Sum of Proved Reserves plus probable Reserves (Society of Petroleum Engineers and WorldPetroleum Congress (SPE/WPC) reserve classification standards).

Barrels of oil.

The level of operation of a thermal generation plant required in order to meet the minimum power and heat demand in a stated period of time.

Billion normal cubic meters.

The BEB Virtual Point natural gas trading market in Germany.

Also known as biomass fuel. A term for all
combustible organic materials including straw, woodchips and wood pellets. CO2 emissions produced by the combustion of biomass are not covered under the ETS. Biomass can be used in both central power plants and local CHP plants.

A larger power station, typically with a net installed power capacity of over 100 MW.

Combined heat and power generation (also known as “cogeneration”).

A CHP (Combined Heat and Power) plant that generates both heat and power in the same process. The heat generated may be used for industrial purposes and/or district heating.

A CHP (Combined Heat and Power) plant, typically with a net installed power capacity of less than 100 MW.

The possibility of providing customers with energy-saving solutions. Including the possibility of offering residential customers energy-saving Clean-tech solutions and advice, typically in the form of geothermal heating, window insulation, etc. The possibility of offering business customers actual partnerships by providing energy-saving advice, with the energy savings achieved typically being used to buy green electricity (from wind turbines) from DONG Energy. Partnerships with business customers open up other opportunities for collaboration between energy company and customer.

Normal cubic meter.

Carbon dioxide

Carbon dioxide emissions allowances subject to the European Union Emissions Trading Scheme (EU ETS).

Contingent resources are those quantities that are estimated, on a given date, to be potentially recoverable from known (drilled) or discovered accumulations, but which are not currently considered to be commercially recoverable or for which the degree of commitment is not such that the accumulation is expected to be developed and put into production within a reasonable time frame. Contingent resources include accumulations for which there is currently no viable market, or where evaluation of the accumulation is still at an early stage. (Society of Petroleum Engineers and World Petroleum Congress (SPE/WPC) reserve classification standards).

The gas required to be placed into, and remain in, a natural gas storage facility to enable the operations of the facility.

The Danish continental shelf.

The supply of heat to customers who are connected to the centralized district heating system. The district heating system relies primarily upon CHP plants or generation from waste (either from a single generator, or from multiple generators) in order to supply heat.

Area prices for electricity in West Denmark (DK1) and East Denmark (DK2).

The processes of refining, distribution and sale of natural gas and oil products.

Exploratory or appraisal wells found to be incapable of producing hydrocarbons commercially.

Dansk Undergrunds Consortium

The European Energy Exchange.

European Federation of Energy Traders. Develops European standard contract documentation that can be used for mutual trading in energy.

Natural gas produced from a company’s own hydrocarbon sources.

Emissions Trading Scheme. The EU Emissions Trading Scheme, which aims to reduce emissions of carbon dioxide and combat climate change by means of a system that grants CO2 emissions allowances and enables power generators and other emitters to trade these CO2 emissions allowances.

European Union Allowance. The allowances available within the EU borders. Exploration and appraisal wells: Wells drilled to discover and evaluate natural gas or oil in an unproved area to find new reserves in an area in which hydrocarbon discoveries have previously been made or to delineate a known accumulation.

Exploration and appraisal wells

Wells drilled to discover and evaluate oil or natural gas in an unproved area, to find new reserves in an area in which hydrocarbon discoveries have previously been made or to delineate a known accumulation.

First in, first out. DONG Energy buys physical coal up to one year ahead of delivery. To ensure security of supply, the inventory of coal typically corresponds to 4 to 6 months’ consumption. As the value of coal inventories is recognised in the balance sheet using the FIFO principle, coal purchased in a period with high market prices, followed by a period with declining coal prices, will be recognised as a cost of sales item at prices exceeding the current market price level.

Fuel resources such as coal, coal products, natural gas, crude oil and other hydrocarbon products.

The level of operation of a thermal generation plant required in order to meet the maximum power and heat demand in a stated period of time.

Heat generation using naturally occurring geological heat sources

Green dark spread represents the contribution
margin per MWh of electricity generated at a coal-fired power station of a given efficiency. It is calculated as the difference between the market price of electricity and the cost of the coal (including associated freight costs) and CO2 allowances used to generate the electricity. Electricity generated is affected by the green dark spread.
The contribution margin from electricity generation is affected, among other things, by whether electricity is generated at times during the 24-hour cycle when prices are relatively high (peak) or at times when prices are relatively low (off-peak). The contribution margin is also affected by the fact that the cost of coal for accounting purposes differs from the market price resulting from application of the FIFO (first in, first out) principle to inventories. In addition, DONG Energy is allocated a specific volume of CO2 emissions allowances.

Gigawatt, a unit of power. 1 GW is equivalent to 1,000 MW and 1,000,000,000 W.

Gigawatt hour. The amount of energy generated in 1 hour with the effect of 1 GW. 288

Most of the electricity generated in the Nordic countries comes from hydro electric stations, and their output depends on their water reservoir levels. The hydrological balance reflects whether the level is above or below normal.

Power generated by using the force of moving water.

The International Swaps and Derivatives Association. Develops standard contract documentation that can be used for mutual trading in derivative financial instruments.

Joule, a unit of energy. 1 J is equivalent to the generation or use of 1 W in 1 second.

Kilovolt, a unit of voltage in a power grid. 1 kV is equivalent to 1,000 V.

Kilowatt, a unit of power. 1 kW is equivalent to 1,000 W.

Kilowatt hour. The amount of energy generated in 1 hour with the effect of 1 kW.

The Kyoto Protocol was adopted at the Third
Session of the Conference of the Parties to The UN Framework Convention on Climate Change (“UNFCCC”) in 1997 in Kyoto, Japan. It contains legally binding commitments, in addition to those included in the UNFCCC. Country signatories to the Protocol agreed to reduce their anthropogenic emissions of the six main greenhouse gases (carbon dioxide, methane, nitrous monoxide, fluorocarbons, perfluorocarbons and sulfur hexafluoride).

Liquefied Natural Gas. Gas that has been liquefied by cooling to minus 161 degrees Celsius. LNG takes up 600 less space than conventional gas. LNG can be transported in customised tankers, enabling it to be transported from remote destinations. In the receiving terminal, the LNG is vaporised and pressurised before being routed into the transmission system for onwards distribution and sale.

Calculated as the actual volume of power generated in the period in GWhs divided by the maximum potential generation of power given by the net installed power capacity in MW multiplied by the total number of hours in the given period.

Local gas distribution company.

A CHP plant, typically with a net installed power capacity of less than 100 MW.

Lost Time Injury Frequency. DONG Energy defines lost time injuries as occupational injuries resulting in at least one day’s absence from work in addition to the day of the injury.

Million normal cubic meters.

Million barrels of oil equivalent.

Megajoule, a unit of energy. 1 MJ is equivalent to 1,000,000 J.

Million barrels of oil, condensate and NGL.

Million barrels of oil equivalent.

Megawatt, a unit of power. 1 MW is equivalent to 1,000 kW and 1,000,000 W.

Megawatt hour. The amount of energy generated in 1 hour with the effect of 1 MW.

Any hydrocarbons or mixture of hydrocarbons and other gases consisting primarily of methane which at normal operating conditions are in a gaseous state.

National Balancing Points, natural gas hub in the UK.

NCS

The Norwegian continental shelf.

Net installed power capacity

The maximum capacity at which a plant generating power is designed to operate (without heat generation), as measured at the point of entry to the transmission network (after deducting the power absorbed by plant use and the power lost in the transformers required to raise voltage to the network level).

The maximum capacity at which a plant generating heat is designed to operate, as measured at the point of entry to the transmission network

The energy content in the power generated by a thermal generation plant divided by the total energy content in the fuel consumed.

Natural Gas Liquids, which are processed from reservoirs along with oil.

Other than residential (private households),
particularly industrial and commercial customers, corporate entities, and public sector, state and municipality customers (such as public administration, transportation and educational and research and social institutions).

The Norwegian-based Nordic power exchange, which facilitates the trading of power in Norway, Sweden, Finland and Denmark.

Nitrogen oxides.

The company appointed to conduct operations under an exploration, production and/or development license or concession governing an oil or natural gas license or concession area.

Plan of Development and Operation.

Reflects prices for electricity generated at times during the 24-hour cycle with high demand and low demand respectively.

Petajoule, a unit of energy. 1 PJ is equivalent to 1,000 TJ and 1,000,000 GJ.

Possible reserves are those unproved reserves which analysis of geological and engineering data suggests are less likely to be recoverable than probable reserves. In this context, when probabilistic methods are used, there should be at least a 10% probability that the quantities actually recovered will equal or exceed the estimate (Society of Petroleum Engineers and World Petroleum Congress (SPE/ WPC) reserve classification standards).

Network of high, medium and low voltage lines used for the distribution of power in a defined area.

Mechanism to reduce variable pressure of natural gas in the distribution network, from upstream and through a transmission network before distribution to lower pressure networks.

Probable reserves are those unproved reserves which analysis of geological and engineering data suggests are more likely than not to be recoverable. In this context, when probabilistic methods are used, there should be at least a 50% probability that the quantities actually recovered will equal or exceed the estimate (Society of Petroleum Engineers and World Petroleum Congress (SPE/ WPC) reserve classification standards).

Proved reserves are those quantities of petroleum which, by analysis of geological and engineering data, can be estimated with reasonable certainty to be commercially recoverable, from a given date forward, from known reservoirs and under current economic conditions, operating methods, and government regulations. If deterministic methods are used, the term reasonable certainty is intended to express a high degree of confidence that the quantities will be recovered. If probabilistic methods are used, there should be at least a 90% probability that the quantities actually recovered will equal or exceed the estimate (Society of Petroleum Engineers and World Petroleum Congress (SPE/WPC) reserve classification standards).

Regulatory Asset Base. The capital value of the asset base used by price regulators in setting or monitoring prices or price limits for certain regulated utility companies.

Power and heat generated using renewable energy sources, which include water (hydro power) and wind (wind power).

Power and heat generated from renewable energy sources

The difference between peak-load and the
capacity that is expected to operate during peak load.

Private households

The redesign of, or modification to, existing
facilities to incorporate new technology, meet new requirements, or otherwise provide performance not foreseen in the original design.

Ethanol produced from agricultural residues such as straw.

Internationally accepted guidelines for the evaluation of gas and oil reserves prepared by Society of Petroleum Engineers (SPE).

A company with a supply-obligation is bound by law to deliver power or natural gas in a certain geographic area at prices approved by the Danish Energy Regulatory Authority.

Sulfur dioxide.

Electricity and heat generated through the combustion of fossil fuels, biomass or waste.

A plant that generates energy using thermal
generation.

Oil price changes and changes in the USD
exchange rate impact on gas sales prices relatively quickly, whereas purchase prices are adjusted with a time lag effect of up to a year and a half. For example, a change in the price
of oil and/or the USD exchange rate in January may affect DONG Energy’s sales prices already in February, but may not be felt on purchase prices before the summer of the following year. The impact on the individual periods consequently varies, and this may lead to considerable fluctuations in operating profit from one period to the next in the case of oil price
changes. However, the fluctuations will balance each other out over a number of years.

Terajoule, a unit of energy. 1 TJ is equivalent to 1,000 GJ or 1,000,000 MJ.

Metric ton. 1 metric ton is equivalent to 1,000 kilograms.

The energy content in both the power and heat generated by a thermal generation plant divided by the total energy content of the fuel consumed.

Transmission System Operator (in Denmark,
Energinet.dk). The TSO is responsible for operating, ensuring the maintenance of and developing the natural gas transmission network in a given area and the 400 kV power transmission networks and for ensuring an efficient operation of the natural gas and power markets.

The Title Transfer Facility, natural gas hub in the Netherlands.

Terawatt, a unit of power. 1 TW is equivalent to 1,000 GW, 1,000,000 MW and 1,000,000,000 kW.

Terawatt hour. The amount of energy generated in one hour with the effect of 1 TW. 1 TWh is equivalent to 1,000 GWh or 1,000,000 MWh.

The U.K. continental shelf.

The processes of natural gas and oil exploration, development and production, and the process of transportation of the produced natural gas and oil to the market.

Volt, a unit of voltage.

A financial indicator used for measuring the loss that may occur from a risk position, assuming a certain volatility and that the position is held for a certain period of time.

Watt (W), a unit of power. 1 W is equivalent to the generation or use of 1 J per second.

Watt-hour. The amount of energy generated in 1 hour with the effect of 1 W.

Power generated using onshore or offshore wind turbines.

Turbines powered by the force of wind, used to
generate power.

Wood that has been pulverised and pelletised under heat and high pressure.

Waste-to-Energy” plant that uses waste
combustion for the generation of power and heat. The load is primarily determined by the supply of waste to the plant.

A set of contractual agreements in which one party purchases the right to a specified level of power generation capacity for a pre-determined period of time while the selling party owns and operates the capacity for the benefit of the purchaser during that period.