Year-end report, 2015 Rabbalshede Kraft AB (publ)

Significant events during the fourth quarter, October 1, 2015 – December 31, 2015 · Production for the fourth quarter totaled 169,975 MWh (158,110) · Net sales totaled KSEK 78,811 (68,047) · EBITDA amounted to KSEK 50,443 (34,154) · The Company posted an operating loss (EBIT) of KSEK 153,711 (profit: 19,152) · The average sales price for wind power production amounted to SEK 472/MWh (478), of which electricity accounted for SEK 286/MWh (303) and electricity certificates and guarantees of origin for SEK 186/MWh (175) · In December, a new share issue was implemented whereby the company earned SEK 312 M · During the period, the company conducted impairment of wind farms and projects, which had a negative impact of KSEK 179,695 on earnings

2015 fiscal year

· Production from the Group’s wind farms during January-December amounted to 576,412 MWh (314,665)
· Net sales totaled KSEK 264,204 (146,161)
· EBITDA amounted to KSEK 169,655 (81,270)
· The Company posted an operating loss (EBIT) of KSEK 110,669 (profit: 14,325)
· The average sales price for wind power production was SEK 457/MWh (497), of which electricity accounted for SEK 288/MWh (315) and electricity certificates and guarantees of origin for SEK 169/MWh (182)
· Depreciation/amortization amounted to KSEK 280,324 (66,945). Impairment of KSEK 182,650 of wind farms and projects was made
· The Company posted a loss after tax of KSEK 169,545 (loss: 25,083)

During autumn 2015, Rabbalshede Kraft signed a four-year management agreement with Power Wind Partners (PWP) to manage its wind farms. The agreement entails that Rabbalshede Kraft is responsible for the management and operational supervision for PWP’s 47 wind turbines. The Company also signed, following negotiations, a three-year management agreement with LEVA in Lysekil. The agreement entails that Rabbalshede Kraft is responsible for service and corrective maintenance of LEVA’s wind farms.

In October, Rabbalshede Kraft received building permits for two 150m turbines at Vetteberget outside Strömstad.

In December, the Åndberg wind farm at Lillhärdal in Härjedalen received permits from the County Administrative Board in the County of Västernorrland. The permit covers up to 57 wind turbines with a total height of 180 meters. The permit has not yet gained legal effect.

The loan agreements for the Group's wind farms contain conditions so-called covenants  The covenants are linked to key indicators such as that the cash flow should exceed a certain level. If these covenants are measured below the level of the covenant then a covenant breach occurs. Low electricity certificate prices is the main reason for covenant breach in reporting for Rabbalshede Kraft AB, Töftedal Vind AB, Skaveröd Gurseröd Vind AB, Årjäng Sydväst Vind AB, Årjäng Nordväst Vind AB, Kil Vind AB, Brattön Vind AB and Dingle Skogen Vind AB. Group (companies) have paid contractual interest and principal. In accordance with IAS 1 paragraph 69, the long-term portion of the bank loans have been classified as current. There is an ongoing discussion with the banks about how covenant problems in the parks will be resolved and how the money from the emission of rights should be used.

At the end of 2015, Rabbalshede Kraft implemented a preferential rights issue whereby the company received SEK 312 M, which will be used to reduce the Company’s loans. 118 of the 312 M was used to repay a shareholder loan.

During the year, Rabbalshede Kraft recruited Britta Ersman as IR and Financial Manager, as well as Lars Larsson as Operation Manager. Britta Ersman and Lars Larsson took up office at Rabbalshede Kraft in July and June 2015, respectively, and both are members of the Company’s management group.

The Annual General Meeting (AGM) for the 2014 fiscal year was held on April 23, 2015, in Gothenburg, Sweden.