Renewables

Renewables is a strategic activity for the KIRKBI Group. Through investments in Renewables, KIRKBI supports the LEGO Group’s commitment to balance global consumption of energy with renewable energy, while at the same time delivering attractive long-term returns.

ABOUT RENEWABLES

KIRKBI’s Renewables strategy targets direct minority investments in solar, onshore wind and offshore wind assets. The geographic focus is on Northern Europe and North America.

The KIRKBI Strategic Activities within Renewables currently consist of two offshore wind farms - Borkum Riffgrund 1 and Burbo Bank Extension.

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

In 2016, KIRKBI and PKA invested jointly into Burbo Bank Extension with 25% ownership each and Ørsted retained 50% ownership and has handled the construction and operations of the wind farm.

KIRKBI is represented in the Board of Directors supporting the strategic development of the renewable assets.

ABOUT BURBO BANK EXTENSION

Burbo Bank Extension is located approximately 7 kilometres 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 capable of providing green energy to 230,000 UK households.

LOCATION

The wind farm was officially opened in May 2017.

ABOUT BORKUM RIFFGRUND 1

Borkum Riffgrund 1 is located in Germany, approximately 54 kilometres from shore and 37 kilometres 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.

HIGHLIGHTS FOR 2018

During 2018, the two wind farms Burbo Bank Extension and Borkum Riffgrund I delivered a stable financial return, despite a lower than expected wind resource throughout the year. Altogether, the KIRKBI share of the windfarms produced electricity corresponding to the electricity consumption of more than 114,000 households. Late April, the process of divesting the offshore transmission assets (‘OFTO assets’) of Burbo Bank Extension was completed.

Burbo Bank Extension’s transmission assets have been built and operated by Ørsted until the divestment.

It has been the plan from the very beginning of our partnership to divest the transmission assets of the wind farm. The reason for this is that an investor in the UK renewables market is not legally allowed to own both the wind farm – the generation part - and the transmission assets.

Liverpool

Burbo Bank Extension Borkum Riffgrund 1

London Hamburg

FINANCIAL HIGHLIGHTS

(m DKK)

Profit for the year

Cash flow from operation

2018 2017

389 398

616 609