Hafslund – Initiates separation and potential IPO of Power Sales business

Hafslund has decided to commence work on separation and a potential initial public offering of the Group's Power Sales business, Hafslund Markets. A separation and broader ownership base will further strengthen the business` growth opportunities.

Hafslund Market's power companies have more than one million private and business customers in Norway, Sweden and Finland. The power products are marketed under several brands, including Hafslund Strøm, NorgesEnergi, SverigesEnergi, Göta Energi and Kotimaan Energia.

"Hafslund Markets has established a solid market position as the fifth-largest power supplier in the Nordic region on the back of consistently solid results. An IPO of Hafslund Markets would provide the company with direct access to the stock market, and supports the company's Nordic growth strategy," comments CEO of Hafslund Finn Bjørn Ruyter.

The energy sector will face significant changes in framework conditions in the years ahead. The introduction of automatic metering systems (AMS) for all grid customers and a national electricity hub represents a further step away from monopoly towards a fully deregulated business.

The Power Sales business has a different value chain and geographical catchment area to Hafslund's other businesses. Economies of scale within power sales will rise further.

"An independent Hafslund Markets will enable us to streamline our business model, boost competitiveness and growth opportunities, and put the company in an even better position to deal with market changes", explains Deputy CEO and Senior Vice President, Markets Kari Ekelund Thørud.

Assuming suitable market conditions, Hafslund intends to complete an IPO during 2016.

"An IPO would offer potential shareholders a pure-play power sales share, and further highlighting the value of the Hafslund Group's capital-intensive business areas," concludes CEO Ruyter.

Hafslund ASA
Oslo, 9 December 2015

For further information, please contact:

Senior Vice President Corporate communications and public affairs, Johan Chr. Hovland: Tel.: +47 917 63 491, E-mail: johan.hovland@hafslund.no

Chief Financial Officer (CFO), Heidi Ulmo, Tel.: +47 909 19 325, E-mail: heidi.ulmo@hafslund.no