Nordic Financials ASA — Earnings Release 2017

May 24, 2017

AEGA ASA FIRST QUARTER 2017

24 May 2017

Agenda

• Q1 highlights
• Business overview
• Financial review
• Guidance
• Q & A

Highlights from the quarter

Key figures

• Revenue: EUR 567k
• EBITDA: EUR 13k

Power production

• Power production of 1 701MWh in the first quarter of 2017
• 15% increase compared to the same period the year before
• 23% above investment base case

Closed the private placement and acquisition of key assets from Solex AS

• Taking over all activities directly in AEGA ASA
• Non-recurring cost of Euro 124k related to the acquisition
• All exposures/upsides going forward remains now within AEGA ASA
• Private placement of Euro 1 629k @ NOK 3.00/share effective in January 2017

Key events after the quarter

• Acquired Casale S.r.l., a 1MWp solar PV plant located in Emilia-Romagna
• Total production capacity increased to 7MWp or around 9GWh clean electric power produced per year

BUSINESS OVERVIEW Aega ASA – Q1 report

Pure play PV asset operator in Italy

Aega is an independent power producer (IPP) owning and operating solar power plants located in Italy;

• 80-85% of Aega's revenues come from 20 year long feed-in tariffs which secures a guaranteed payment for the electricity produced
• The remaining income is from electricity sale in the Italian spot market

• All power produced are discharged into the Italian national grid, and demand for all our produced power will always be present.

• Sub-optimally operated solar PV parks in the 1-5MWp segment

• Fixed, ground mounted installations
• Focus on assets located north of Rome
• Equity IRR above 15%

• The assets are ready financed

• 24/7 electronic and remote surveillance of the production at stringer level

• Quick response to any and all production deviations
• Modifications to improve and stabilise production

• Re-financing of existing debt

• Combining all parks into a portfolio for professional and efficient operation, maintenance, security and insurance services

• Commercial gains as well as operational
• To date, Aega has increased average production of acquired plants with >4%

Overview of current Solar PV portfolio

Seven high quality solar parks with a combined production capacity of 7MWp Close proximity secures operational efficiency

Solar PV Power Plants	Capacity (MWp)	FiT (EUR/kWh)
Montalto di Castro (Photo-Volt One S.r.l) • Acquired in Q3 2014
• Commenced commercial operation in August 2011	1.0	0.24
Terni (DT S.r.l) • Acquired in Q1 2015
• Commenced commercial operation in April 2011	1.0	0.32
Narni (Collesanto S.r.l) • Acquired in Q1 2015
• Commenced commercial operation in January 2011	1.0	0.32
Porchiano/Amelia (Collesanto S.r.l) • Acquired in Q1 2015
• Commenced commercial operation in April 2011	1.0	0.32
Magnacavallo (Jer-12 S.r.l) • Acquired in Q4 2015
• Commenced commercial operation in June 2012	1.0	0.17
Piano Mulino (Piano Mulino S.r.l) • Acquired in Q2 2016
• Commenced commercial operation in December 2009	1.0	0.29
Casale (Casale S.r.l) • Acquired in Q2 2017
• Commenced commercial operation in March 2011	1.0	0.30
Total	7.0

Purchase of Casale S.r.l

• Aega ASA (Aega) has on 21 April 2017 signed a contract to acquire all shares in Casale S.r.l, which owns a 1MWp solar PV plant in Mercato Saraceno, Emilia-Romagna
• Aega paid EUR 880k + NWC for the plant
• The revenue and EBITDA contribution from Casale S.r.l in 2017 to AEGA ASA's Financial statement is estimated to be around 75% of the numbers indicated below, since the plant was acquired on 21 April 2017.
• Casale S.r.l has a fixed interest swap related to the leasing agreement.

Estimates Casale S.r.l	2017 E
Operating revenue	EUR 413k
Operating result (EBITDA)	EUR 368k
Debt outstanding 1 January 2017	EUR 1 976k
Enterprise value	EUR 2 856k

Significant growth opportunites

Immediate pipeline of new solar power plants	Equity price indication (EURm)	Capacity (MWp):	Estimated equity IRR	Location:
Plants 1-3	4.23	6.5	15.5%	Marche/Piemonte/Lazio
Short-term pipeline of new solar power plants	Equity price indication (EURm)	Capacity (MWp):	Estimated equity IRR	Location:
Plant 4-10	8.31	9.4	15.0%	North of Rome
Long-term pipeline of new solar power plants	Equity price indication (EURm)	Capacity (MWp):	Estimated equity IRR	Location:

Long-term pipeline of new solar power plants	Equity price indication (EURm)	Capacity (MWp):	IRR	Location:
Plant 11-100	~81	89.3	15.0%	North of Rome

Significant growth opportunities cont'd

The company owns and operates 7MWp of installed capacity; has 105.2MWp at various stages in the pipeline and ca. 1 895MWp in additional opportunities

• In total, the management team estimates that roughly 2 000MWp out of the total 19 000MWp installed in Italy meets the company's investment criteria
• Aega's pipeline consists of 105.2MWp of current opportunities in various stages
• Immediate pipeline to acquire three high quality solar parks for an equity consideration of approx. EUR 4.23 million, with a combined capacity of 6.5MWp. For these three parks, Aega has signed exclusive agreements to acquire the plants and enter into a Share Purchase Agreement (SPA) within weeks. The DD process is well underway, and we are confident about the quality of these three parks in all respects.
• Short-term pipeline of combined 9.4MWp at an equity cost of EUR 8.31 million. These are parks we have visited, and for some, even DDs have been done. We are on «Term Sheet level» with all these parks, and we are ready to accelerate the process once we have security on available funding.
• Long-term pipeline of combined 89.3MWp at an expected equity cost of approx. EUR 81 million.

FINANCIAL REVIEW Aega ASA – Q1 report

Key financial results

Revenues of EUR 504k

• 46% increase compared to Q1 2016
• Production of 1 701MWh
• 15% increase compared to Q1 2016*
• 23% above base case when acquired
• Market price on electricity has in addition been high in the quarter, resulting in total revenues 24% above forecasts

EBITDA of EUR 13k

• Significant non-recurring cost in Q1 2017 due to APA with Solex ASA (124kEUR)
• Although higher than expected, lower production/revenue during the winter season

Financial development

Revenue EBITDA Non-recurring

* Adjusted for installed capacity

Power production

Power production of 1 701MWh

• Up 37% compared to same quarter last year
• One solar park added from Q3 2016 (20% increased production capacity)
• Minor optimizations/modifications done at several plants
• High irradiation in Q1 2017
• High Performance Ratio (PR) in average 83,0% for the quarter

Power production MWh/quarter

Base Case Actual

Opex continuing its downward trend

Opex is stabilising and downward trending. The figures include:

• Operation
• Maintenance
• Spare parts
• Security
• Insurance
• O&M Management (from Q2 onwards)

Base Case vs Actual vs Target Opex (k€/MWp/year)

Market price on electricity has rebounded somewhat

• The market price component of Aega's revenue represent around 15-20% of total revenue
• The average market price on electricity has increased 25% from Q4 2016 average to YTD average in 2017.

Spot price increase due to:

• Higher electricity demands
• Increased alternative power source cost

Aega uses currently a spot price of 0.04EUR/kWh (=40EUR/MWh) when assessing investment opportunities.

Average National Single Price Italy (EUR/MWh)

Financial results

• Naturally the Q2 and Q3 revenues are the highest because of the high irradiation and subsequent power production in the summer months.
• HQ cost and admin, are cost that to a large extent are fixed. Salary to administration and the Board in Oslo, auditors, accounting, listing fees etc. It is not expected to grow notably with MWp under management compared to other costs that are proportional with the size of the portfolio.
• Large non-recurring cost in 2016 due to purchase of Aega Yieldco, listing cost, due diligence cost regarding a large portfolio that the company did not end up buying, and costs related to restructuring of the group.
• Non-recurring in Q1 2017 are cost related to the asset purchase agreement with Solex AS. A goodwill of EUR
• 1 884k recognized due to the same transaction.

Key figures

(EUR 000')	Q1 16	Q2 16	Q3 16	Q4 16	FY 16	Q1 17
Revenue	390	662	857	578	2 487	567
EBITDA operations	160	455	590	290	1 495	413
HQ cost and admin	(121)	(185)	(96)	(141)	(543)	(277)
Non recurring cost	(637)	(509)	(76)	81	(1 141)	(124)
EBITDA	(599)	(239)	418	230	(189)	13

Cash flow

Cash flow from operating activities of negative EUR 48k

• Ordinary profit before tax loss of EUR 378k
• Depreciation of EUR 303k

Cash flow from investing activities of negative EUR 665k

• Solex transaction had negative cash effect of EUR 665k, due to Aega ASA assuming liabilities from Solex.

Cash flow from financing activities of EUR 1 439k

• Issuance of 4 991 184 shares at NOK 3.00 resulting in net proceeds of EUR 1.628 million.

Cash development from Q4 2016 to Q1 2017 (In EUR)

Balance sheet

• The assets on the balance sheet mainly consists of Balance sheet the portfolio of six individual solar parks in Italy
• The asset base has grown further following the acquisition of Casale in late April 2017
• The solar parks are financed with bank loans or leasing finance, where the assets of the parks are registered as collateral
• The solar parks are held in separate single purpose vehicles (SPVs), and each SPV has separate loan financing (ring fenced)
• Cash position of EUR 1 462k at the end of the first quarter of 2017
• Equity ratio of 41% in Q1 2017 compared to 31% previous year.

(EUR 000')	Q1 2017	31 Dec 2016
Property, plant and equipment	14 875 700	15 168 954
DTA and Goodwill	2 479 923	691 449
Receivables	1 111 085	1 104 031
Other current assets	796 872	1 002 556
Cash and short term deposits	1 462 192	688 066
Total assets	20 725 771	18 655 056
Long term loans	2 978 993	3 019 563
Leasing	7 025 567	7 182 426
Trade payables and other payables	501 203	629 451
Short term financing	964 895	963 660
Current tax	-	19 152
Derivative financial instruments	760 707	771 477
Total liabilities	12 231 365	12 585 729
Share capital	4 786 290	3 950 008
Share premium	8 329 427	6 524 409
Accumulated profit & loss	(5 003 098)	(4 737 873)
Foreign Currency translation reserve	381 788	332 784
Total equity	8 494 407	6 069 327

GUIDANCE Aega ASA – Q1 report

Q2 and 2017 guidance

Production		Revenue
	MWh		kEUR
Q2	2 944	Q2	954
2017	9 120	2017	2 992

• The above estimates are based on actual figures to date, and base case figures for the remainder of the relevant periods
• It is further based on the existing 7MWp portfolio only no further acquisitions included in the forecasts. Production from Casale is first included from 1 May 2017.

APPENDIX Aega ASA – Q1 report

(EUR)	Q1 2017	Q1 2016	FY 2016
Feed-In Tariff revenue	472 670	326 454	2 078 247
Sales of electricity	94 235	63 117	314 270
Other revenue	-	-	93 863
Revenues	566 905	389 571	2 486 380
Cost of operations	(72 343)	(59 160)	(358 516)
Sales, general and administration expenses	(357 895)	(291 652)	(1 176 135)
Acquisition and transaction costs	(123 784)	(637 375)	(1 141 020)
EBITDA	12 883	(598 616)	(189 293)
Depreciation, amortizations and write downs	(303 000)	(202 633)	(975 720)
Other Operating profit before OGL (EBIT)	(290 117)	(801 249)	(1 165 013)
Finance income	4 026	362	2 246
Finance costs	(99 492)	(73 421)	(577 983)
Mark to market adjustment derivatives	7 996	(22 232)	45 950
Net foreign exchange gain/(losses)	(461)	(417)	(70 229)
Profit before income tax	(378 048)	(896 957)	(1 765 029)
Income tax gain/(expense)	21 833	(692)	(106 249)
Profit/(loss) for the period	(356 216)	(897 649)	(1 871 278)

Profit and loss Other comprehensive income

Q1 2017	Q1 2016	FY 2016
49 004	1 663	93 738
49 004	1 663	93 738
		(1 777 541)
(356 216)	(897 649)	(1 871 278)
(307 212)	(895 986)	(1 777 541)
(0.01)	(0.03)	(0.06)
42 489 081	27 360 295	31 078 951
	(307 212)	(895 986)

(EUR)	31 Mar 2017	31 Dec 2016
Property, plant and equipment	14 875 700	15 168 954
Intangibles and DTA	596 239	635 776
Goodwill	1 883 684	-
Other long term assets	-	-
Non-current assets	17 355 623	15 804 730
Receivables	1 111 085	1 104 031
Other current assets	796 872	1 039 077
Cash and short term deposits	1 462 192	688 066
Current assets	3 370 149	2 831 174
TOTAL ASSETS	20 725 771	18 635 904

Balance sheet – Assets Balance sheet – Equity and liabilities

(EUR)	31 Mar 2017	31 Dec 2016
Share capital	4 786 290	3 950 008
Share premium	8 329 427	6 524 409
Paid in capital	13 115 717	10 474 417
Accumulated profit & loss	(5 003 098)	(4 737 873)
Other equity	-	-
Foreign Currency translation reserve	381 788	332 784
Other equity	(4 621 311)	(4 405 089)
Total equity	8 494 407	6 069 327
Long term loans	2 978 993	3 019 563
Leasing	7 025 567	7 182 426
Other long term debt	-	-
Total non-current liabilities	10 004 561	10 201 990
Trade payables and other payables	501 203	629 451
Short term financing - interest bearing	964 895	963 660
Derivative financial instruments	760 707	771 477
Other current liabilities	-	-
Total current liabilities	2 226 804	2 364 588
Total liabilities	12 231 365	12 566 578
TOTAL EQUITY AND LIABILITIES	20 725 771	18 635 905

Cash flow

(EUR)	Q1 2017	Q1 2016	FY 2016
Ordinary profit before tax	(378 048)	(896 957)	(1 765 029)
Paid income taxes	-	(10 389)	(138 341)
Depreciation	303 000	202 633	975 720
Write down	-	637 375	-
Changes in trade receivables and trade payable	(135 302)	(69 218)	(536 670)
Changes in other accruals	162 166	(194 075)	(8 995)
Cash flow from operations	(48 184)	(330 631)	(1 473 315)
Acquisition net of cash acquired	(665 336)	93 551	(1 106 449)
Cash flow from investments	(665 336)	93 551	(1 106 449)
Proceeds from issue of share capital	1 636 072	-	3 148 217
Dividends or shareholder distributions	-	76 114	(732 091)
Repayment of loans	(197 429)	(128 496)	(629 553)
Cash flow from financing	1 438 643	(52 381)	1 786 574
Cash at beginning of period	688 066	1 387 494	1 387 519
Net currency translation effect	49 004	(1 663)	93 738
Net increase/(decrease) in cash and cash equivalents	725 123	(289 461)	(793 191)
Cash at end of period	1 462 192	1 096 369	688 066

Change in equity

					Foreign
	Share	Share	Other	Other	Currency translation	Total
(EUR)	capital	premium fund	paid in equity	equity	reserve	equity
Equity 2016	3 950 008	6 524 408	(4 737 873)	332 784	6 069 327	1 094 096
Share issue Aega Yieldco 3 January 2017	498 749	1 129 951			1 628 700	(308 201)
Share issue asset purchase	337 534	675 068	90 990		1 103 591	3 492 009
Profit (loss) After tax			(356 216)		(356 216)	(385 655)
Other comprehensive income				49 004	49 004	267 128
Equity 31 March 2017	4 786 290	8 329 427	(5 003 099)	381 787	8 494 406	4 681 449
(EUR)	Share capital	Share premium fund	Other paid in equity	Other equity	Foreign Currency translation reserve and derivates	Total equity
Equity 2015	60 442	4 829 919	(387 621)	239 046	4 741 786	4 681 449
Share issue Aega Yieldco 7 January 2016	4 710	562 342			567 052	932 169
Acqusition NOFIN, inc. Increase denomination	2 969 549	198 380	(2 478 974)		688 955	(416 045)
Dividends or distribution to shareholders		(732 091)			(732 091)	2 751 590
Capital increase 30 May 2016	915 307	1 665 859			2 581 166	(1 762 421)
Profit (loss) After tax			(1 871 278)		(1 871 278)	(180 050)
Other comprehensive income				93 738	93 738
Other					-	162 121
Equity 2016	3 950 008	6 524 408	(4 737 873)	332 784	6 069 327	6 168 813

Aega ASA

Visit us at: Oscars gate 52, 0258 Oslo, Norway | www.aega.no Markus H. Enge | CFO | +4740064820 | mhe@aega.no Rolf M. Normann | CEO | +4791344134 | rmn@aega.no