Arendals Fossekompani

Investor Presentation • May 16, 2025

Disclaimer

This Presentation includes and is based on forward-looking information and statements that are subject to risks and uncertainties that could cause actual results to differ from the projected results. These statements and this Presentation are based on current expectations, estimates and projections about global economic conditions and the economic conditions of the regions and industries that compose major markets for the businesses of Arendals Fossekompani ASA and its subsidiaries and affiliates (the "AFK Group"). 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 the businesses of the AFK Group, energy prices, 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 the AFK Group 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.

The AFK Group is making no representation or warranty, express or implied, as to the accuracy, reliability or completeness of the Presentation, and neither the AFK Group nor any of its directors, officers or employees will have any liability to you or any other persons resulting from the use of the Presentation.

Arendals Fossekompani around the world

• Long term industrial investment company
• Invest in B2B, energy and/or technology
• Sustainable value creation
• Active ownership

Main investments 7 (1 listed) Employees ~2,400

Countries 25

Listed on the Oslo Stock Exchange

1913

Head Office Arendal, Norway

Our portfolio

Diversified portfolio within energy and technology

Digital energy and infrastructure solutions for the green transition

Ownership 40%

Leading international tech company within

AFK ownership Head office Skien, Norway

95%

induction heating and induction charging

Ownership 70%

Global technology driven powder producer for 3D printing, microelectronics and battery anodes

Headquarter Sherbrooke, Canada

Market cap (31.03) 734 MNOK Listed at Oslo Børs

Cyber secure space & satellite communication services anywhere

Ownership 80%

Head office London, UK

Head office Arendal, Norway

Active investor and transformer of data intensive companies

Ownership 96%

500 GWh hydropower production providing steady cash flow

Ownership 100%

Head office Arendal, Norway

Portfolio of property investments and development projects

Ownership 100% Head office Arendal, Norway

An attractive and diversified portfolio

A portfolio containing both stabile cash flow generating companies and growth prospects

Bubble size indicates revenue twelve months * EBIT margin for Volue adjusted for non-recurring items

Highlights Q1 2025

FINANCIAL

• Group revenue: NOK 969 m (1,027m). Down 6% YoY
• Group operating profit (EBIT): NOK 75m (115m), margin 8% (11%)
• Dividend: NOK 1.00 per share for Q1. Moving to annual dividend as of Q2-25

PORTFOLIO HIGHLIGHTS

• Volue: 13% revenue growth and cash-EBITDA margin of 16% (8%)
• ENRX: Volatile market hit revenue, resulting in EBIT of EUR 0,3m (3,7m)
• Tekna: Materials; 7% rev. growth and order intake up 73%. Weak System sales
• NSSLGlobal: Continued high activity levels. Operating margin of 16% (20%), driven by timing of projects and revenue composition
• Hydro: in line with Q1 2024

Development last 5 quarters Revenue and other income (MNOK) and operating margin

AFK ownership 40%

Q1 update Oslo, Norway Growth & margin expansion

Development last 5 quarters

Revenue and other income (MNOK) and operating margin

Head office

• Total revenue growth of 13% YoY
  • ARR: NOK 306m (284m), 8% growth YoY, 75% of total revenue
  • SaaS revenue: NOK 178m, 42% growth YoY, 44% of total revenue
• Cash-EBITDA margin expanded to 16% (8%), realizing the effects of the significant cost reductions done in Q4
• Going forward, Volue expects organic growth of around 15% continued margin expansion and an active M&A agenda within its core segments

AFK ownership 95%

Head office

Q1 update Skien, Norway Challenging market conditions

Development last 5 quarters

Revenue and other income (MNOK) and operating margin

• Total operating revenue: EUR 37.3m (46.4m), down 19% YoY. Decline driven by lower Heart deliveries in Europe and Asia, as well one-off revenue recognition in Charge in Q1-24
• Operating profit (EBIT): EUR 0.3m (3.7m), due to low revenue levels. Cost reduction program initiated.
• Order intake: EUR 34.4m (35.1m)
• Order backlog: EUR 66m (74m). High deliveries in Q4-24, in combination with reduced order intake.
• Political turmoil and unstable tariff schemes expected to continue to drive uncertainty for ENRX's customers. As a result, longer decision-making processes and decreased investment appetite could have a negative effect on order intake in the short to medium term.

AFK ownership 80%

Head office

Q1 update

London, United Kingdom Contract wins

Development last 5 quarters Revenue and other income (MNOK) and operating margin

• Revenue: GBP 21.7m (21.8m). Continued high airtime and high activity level within governmental projects
• Operating profit (EBIT): GBP 3.1m (4.3m), margin of 16% (20%). Margin decrease driven primarily by timing of project milestones and revenue composition
• During the quarter, NSSLGlobal won contracts of GBP 14.2m across the corporate, government and maritime sectors
• Contract wins including an 8-year critical infrastructure project for large European utility, representing an entry into a new market for NSSLGlobal
• Ongoing shift in airtime revenue model is expected to impact relative margins going forward (increased capacity at lower price per gigabyte). Significant growth opportunities within its Projects division in the coming years

Currency rates (NOK/GBP) Average Q1 2025: 13.94. Average Q1 2024: 13.33. End Q1 2025: 13.66. End Q1 2024: 13.62.

AFK ownership 70%

Head office Sherbrooke, Canada Market cap (31.03) NOK 734 million

Q1 update Materials growth, but weak systems sales

Development last 5 quarters

Revenue and other income (MNOK) and operating margin

• Revenue: CAD 8.4m (8.7m), down 3% YoY
• Revenue decline due to low revenue and order intake for the Systems business. Materials grew by 7% YoY
• Adjusted EBITDA: CAD-0.8m (-2.8m)
• Order intake: CAD 12.8m (7.4m), driven by Materials
• Backlog: CAD 21.3m (22.9m). Materials backlog up 15% YoY
• Announcement of new CEO Claude Jean on 28 April 2025
• Profitability and capital discipline remain top priority going forward
• Tekna currently exempt from US tariffs under United States-Mexico Canada Agreement (USMCA)

Currency rates (NOK/CAD) Average Q1 2025: 7.72. Average Q1 2024: 7.80. End Q1 2025: 7.35 End Q1 2024: 7.94.

Listed at Oslo Børs

AFK ownership 100%

Head office Arendal, Norway

Q1 update In line with Q1 2024

Price and power generation*

Development last 5 quarters Revenue and other income (MNOK) and operating margin

• Total revenue: NOK 127m (122m), 5% growth YoY
• Operating profit (EBIT): NOK 93m (95m), margin 74% (78%)
• Hydropower production: 157.5 GWh (160.4 GWh).
• Average electricity prices (NO2 region): EUR 66.5/MWh (64.5 EUR/MWh), with large price variations
• Rehabilitation of Flatenfoss Dam started in Q1

AFK ownership

96%

Head office Arendal, Norway Portfolio

Q1 update

ARR Growth

Development last 5 quarters

Revenue and other income (MNOK) and operating margin

• Annual recurring revenues (ARR) for the portfolio: NOK 61 million (44 million), representing a 40% increase compared to Q1 last year
• ARR growth driven by underlying demand and customer growth, introduction of new products and upselling to existing customers
• Kontali: ARR: NOK 20 million (17 million), corresponding to a growth of 18% YoY. Number of active users on Kontali's insight portal, Kontali Edge, up 100% over the last 12 months
• Veyt: ARR: NOK 23 million (14 million), corresponding to a growth of 57% YoY. Several key deals closed in Q1
• Factlines: ARR: NOK 12 million (9 million), corresponding to a growth of 38% YoY
• Utel: ARR: NOK 6 million (4 million), corresponding to a growth of 62% YoY
• All portfolio companies in the Alytic group remain on a growth trajectory, benefitting from prior investments in competence and technology

13

Varied impact from geopolitical uncertainty

Q1

• Adjusted EBITDA improvement in portfolio companies Volue and Tekna
• Reduced top line and operating profit from ENRX, driven by softer markets in Europe and Asia
• NSSLGlobal operating profit impacted by Project timing and sales mix

Outlook

Arendals Fossekompani expects both revenue and operating profit for the Group in 2025 to be lower than 2024.

The decline is driven mainly by forecasted lower power production in AFK Vannkraft and expected reduction in operating profit from NSSLGlobal

Operating Profit (MNOK)	Q12025	Q1 2024	Difference
	4	46	-42
	47	57	-10
	93	95	-2
	-23	-24	+1
	-21	-26	+5
	0	-4	+4
Arendals Fossekompani Consolidated	75	115	-40
	39	25	+14

Net cash position and NOK 2,9bn in liquidity

2 913

Avaliable liquidity

Guiding

Total revenue and operating profit from Arendals Fossekompani Group in 2025 is expected to be lower than 2024.

• Volue expects revenue and operating profit to be higher in 2025 compared to 2024.
• ENRX expects revenue and operating profit in 2025 to be in line with 2024
• NSSLGlobal expects 2025 revenue and operating profit to be lower than in 2024
• Tekna expects revenue to be higher in 2025 than in 2024, and operating profit to improve in 2025 compared to 2024
• AFK Vannkraft expects revenue and operating profit to be lower in 2025 compared to 2024, driven by normalization in production level compared to 2024

Our focus areas

Develop value in our existing portfolio companies

Optimize our portfolio to ensure optimal risk adjusted return and balance the capital cycle

Capture structural opportunities both on portfolio level and on parent level

Ensure strong balance sheet and financial flexibility

VISITING ADDRESS Langbryggen 9, 4841 Arendal POSTAL ADDRESS Box 280, 4803 Arendal +47 37 23 44 00