for greenhouse gas reductions in the energy sector

Ørsted's carbon intensity of energy generation and operations

is currently challenging to make reduc- tions. If we cannot find viable solutions for these cases, we plan to invest in carbon-removal projects that are verified and certified to remove carbon from the atmosphere.

During 2020, we have reduced our carbon emissions (g Co2e/kWh) by 87

• since 2006. Our build-out of green energy was the main driver, and we have now reached 90 % share of green energy generation.

Two decades ahead of what science demands

Since we are fully on track to becoming carbon-neutral by 2025, we launched the next major phase of our decarbonisation journey last year: reaching net-zero emissions in our entire carbon footprint (scopes 1-3) by 2040, with an interim target of halving all our emissions by

2032. In 2020, we reduced our scope 3 emissions by 13 % since 2018, primarily due to a large reduction in our gas sales.

This year, the Science Based Targets initiative (SBTi) approved that our transformation and carbon reduction targets are in line with what is required by energy companies to limit global warming to

1.5 °C. It is even more than two decades ahead of the reduction speed deemed necessary by climate science.

Supply chain decarbonisation programme picks up speed

While our green energy technologies generate power with zero emissions, emissions from the supply chains still remain and must be brought down to real- ise net-zero emissions in our entire carbon footprint. The majority of our emissions come from our offshore wind supply chain. In 2020, we therefore launched

our new supply chain decarbonisation programme to engage key strategic suppliers in this supply chain to find ways to eliminate their carbon emissions.

We encouraged them to disclose their emissions and set science-based targets, which 26 of our 28 top strategic suppliers are now doing. The remaining two have committed to do so in 2021. We also set firm expectations for our strategic suppliers to manufacture their products using 100 % green electricity by 2025 at the latest. And we explored how to optimise vessel fleets and develop roadmaps to power vessels with renewable energy.

These steps will be foundational in developing our programme even further in the coming years when we will look to establish roadmaps and metrics to track our progress towards carbon neutrality by 2040.

Summary 2020

13

Sustainability ratings and memberships

UN Global Compact LEAD participant

Member of the action platform 'Business Ambition for Climate and Health'. Through this platform, we aim to serve as a catalyst for enhancing action to meet the ambitions of the Paris Agreement and the UN SDGs.

Member of the action platform 'Sustainable Ocean Business'. Through this platform, we aim to contribute to ensuring that an accelerated use of ocean-based solutions takes place sustainably to meet the ambitions of the Paris Agreement and the UN SDGs.

Memberships and alliances

Ratings	Elaboration and benchmark	Score
	Ørsted ranked the 2nd most sustainable company in	2nd place
	the world in Corporate Knights' 2021 Global 100 index.
	Ørsted awarded the highest possible CDP rating for two	A
	consecutive years and recognised as a global leader on
	climate action.
	Ørsted awarded the highest possible rating by MSCI for	AAA
	four consecutive years.
	Ørsted placed as no. 1 among all utilities and	B+
	awarded Prime status by ISS ESG.
	Ørsted awarded a Platinum Medal for being among the	80 of 100
	top 1 % of companies assessed by EcoVadis.
	Ørsted ranked the most influential electric utility	1st place
	company in the world by World Benchmarking Alliance
	for contributing to a low-carbon economy.

14

Ørsted

Our 2020 portfolio of sustainability programmes

At Ørsted, we are deeply committed to advancing the 17 UN Sustainable Development Goals (SDGs) which define the key sustainability challenges that the world faces towards 2030. The goals are interconnected and almost all of them are influenced by the climate challenge. We have developed 20 sustainability programmes to systematically address the most important sustainability challenges affecting our business and stakeholders. As a renewable energy company, we aspire to have a transformative impact on SDGs 7 and 13, while contributing to several others as well.

To catalyse the green energy transformation

Sustainability challenge	Programme	Our impact on the SDGs
Climate action	1.  Decarbonisation of energy generation	As a world-leading renewable energy company,
Energy efficiency	and operations	our main contributions are to SDGs 7 and 13 where
		we aspire to have a transformative impact.
Climate action	2.  Decarbonisation of our supply chain and
	wholesale buying and selling of natural gas
Climate action	3.  Deployment of offshore wind
	4.  Deployment of onshore renewables
	5.  Greener combined heat and power plants
Reliable energy systems	6.  Green energy utilisation and integration
Sustainable finance	7.  Financing green

To address the sustainability impacts of the green energy transformation

Biomass sustainability	8. Sourcing certified sustainable biomass
Biodiversity impacts and changes	9. Marine biodiversity
to ecosystems
Use of the sea and land for green
energy
Local community impacts	10. Local communities
Reuse and recycling of materials	11. Resource management

While contributing to a greener world, we advance the positive ripple effects of the green energy transition and manage any negative effects on local communities and the environment.

To ensure responsible business practices

Safety, health, and well-being	12. Workplace safety
	13. Employee health and well-being
Employee attraction and development	14. Employee development
	15. Employee satisfaction
Diversity and equal opportunity	16. Inclusion of diversity
Business ethics and transparency	17. Good business conduct
Business partner and human rights	18. Human rights & responsible business
due diligence	partners programme
Information security and cyberattacks	19. Information and cybersecurity
Responsible tax	20. Responsible tax practices

We conduct our business with responsibility, accountability, and respect for our employees, business partners, and suppliers.

Summary 2020

15

Key industry challenges to a sustainable green energy build-out

Accelerating the global deployment of renewable energy is not without its challenges. This year, through our systematic analysis of sustainability challenges affecting our business and our stakeholders, we have identified a number of fundamental challenges emerging at the intersection of renewable energy, communities, and nature. We believe these challenges will pick up speed over the coming decade.

To ensure a sustainable transition to green energy, it is decisive to manage the impacts that the green energy build-out potentially have on the environment

or society. In our annual sustainability themes analysis, we have identified three key challenges that are especially important to our stakeholders and business:

• Decarbonising supply chains. As the re- newable energy industry seeks to scale up the green energy build-out,the absolute carbon emissions from renew- able energy supply chains will increase. Decarbonising these supply chains is essential for realising a net-zeroworld.
• Improving biodiversity protection. Con- structing renewable energy at sea and on land inevitably impacts local habi- tats and ecosystems. As we accelerate the build-outof green energy, we will work with a greater number of as well as more diverse ecosystems, which
  is why we need a stronger and more programmatic approach to manage our biodiversity impacts.
• Creating shared value with local com- munities. While renewable energy pro- jects offer local communities significant economic opportunities, they also bring change that can cause concern among our local stakeholders. To expand green energy in a way that enhances shared local benefits, we need to work with an increasingly large set of local stake- holders across more geographies as we globalise as a company.

In addition, the energy industry must address several other sustainability challenges in the years ahead to ensure a sustainable transition to renewable energy:

• Offsetting residual emissions. Our plan to achieve full carbon neutrality by 2025 will reduce our carbon emissions by 98 %, but the remaining 2 % may have to be offset. The market for credi- ble offsetting solutions that guarantee carbon removal on the scale we need is already under development. We now need to establish a mature strategy to find carbon-removalsolutions that are credible, trustworthy, and clearly contribute to carbon removal.
• Sourcing sustainable biomass. Sustain- able biomass remains the best option for phasing out coal from existing pow- er plants and delivering significant car- bon reductions. To realise the positive climate impact of biomass for energy generation and protect biodiversity, we must continue to ensure that the bio- mass we use is sustainably produced and that the quality of documentation lives up to our expectations, in line with Danish and EU legislation.
• Managing human rights issues in new supply chains. As the green energy build-outand supply chains accelerate to parts of the world where human rights risks are more prominent, we need to strengthen our due diligence and stakeholder engagement to con- tinue to ensure that human rights are respected wherever we operate.

• Enabling inclusion of diversity. Inclusion of diversity is important in its own right. As we globalise our company, we want to build a workforce that reflects the societies in which we operate. We are keen to refine how we approach this, creating a more diverse workforce and inclusive company culture that reflects a larger variety of perspectives and enables globalisation.
• Increasing recyclability from renew- able energy technologies. Wind tur- bines currently have a recyclability rate of 85-90%. Yet, wind turbine blades continue to be difficult to recycle. While some technologies exist, scalable solutions are not yet available at a competitive price. In the coming decade, the energy sector plays an im- portant role to facilitate the develop- ment of the right solutions to recover or recycle turbine blade materials.
• Sourcing minerals and metals sustain- ably. A green energy transformation requires significant amounts of mineral and metals, including copper, rare earth, iron, cobalt, manganese, and nickel. A significant share of the global extrac- tion and production of these materials comes from countries with a higher risk of negative social, human rights, and environmental impacts. We need to work carefully with suppliers to ensure traceability, due diligence, and miti- gation of risks beyond our immediate control throughout our supply chains.

See our Sustainability report for more about how we work systematically to address these challenges.

16

Ørsted

Ourglobal

footprint

United Kingdom

In operation: 4,939 MW

Under construction: 1,386 MW

Under development: 4,000-5,000 MW

In operation:

Renescience Northwich

In operation: 20 MW

Sales of energy

Activities

Offshore wind Onshore wind Solar

Biomass-fired power plant Fossil-fuelled power plant Waste-recycling plant Storage

Sales of energy

United States

of America

In operation: 30 MW

Awarded: 2,934 MW

Under development: up to 4,500 MW

In operation: 1,658 MW

Under construction: 665 MW

Under construction: 1,077 MW

Under construction: 40 MW

Status

In operation

Under construction (FID)

Awarded

Under development

MW: Total gross capacity (even if Ørsted's share is < 100 %).TheMW for the wind farms in operation illustrates the ­operational capacity. The map shows selected Ørsted assets.

The Netherlands

In operation: 752 MW

Germany

In operation: 1,384 MW

Awarded: 1,142 MW

Sales of energy

Summary 2020

17

Sweden	South Korea
Sales of energy	Under development:
	up to 1,600 MW

Denmark

In operation: 945 MW

In operation: our CHP plants,

2,850 MW power and 3,487 MW heat

Sales of energy

Taiwan

In operation: (Formosa 1) 128 MW Under construction:

(Greater Changhua 1 & 2a) 900 MW Awarded: (Greater Changhua 2b & 4) 920 MW

18

Ørsted

Shareholder information

The Ørsted share yielded a total return of 82 % in 2020, an increase in the share price of 80 % and dividends of DKK 10.5 per share.

Price development for the	and city light businesses, Andel sold
Ørsted share	shares equivalent to 2.27 % of the shares
The Ørsted share closed 2019 at a	in Ørsted in January 2020, bringing their
price of DKK 689 and closed 2020 at	shareholding to 5.01 %.
DKK 1,244. Prices of comparable European
utility companies decreased by 5 %, and	Share capital
the OMX C25 cap increased by 34 % in	Ørsted's share capital is divided into
2020. The market value of Ørsted was	420 million shares, enjoying the same
DKK 523 billion at the end of the year.	voting and dividend rights. The compa-
Since the IPO in June 2016, the Ørsted	ny's share capital remained unchanged
share has generated an aggregate	in 2020. At the end of 2020, the compa-
return from share price appreciation	ny held a total of 313 thousand
and dividends of 444 %.	treasury shares which will be used to
	cover incentive schemes.
The year's highest traded price of
DKK 1,273 was on 29 December. The	Composition of shareholders
year's lowest traded price of DKK 574	At the end of the year, the number of
was on 19 March.	shareholders had increased by 67 % to
	71,807, and the majority (63 %) lies with
The average daily turnover on Nasdaq	Danish owners. The figure on the next
Copenhagen was 516,919 shares. The	page shows the composition of our
trading volume increased by 16 %	shareholders by country, specifying
compared to 2019.	the three shareholders each holding
	more than 5 % of the share capital.
In connection with SEAS-NVE's (now	Approximately 2 % of the share capital
Andel) acquisition of our Danish power	is owned by retail investors.
distribution, residential customer,

Share price development in 2020 Ørsted share price compared to peers

DKK

1300

1200

1100

1000

900

800

700

600

500

400

Jan. Feb. Mar. Apr. May June July Aug. Sep. Oct. Nov. Dec.

Annual general meeting and dividends

The annual general meeting will be held on 1 March 2021. Dividends for the year are expected to amount to DKK 11.5 per share, corresponding to DKK 4.8 billion and a yield of 0.9 % compared to the share price of DKK 1,244 at the end of 2020.

In 2020, dividends of DKK 10.5 per share were paid for the 2019 financial year, corresponding to a dividend yield of 1.5 %.

Investor relations

In order to achieve a fair pricing of our shares and corporate bonds, we seek to ensure a high level of openness and stability in our financial communication. In addition, our management and our Investor Relations function engage in regular dialogues with investors and analysts. The dialogues take the form of quarterly conference calls, roadshows, conferences, capital markets days, and regular meetings with individual or groups of investors and analysts. The dialogues are subject to certain restrictions prior to the publication of our financial reporting.

Ørsted OMX C25 MSCI Europe Utilities

Summary 2020

Shareholders at 31 December 2020, share capital and/or voting share %*

  Danish State (majority shareholder)

  Andel A.M.B.A, Denmark

  The Capital Group, United States

  Retail investors, Denmark

  North America

  United Kingdom

  Danish institutional investors   Others

8-13 %

50.1 %

6 %

8 %

11 %

2 %

5-10 % 5 %

• See note 16 in the parent company financial statements.

The Group is covered by 30 equity analysts and 11 bond analysts. Their recommendations and consensus estimates for Ørsted's future financial performance are available at orsted.com/en/investors. On this site, you can also download our financial reports, our remuneration report, our ESG performance report, and our sustainability report as well as investor presentations and a wide range of other data.

Selected company announcements in 2020

4 Mar.	Ørsted increases its full-year
	EBITDA guidance
25 Mar.	Ørsted provides COVID-19
	update
3 Apr.	Ørsted postpones Capital
	Markets Day
15 June	Henrik Poulsen has resigned
	and steps down as CEO of Ørsted
	no later than 31 January 2021.
	The Board of Directors has
	initiated a process to identify
	Ørsted's next CEO
8 July	Ørsted and TSMC sign the world's
	largest renewables corporate
	power purchase agreement
31 Aug.	Ørsted completes the
	divestment of its Danish power
	distribution, residential customer,
	and city light businesses
9 Sep.	Ørsted appoints Mads Nipper the
	next CEO of Ørsted
4 Nov.	Ørsted successfully issues green
	bonds in Taiwan
1 Dec.	Ørsted appeals against decision
	from the Danish Tax Agency on
	Danish taxation of two offshore
	wind farms in the UK
4 Dec.	Ørsted divests 25 % of Ocean
	Wind 1 to PSEG
10 Dec.	Ørsted and Amazon sign Europe's
	largest offshore wind corporate
	power purchase agreement
28 Dec.	Ørsted brings in CDPQ and
	Cathay PE as investors in the
	Greater Changhua 1 Offshore
	Wind Farm

19

Financial calendar 2021

3 Feb.	Annual report 2020
1 Mar.	Annual general meeting
29 Apr.	Interim report for the first quarter
	of 2021
12 Aug.	Interim report for the first half-
	year of 2021
3 Nov.	Interim report for the first nine
	months of 2021
Share information
ISIN		DK 0060094928220
Share classes	1
Nominal value	DKK 10 per share
Average
daily volume	516,919
Exchange		Nasdaq OMX
		Copenhagen
Ticker		ORSTED
Year high		DKK 1,273 (29 Dec.)
Year low		DKK 574 (19 Mar.)
Registered share	99.6 %
Number of shares	420,381,080 shares
Number of
treasury shares	312,844 shares

20

Ørsted

Selected

performance highlights

Income statement (business performance), DKKm	2020	2019	2018	2017	2016
Revenue	52,601	67,842	76,946	59,504	61,201
EBITDA	18,124	17,484	30,029	22,519	19,109
Depreciation, amortisation, and impairment losses	(7,588)	(7,432)	(5,375)	(6,284)	(5,232)
Operating profit (loss) (EBIT)	10,536	10,052	24,654	16,235	13,877
Profit (loss) for the year from continuing operations	16,727	6,100	19,486	13,279	12,161
Balance sheet
Total assets	196,719	192,860	174,575	146,521	136,489
Total equity	97,329	89,562	85,115	71,837	57,500
Interest-bearing net debt	12,343	17,230	(2,219)	(1,517)	3,461
Capital employed	109,672	106,792	82,896	70,320	60,961
Cash flow
Cash flow from operating activities	16,466	13,079	10,343	1,023	11,272
Gross investments	(26,967)	(23,305)	(24,481)	(17,744)	(14,960)
Divestments	19,039	3,329	19,950	16,982	9,055
Free cash flow from continuing operations	8,538	(6,897)	5,812	261	5,367
Financial ratios
Return on capital employed (ROCE), %	9.7	10.6	32.1	25.2	24.4
Dividend yield, %	0.9	1.5	2.2	2.7	2.2
FFO/adjusted net debt, %	48.3	31.0	69.0	50.3	64.2
Business drivers
Offshore
Installed capacity, offshore wind, GW	7.6	6.8	5.6	3.9	3.6
Generation capacity, offshore wind, GW	4.4	3.6	3.0	2.5	2.0
Wind speed, m/s	9.7	9.2	9.1	9.3	8.9
Power generation, TWh	15.2	12.0	10.0	8.5	6.0
Onshore
Installed capacity, onshore wind, GW	1.7	1.0	0.8	-	-
Wind speed, m/s	7.6	7.3	7.3	-	-
Power generation, TWh	5.7	3.5	0.6	-	-
Markets & Bioenergy
Degree days, number	2,432	2,399	2,526	2,705	2,715
Heat generation, TWh	6.7	8.3	8.8	9.0	9.2
Power generation, TWh	4.4	4.6	6.7	8.2	8.4
Power sales, TWh	11.6	14.7	15.3	31.7	32.9
Gas sales, TWh	90.3	125.0	131.1	129.0	143.4
People and environment
Employees (FTE), end of period, number	6,179	6,526	6,080	5,638	5,775
Total recordable injury rate (TRIR)	3.6	4.9	4.7	6.4	6.8
Fatalities, number	0	1	0	0	0
Green share of heat and power generation, %	90	86	75	64	50
Carbon emissions, g CO2e/kWh (scopes 1 & 2)	58	65	131	151	224
Carbon emissions, Mtonnes (scope 3)	25.3	34.6	36.2	n.a.	n.a.

Summary 2020

21

Ørsted A/S Kraftværksvej 53

7000 Fredericia, Denmark Tel.: [phone] CVR no. 36213728

orsted.com/en

Group Communication

Martin Barlebo

Tel.: [phone]

Investor Relations

Allan Bødskov Andersen

Tel.: [phone]

Design og layout

e-Types

Publication

3 February 2021