Nordic Financials ASA — Earnings Release 2018

Aug 31, 2018

Interim report Q2 2018

Interim report Q2 2018

Aega ASA: Second quarter and half-year results 2018

31 August 2018 - Despite solar radiation well below historical average in the period, Aega delivered its best ever net financial result in the second quarter of 2018.

Revenues in the second quarter were EUR 1.11 million, an increase of 6.65% from the corresponding quarter last year (Q2 2017: EUR 1.04 million). The EBITDA result ended at EUR 837 000 (EUR 544 000), while net profit in the quarter ended at EUR 201 000, which is 118% higher than second quarter last year (EUR 92 000).

Solar radiation was well below historical average in the second quarter, resulting in 9% lower electricity output compared to the same quarter last year, adjusted for installed capacity.

"The improved financial result is primarily driven by reduced operating costs, which has been our main priority during the past two quarters," says Markus Enge, CEO of Aega.

Total operating costs amounted to EUR 268 000 in the second quarter 2018, versus EUR 493 000 in the corresponding quarter in 2017. This cost reduction was achieved despite operating one more solar park in the second quarter this year, and making several smaller investments into maintenance and upgrades that had previously been deferred because of poor liquidity in the company.

As mentioned in both the Q4 2017 and Q1 2018 quarterly reports, when the new board of directors in Aega was formally appointed on 28 December 2017, it immediately initiated an optimisation programme to reduce the company's cost base and resolve outstanding debts, with the objective of obtaining a positive cash flow going forward.

"The board and management are satisfied with profit being in the black. However, there is still an upside potential both with regards to further cost reductions and increased throughput from our solar plants. We will maintain our focus on maximising the cash flow from the plants," says Enge.

Half-year results 2018

Revenues in the first half of 2018 were EUR 1.66 million, up from EUR 1.60 million in the second half last year. The first half of 2018 generated a loss of EUR 55 000 versus a loss of EUR 264 000 in the corresponding six-month period last year.

Strategic priorities

Subsequent to the second quarter, the board of directors have identified two new objectives for Aega:

1. Return Aega to a position where it can pay dividends to its shareholder by the end of the second quarter of 2019.

2. Facilitate company growth by capitalising fully on the infrastructure already in place. The board of directors is of the opinion that major share issues at current price levels is not attractive for the company's shareholders. Hence, the board and administration will start a process of evaluating different models for cooperation and/or investments that can contribute towards the growth of the company without diluting existing shareholders. New operating agreements and alternative methods of securing shareholdings in additional solar plants could be initiatives that satisfy Aega's growth requirements.

Please see enclosed for the full second quarter and half-year report for 2018.

ENDS

For further information, please contact:

Markus H Enge, CEO, tel: +47 40 06 48 20, email: mhe@aega.no