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Landsvirkjun’s responsibility towards Icelandic society is of the utmost importance. The Company is state- owned and is entrusted with Iceland’s precious natural resources.

These natural resources are unique. The international community is actively involved in reducing greenhouse gas emissions in an effort to curb global warming. The main weapon in this struggle is the transition from fossil fuels (coal, gas and oil) to renewable, low emission, energy resources such as those utilised in Iceland (hydropower, geothermal energy and wind energy).

Icelanders are in an enviable position. We can and do contribute more to combatting climate change than most other nations, per capita. Landsvirkjun plays a crucial role in this process.

Landsvirkjun’s social responsibility is to create value, respect nature and utilise natural resources in a responsible manner. The Company should also support knowledge dissemination and the positive impact of operations on society.

It has been a privilege to serve as Landsvirkjun’s Chairman of the Board and to gain insight into how seriously the Company takes its responsibilities.

The financial statements show that the net debt of the Company has decreased by over 107 billion since 2009, and the equity ratio is now higher than it has been since the establishment of the Company (almost 45%). Cash flow from operations has supported investment in recent years, which is a prerequisite for reducing debt.

The emphasis remains firmly on reducing debt. Net debt is now 6.2 times EBITDA. The aim is to achieve a ratio of below 5. This increases the flexibility to refinance debt on favourable terms and to pay dividends to Landsvirkjun’s owner, the Icelandic people.

Landsvirkjun takes pride in its commitment to working in harmony with nature. The effects of construction on the environment are closely monitored and every effort is made to minimise any negative impact. We also strive to maximise the positive impact of our operations.

Landsvirkjun has developed an extensive knowledge base over the last fifty years of operation but has also supported external knowledge dissemination. The Company has supported teaching in and around its power stations and numerous contractors and colleagues have benefitted from this. This contributes to society and creates value.

We can be proud of this success, but must continue our efforts. Landsvirkjun will continue to take their responsibilities seriously.

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CEO's Statement

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Natural resources and responsibility

In his address, Hörður Arnarson, CEO of Landsvirkjun, discusses the results achieved in Company operations and the fact that net debt has decreased by 107 billion ISK since 2009. He discusses the serious nature of Landsvirkjun’s responsibilities: To maximise the yield of the natural resources it is entrusted with, to treat the environment in a responsible manner and to contribute to the fight against climate change by using renewable energy.