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Arendals Fossekompani

Quarterly Report May 6, 2022

3539_rns_2022-05-06_a18a5326-e280-42d5-947a-9583617098ac.pdf

Quarterly Report

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Arendals Fossekompani

Q1 2022 Interim report

1

Electricity prices remain high

lights The average price of electricity on the spot market (NO2) in the first quarter of 2022 was EUR 150.6/MWh, up from EUR 47.4/MWh in the same quarter in 2021.

Volue revenues continues to climb

Volue revenues increased by 12% compared with the same quarter in 2021. SaaS revenues increased by 40%.

High Highlights Q1 2022

21%

Revenue growth

Solid quarter from NSSLGlobal

NSSLGlobal increased both operating revenue and operating margin in yet another solid quarter.

Dividend to be paid in May

Arendals Fossekompani will pay a quarterly dividend for the first quarter of NOK 0.95 per share.

NOK 0.95

Per share

Strong revenue growth

Revenue growth of 21%. Up from NOK 869 million in the first quarter of 2021 to NOK 1.052 million in the first quarter of 2022.

Financial Highlights Q1 2022

Q1 Q1 Q4 FY
MNOK 2022 2021 2021 2021
Operating revenue 1 052 869 1195 4232
Operating profit (EBIT) 149 78 176 450
Margin 14% 9% 15% 11%
Operating profit (EBIT) by company
Parent Company 126 38 126 236
Volue 14 21 25 45
NSSLGlobal 39 29 50 166
EFD Induction 13 3 31 83
Tekna -33 -9 -53 -89
Other business -8 -4 -3 9
Operating profit 149 78 176 450
Profit before income tax 134 75 93 331

All KPIs and graphs are based on continuing operations. For information on discontinued operations, see Note 6.

KPIs for AFK consolidated, continuing operations

Operating profit, EBIT (MNOK) 2019 2020 2021

Profit before income tax (MNOK)

126 years later, we remain a proud producer of hydropower. Acting in accordance with nature, is part of our DNA. For us, sustainability is not a megatrend, it is what we are, and what we do. We honor a proud heritage based on the belief that natural resources also belong to future generations.

But Arendals Fossekompani is more than a producer of hydropower. We are the owner of energy and technology companies which enable the transition to a green economy. We seek a sustainable market to support a sustainable world.

At Arendals Fossekompani we value our employees. Our goal is to be a preferred employer with a motivated workforce. We believe that being part of a bigger purpose, working for a more sustainable world, brings more value and motiva tion to our employees.

ESG is also about turning a profit. By developing sustainable products and services, we ensure long-term value creation for shareholders, employees and society. Our portfolio companies help their customers utilize their resources in a more sustainable way, and provide technology, systems and solutions that make energy from renewable sources increasingly accessible and usable.

As an industrial investment company, AFK is constantly looking for new invest ments and M&A opportunities. AFK invests in technology related companies in which we can significantly impact long-term value creation. Potential new joint ventures, investments and M&A candidates will be evaluated related to AFKs responsible investment scope and screening process.

Based on inputs from our portfolio companies, the estimated eligibility of the AFK portfolio according to the EU Taxonomy is 65% for 2021. The remaining 35% includes activities that are not yet covered by the EU Taxonomy and there fore cannot be assessed.

Arendals Fossekompani is committed to climate targets aligned with the Paris Agreement. Our target is to reduce greenhouse gas emissions from our scope 1 and 2 by 50 per percent by 2030, compared to 2021.

The work we do on compliance and improvements of policies and guidelines, is according to the OECD Guidelines for Multinational Enterprises. The OECD Guidelines are also supported by the investment strategy in M&A processes and AFK`s Green Bond Framework.

Overall, we are working strategically to integrate ESG in our daily operating model, both for AFK and our portfolio companies.

Sustainability is not a megatrend. It is what we are, and what we do.

SELECTED TARGETS FOR 2022

In 2022, we will focus on measuring and improving the most material areas for the whole group.

Ethical business conduct: Secure that Arendals Fossekompani governance is performed according to the OECD Guidelines for Multinational Enterprises and NUES. KPI Training in Code of Conduct: 100 %

Responsible investment: Assure all investments are subject to an ESG onboarding process, including an initial materiality assessment and identification of ESG focus areas for the company. KPI ESG onboarding: 100 %

Optimizing the portfolio companies: Provide a disclosure of our scope 1 and 2 emissions, together with a selection of our material scope 3 emissions for the entire portfolio. Report eligibility and alignment according to the EU taxonomy.

A great place to work: KPI Absentee rate: 3 % KPI Turnover rate: 10 % KPI Women on Board of Directors: 40 %

In January 1896, Arendals Fossekompani was established to harness the energy from an everlasting natural resource;

water.

FINANCIAL FIGURES, MNOK Q1 2022 Q1 2021 Q4 2021 FY 2021
Operating revenue 1 052 869 1 195 4 232
Operating profit 149 78 176 450
Operating margin 14% 9% 15% 11%
Earnings before tax (EBT) 134 75 93 332
Earnings after tax (EAT) 36 28 -23 97
Operating cash flow 408 207 785 848
NIBD -2 051 -2 305 -1 805 -1 805
Equity 3 851 5 536 3 909 3 909
Equity ratio 55% 59% 57% 57%
HEADQUARTER CHAIRMAN CEO EMPLOYEES COUNTRIES
ARENDAL, JON ØRJAN 2,200 27
NORWAY HINDAR SVANEVIK

Arendals Fossekompani Group

HIGHLIGHTS – Q1 2022 (Figures in parentheses refer to the same period the previous year)

Total operating revenues for continued operations amounted to NOK 1.052 million (869 million) in the first quarter. Consolidated earnings before tax came in at NOK 134 million (75 million). Ordinary profit after tax, but before non-controlling interests for continued operations, totalled NOK 36 million (28 million) for the quarter.

The AFK group of companies continues the solid operational performance , again delivering one of the best quarterly result in the group's 126-year history.

The solid operating profit in the quarter was driven by strong operational performance in all portfolio companies, as well as significantly higher Nordic electricity prices compared to the corresponding quarter previous year.

EFD Induction reported an increase in total operating revenues of 11% to NOK 296 million in the first quarter. Operating profit (EBIT) was NOK 12.9 million, up from NOK 2.7 million in the first quarter of 2021. The order intake continued its positive trajectory, driven by new orders in all regions. The company ended the first quarter with an order backlog of EUR 115 million.

Tekna's order intake for Materials, its main revenue generating business segment, amounted to CAD 6.1 million, representing an increase of 69% when compared to the first quarter of 2021. The order backlog for advanced materials continued to grow to CAD 10.8 million at the end of the first quarter, a 54% increase from one year before.

Volue continues it transformation towards recurring revenues and Software-as-a-Service. SaaS revenues were NOK 66 million in the quarter, an increase of 40% compared to the first quarter of 2021, representing 23% of total revenues. The SaaS transformation enabled a record number of 900 deals in the quarter, building a platform for further revenue growth.

NSSLGlobal reports strong sales and operating profit in the quarter, as well as a solid order intake. The company won new contracts totalling £9.8m. The company's long term backlog provides stable outlook going forward.

As a result of record-high electricity prices in the Nordics, AFK Hydropower contributed with substantial revenues and operating profit in the quarter. Power generation in the first quarter amounted to 122.4 GWh (168.2 GWh). The average spot price in the NO2 price area was EUR 150.6 /MWh (EUR 47.4 /MWh), lifiting revenues from AFK Hydropower to NOK 172 million (79 million) and operating profit to NOK 126 million (38 million) compared to the corresponding quarter previous year.

The AFK parent company's financial position remains solid. The company's cash position as at 31 March amounted to NOK 1,584 million. In addition, the company has undrawn credit facilities of NOK 2,000 million, securing available liquidity of NOK 3,584 million as per end of the quarter.

Currency rates (NOK/CAD). Average Q1 2022: 6,99, Q1 2021: 6,72, Q4 2021: 6,86. End Q1 2022: 6,99, Q1 2021: 6,76, Q4 2021: 6,94 Currency rates (NOK/GBP). Average Q1 2022: 11,87, Q1 2021: 11,74, Q4 2021: 11,83. End Q1 2022: 11,48, Q1 2021: 11,73, Q4 2021: 11,89

Arendals Fossekompani (AFK) is an industrial investment company holding 7 core investments and a portfolio of financial investments. These operations employ 2,200 people in 27 countries. AFK has proud traditions in power production and owns and operates two hydropower plants. In addition, AFK operates globally in many forward-looking industries including 3D printing, systems for algo trading, satellite services, battery and solar technology, software and digitalisation, as well as various green energy technologies.

EVENTS AFTER THE CLOSE OF THE QUARTER

On 5 May the Board of Directors decided to pay an or dinary cash dividend of NOK 0.95 per share for the first quarter 2022. The dividend is set to be paid on 18 May.

On 7 April AFK announced the acquisition of a majority stake in Commeo GmbH, a German company specializing in energy storage and energy management solutions.

On 25 April AFK announced joining forces with KONGS - BERG and Moreld to develop a combined offshore substa tion and hydrogen factory, in the company Hydepoint.

On 28 April AFK announced that Alytic acquired a majority share in Factlines. The company offers digital solutions to strengthen sustainability in procurement.

OUTLOOK FOR 2022

In light of the market's estimated power price trend for 2022, revenues and operating profit for AFK Hydropower are expected to in line with 2021.

Following high activity levels in all portfolio companies, 2022 revenues for AFK group as a whole are expected to be on par with 2021. However, earnings are expected to be lower due to reduced earnings in AFK Property.

There remains uncertainty associated with the Covid-19 pandemic, the war in Ukraine, and the future development of energy prices.

SHARE PRICE

There is a total of 55,995,250 shares in the company. The share price on 31 March 2021 was NOK 264 and on 31 March 2022 NOK 410, an increase of 55% in the period. When including direct yield (dividend payouts) in the same period, total increase in shareholder value was 75%.

The number of shareholders in AFK has more than doubled during 2021, increasing from around 2,600 at the end of 2020 to more than 5,500 at the end of 2021.

AFKs total market capitalization was NOK 23.0 billion at the end of March 2022. Componded annual return to AFK shareholders has been 24% in the period March 2012 to March 2022.

Share price incl. reinv. dividend Share price

Bøylefoss and Flatenfoss hydropower plants generate approximately 500 GWh annually. Bøylefoss became operational in 1913 and Flatenfoss in 1927.

Established early in 2022, Vergia is a strategic investment company developing infrastructure projects in alternative verticals within the energy transition sphere.

Bryggebyen in Arendal is the largest of several AFK property development projects. When finalized, Bryggebyen will have transformed a former wharf into a new residential area.

Arendals Fossekompani is the majority owner of five international portfolio companies and two Norwegian hydropower plants. AFK also holds positions in several green energy companies, and is a developer of property projects.

Bøylefoss

Flatenfoss

Seagust

North Ammonia

Hydropower projects

Bøylestad Energy Park

Hydepoint

Bryggebyen Gullknapp

Property

Arendals Fossekompani Assets

60.1 %

6,45 MNOK

71.1 %

2,17 MNOK

95.1 %

80 %

95 %

Skien, Norway

London, UK

Arendal, Norway

Oslo Børs

Euronext Growth, Oslo

Oslo, Norway

Sherbrooke, Canada

Arendals Fossekompani Parent Company

30

EMPLOYEES COUNTRIES 1

HEADQUARTER ARENDAL, NORWAY

CHAIRMAN CEO

JON HINDAR ØRJAN SVANEVIK The AFK Parent Company focuses on the development of new sustainable business opportunities, follow-up of portfolio companies through long-term active ownership, hydropower generation, property projects and management of financial investments.

AFK Group Management employs 20 people. The head office is located in Arendal. AFK Hydropower generates power at two locations in the Arendal watercourse. The Bøylefoss and Flatenfoss power stations produce in excess of 500 GWh annually.

Power price & power generation

FINANCIAL FIGURES, MNOK Q1 2022 Q1 2021 Q4 2021 FY 2021
Operating revenue 172 79 173 382
Operating profit (EBIT) 126 38 126 236
Operating margin 73% 48% 73% 62%
Earnings before tax (EBT) 378 1 085 43 1 581
Earnings after tax (EAT) 297 1 054 -40 1 422
Operating cash flow 165 55 112 236
NIBD -1 129 -1 552 -950 -950
Equity 2 917 4 495 2 872 2 872
Equity ratio 79% 78% 79% 79%

HYDROPOWER (EXTRACTED FROM AFK PARENT COMPANY FINANCIAL FIGURES), MNOK

Operating revenue 169 75 171 373
Operating profit (EBIT) 153 54 154 298
Operating margin 91% 72% 90% 80%
Earnings before tax (EBT) 153 54 154 298
Earnings after tax (EAT) 76 26 111 169

HIGHLIGHTS OF Q1 2022 (Figures in parentheses refer to the same period the previous year)

Production in the quarter was around normal levels. Although precipitation in the period was lower than normal, operational pressure remained high due to the high prices in the spot market.

Electricity prices in Southern Norway rose in the first quarter. Markets for coal, gas and CO2 lifted the European prices, and the Norwegian NO2 price area reported low hydro reservoir levels, due to low inflow and low snow reservoirs. Higher export to the UK after commissioning of a new North Sea Link, triggered an even stronger connection to the high European prices. The plants had some minor interruptions due to planned maintenance and inspections during the quarter.

Power generation in the first quarter amounted to 122.4 GWh (168.2 GWh). The average spot price in the NO2 price area was EUR 150.6 /MWh (EUR 47.4 /MWh). AFK has a defined strategy of selling hydropower production in the day-ahead (spot) market. Precipitation and inflow in Q1

2022 were respectively around 61% and 71% of the norm for the watercourse.

The figure below shows the power price (NO2) and power generation for Arendals Fossekompani per week for the period 31 December 2020 – 31 March 2022.

The AFK parent company's financial position remains solid. The company's cash position as of 31 March amounted to NOK 1,584 million. In addition, the company has undrawn credit facilities of NOK 2,000 million, securing net available liquidity of NOK 3,584 million as per end of the quarter.

OUTLOOK 2022

In light of the market's estimated power price trends for 2022, water levels and forecasted production, revenues and operating profit for AFK Hydropower are expected to be in line with 2021. Actual energy prices depend on many factors, including hydrological balance, oil and gas prices, weather conditions, temperatures and more. With limited reservoir capacity, the production volume will also be dependent on precipitation.

HEADQUARTER CHAIRMAN CEO OWNERSHIP EMPLOYEES COUNTRIES
OSLO, ØRJAN TROND 60.1 % 715 8
NORWAY SVANEVIK STRAUME

Volue Portfolio company

FINANCIAL FIGURES, MNOK Q1 2022 Q1 2021 Q4 2021 FY 2021
Operating Revenues 286 256 332 1 061
EBITDA 40 42 49 138
Adjusted EBITDA* 45 52 57 214
Operating Profit 14 21 25 45
Operating Margin 5% 8% 7% 4%
Earnings before tax (EBT) 10 21 18 40
Operating cash flow 285 204 63 122
NIBD -618 -597 -382 -382
Equity 767 742 767 767
Equity Ratio 43% 46% 44% 44%

* Adjusted EBITDA: In order to give a better representation of underlying performance, EBITDA is adjusted with non-recurring items. Note that adjusted EBITDA does not include estimate one-off loss revenues due to the cyber-incident in 2021 (only relevant for 2021 figures).

STRONG GROWTH IN RECURRING REVENUES AND SAAS

The transformation towards recurring revenues and Software as a Service (SaaS) continues. SaaS revenues were NOK 66 million in the quarter, an increase of 40% compared to the first quarter of 2021, representing 23% of total revenues. The SaaS transformation enabled a record number of 900 deals in the quarter, building a platform for further revenue growth.

HIGHLIGHTS OF Q1 2022

(Figures in parentheses refer to the same period the previous year)

Total operating revenues in the quarter amounted to NOK 286 million (256 million). Adjusted EBITDA for the quarter totalled NOK 45 million (52 million).

Revenue growth was mainly driven by the Energy Segment, which increased by 26% from the first quarter last year to NOK 172 million this year. Expansion of the European footprint and growing international activities are the main drivers for growth through new markets and solutions, such as trading, optimalisation, forecast, and analyses.

Recurring revenue constituted 65% of total revenues and reached NOK 185 million in the quarter, a growth of 13% from the first quarter of 2021.

The company is working on several new initiatives such as Distributed Energy Resources and new products related to optimisation and trading solutions.

This reflects the shift towards green, non-controllable energy sources combined with the explosive increase in the number of distributed production and storage units. These megatrends will require more intelligent energy systems to handle the increased complexity.

Volue continues to prioritise strategic investments in its SaaS platform and expansion into new markets which creates short- to mid-term EBITDA impact, and increased R&D capitalisation in line with plans.

Volue is a market leader in technologies and services that power the green transition. Based on 50 years of experience, Volue provides innovative solutions, systems and insights to industries critical to society. Over 700 employees work with more than 2,200 customers across energy, power grid, water and infrastructure projects that ensure a sustainable, flexible and reliable future. The company is active in 40+ countries.

OUTLOOK

Volue sees continued strong markets and has a strong foundation for continued profitable growth and expansion. The long-term ambition is to exceed NOK 2 billion revenues by 2025, with 15% annual organic revenue growth, SaaS revenues increasing to 50%, recurring revenues towards 80% and an adjusted EBITDA margin towards 30%. For 2022, Volue has outlined the following additional priorities and ambitions:

  • Expand activities outside Europe
  • Adjusted EBITDA margin in line with Q4 2021
  • Continue to grow ARR business in line with 2025 targets and 2021 performance
  • Structural growth through M&A
  • Strategic investments for international growth
  • Further utilise synergies and strengthen organisation

DEVELOPMENT LAST 5 QUARTERS

EXPANDING CAPACITY TO MEET STRONG DEMAND

In the first quarter of 2022, Tekna's order intake for Materials, its main revenue generating business segment, amounted to CAD 6.1 million, representing an increase of 69% when compared to the first quarter of 2021. The order backlog for advanced materials continued to grow to CAD 10.8 million at the end of the first quarter, a 54% increase from one year before.

Responding to the increasing demand for Tekna materials, the company has embarked on a program to expand its overall capacity by increasing machine performance and adding more machines to the floor. In the first quarter, a machine was taken offline to confirm the performance increase resulting from upgrades that are expected to be implemented throughout the year. As a result the total machine capacity is projected to increase by 70% by the end of 2022.

Strategic development projects with customers and potential partners in Printed Electronics and Energy Storage are ongoing, with important milestones coming up later in the year. The LG Chem joint development agreement for battery materials is developing positively with on-going trials.

HIGHLIGHTS OF Q1 2022 (Figures in parentheses refer to the same period the previous year)

Total operating revenues in Q1 amounted to CAD 6.5 million (7.8 million). Total revenue was affected by lower systems revenue, due to temporary Covid-related order execution delays. Adjusted EBITDA in Q1 was CAD -2.8 million, an improvement from CAD -3.4 million in the fourth quarter of 2021. The total order backlog stood at a solid CAD 14.2 million, of which CAD 10.8 million (7.0 million) for materials, representing a 54% increase year-onyear. Materials revenue in Q1 grew 5% year-on-year, with 85% of sales generated from recurring customers.

OUTLOOK

The market outlook for Materials, which accounts for approximately 70% of Tekna's total revenue, remains positive, and Tekna's number one priority in the short term is

Tekna is a world-leading provider of advanced materials for 3D printing in the aerospace, medical and automotive sectors and is well positioned in the growing market for advanced nanomaterials within the global electronics and batteries industries.

  • to increase materials production capacity. As a next step, more machines will be added to factories in France and Canada to secure Tekna's position with key customers and continue to grow market shares. Market demand and production capacity ramp-up will likely result in a stronger increase in Additive Manufacturing Materials sales towards Q4.
  • In Printed Electronics and Energy Storage, Tekna will continue to pursue opportunities through partnerships with tier-one original equipment manufacturers.
  • The continuing Covid-19 pandemic, the war in Ukraine, trade tensions and sanctions, and supply chain delays are factors that create uncertainty and delay to some customers' decision making processes. With highly relevant offerings and segments, Tekna's strategy is robust and well aligned with the most current megatrends. Customers are transitioning to new technologies and appreciate having a Tekna plant with sustainable and green production processes located nearby.
  • With a world in transition, the current situation represents uncertainty that may affect Materials sales and cause delays in ongoing qualification processes and volume ramp-up in Printed Electronics and Energy Storage.

Tekna plans to complete an OSE listing in 2022.

71.1 %

204

4

SHERBROOKE, CANADA

MORTEN HENRIKSEN

LUC DIONNE

Tekna Portfolio company

FINANCIAL FIGURES, MNOK Q1 2022 Q1 2021 Q4 2021 FY 2021
Sales 46 51 42 184
EBITDA -25 -2 -34 -60
Adjusted EBITDA -20 4 -23 -32
Operating profit -33 -9 -53 -89
Operating margin - - - -
Earnings before tax (EBT) -38 -13 -55 -98
Operating cash flow -31 -33 -13 -89
NIBD -178 -298 -215 -215
Equity 495 585 531 531
Equity ratio 78% 55% 82% 82%

*Currency rates (NOK/CAD) – Average Q1 2022: 6,99, Q1 2021: 6,72, Q4 2021: 6,86 End Q1 2022: 6,99, Q1 2021: 6,76, Q4 2021: 6,94 Adjusted EBITDA: EBITDA adjusted for costs related to the IPO and uplisting, non-recurring legal costs, and IT expenses related to the cloud software IFRS reclassification.

HIGHLIGHTS OF Q1 2022

(Figures in parentheses refer to the same period the previous year)

First quarter result for the NSSLGlobal Group was EBITDA of £3.9 million (£3.1 million) and EBIT of £3.2 million (£2.4 million). Total operating revenue for the first quarter amounted to £18.9 million (17.9 million). Gross margin is £8.7 million (8.1 million), largely due to increased government airtime and government projects compared to last year.

In the first quarter, NSSLGlobal won £9.8 million of new business opportunities of which a significant portion of that was either new NAVCOM project and support business or governmental engineering project and system work.

NSSLGlobal's sales and bid pipeline is strong and there are exciting new sales opportunities across both governmental and maritime sectors.

OUTLOOK

NSSLGlobal expects 2022 revenues to be in line with 2021, while operating profit is expected to weaken due to 2021 contracts that had particularly good margins.

NSSLGlobal is an independent provider of satellite communications and IT support that delivers high-quality voice and data services across the globe, regardless of location or terrain. NSSLGlobal's activities are divided into three main areas: Airtime, Hardware and Service. Its main customers are within the maritime segment, the military and government sector, large international corporations and the oil and gas industry.

HEADQUARTER CHAIRMAN CEO OWNERSHIP EMPLOYEES COUNTRIES
LONDON, ARILD SALLY-ANNE 80 % 216 9
UK NYSÆTHER RAY

NSSLGlobal Portfolio company

FINANCIAL FIGURES, MNOK Q1 2022 Q1 2021 Q4 2021 FY 2021
Operating Revenues 224 210 242 907
Operating Profit 39 29 50 166
Operating Margin 17% 14% 21% 18%
Earnings before tax (EBT) 39 29 64 178
Operating cash flow 38 27 88 197
NIBD -240 -295 -322 -322
Equity 358 449 458 458
Equity Ratio 51% 55% 57% 57%

*Currency rates (NOK/GBP) Average Q1 2022: 11,87, Q1 2021: 11,74, Q4 2021: 11,83 End Q1 2022: 11,48, Q1 2021: 11,73, Q4 2021: 11,89

95.1 %

992

17

SKIEN, NORWAY ØRJAN SVANEVIK BJØRN E. PETERSEN

EFD Induction Portfolio company

EFD Induction delivers advanced green power technology based on induction technology. Group activities are concentrated in three areas: Induction Heating Machines, Induction Power Systems and Spares and Service. EFD Induction's main customers are within the automotive industry, wind turbines, pipe production, the electronics industry, the cable industry and mechanical engineering.

HIGHLIGHTS OF Q1 2022

(Figures in parentheses refer to the same period the previous year)

Total operating revenues increased 11% to NOK 296 million in the first quarter (266 million). Operating profit (EBIT) was NOK 12.9 million (NOK 2.7 million), and the operating margin was 4.4% in the quarter, compared to 1% in the first quarter of 2021. First quarter earnings before tax came in at NOK 12 million (NOK -1.2 million).

The business is still negatively affected by the general disturbances in global supply chain, and regional effects of the Covid-19 pandemic.

However, the order intake continues its positive trajectory, driven by new orders in all regions. The company ended the first quarter with an order backlog of EUR 115 million compared to a backlog of EUR 100 million at the end of Q4 2021

Revenues and margins in the first quarter generally reflect solid project execution and sharp development of the group's product portfolio. The first quarter's margin is usually negatively affected by project seasonality.

OUTLOOK

EFD expects to remain on its profitable growth path in 2022, although worldwide supply chain constraints and out-burst of the Covid-19 pandemic may delay delivery of the order backlog.

FINANCIAL FIGURES, MNOK Q1 2022 Q1 2021 Q4 2021 FY 2021
Sales 296 266 331 1 171
Operating profit 13 3 31 83
Operating margin 4% 1% 9% 7%
Earnings before tax (EBT) 12 -1 29 72
Operating cash flow -25 1 71 96
NIBD 66 68 31 31
Equity 413 374 405 405
Equity ratio 34% 37% 36% 36%

2 3

2

HEADQUARTER CHAIRMAN CEO OWNERSHIP
ARENDAL, MORTEN ESPEN 95 % 46
NORWAY HENRIKSEN ZACHARIASSEN

Alytic Portfolio company

Alytic invests in companies with products and services relevant to global markets with data at the core of their value proposition. The Alytic approach is to search for, and invest in, companies to which Alytic can contribute with substantial value and work closely with a dedicated management team. This includes hands-on support in strategy, leadership, sales, recruitment, HR, data science and technology.

HIGHLIGHTS OF Q1 2022

Alytic's portfolio companies are experiencing strong growth in demand for their products. All portfolio companies are scaling capacity and strengthening competency areas,

especially within management and technology. A number of key hires were completed in Q4, both in the portfolio companies as well as in the Alytic team.

Factlines

Factlines was founded in 2012 in response to the Norwegian authorities' ambition to strengthen sustainability in procurement. Factlines's digital solution and expertise make supply chain mapping efficient and supports the full process from requirements and code of conduct to risk analysis, follow-up and dialogue. Alytic's ambition is to create a European one-stop-shop for responsible supply chains, but also to develop SaaS products for ESG reporting and product life cycle analysis.

Greenfact

Greenfact is a green-tech leader providing green certificates, price benchmark and insights. The company has strong domain competence, a well-known brand, ongoing SaaS business and a large potential for growth. Alytic's ambition is to develop Greenfact into a company that provides relevant data and insight into how companies can optimize and develop their climate ambitions and risks. In 2022 Greenfact will expand its product offering to additional green instruments.

Kontali

Kontali has served as the leading knowledge-based consultancy and data provider for the fish farming industry, collecting production data, establishing the first production and market simulation models and developing the salmon database. Kontali is widely regarded as a leading competence centre on aquaculture and fisheries with a strong global presence systemizing the world of fisheries and aquaculture. Launch of a new insights portal for aquaculture packaged as a subscription service is on schedule and planned for Q3 2022.

Utel

Utel is a leading provider of services for network monitoring and analysis, with strong domain expertise and a solid platform for product expansion and international scalability. Utel serves telecom carriers, fixed and mobile network operators, service providers, wholesale suppliers, intelligence services, police security services, the military and authorities. Clients include Norwegian telecom giant Telenor, British Telecom and Japanese KDDI, Softbank Mobile and NTTDoCoMo.

OUTLOOK

Alytic's mandate is to continue growing its portfolio. Focus will be on developing the verticals further, in particular completing new acquisitions within the ESG & Renewables space. The company expects to do its first acquisition outside of Norway in Q2.

FINANCIAL FIGURES, MNOK Q1 2022 Q1 2021 Q4 2021 FY 2021 risks. In 2022 Greenfact will expand its product offering to
10
Operating Revenues 9 6 8 27 additional green instruments.
Operating Profit -6 -2 -8 -16 Kontali
Operating Margin - - - - Kontali has served as the leading knowledge-based
Earnings before tax (EBT) -7 -2 -9 -16 consultancy and data provider for the fish farming in
dustry, collecting production data, establishing the first
Operating cash flow -2 -2 -7 -12 production and market simulation models and develop
NIBD -20 -29 -25 -25 ing the salmon database. Kontali is widely regarded as a
leading competence centre on aquaculture and fisheries
Equity 74 57 80 80 with a strong global presence systemizing the world of
Equity Ratio 69% 79% 74% 74% 0
fisheries and aquaculture. Launch of a new insights portal
Q1-21
Q2-21
Q3-21
Q4-21
Q1-22

Vergia Portfolio company

OFFSHORE WIND

Vergia and Ferd, two of Norway's leading industrial investment companies, have come together to establish the offshore wind company Seagust. Seagust is structured as a 50:50 joint venture between Vergia and Ferd, with a mandate to become an offshore wind developer with operations domestically and internationally. Seagust and Swedish energy major Vattenfall have joined forces with the intension to bid on two areas in the upcoming Norwegian offshore wind licensing round.

AMMONIA

Vergia and Grieg Maritime Group have joined forces to create a world-leading provider of green ammonia. North Ammonia, is dedicated to developing the next generation green fuels for shipping and transportation. The company builds on extensive first-hand experience: Grieg Maritime Group has more than 60 years of experience in shipping. Arendals Fossekompani has 125 years of experience in industrial developments and green power production.

Eydehavn in Arendal has been chosen as the first production site for North Ammonia. Eydehavn is being developed as a maritime hub and is ideally located for green ammonia production and distribution. MoUs have been signed with maritime end-users. World-class technology, engineering and maritime cooperation partners are in place to develop the project and production facility. Production is expected to start in 2025.

SMALL-SCALE HYDROPOWER

Demand for electricity is expected to grow significantly in years to come, due to electrification of the transportation and industry sectors, increased household consumption and interconnectors between the Nordics and Europe. Arendals Fossekompani has two small-scale hydropower development projects; Kilandsfoss and Glomsdam, which can contribute with an annual production of 40 and 7.3 GWh respectively.

ENERGY PARKS

Vergia is developing Bøylestad Energy Park, an industrial and commercial area facilitating energy intensive industry, powered by renewable energy. The area is situated next to one of the largest energy hubs in Southern Norway, which makes for a highly suitable area for power intensive industries. Bøylestad Energy Park also offers proximity to highway systems, railway, and a port, which further increases the strategic value of the area.

HYDROGEN

Vergia, KONGSBERG Maritime and Moreld have joined forces to develop a combined offshore substation and hydrogen factory. Hydepoint is a complete solution for receiving, converting, and transmitting the full energy potential from offshore wind farms, with reduced dependence on the onshore power grid. Placed in the ocean, close to wind farms, Hydepoint can convert all or part of the energy into hydrogen. This will reduce the need for upscaling the power grid both to and on land.

Established early in 2022, Vergia is an AFK initiative combining all excisting green infrastructure projects and related portfolio companies in a new entity. Vergia is a strategic investment company leveraging in-house competence with strategic partners to develop infrastructure projects in alternative verticals within the energy transition sphere. The Vergia ecosystem includes verticals such as small-scale hydropower, energy parks, power-to-x, solar, offshore wind, batteries, green fuel, and carbon capture. Vergia is owned 100% by AFK.

AFK Property comprises all property related companies and

property investments. AFK Property Part of AFK

This property, located along the Skien River, just one kilometer south of downtown Skien, was acquired in 2020. The 4,700 sqm building is fully let to EFD Induction on a 15-year bare-house agreement. As the city of Skien expands, this 12,000 sqm river property will be attractive both for commercial and residential development.

The commercial property Bedriftsveien 17 has been part of AFK since 2015. The 3,500 sqm building has been completely refurbished and is now fully let to Scanmatic AS on a 25-year bare-house agreement. Bedriftsveien 17 is located in the middle of the emerging commercial area Krøgenes, 3 kilometers east of down-town Arendal. The area has grown in attractiveness with a new feed-in road to the new E18 highway recently completed.

The by far largest company in the property portfolio is Vindholmen Eiendom AS, which is transforming an old shipyard area into a new urban residential/commercial zone right outside the center of Arendal City under the name Bryggebyen.

The transformation will take 10-15 years to complete and will create 500-700 residential units in combination with exciting and highly relevant trade and commerce offerings. The initial construction phase in 2020 called for 82 apartments, but due to brisk sales, a second phase of 31 additional apartments was quickly added, bringing the total to 113 units. All apartments were sold before year-end 2021. Not only was this the largest residential project in the region that year, but it also had the quickest sell-out time, demonstrating the attractiveness of the Bryggebyen area.

To satisfy the market's desire to be part of Bryggebyen, AFK made the decision in October 2021 to initiate phase 3 of the Bryggebyen project, thereby adding 49 new apartments. These will go on sale in the second quarter of 2022. AFK also plans to build an indoor water park in the area.

AFK Property is the majority owner of this property which comprises a relatively new airport facility as well as an attractive area of 200,000 sqm. The main user of the airport facility is OSM Aviation Academy which runs a pilot school at the premises. Future plans include developing the airport facility into a center for drones as well as a hub for electrified aviation under the name Gullknapp Aerial Center.

The significant size of the area combined with direct access to the high voltage grid has made the property attractive for industrial players, including those drawn to Arendal in connection with Morrow Batteries' plan for establishing a giga-factory for battery cell production. Gullknapp is located about 15 km north of Arendal and therefore in close vicinity to both the new E18 highway and the Port of Arendal. Having its own airport facility is of course also an advantage. Real estate areas for industrial use are becoming scarce around Arendal, and Gullknapp is highly relevant for power and transportation intensive industries such as batteryrelated production of cells, electrodes and electrode materials, as well as hydrogen and ammonia production to support the transition into a sustainable future.

Bryggebyen Bølevegen 4 Bedriftsveien 17 Arendal Airport & Property Gullknapp

SHARES AND SHAREHOLDERS

There are a total of 55,995,250 shares in the company. As of 31 March a total of 1,098,300 were treasury shares.

The share price on 31 December was NOK 455.5 and on 31 March NOK 410.

RISK AND UNCERTAINTIES

AFK is exposed to credit risk, market risk and liquidity risk. These matters are described in detail in Note 16 to the annual financial statements for 202.

RELATED PARTY TRANSACTIONS

The company's related parties comprise subsidiaries, associates and members of the Board of Directors and executive management. Transactions between AFK com panies and other related parties are based on the prin ciples of market value and arm's length distance. Trans actions carried out between related parties are detailed in Note 4. None of these transactions are considered of material importance for the company's financial position or earnings.

Senior executives at AFK bought shares in the company during the quarter. For more details see the published stock market notifications.

OUTLOOK

In light of the market's estimated power price trend for 2022, revenues and operating profit for AFK Hydropower are expected to in line with 2021.

Following high activity levels in all portfolio companies, 2022 revenues for AFK group as a whole are expected to be on par with 2021. However, earnings are expected to be lower due to reduced earnings in AFK Property. There remains uncertainty associated with the Covid-19 pan demic, the war in Ukraine, and the future development of energy prices.

AFK Hydropower

In light of the market's estimated power price trends for 2022, water levels and forecasted production, revenues and operating profit for AFK Hydropower are expected to be in line with 2021. Actual energy prices depend on many factors, including hydrological balance, oil and gas prices, weather conditions, temperatures and more. With limited reservoir capacity, the production volume will also be dependent on precipitation.

Volue

Volue's revenues and operating profit for 2022 are expect ed to be higher than in 2021.

Tekna

Tekna's expects revenues to be higher than 2021, while operating profit is expected to be somewhat weaker than previous year.

NSSLGlobal

NSSLGlobal expects 2022 revenues to be in line with 2021, while operating profit is expected to weaken due to 2021 contracts which had particularly good margins.

EFD Induction

EFD Induction expects revenues to be higher than 2021, and operating profit to be on par with 2021.

The Board of Directors emphasizes that significant uncertainty is associated with assessments of future circumstances and that the Covid-19 pandemic and the war in Ukraine give rise to particularly great uncertainty.

Froland, 5 May 2022 The Board of Directors, Arendals Fossekompani ASA

Shareholder information Outlook

Consolidated balance sheet

Amounts in NOK 1 000 2022 2021 2021
Note Q1 Q1 Full year
Assets
Fixed assets 916 962 939
Intangible assets and goodwill 1 097 985 1 092
Investment in equity companies 14 8 17
Net pension assets 28 27 28
Non-current receivables and investments 232 302 264
Deferred tax assets 85 105 92
Non-current assets 2 372 2 389 2 432
Inventories 552 718 502
Contract assets 187 199 151
Total receivables 844 1 516 1 018
Cash and cash equivalents 2 960 3 954 2 708
Derivatives - current assets: 20 11 11
Financial assets at fair value through OCI 16 7 15
Financial assets clas. as held for trading - 10 -
Assets classified as held for sale 5 - 613 -
Current assets 4 580 7 027 4 406
Total assets 6 952 9 417 6 838
Equity and liabilities
Common stock 224 224 224
Other paid in capital 10 8 10
Own shares -63 -64 -63
Other reserves -64 3 -47
Retained earnings 3 210 4 848 3 240
Owner's equity 3 317 5 019 3 364
Minority Interest 534 518 545
Total equity 7 3 851 5 536 3 909
Bond 497 497 497
Non-current borrowings 264 438 169
Employee benefits 24 33 25
Provisions 30 32 31
Deferred taxes 52 68 53
RoU liabilities, non-current 139 158 142
Non-current liabilities 1 006 1 225 917
Bond - 300 -
Interest and ex rate swap - 88 -
Interest-bearing current borrowings 19 294 122
Bank overdraft 129 77 114
Derivatives - current liabilities 8 2 4
Accounts payable 583 529 754
Payable income tax 219 57 187
Contract liabilities 390 340 167
RoU-liabilities, current 58 52 64
Other current liabilities 689 514 600
Liabilities classified as held for sale 5 - 403 -
Current liabilities 2 094 2 655 2 012
Total liabilities and equity 6 952 9 417 6 838

Consolidated statement of profit or loss

Amounts in NOK 1 000 2022 2021 2021 2022 2021
Note Q1 Q4 Q1 Year to Full year
Continuing operations date
Sales revenues 6 1 049 1 176 863 1 049 4 196
Total other Income 3 19 6 3 36
Operating revenue 1 052 1 195 869 1 052 4 232
Cost of sales 286 359 268 286 1 585
Total staff cost 395 402 348 395 1 422
Total other operating cost 2 155 188 120 155 539
Operating expense 837 949 736 837 3 546
EBITDA 215 246 134 215 686
Depreciation 2 44 41 39 44 171
Amortisation 21 23 17 21 58
Impairment loss from PPE 3 - - - - 1
Impairment loss from intangible assets 3 - 6 - - 6
Operating profit 149 176 78 149 450
Finance income and finance costs
Total finance income 12 3 27 12 47
Finance cost 3 24 82 28 24 153
Net financial items -11 -79 -1 -11 -106
Equity company income -4 -4 -2 -4 -12
Profit before income tax 134 93 75 134 332
Provision for income tax 98 116 47 98 235
Profit for the period, continuing operations 36 -23 28 36 97
Profit (-loss) from discontinued operation 5 4 - 29
Profit for the period 36 -23 32 36 126
Attributable to:
Minority interest income -1 -1 9 -1 19
Equity holders of the parent 37 -22 23 37 107
Basic/diluted earnings per share (NOK) 0,65 -0,41 0,59 0,65 2,29
Statement of comprehensive income
Profit for the period 36 -23 32 36 126
FX differences on translation of foreign operations -27 257 -5 -27 -65
Change on Cash flow hedges 2 2 3 2 -4
Tax on OCI that may be reclassified to P&L -1 - - -1 1
OCI that may be reclassified to P&L -25 258 -2 -25 -67
Change in financial assets at fair value through OCI 1 1 96 1 95
Actuarial gains and Losses - 6 - - 6
Tax on OCI that will not be reclassified to P&L - -1 - - -1
OCI that will not be reclassified to P&L 1 5 96 1 100
OCI from discontinued operations
Total Other Comprehensive Income (OCI) -25 264 91 -25 34
Total Comprehensive Income 11 241 123 11 160
Attributable to:
Minority Interest -6 -5 6 -6 3
Equity holders of the parent 18 246 118 18 156
Total Comprehensive Income per share (NOK) 0,20 4,39 2,25 0,20 2,91
Note 2022
Q1
2021
Q4
2021
Q1
2022
Year to
2021
Full year
date
Sales revenue 169 169 75 169 371
Total other income 3 3 4 3 12
Operating revenue 172 173 79 172 382
Cost of sales -4 2 1 -4 2
Total staff cost 17 15 18 17 66
Total other operating cost 29 26 19 29 65
Operating expense 43 43 38 43 134
EBITDA 129 129 42 129 249
Depreciation 3 3 3 3 11
Amortisation - - - - 2
Operating profit 126 126 38 126 236
Finance income and finance costs
Total finance income
8
264 6 1 063 264 1 471
Finance cost 11 89 16 11 125
Net financial items 252 -83 1 047 252 1 345
Profit before taxes 378 43 1 085 378 1 581
Provision for income tax 82 83 31 82 159
Profit for the period 297 -40 1 054 297 1 422
Attributable to:
Equity holders of the parent 297 -40 1 054 297 1 422
Basic/diluted earnings per share (NOK) 5,41 -0,73 19,21 5,41 25,90
Statement of comprehensive income
Profit for the period 297 -40 1 054 297 1 422
Change in financial assets at fair value through OCI 1 1 96 1 95
Actuarial gains and Losses - 3 - - 3
Tax on OCI that will not be reclassified to P&L - -1 - - -1
OCI that will not be reclassified to P&L 1 3 96 1 97
Total Other Comprehensive Income (OCI) 1 3 96 1 97
Total Comprehensive Income 298 -37 1 150 298 1 519
Attributable to:
Equity holders of the parent 298 -37 1 150 298 1 519
Total Comprehensive Income per share (NOK) 5,42 -0,68 20,96 5,42 27,67

Consolidated statement of cash flows

Profit or loss Parent Company

Amounts in NOK 1 000 2022 2021 Amounts in NOK 1 000
Note YTD YTD
Cash flow from operating activities
Profit for the period, continuing operations 36 28
Adjusted for
Depreciation, Impairment and Amortization 66 56
Net financial items 11 1
Equity company income 4 2
Tax expense 98 47
Total after adjustments to net income 214 134
Change in Inventories -56 -46
Change in trade and other receivables 119 -36
Change in trade and other payables -155 -91
Change in other current assets -1 -20
Change in other current liabilities 336 286
Change in other provisions 1 -
Change in employee benefits -1 -2
Total after adjustments to net assets 457 226 Total finance income
Tax paid -49 -19
Net cash from operating activities
A
408 207
Cash flow from investing activities
Interest received etc. 2 6
Dividends received 3 -
Proceeds from sales of PPE 2 -
Purchase of PPE and intangible assets -60 -53 Attributable to:
Purchase of other investments -3 -10
Proceed from sale of other investments 4 3
Purchase of shares in subsidiaries - -12
Proceeds from the sales of shares in subsidiaries 3 990
Net cash from investing activities
B
-50 923
Cash flow from financing activities
Equity payments from non controlling interests 2 651
New long-term borrowings 4 503
Repayment of long-term borrowings -24 -15
Cash Flow from Net change in current interest bearing debt 14 59
Interest paid etc. -26 -14
Dividend paid -74 -38
Net cash from financing activities
C
-103 1 145
Cash Flow
A+B+C
254 2 275
Opening Balance for Cash asset 2 708 1 688 Attributable to:
Total effect from FX on non-Cash accounts -3 -9
Closing Balance for Cash asset 2 960 3 954

Balance sheet Parent Company

Amount in MNOK 2022 2021 2021
Note Q1 Q1 Full year
Assets
Fixed assets 168 173 170
Intangible assets and goodwill 10 12 11
Investment in sub 1 599 1 706 1 628
Intra-group loans 5 187 5
Net pension assets 14 10 14
Non-current receivables and investments 148 227 174
Deferred tax assets 42 71 42
Non-current assets 1 987 2 385 2 043
Total receivables 125 1 137 159
Cash and cash equivalents 1 584 2 198 1 411
Financial assets at fair value through OCI 16 7 15
Current assets 1 726 3 342 1 585
Total assets 3 712 5 728 3 629
Equity and liabilities
Common stock 224 224 224
Other paid in capital 10 8 10
Own shares -63 -64 -63
Other reserves 1 2 1
Retained earnings 2 745 4 326 2 700
Owner's equity 2 917 4 495 2 872
Total equity 2 917 4 495 2 872
Bond 497 497 497
Non-current borrowings - 219 -1
Employee benefits 6 6 7
Provisions 10 - 10
RoU liabilities, non-current 15 16 15
Non-current liabilities 528 739 529
Bond - 300 -
Interest and ex rate swap - 88 -
Accounts payable 57 34 52
Payable income tax 165 22 112
Current interest-bearing liabilities, IC 36 30 36
RoU-liabilities, current 4 3 4
Other current liabilities 5 18 24
Current liabilities 267 494 228
Total liabilities and equity 3 712 5 728 3 629

Statement of cash flows Parent Company

Amount in MNOK 2022 2021
Note YTD YTD
Cash flow from operating activities
Profit for the period, continuing operations 297 1 054
Adjusted for
Depreciation, Impairment and Amortization 3 3
Net financial items -252 -1 047
Tax expense 82 31
Total after adjustments to net income 129 42
Change in trade and other receivables -12 -5
Change in trade and other payables 7 16
Cash flow form Internal Accounts Payable and Receivable 52 6
Change in other current liabilities -10 1
Change in employee benefits -1 -1
Total after adjustments to net assets 166 58
Tax paid -2 -3
Net cash from operating activities A 165 55
Cash flow from investing activities
Interest received etc. 1 1
Dividends received 97 -
Purchase of PPE and intangible assets -1 -3
Purchase of other investments -8 -1
Purchase of shares in subsidiaries -5 -
Proceeds from the sales of shares in subsidiaries 1 1 133
Net cash from investing activities B 85 1 130
Cash flow from financing activities
New long-term borrowings - 497
Repayment of long-term borrowings -1 -1
Cash Flow from Internal Loans and Borrowings -8 -206
Interest paid etc. -19 -4
Dividend paid -50 -38
Net cash from financing activities C -77 247
Cash Flow A+B+C 173 1 432
Opening Balance for Cash asset 1 411 766
Closing Balance for Cash asset 1 584 2 198

Notes to interim report for Q4 2021 Note 5 Sale of subsidiary

Amount in MNOK

SALE OF COGEN ENERGIA ESPANA IN 2021

In July 2021 Arendals Fossekompani sold its 100% shareholding in Cogen Energia Espana. Consequently, the company's financial figures have been recognised on separate lines in the income statement as discontinued operations and in the balance sheet as assets held for sale.

The gain on disposal of Cogen of MNOK 21 is included in "Profit/loss from discontinued operations".

Cogen's key figures relating to the income statement and balance sheet for 2021 and 2020 are presented below.

Note 1 Confirmation of financial framework

The financial statements for the quarter have been prepared in accordance with IAS 34 Interim Financial Reporting. The report does not include all the information required in full annual financial statements and should be read in conjunction with the consolidated financial statements for 2021.

Note 2 Key accounting policies

The accounting policies for 2021 are described in the Annual Report for 2021. The financial statements have been prepared in accordance with EU-approved IFRSs and associated interpretations, as well as the additional Norwegian disclosure requirements pursuant to the Norwegian Accounting Act and stock exchange regulations and rules, applicable as at 31 December 2021. The same policies have been applied in the preparation of the interim financial statements as at 31 March 2022.

New standards effective from 1. January 2022 have had no material effect on the financial statements.

Note 3 Estimates

Areas involving significant use of estimates include the valuation of companies in the share portfolio and measurement of goodwill/excess values in subsidiaries and associates, and of impairment indicators for property, plant and equipment and intangible assets. In the year to date these measurements have not resulted in material impairment losses on any assets or cash-generating units.

Note 4 Related party transactions

Disclosures concerning related party transactions are given in the company's Annual Report for 2021, Note 24. Total gain on MNOK 1.042 in 2021 is eliminated in concolidated profit or loss but is shown as paid-in capital in Note 7 Equity.

2021 2021
Q1 Full year
Operating revenues and operating costs
Operating revenue 131 281
Operating expense 122 262
Depreciation 5 9
Operating profit 5 9
Net financial items -1 -2
Profit before taxes 4 8
Provision for income tax
Net income from discontinued operations
Profit from the sale of Cogen Energia Espana 21
Net discontinued operations income (after tax) 4 29
Basic/diluted earnings per share (NOK) 0,07 0,53
Balance sheet
Non-current assets 349 -
Current assets 262 -
Assets classified as held for sale 613 -
Non-current liabilities 177 -
Current liabilities 214 -
Liabilities classified as held for sale 403
ENERGY SALES ADMINISTRATION VOLUE NSSLGLOBAL EFD INDUCTION
2022 2021 2022 2021 2022 2021 2022 2021 2022 2021
Total sales at a point in time 169 75 - - 51 43 224 208 66 139
Total sales over time - - - - 234 213 - - 230 127
Total other Income - - 3 4 - - - 2 1 1
Operating revenue 169 75 3 4 286 256 224 210 297 267
Operating expense 14 20 29 18 246 214 175 171 270 250
Total depreciation, amortization
and impairment 2 2 1 1 26 21 11 10 15 13
Operating profit 153 54 -27 -15 14 21 39 29 13 3
Equity company income - - - - - - - - - -
Net financial items - - 252 1 047 -3 - - -1 -1 -4
Provision for income tax 77 26 5 5 4 7 6 7 6 2
Continuing operations income 76 28 220 1 026 6 14 32 22 6 -3
Total assets 202 231 3 510 5 497 1 780 1 605 697 816 1 200 1 017
Total liabilities 229 42 566 1 190 1 012 863 339 366 786 643
Net interest bearing debt - - -1 129 -1 552 -618 -597 -240 -295 66 68

Note 6 Segment reporting per 31.03

Amount in MNOK

TEKNA ALY TIC PROPERTY * ELIMINATIONS TOTAL
2022 2021 2022 2021 2022 2021 2022 2021 2022 2021
Total sales at a point in time 33 28 9 6 19 1 - 1 572 501
Total sales over time 12 23 - - - - - - 477 362
Total other Income 1 2 - - 2 3 -4 -5 3 6
Operating revenue 46 53 9 6 22 4 -5 -5 1 052 869
Operating expense 71 55 15 7 21 3 -3 -2 837 736
Total depreciation, amortization
and impairment 8 7 1 - 3 3 -2 -2 66 56
Operating profit -33 -9 -6 -2 -2 -2 - - 149 78
Equity company income -2 -2 - - -2 - - - -4 -2
Net financial items -3 -2 - - - - -256 -1 041 -11 -1
Provision for income tax - - - - 1 - - - 98 47
Continuing operations income -38 -13 -7 -2 -5 -2 -256 -1 041 36 28
Total assets 632 1 065 106 73 469 686 -1 643 -1 572 6 952 9 417
Total liabilities 136 480 32 16 231 490 -232 -210 3 100 3 880
Net interest bearing debt -178 -298 -20 -29 68 399 - - -2 051 -2 305

* Property includes AFK Property & Vergia

Common
stock
Other paid
in capital
Common
stock
Other paid
in capital
Own
shares
Other
reserves
Retained
earnings
Owner's
equity
Minority
Interest
Total
equity
2021
Opening balance at 01.01 224 8 -64 704 2 680 3 553 303 3 856
Net Profit for the Period - - - - 23 23 9 32
Total Other Comprehensive
Income (OCI)
- - - 94 - 94 -3 91
Gain from sale of shares in
subsidiaries
- - - - 1 042 1 042 - 1 042
Realization of financial asset
at fair value through OCI
- - - -798 798 - - -
Other changes from
subsidiaries
- - - 2 342 345 209 553
Dividends paid - - - - -38 -38 - -38
Closing balance at 31.12 224 8 -64 3 4 848 5 019 518 5 536
2022
Opening balance at 01.01 224 10 -63 -47 3 240 3 364 545 3 909
Net Profit for the Period - - - - 37 37 -1 36
Total Other Comprehensive
Income (OCI)
- - - -20 - -19 -5 -25
Gain from sale / dividend in
kind of shares in subsidiaries
- - - - 163 163 - 163
Other changes from
subsidiaries
- - - 3 24 27 19 45
Dividends paid - - - - -253 -253 -24 -277
Closing balance at 31.12 224 10 -63 -64 3 210 3 317 534 3 851
Common
stock
Other paid
in capital
Own
shares
Other
reserves
Retained
earnings
Owner's
equity
Minority
Interest
Total
equity
2021
Opening balance at 01.01 224 8 -64 704 2 680 3 553 303 3 856
Net Profit for the Period - - - - 23 23 9 32
Total Other Comprehensive
Income (OCI)
- - - 94 - 94 -3 91
Gain from sale of shares in
subsidiaries
- - - - 1 042 1 042 - 1 042
Realization of financial asset
at fair value through OCI
- - - -798 798 - - -
Other changes from
subsidiaries
- - - 2 342 345 209 553
Dividends paid - - - - -38 -38 - -38
Closing balance at 31.12 224 8 -64 3 4 848 5 019 518 5 536
2022
Opening balance at 01.01 224 10 -63 -47 3 240 3 364 545 3 909
Net Profit for the Period - - - - 37 37 -1 36
Total Other Comprehensive
Income (OCI)
- - - -20 - -19 -5 -25
Gain from sale / dividend in
kind of shares in subsidiaries
- - - - 163 163 - 163
Other changes from
subsidiaries
- - - 3 24 27 19 45
Dividends paid - - - - -253 -253 -24 -277
Closing balance at 31.12 224 10 -63 -64 3 210 3 317 534 3 851

Note 7 Consolidated statement of changes in equity

Amount in MNOK

2022 2021
YTD YTD
Interest income, I/C 1
Interest income 4 1
Currency exchange income 19
Gain on partial sale of subsidiaries 1042
Gain on divdend in kind of shares in subsidiaries 163
Dividend income 3
Dividend income I/C 94
Total 264 1063

Note 8 Finance income, Parent Company

Amount in MNOK

Alternative Performance Measures

Volue ASA and Tekna Holding ASA present alternative performance measures as supplement to measures regulated by IFRS. The alternative performance measures are presented to provide a better insight and understanding of operations, financial positions and the basis for future developments.

THE DEFINITIONS OF THESE MEASURES ARE AS FOLLOWS:

Volue:

Adjusted EBIDA: In order to give a better representation of underlying performance, EBITDA is adjusted with non-recurring items. Note that adjusted EBITDA does not include estimate one-off loss revenues due to the cyber-incident in 2021 (only relevant for 2021 figures).

ARR: Annual Recurring Revenues is defined as revenues from recurring contracts including software as a service.

SaaS: Software as a service. SaaS revenues are defined as revenues from software hosted by Volue and distributed

through web applications.

Tekna:

Adjusted EBITDA: EBITDA adjusted for costs related to the IPO and uplisting, non-recurring legal costs, and IT expenses related to the cloud software IFRS reclassification.

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