Aker Carbon Capture

Investor Presentation • Jul 11, 2023

Q2 2023

11 July 2023

Egil Fagerland, Chief Financial Officer David Phillips, Head of UK and Investor Relations

Agenda

Introduction and second quarter highlights

Operations and business development

Delivery models

Financials

Way forward

Q&A

Aker Carbon Capture in brief

Pure play carbon capture company offering modular and configurable capture plants

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

Key awards:

• Five Just Catch™ 100 units being delivered to Ørsted
• Study for Söderenergi biomass power plant
• First major study in North America
• Two studies for Just Catch Offshore™

Major projects progressing:

• Ørsted CCS: key purchase orders placed
• Brevik CCS: installation of equipment on site continues
• Twence CCU: all major equipment installed on site
• UK flagship projects in final negotiations for governmental support

High MTU activity: successful test campaign CO2 Hub Nord and Aurora EU solvent research project started

Strengthening of modular product portfolio with 3rd generation Just Catch™ 100 and introduction of Just Catch™ 400

Strengthened backlog (NOK 3.3 billion), continued revenue growth (57% YoY) and solid cash position (NOK 1.1 billion)

Ørsted Kalundborg CCS

• Aker Carbon Capture awarded delivery of five modular and configurable Just Catch™ 100 units to Ørsted
  • ⁃ Three Just Catch™ units to the wood chip-fired Asnæs Power Station
  • ⁃ Two Just Catch™ units to the straw-fired Avedøre Power Station
• Materialization of the Ørsted, Aker Carbon Capture and Microsoft MoU signed in March 2021
• Milestone for Just Catch™ serial production, enabling scale-up and time-efficient deployment
• Combined design capture capacity of 500,000 tonnes CO2 per year
• Contract value above EUR 200 million
• Microsoft will purchase 2.7 million tonnes of high-quality, durable carbon removal credits
• First full-scale carbon capture and storage value chain in Denmark

Making headway in new markets and industries

Strategic US study covering biogenic emissions

• Study for two Just Catch™ 100 units
• Study includes total targeted emissions of 800,000 tonnes CO2 per year

Söderenergi Igelstaverket

● Sweden's second largest biomass combined heat and power plant

Image: Söderenergi

● Targeted emissions of 500,000 tonnes biogenic CO2 per year

Study for European waste-to-energy player

• Exploring options across the Just Catch™ portfolio
• Targeted emissions of 200,000-400,000 tonnes CO2 per year

Two Just Catch Offshore™ studies

• Power Hub study for Petoro in Norway, targeted emissions of 720,000 tonnes CO2 per year
• Study for major offshore operator, targeted emissions of 180,000 tonnes CO2 per year

Continued pipeline development towards 10 in 25

Operations and business development

© 2023 Aker Carbon Capture Slide 8

Maturing technology concept and product

High Mobile Test Unit activity

MTU Campaign finalized in Rana, Norway

• Elkem's smelter (3.5% CO2 concentration) and SMA Mineral's calciner (26% CO2 concentration)
• Part of CO2 Hub Nord, with ~2 million tonnes of capturable CO2 emissions
• Flue gases tested at challenging low CO2 concentrations with capture rates validated above 95% for each

Aurora

• Four year research project funded by EU's Horizon Europe
• Testing and validating ACC™ capture technology with opensource solvent CESAR1 in novel industrial sectors
• Strengthening our world-leading position in providing aminebased CO2 capture solutions
• Planned MTU demonstrations at Heracles cement plant in

November 2021 SIGNED CONTRACT

© 2023 Aker Carbon Capture

June 2023 ALL MAJOR EQUIPMENT INSTALLED ON SITE

End 2023 PLANNED DELIVERY

WASTE TO ENERGY TWENCE CCU Netherlands

• Capturing 100,000 tonnes CO2 per year
• First of a kind modular carbon capture project on track
• Containers received and installed on the same day
• All major equipment installed
• Pipe installation and cable pulling ongoing
• CO ² will boost local greenhouse production

NORCEM HEIDELBERG MATERIALS BREVIK CCS

Norway

• 400,000 tonnes CO2 per year capture and liquefaction plant
• Major equipment installed on site, incl. all Waste Heat Recovery Units, Flue Gas Fans and internals of Direct Contact Cooler
• Creating local employment and strong partnerships
• CO2 transport by ship to permanent storage as part of Northern Lights

2020 PROJECT START June 2023 PIPING INSTALLATION ONGOING 2024 PLANNED DELIVERY

May 2023 CONTRACT AWARD

© 2023 Aker Carbon Capture

June 2023 KEY PURCHASE ORDERS PLACED

End 2025 PLANNED DELIVERY

ØRSTED KALUNDBORG CCS Denmark

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

Flagship projects in the UK

Track-1 Clusters

Now in final negotiations for funding

• bp Net Zero Teesside Power FEED
  • ⁃ Design capacity of 2 million tonnes of CO2 per year
  • ⁃ Carbon capture partner to a consortium of Aker Solutions, Siemens Energy and Altrad Babcock
• Viridor's waste-to-energy Runcorn CCS pre-FEED
  • ⁃ Planned capacity of 1 million tonnes of CO2 per year

Awaiting potential Track-1 cluster expansion

• SSE Keadby 3 Carbon Capture Power Station FEED
  • ⁃ Design capacity of 2 million tonnes of CO2 per year

£20 billion UK CCUS infrastructure funding Ambition of 20-30 Mt CO2 per year capture by 2030

Delivery models

A wide range of offerings and delivery models

Indicative levelized cost of Carbon Capture as a Service

© 2023 Aker Carbon Capture Slide 17 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

Second quarter 2023 | Income statement

Revenue and EBITDA NOK million

• Revenue ended at NOK 305 million which was NOK 111 million higher compared to the same period last year. The increase is mainly driven by:
  • Big Catch™ and Just Catch™ projects
  • Ongoing FEEDs, pre-FEEDS, studies and MTU campaigns
• EBITDA ended at negative NOK 53 million which was NOK 4 million lower than the same period last year
  • Profit has not yet been recognized for Ørsted Kalundborg CCS. Profit is normally recognized when a project reaches a high level of certainty in cost estimates.
  • Positive contribution from ongoing Big Catch™ and Just Catch™ projects, FEEDs, pre-FEEDs and studies
  • The overall negative EBITDA continued to be driven by high sales and tender activity (including North America) and R&D activities

Second quarter 2023 | Balance sheet

● Net Current Operating Assets (net working capital) ended at negative NOK 526 million which represents a strong positive cash position on key projects

● NOK 352 million negative Net Capital Employed signalling that the business' operating capital is currently funded by project working capital

• Healthy Cash and cash equivalents balance at NOK 1.1 billion which covers all liabilities 1.7 times
• Strong Equity position at NOK 0.8 billion

Second quarter 2023 | Cash flow

• The quarter ended with an overall cash outflow of NOK 210 million
  • Loss before tax of negative NOK 46 million
  • Outflow of NOK 146 million related to change in Net Current Operating Assets mainly related to milestone payments on key projects
  • CAPEX of NOK 25 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 8 million
• Cash and cash equivalents ended the quarter at NOK 1,138 million

Cash flow development NOK million

Financial outlook

Order backlog by execution year NOK billion Financial outlook

• Positive impact on gross margin expected when profit is recognized for Ørsted Kalundborg CCS
• Serial delivery of Just Catch™ units over time is expected to improve profit margins
• Salary and personnel cost expected to gradually increase over time on the back of higher activity level and international expansion, with flexibility
• Other operating expenses expected to remain around current levels through the next 6-12 months
• Capex expected to remain around current levels through the next 6-12 months
• Current cash position of NOK 1.1 billion expected to remain around current levels through 2023

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, enter 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

• Purpose-driven 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			Half year
2021	Q1 2022	Q2 2022	Q3 2022	Q4 2022	2022	Q1 2023	Q2 2023	2023
363,177	144,319	193,640	203,613	239,290	780,863	287,283	305,495	592,778
(332,814)	(129,170)	(171,708)	(183,284)	(221,645)	(705,807)	(261,631)	(278,150)	(539,781)
(92,102)	(34,135)	(38,357)	(44,574)	(35,073)	(152,140)	(52,615)	(56,143)	(108,758)
(128,104)	(41,689)	(32,159)	(31,353)	(29,463)	(134,663)	(24,408)	(24,383)	(48,792)
(189,843)	(60,675)	(48,584)	(55,597)	(46,891)	(211,746)	(51,372)	(53,181)	(104,553)
(5,346)	(2,597)	(3,014)	(2,597)	(2,799)	(11,008)	(3,871)	(3,196)	(7,067)
(195,189)	(63,272)	(51,598)	(58,194)	(49,690)	(222,754)	(55,243)	(56,377)	(111,620)
3,148	2,445	3,078	5,286	7,569	18,377	6,885	9,506	16,392
(659)	(186)	(272)	(170)	(165)	(793)	(132)	(124)	(256)
399	998	(997)	1,503	(406)	1,097	(757)	480	(277)
2,889	3,257	1,808	6,618	6,998	18,682	5,996	9,862	15,859
(192,301)	(60,015)	(49,790)	(51,576)	(42,692)	(204,072)	(49,246)	(46,515)	(95,761)
-	-	-	-	-	-	-	-	-
(192,301)	(60,015)	(49,790)	(51,576)	(42,692)	(204,072)	(49,246)	(46,515)	(95,761)

Condensed consolidated balance sheet | Assets

Amounts in NOK thousand	Q4 2021	Q1 2022	Q2 2022	Q3 2022	Q4 2022	Q1 2023	Q2 2023
Non-current assets
Intangible assets	11,292	12,256	26,722	57,453	73,152	97,469	117,845
Right-of-use assets	14,242	11,751	9,677	7,604	5,530	3,456	1,382
Property, plant and equipent	7,732	12,382	21,812	26,108	48,892	57,451	59,546
Total non-current assets	33,266	36,389	58,211	91,165	127,573	158,376	178,774
Current assets
Trade and other receivables	255,306	153,686	40,366	50,171	75,668	40,042	154,244
Derivative financial assets	-	-	-	7,208	677	172	8,199
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
Total current assets	1,576,576	1,638,944	1,492,279	1,430,258	1,169,013	1,388,455	1,300,296
Total assets	1,609,841	1,675,333	1,550,490	1,521,423	1,296,587	1,546,832	1,479,070

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
Equity
Share capital	604,242	604,242	604,242	604,294	604,242	604,290	604,242
Other equity and reserves	472,034	411,064	362,581	318,286	273,597	229,437	189,759
Total equity	1,076,276	1,015,307	966,823	922,580	877,839	833,727	794,001
Non-current liabilities
Pension liabilities	2,685	2,475	2,487	2,836	3,112	2,979	2,969
Non-current lease liabilities	6,091	3,545	1,273	-	-	-	-
Total non-current liabilities	8,775	6,020	3,760	2,836	3,112	2,979	2,969
Current liabilities
Trade and other payables	515,076	644,292	570,193	587,106	409,279	706,129	680,491
Current lease liabilities	9,714	9,714	9,714	8,686	6,356	3,997	1,609
Derivative financial liabilities	-	-	-	215	-	-	-
Total current liabilities	524,790	654,006	579,907	596,007	415,635	710,126	682,100
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

Condensed consolidated statement of cash flow

	Full year					Full year			Half year
Amounts in NOK thousand	2021	Q1 2022	Q2 2022	Q3 2022	Q4 2022	2022	Q1 2023	Q2 2023	2023
Profit before tax	(192,301)	(60,015)	(49,790)	(51,576)	(42,692)	(204,072)	(49,246)	(46,515)	(95,761)
Adjustment for:
Amortisation and depreciation	5,346	2,597	3,014	2,597	2,799	11,008	3,871	3,196	7,067
Hedge adjustment, no cash flow effect	-	-	-	-	1,020	1,020	3,089	9,045	12,134
Changes in net current operating assets	243,039	229,186	40,663	7,721	(203,982)	73,589	331,084	(146,406)	184,677
Accrued interest and foreign exchange	596	1,284	(887)	128	196	721	910	(1,756)	(845)
Cash flow from operating activities	56,680	173,053	(6,999)	(41,130)	(242,658)	(117,734)	289,708	(182,435)	107,272
Acquisition of property, plant and equipment	(5,341)	(4,953)	(9,733)	(4,597)	(23,290)	(42,573)	(6,379)	(3,936)	(10,315)
Payments for capitalized development	(7,769)	(1,184)	(14,686)	(30,952)	(15,919)	(62,741)	(27,351)	(20,597)	(47,948)
Cash flow from investing activities	(13,110)	(6,137)	(24,419)	(35,549)	(39,209)	(105,314)	(33,730)	(24,533)	(58,263)
Payment of finance lease liabilities	(4,888)	(2,429)	(2,787)	(2,429)	(1,804)	(9,448)	(2,359)	(2,388)	(4,747)
Share issue, net of transaction costs	824,888	-	-	-	-	-	-	-	-
Treasury shares	-	-	-	-	-	-	-	(991)	(991)
Cash flow from financing activities	820,000	(2,429)	(2,787)	(2,429)	(1,804)	(9,448)	(2,359)	(3,379)	(5,738)
FX revaluation of cash	-	(499)	862	74	3,460	3,896	1,953	(41)	1,913
Net cash flow	863,571	163,988	(33,344)	(79,033)	(280,211)	(228,601)	255,572	(210,388)	45,184
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	1,092,669
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	1,137,853

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.

© 2023 Aker Carbon Capture

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.