Aker Carbon Capture

Investor Presentation • Jan 25, 2024

Q4 2023

25 January 2023

Egil Fagerland, Chief Executive Officer Julie Berg, Chief Financial Officer David Phillips, Head of Capital Markets

Agenda

Introduction and fourth-quarter highlights

Operations

Delivery models

Financials

Way forward

Q&A

Aker Carbon Capture in brief

Pure play carbon capture company offering modular and configurable capture units

Best-in-class HSE friendly and proprietary patented technology for optimized plant performance

Proven market-leading proprietary technology with over 60,000 operating hours and seven carbon capture units being delivered

Prioritized industries

CEMENT BIO/WASTE-TO-ENERGY GAS-TO-POWER BLUE HYDROGEN

...and engagement with new industry segments like refining and process industries

Highlights

Market

• Hafslund Oslo Celsio CCS: Just Catch™ 400 FEED (incl. framework for EPC phase)
• Process Design Package awarded for Uniper's Grain power station in the UK with the potential to capture over 2 million tonnes of CO2 per year
• Pre-FEED for European energy company with potential to capture up to 14 million tonnes of CO2 per year
• MOU signed with MAN Energy Solutions to accelerate CCUS in United States
• Continued high study activity both in Europe and North America

Projects

• Twence CCU: commissioning ongoing
• Brevik CCS: preparation for second heavy lift campaign ongoing
• Ørsted CCS: groundbreaking ceremony
• UK projects positioning for state support across Track 1, Track 1 Expansion, Track 2

Financials

● Strong backlog (NOK 2.6 billion), continued revenue growth (139% YoY) and solid cash

Hafslund Oslo Celsio

• Design capture capacity of 400,000 tonnes CO2 per year, based on Just Catch™ 400 modular unit
• Follows Celsio's cost reduction initiative for the Klemetsrud CCS project in Oslo
• FEED contract awarded to Aker Carbon Capture and Aker Solutions
• Framework for EPCIC contract established
• Celsio targeting FID in summer 2024
• Funding secured as part of the Longship full CCS value chain development

Uniper Grain Power Station

• Process Design Package awarded for Uniper's Grain power station in the UK
• Potential capture capacity of over 2 million tonnes of CO2 per year
• Retrofit carbon capture on up to three Combined Cycle Gas Turbine (CCGT) units, based in the Southeast of England
• If selected as technology licensor at the end of PDP process, next step will be FEED phase ahead of potential project FID in mid-2020s

MOU signed with MAN Energy Solutions to accelerate CCUS in United States

• Builds on advanced heat integration delivered at Brevik CCS, enabling record low energy consumption by reusing energy along the value chain
• Steam generated by the compressor, jointly developed by MAN and Aker Carbon Capture, enables reduction of overall steam demand of close to 30% for a Big Catch™ facility
• Standardized and modularized solutions will contribute to drive scale through cost-efficient developments with optimized delivery time
• US market could reach total volume of 200 million tonnes CO2 captured by 2030

High commercial activity

Hafslund Oslo Celsio

• Just Catch™ 400 FEED for waste-to-energy facility
• Targeted emissions of 400,000 tonnes CO2 per year

Uniper Grain Power Station

• Process Design Package at gas-to-power facility
• Targeted emissions of up to 2 million tonnes of CO2 per year

Study for TES in Germany

● Just Catch™ study for waste-to-energy facility ● Targeted emissions of 400,000 tonnes CO2 per year

Study for e-fuel project in Finland

• Based on Just Catch™ 100
• Targeted emissions of 100,000 tonnes CO2 per year, enabling the initial production of 20 megawatts of e-methane per year

Study for Limeco, Swiss waste-toenergy player

• Based on Just Catch™
• Planned newbuild waste-to-energy facility with district heating

Study for MAN Energy Solutions

• Based on Just Catch™ 100
• Develop a joint power-to-fuel solution

Accumulated paid work covering ~40 million tonnes CO2 per year

Slide 9 Accumulated paid work covers timeframe since Aker Carbon Capture's spin-off mid-2020 TPA = Tonnes of CO2 Per Annum

Continued pipeline development towards 10 in 25

0.000 0.001

Operations

December 2021 SIGNED CONTRACT

© 2024 Aker Carbon Capture

End 2023 PLANT MECHANICAL COMPLETE

Q1 2024 COMMISSIONING ONGOING

WASTE TO ENERGY TWENCE CCU Netherlands

• Capturing 100,000 tonnes CO2 per year
• First of a kind modular carbon capture project on track
• All equipment and piping installed
• Commissioning ongoing
• CO2 will boost local greenhouse production

HEIDELBERG MATERIALS SEMENT NORGE BREVIK CCS

Norway

• year capture and liquefaction plant
• © 2024 Aker Carbon Capture 400,000 tonnes CO2 per ● First heavy lift campaign completed including absorber, storage tanks and key modules
• Creating local employment and strong partnerships
• CO ² transport by ship to permanent storage as part of Northern Lights

2020 PROJECT START December 2023 PREPARATION FOR SECOND HEAVY LIFT CAMPAIGN ONGOING 2024 PLANNED DELIVERY

ØRSTED KALUNDBORG CCS Denmark

• Design capture capacity of 500,000 tonnes CO2 per year
• Container fabrication started
• Five Just Catch ™ units at wood chip -fired Asnæs Power Station and straw fired Avedøre Power Station
• First full -scale CCS value chain in Denmark, delivered by Ørsted, Aker Carbon Capture, Microsoft and Northern Lights

May 2023 CONTRACT AWARD

© 2024 Aker Carbon Capture

December 2023 GROUNDBREAKING CEREMONY

End 2025 PLANNED DELIVERY

UK market advances towards 2030

Regional potential supported by policy progress

• Track-1 cluster expansion launched for HyNet
• Track-2 'anchor project' phase to start early 2024
• CCUS Vision launched, targeting further growth to over 50Mt CO2 per year storage by 2035

Building a strong engineering record in power

• bp Net Zero Teesside Power FEED
  • ⁃ Design capacity of 2 million tonnes of CO2 per year
• Viridor's waste-to-energy Runcorn CCS pre-FEED
  • ⁃ Planned capacity of 1 million tonnes of CO2 per year
• Uniper Grain CCGT Process Design Package (PDP)
  • ⁃ Potential capacity up to 2 million tonnes of CO2 per year
• SSE Keadby 3 Carbon Capture Power Station FEED
  • ⁃ Design capacity of 2 million tonnes of CO2 per year

Delivery models

A wide range of offerings and delivery models

Indicative levelized cost of Carbon Capture as a Service

Slide 18 Levelized cost calculated as: Cost discounted over project period divided by the amount of CO2 captured discounted over project period; Discount rate: 7.5%; EUR/USD = ~1.0

Financials

Fourth quarter 2023 | Income statement

Revenue and EBITDA NOK million

• Revenue ended at NOK 573 million which was NOK 334 million higher compared to the same period last year. The increase is mainly driven by ongoing Big Catch™ and Just Catch™ projects
• EBITDA ended at negative NOK 43 million which is an improvement of NOK 4 million from the same period last year
  • Profit has not yet been recognised for Ørsted Kalundborg CCS. Profit will be recognized when cost estimates in the project reach a high level of certainty
  • Positive contribution from ongoing Big Catch and Just Catch projects, FEEDs, pre-FEEDs and studies
  • Overall EBITDA continues to be driven by high commercial and tender activity, North America entry and R&D activities

Fourth quarter 2023 | Balance sheet

● Net Current Operating Assets (net working capital) ended at negative NOK 662 million which represents a strong positive cash position on key projects

● NOK 413 million negative Net Capital Employed signalling that operating capital is currently funded by project working capital

• Healthy Cash and cash equivalents balance at NOK 1.1 billion which covers all liabilities 1.1 times
• Solid Equity position at NOK 0.7 billion

Fourth quarter 2023 | Cash flow

• The quarter ended with an overall cash outflow of NOK 211 million
  • Loss before tax of NOK 35 million
  • Outflow of NOK 144 million related to change in Net Current Operating Assets mainly related to milestone payments to key vendors
  • CAPEX of NOK 37 million was mainly related to product development and the construction of a new Mobile Test Unit
  • Payment of financial lease liabilities and adjustment for other non-cash items was net positive and represented NOK 5 million
• Cash and cash equivalents ended the quarter at NOK 1,112 million

Cash flow development NOK million

Financial outlook

Order backlog by execution year NOK billion Financial outlook

• Positive impact on gross profit margin when profit is recognized in 2024 for Ørsted Kalundborg CCS
• Serial delivery of Just Catch™ units on the back of Twence CCU and Ørsted Kalundborg CCS is expected to drive improved profit margins
• Increased conversion of tenders, FEEDs, pre-FEEDs and studies to Just Catch and Big Catch contracts expected through backlog execution period
• Other operating expenses expected to continue to trend around 2023 levels
• Capex expected to remain around 2023 levels
• Current cash position of NOK 1.1 billion is expected to trend below NOK 1.0 billion through the next quarter as major projects progress

Summary

Accelerating planet positive through carbon reduction and removal

Industries and geo-markets

• Cement, bio/waste-to-energy, gas-to-power, blue hydrogen, refining, process industries
• Grow Northern Europe, North America, explore Rest of Europe and Middle East

Technology roadmap and innovation

• Further improve energy efficiency and capture rate
• Increased focus on new capture technologies and digitalization

Cost-efficient product portfolio and delivery models

• Modular and configurable offerings; Just Catch™, Big Catch™ and Just Catch Offshore™
• Cost reduction through serial production and working together with strategic suppliers

Operations and aftermarket

• Supply of solvent, performance optimization, digital operations and maintenance
• Grow Carbon Capture as a Service to accelerate industry adaptation of CCUS

Rapid growth through partnership

• Differentiating through integrated offerings and joint market positioning
• Increased focus on execution partnerships

Accelerate Planet Positive

• Team devoted to accelerate carbon reduction and removal
• Roadmap to planet positive and carbon net negative

Deliver on ongoing projects

10 in 25

Secure contracts to capture 10 million tonnes CO2 per annum by 2025

Appendices

P&L | Balance sheet | Cash flow | Sustainability

Condensed consolidated income statement

	Full year					Full year					Full year
Amounts in NOK thousand	2021	Q1 2022	Q2 2022	Q3 2022	Q4 2022	2022	Q1 2023	Q2 2023	Q3 2023	Q4 2023	2023
Revenues	363,177	144,319	193,640	203,613	239,290	780,863	287,283 -	305,495 -	439,564	572,758	1,605,101
Materials, goods and services	(332,814)	(129,170)	(171,708)	(183,284)	(221,645)	(705,807)	(261,631)	(278,150)	(415,511)	(523,563)	(1,478,855)
Salary and other personnel costs	(92,102)	(34,135)	(38,357)	(44,574)	(35,073)	(152,140)	(52,615)	(56,143)	(52,928)	(55,126)	(216,812)
Other operating expenses	(128,104)	(41,689)	(32,159)	(31,353)	(29,463)	(134,663)	(24,408)	(24,383)	(18,612)	(36,764)	(104,167)
EBITDA	(189,843)	(60,675)	(48,584)	(55,597)	(46,891)	(211,746)	(51,372)	(53,181)	(47,487)	(42,695)	(194,735)
Depreciation and amortization	(5,346)	(2,597)	(3,014)	(2,597)	(2,799)	(11,008)	(3,871)	(3,196)	(3,826)	(5,137)	(16,029)
Operating profit (loss)	(195,189)	(63,272)	(51,598)	(58,194)	(49,690)	(222,754)	(55,243)	(56,377)	(51,313)	(47,831)	(210,764)
Net financial items	2,889	3,257	1,808	6,618	6,998	18,682	5,996	9,862	11,471	12,621	39,950
Profit (loss) before tax	(192,301)	(60,015)	(49,790)	(51,576)	(42,692)	(204,072)	(49,246)	(46,515)	(39,842)	(35,210)	(170,813)
Income tax benefit (expense)	-	-	-	-	-	-	-	-	-	-	-
Net profit (loss)	(192,301)	(60,015)	(49,790)	(51,576)	(42,692)	(204,072)	(49,246)	(46,515)	(39,842)	(35,210)	(170,813)

Condensed consolidated balance sheet | Assets

Amounts in NOK thousand	Q4 2021	Q1 2022	Q2 2022	Q3 2022	Q4 2022	Q1 2023	Q2 2023	Q3 2023	Q4 2023
Non-current assets
Intangible assets	11,292	12,256	26,722	57,453	73,152	97,469	117,845	152,567	178,687
Right-of-use assets	14,242	11,751	9,677	7,604	5,530	3,456	1,382	(0)	41,221
Property, plant and equipent	7,732	12,382	21,812	26,108	48,892	57,451	59,546	65,139	73,199
Total non-current assets	33,266	36,389	58,211	91,165	127,573	158,376	178,774	217,706	293,107
Current assets
Trade and other receivables	255,306	153,686	40,366	50,171	75,668	40,042	154,244	117,649	273,089
Customer contract assets	-	-	-	-	-		-	-	-
Derivative financial assets	-	-	-	7,208	677	172	8,199	21,130	12,913
Cash and cash equivalents	1,321,270	1,485,257	1,451,912	1,372,880	1,092,669	1,348,241	1,137,853	1,322,620	1,111,853
Total current assets	1,576,576	1,638,944	1,492,279	1,430,258	1,169,013	1,388,455	1,300,296	1,461,399	1,397,856
Total assets	1,609,841	1,675,333	1,550,490	1,521,423	1,296,587	1,546,832	1,479,070	1,679,105	1,690,962

Condensed consolidated balance sheet | Equity and liabilities

Amounts in NOK thousand	Q4 2021	Q1 2022	Q2 2022	Q3 2022	Q4 2022	Q1 2023	Q2 2023	Q3 2023	Q4 2023
Equity
Share capital	604,242	604,242	604,242	604,294	604,242	604,290	604,242	604,242	604,242
Other equity and reserves	472,034	411,064	362,581	318,286	273,597	229,437	189,759	148,592	107,178
Other equity	-	-	-	-	-		-	-	-
Total equity	1,076,276	1,015,307	966,823	922,580	877,839	833,727	794,001	752,834	711,420
Non-current liabilities
Pension liabilities	2,685	2,475	2,487	2,836	3,112	2,979	2,969	2,948	3,167
Non-current lease liabilities	6,091	3,545	1,273	-	-	-	-	-	36,844
Total non-current liabilities	8,775	6,020	3,760	2,836	3,112	2,979	2,969	2,948	40,011
Current liabilities
Trade and other payables	515,076	644,292	570,193	587,106	409,279	706,129	680,491	923,322	935,015
Customer contract liabilities	-	-	-	-	-		-	-	-
Current lease liabilities	9,714	9,714	9,714	8,686	6,356	3,997	1,609	(0)	4,515
Derivative financial liabilities	-	-	-	215	-	-	-	-	-
Total current liabilities	524,790	654,006	579,907	596,007	415,635	710,126	682,100	923,322	939,531
Total equity and liabilities	1,609,841	1,675,333	1,550,490	1,521,423	1,296,587	1,546,832	1,479,070	1,679,105	1,690,962

Condensed consolidated statement of cash flow

	Full year					Full year					Full year
Amounts in NOK thousand	2021	Q1 2022	Q2 2022	Q3 2022	Q4 2022	2022	Q1 2023	Q2 2023	Q3 2023	Q4 2023	2023
Profit before tax	(192,301)	(60,015)	(49,790)	(51,576)	(42,692)	(204,072)	(49,246)	(46,515)	(39,842)	(35,210)	(170,813) -
Adjustment for:											-
Depreciation and amortization	5,346	2,597	3,014	2,597	2,799	11,008	3,871	3,196	3,826	5,137	16,029
Hedge adjustment, no cash flow effect	-	-	-	-	1,020	1,020	3,089	9,045	(3,111)	(6,160)	2,864
Changes in net current operating assets (including change in derivatives)	243,039	229,186	40,663	7,721	(203,982)	73,589	331,084	(146,406)	267,880	(137,286)	315,272
Accrued interest and foreign exchange	596	1,284	(887)	128	196	721	910	(1,756)	846	(561)	(561)
Cash flow from operating activities	56,680	173,053	(6,999)	(41,130)	(242,658)	(117,734)	289,708	(182,435)	229,598	(174,080)	162,791
Acquisition of property, plant and equipment	(5,341)	(4,953)	(9,733)	(4,597)	(23,290)	(42,573)	(6,379)	(3,936)	(6,468)	(9,921)	(26,704)
Payments for capitalized development	(7,769)	(1,184)	(14,686)	(30,952)	(15,919)	(62,741)	(27,351)	(20,597)	(36,248)	(27,477)	(111,673)
Cash flow from investing activities	(13,110)	(6,137)	(24,419)	(35,549)	(39,209)	(105,314)	(33,730)	(24,533)	(42,716)	(37,398)	(138,377)
Payment of finance lease liabilities	(4,888)	(2,429)	(2,787)	(2,429)	(1,804)	(9,448)	(2,359)	(2,388)	(1,609)	(1,741)	(8,097)
Share issue, net of transaction costs	824,888	-	-	-	-	-	-	-	-	-	-
Net purchase of treasury shares	-	-	-	-	-	-	-	(991)	-	0	(991)
Cash flow from financing activities	820,000	(2,429)	(2,787)	(2,429)	(1,804)	(9,448)	(2,359)	(3,379)	(1,609)	(1,741)	(9,088)
FX revaluation of cash	-	(499)	862	74	3,460	3,896	1,953	(41)	(506)	2,451	3,857
Net cash flow	863,571	163,988	(33,344)	(79,033)	(280,211)	(228,601)	255,572	(210,388)	184,768	(210,768)	19,184
Cash and cash equivalent at the beginning of the period	457,699	1,321,270	1,485,257	1,451,913	1,372,880	1,321,270	1,092,669	1,348,241	1,137,853	1,322,620	1,092,669
Cash and cash equivalent at the end of the period	1,321,270	1,485,257	1,451,913	1,372,880	1,092,669	1,092,669	1,348,241	1,137,853	1,322,620	1,111,853	1,111,853

Project accounting | Recognition of profit versus revenue

Revenue recognition Profit recognition

• Revenue from projects is recognized according to incurred cost progress over time, typically following an S-curve completion schedule

• The input method used to measure cost progress over time is a reference to the costs incurred to date, relative to the total estimated contract cost

• There is no profit recognition until project cost estimates can be measured reliably

• Project costs are normally judged to be measured reliably once major steps in the schedule are reached, such as (1) major purchase orders placed, and/or (2) when details of site installation works are confirmed
• The process usually involves some level of "catch-up effect" at the start of profit recognition

Sustainability focus areas

¹ NB: Carbon intensity defined as: tCO2 emitted/tCO2 captured

STRATEGIC TARGETS ACTIONS TOWARDS 2030 HIGHLIGHTS

• Emissions will be reduced through execution, technological, and commercial initiatives such as:
  • Improve capture rate and energy efficiency
  • Supply chain engagement, e.g. low carbon materials and reduction targets
  • Strategic partner engagement, e.g. transport and storage
  • Purchase of Guarantee of Origin of renewable power
• Focus on carbon removals including offsetting residual emissions.

Founding members through Aker ASA. Creates predictability around demand for sustainable and low-carbon materials and products.

We have issued our commitment-letter and moving forward we will collaborate with Science-Based Target initiative to get our targets approved.

Copyright and disclaimer

Copyright

Copyright of all published material including photographs, drawings and images in this document remains vested in Aker Carbon Capture Norway AS and third party contributors as appropriate. Accordingly, neither the whole nor any part of this document shall be reproduced in any form nor used in any manner without written prior permission and applicable acknowledgements. No trademark, copyright or other notice shall be altered or removed from any reproduction.

Disclaimer

This presentation includes and is based, inter alia, on forward-looking information and statements that are subject to risks and uncertainties that could cause actual results to differ. These statements and this presentation are based on current expectations, estimates and projections about global economic conditions, the economic conditions of the regions and industries that are major markets for Aker Carbon Capture Norway AS and Aker Carbon Capture Norway AS's (including subsidiaries and affiliates) lines of business. These expectations, estimates and projections are generally identifiable by statements containing words such as "expects", "believes", "estimates" or similar expressions. Important factors that could cause actual results to differ materially from those expectations include, among others, economic and market conditions in the geographic areas and industries that are or will be major markets for Aker Carbon Capture Norway AS's businesses, market acceptance of new products and services, changes in governmental regulations, interest rates, fluctuations in currency exchange rates and such other factors as may be discussed from time to time in the presentation. Although Aker Carbon Capture Norway AS believes that its expectations and the presentation are based upon reasonable assumptions, it can give no assurance that those expectations will be achieved or that the actual results will be as set out in the presentation. Aker Carbon Capture Norway AS is making no representation or warranty, expressed or implied, as to the accuracy, reliability or completeness of the presentation, and neither Aker Carbon Capture Norway AS nor any of its directors, officers or employees will have any liability to you or any other persons resulting from your use.

© 2024 Aker Carbon Capture