Elmera Group ASA

Registration Form • Feb 28, 2018

FJORDKRAFT INTENDS TO APPLY FOR A LISTING ON THE OSLO STOCK EXCHANGE

FJORDKRAFT INTENDS TO APPLY FOR A LISTING ON THE OSLO STOCK EXCHANGE

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FJORDKRAFT INTENDS TO APPLY FOR A LISTING ON THE OSLO STOCK EXCHANGE

Bergen, 28 February 2018: Fjordkraft Holding ASA ("Fjordkraft" or the "Company") today announces its intention to launch an initial public offering (the "IPO") of its ordinary shares and to apply for a listing on the Oslo Stock Exchange.

Please see attachment at www.newsweb.no for the full 'intention to float' release.

Fjordkraft is the number one brand for electricity retailing in the Norwegian consumer market and the number two brand in the business market. The Company supplies electricity to an estimated more than 1.2 million people through ca. 530,000 delivery points in households, businesses and public entities across Norway. Fjordkraft's vision is to supply electricity to more than two million people and to be Norway's most attractive electricity retailer for its customers, employees and shareholders.

Fjordkraft has delivered strong growth in net revenue from NOK 336 million in 2012 to NOK 924 million in 2017, with EBIT increasing in the same period from NOK 31 million to NOK 384 million (excluding a loss of NOK 30 million relating to the launch and build-up of mobile services in 2017). This significant increase has been realised through continuous investment in brand building, technical infrastructure and sales resources. This has contributed to increased brand awareness and solid growth of its customer base which is also a reflection of the Company's successful operational excellence efforts. The Company's Consumer and Business segments represented a combined 97% of net revenue in 2017, with New Growth Initiatives comprising the remaining 3%.

Investment highlights

(i) Operating in the attractive Norwegian electricity retail market, with a non-discretionary and non-cyclical demand profile and with stable and moderate underlying growth

(ii) The Norwegian electricity retail industry was deregulated more than 20 years ago and is highly developed and competitive, benefitting Fjordkraft which has sufficient scale to handle a tough competitive environment effectively - evidenced also by its solid growth and increase in market share over recent years

(iii) A well proven business model, providing a combination of need-to-have electricity and attractive value added services that enable differentiation and support a robust business with ability to realise attractive profitability

(iv) The leading electricity retail brand in the Norwegian consumer market and a clear number two in the business segment

(v) An unmatched distribution platform for the sale of electricity, including more than 200 sales professionals, ca. 750 external real estate brokers and a wide group of external sale- and benefit programme partners adding to Fjordkraft's sales reach

(vi) A strong position for continued growth and gain in market share based on its leading brand and distribution capabilities, its large consumer and business customer base and scale that enables cost efficient operations and adds to the robustness of its leading position

(vii) Ambition to take lead in the expected consolidation of a fragmented Norwegian electricity retail market, with regulatory developments adding to the push towards consolidation

(viii) A highly experienced management team with an average experience of more than 15 years and a combined experience of more than 135 years

(ix) A robust asset-light business model with limited capital expenditure requirements, stable underlying demand and limited exposure to changes in electricity system prices

(x) Solid cash generation supporting attractive and increasing dividend, based on a policy of paying out more than 80% of adjusted net income

"We are proud of the position that we have developed for Fjordkraft over the recent years. We have established ourselves as the leading brand within electricity retailing in the consumer market and as a strong number two in the business segment in Norway. Our entire organisation has a clear ambition to continue delivering profitable growth based on our strong market position, large customer base and scale benefits. We also have a clear ambition to take active lead in consolidating the Norwegian electricity retail market. We therefore look forward to further developing Fjordkraft as an Oslo Stock Exchange listed company, and to invite new shareholders to take part in our vision of having more than two million end-customers and of being Norway's most attractive electricity retailer", says Rolf Barmen, CEO of Fjordkraft.

"The board of directors is impressed by the efforts made by Fjordkraft's employees and management in delivering on the company's strategy and targets. These efforts have resulted in a very favourable development in Fjordkraft's market position, brand awareness and results over recent years. Fjordkraft's board of directors and owners have a strong belief in the company's potential going forward. We therefore look forward to inviting new shareholders to participate in the company's future development through the contemplated offering of shares and listing on the Oslo Stock Exchange", says Robert Olsen, Chairman of the board of directors of Fjordkraft.

The IPO will comprise an offering of existing shares sold by the Company's current shareholders BKK AS (currently holding 48.85%), Skagerak Energi AS (48.00%) and Statkraft Industrial Holding AS (3.15%). The offering will comprise a public offering to institutional and retail investors and to eligible employees in the Fjordkraft group, and a private placement to certain institutional investors internationally. Electricity retailing is a strategic part of BKK's and Skagerak Energi's businesses and these two companies therefore intend to continue as significant shareholders of the Company following the IPO.

ABG Sundal Collier ASA ("ABGSC") is acting as Sole Global Coordinator and Joint Bookrunner in the IPO. SpareBank 1 Markets AS is acting as Joint Bookrunner (together with ABGSC, the "Joint Bookrunners"). Advokatfirmaet Schjødt AS is acting as legal advisor to the Company. Advokatfirmaet Wiersholm AS is acting as legal advisor to the Joint Bookrunners.

Please see attachment at www.newsweb.no for full 'intention to float' release.