Renewables

KIRKBI wants to make a positive impact on the global environment focusing on renewable energy, whereby Renewables is a strategic investment area for the KIRKBI Group

ABOUT RENEWABLES

Renewables is a strategic activity for KIRKBI. The primary reason behind the investments is to support the LEGO Group’s commitment towards balancing their global consumption of energy with renewable energy, while at the same time delivering attractive long-term returns on investment.

In addition, this investment area is also a clear evidence of the fact that the Kirk Kristiansen family wants to make a positive impact on the planet for future generations.

KIRKBI targets direct minority investments in solar, onshore wind and offshore wind assets. KIRKBI actively influences from a board perspective, but is not involved in the day-to-day asset operations. The intention is to form long-term partnerships and to be long-term owners of the underlying assets.

The geographic focus is on Northern Europe, North America and Japan. Renewables currently consists of investments into two offshore wind farms named Borkum Riffgrund 1 and Burbo Bank Extension.

HIGHLIGHTS FOR 2017

In the beginning of 2016, KIRKBI entered into an agreement to acquire 25 % of the Burbo Bank Extension offshore wind farm located in the UK. During 2016 and 2017, the wind farm has been constructed and the last turbine was commissioned in May 2017.

The commissioning of the wind farm at Burbo Bank Extension was an important step for the KIRKBI Group, as with this new capacity, the goal of balancing the LEGO Group’s global consumption of energy with renewable energy was reached.

ABOUT BURBO BANK EXTENSION

In 2016, KIRKBI and PKA invested jointly into Burbo Bank Extension with 25 % ownership each and Ørsted (DONG Energy) retained 50 % ownership. Ørsted has handled the construction of the wind farm and will also handle future operation of the wind farm.

Burbo Bank Extension is located approximately 7 kilometers off the coast of Liverpool in the UK. The wind farm consists of 32 MHI Vestas 8 MW turbines with a total capacity of 258 MW and is expected to provide green energy to 230,000 UK households. The wind farm was officially opened in May 2017.

ABOUT BORKUM RIFFGRUND 1

In 2012, KIRKBI and William Demant Invest jointly invested in Borkum Riffgrund 1, with KIRKBI owning 31.5 %. Ørsted (DONG Energy) has retained 50 % ownership and has handled the construction and operations of the wind farm.

Borkum Riffgrund 1 is located in Germany, approximately 54 kilometres from shore and 37 kilometers from the island Borkum in the North Sea. The wind farm consists of 78 Siemens 4 MW turbines with a total capacity of 312 MW and is capable of providing green energy to 320,000 German households. The wind farm was officially opened in October 2015.

LOCATION

The Burbo Bank Extension wind farm off the coast of Liverpool, UK, was officially opened in May 2017. The development meant that the LEGO Group reached its 100 % renewable energy milestone three years ahead of target. To celebrate, the LEGO Group built the largest ever LEGO® brick wind turbine, a Guinness World RecordsTM title, and challenged children from the Liverpool area to create their own renewable energy solutions. Photo: The LEGO Group Liverpool

Burbo Bank Extension Borkum Riffgrund 1

London Hamburg

FINANCIAL HIGHLIGHTS

(m DKK)

Profit for the year Carrying amount

2017 2016

398 118