Nordic Financials ASA — Interim / Quarterly Report 2016

Feb 28, 2017

Aega ASA Q4 REPORT – 2016

Contents

	About Aega ASA	3
Q4 in short		3
	Highlights from the reporting period	3
Financial review		4
	Explanation of the accounting structure of the consolidated interim report	5
	Aega Portfolio as of Q4 2016	6
Financials		7
Profit and loss		7
Balance sheet		8
Cash flow		9
Change in equity		10
Note 1:	Summary of significant accounting policies	11
Note 2:	Operational cost breakdown	11
Note 3:	Property plant and equipment	11
Note 4:	Group structure	12
Note 5:	Cash and cash equivalents	12
Note 6:	Power production	12
Note 7:	Related party transactions	13
Note 8:	Trade receivables and other current assets	13
Note 9:	Financing overview	13
	Note 10: Shares and shareholder information	14
	Note 11: Tax issues	14
	Note 12: Subsequent events	14
	Investor contact	15

About Aega ASA

Aega ASA is a solar utility company listed on Oslo Axess. Aega ASA acquires and operates solar power plants, benefitting from government solar incentives – so called Feed-in-Tariffs. The company currently owns a portfolio of six solar parks located in Italy, with a combined production capacity of 6MWp. Aega ASA mainly invests in small operating solar parks (below 5MWp capacity), meeting the company's strict investment criteria. The company aims to reach a target of 20MWp before the end of 2017, considering the current favourable conditions for the secondary market in Italy. The headquarters are in Oslo (NO) and Trento (IT).

Q4 IN SHORT

• Production output was 6.7 per cent over budget in Q4 and 4.7 per cent over budget in the full year 2016. OPEX in line with previous quarters.
• At the end of the fourth quarter the company had a pipeline of 12.4MWp
• Aega ASA initiated a share offering, that raised approximately EUR 1.7m
• FY 2016 was affected by approx. EUR 1.2m in non-recurring cost mainly related to listing of Aega Yieldco and M&A costs.

HIGHLIGHTS FROM THE REPORTING PERIOD

Operations

Production was 4.7 per cent above the seasonally adjusted base case production as of 31 December 2016, due to (i) higher irradiation, (ii) close performance monitoring and (iii) the effect of the company's optimization measures. Revenues were 2.4 per cent higher than budget, due to higher production than base case.

Normal operations during the quarter, and uptime was close to 100 per cent. The solar parks were unaffected of the nearby earthquakes and adverse weather.

Corporate events

On 28 December 2016, Aega paid NOK 0.03 per share.

In December, the company closed a private placement of ca EUR 1.7m in new share capital. This was facilitated by Sparebank 1 Markets and Pioner Kapital. The new available funds will be used for additional solar park acquisitions.

Outlook

Aega ASA's ambition is to reach a production capacity of 20MWp within the end of 2017. The 20MWp target will be the company's next milestone in its growth plan.

The management team has worked extensively with screening and evaluation of new investment opportunities. Potential investments that meet the company's investment criteria are abundant, and the management team has now identified new investments with a total production capacity of 12.4MWp where attractive terms are agreed, and preliminary technical and legal screening have been performed. The company does not see investment opportunities as a limiting factor to the company's growth plans.

Key figures

	Unaudited	Unaudited
(EUR 000')	Q4 2016	Q4 2015
Electricity production (MWh)	1 327	996
Total revenues	498	299
Cost operations 1	(134)	(32)
Operating profit	364	267
Other costs Italy	(38)	(30)
Management fee	(61)	(69)
EBITDA Operations	264	168
HQ cost and adm. cost	(91)	49
Non recurring	25	(411)
EBITDA	198	(194)
Net profit	(59)	(585)
Quarterly yield solar parks 2	1.77%	1.29%
Total Assets	18 686	16 467
Equity (%)	33%	28%
Net interest bearing debt	10 223	9 435

Earnings per share (EUR) 3	0.01	(0.08)
Stock price end of quarter (NOK)	3.05	NA
Distribution to shareholders in the quarter (NOK)	0.030	0.31
Quarterly distributed yield	0.98%	NA

1 = In the fourth quarter Aega has paid extra O&M cost due to transition to a new operator

2 = EBITDA Operations / Power plant and equipment

3 = Total comprehensive income/ Average number of shares

FINANCIAL REVIEW

On 20 January 2016, Aega ASA (former Nordic Financials ASA) acquired Aega Yieldco AS in a reverse takeover transaction. For accounting purposes Aega Yieldco AS has been identified as the acquiring party. Therefore, comparison figures are from Aega Yieldco AS's business in Q4 2015. It should be noted that the Aega group in Q4 2015 only had revenues from five solar power parks, while in Q4 2016 the company owns and operates six solar power parks. This means that comparing financial figures quarter to quarter provides limited information on financial performance.

Total revenues in Q4 2016 were EUR 498k compared to EUR 299k in the same period last year. The total power production was 1 327MWh, which is 6.7 per cent higher than the seasonally adjusted base case production of 1 244MWh.

Cost of operations in Q4 2016 were EUR 134k compared to EUR 32k in the same period last year. In the fourth quarter Aega has paid extra O&M cost due to transition to a new operator. Going forward the company aims to have a cost of operations of roughly EUR 75k a quarter assuming 6MWp. The company's non-recurring costs/income where positive EUR 25k due to that the company was listed in the Norwegian VAT register. Therefore, reversal of previously expensed VAT had effect in Q4.

Net financial income was negative EUR 154k in Q4 2016, compared to negative EUR 141k in Q4 2015. Pre-tax profit was negative EUR 84k in Q4 2016 and the tax gain was EUR 26k, resulting in a net loss of EUR 59k in the quarter compared to a loss of EUR 585k in Q4 2015.

Earnings per share (EPS) was EUR 0.01 in Q4 2016, compared to a loss of EUR 0.08 per share in the same period last year.

The assets on the balance sheet consist of the portfolio of six individual solar parks in Italy, one remaining financial investments and cash bank deposits. The solar parks are financed with bank loans or leasing finance, where the assets of the parks are registered as security. The parks are held in separate single purpose companies, and each company has a separate loan financing (ring fenced).

The company had cash and short term deposits of EUR 688k at the end of Q4 2016 compared to EUR 1 387k one year earlier.

Comments on remaining financial investments

The company holds shares in the listed company Wilson ASA. In accordance with the Norwegian Public Companies Act, requiring a majority owner with more than 90 per cent holding to make a compulsory offer to buy the remaining shares, the company has required the majority owner of Wilson ASA to buy the remaining shares. Court proceedings to determine fair value of the shares were held in April 2016 and the court's ruling concluded on a fair value of NOK 10.60 per share, and that Aega ASA shall bear its own and the other party's costs in connection with the proceedings. Aega ASA has appealed the ruling. The appeal has been set for the 7 and 8 of March. The company is of the opinion that the fair value should be around NOK 22–23 per share, consistent with Wilson ASA's booked equity. In the accounts, Aega ASA is using a valuation of NOK 10.60 per share and has made a provision for the other party's costs according to the appealed ruling.

EXPLANATION OF THE ACCOUNTING STRUCTURE OF THE CONSOLIDATED INTERIM REPORT

Company:		2015–01 2015–02 2015–03 2015–04 2015–05 2015–06 2015–07 2015–08 2015–09 2015–10 2015–11 2015–12 2016–1 2016–2 2016–3 2016–4 2016–5 2016–6 2016–7 2016–8 2016–9 2016–10 2016–11 2016–12
AEGA Energy Prima AS	Founded 28.4.2014
Photo-Volt One Srl Purchased 14.8.14
DT Srl	Consolidated from 1.4.15
AEGA Yieldco AS		Consolidated from 1.11.15
AEGA Energy Seconda AS		Consolidated from 1.11.15
Collesanto Srl		Consolidated from 1.11.15
AEGA Energy Terza AS		Consolidated from 1.11.15
JER-12 Srl		Consolidated from 1.11.15
AEGA ASA (NOFIN)		Consolidated from 20.1.16
Piano Molino Srl		Consolidated from 1.7.16

Coloured marking signals that the company accounts is included in the group-consolidated accounts.

As illustrated in the timeline above the Q4 report is based on Aega Energy Prima AS being identified as the acquirer of first Aega Yieldco AS and then Aega Yieldco AS as the acquirer of Nordic Financials ASA. This assessment is based on a substance over form consideration. The main argument for having Aega Energy Prima AS and later Aega Yieldco AS as the acquirer is that the shareholders in the acquired company actually gain a material stake in the acquiring company, and the business of the acquired company is the one that prevails. In addition Aega Energy Prima AS has the longest history in the segment of the "new" Aega ASA.

Aega Energy Prima AS was established 28 April 2014 and bought the first solar power park in August 2014, Photo-Volt One Srl. At the end of Q1 2015 it bought the second park DT Srl. In November 2015, Aega Yieldco AS purchased Aega Prima Energy AS, Aega Seconda Energy AS and Aega Terza Energy AS, with consideration in shares, for accounting purposes. In January 2016 Aega Yieldco AS was purchased by Nordic Financials ASA with consideration in shares (now Aega ASA). The transaction was considered a reverse takeover for accounting purposes.

AEGA PORTFOLIO AS OF Q4 2016

Photo-Volt One Srl

Plant Name:	Montalto
Company:	Photo-Volt One Srl
Municipality:	Montalto di Castro
Council:	Lazio
Power (kWp):	997.5
Connection date:	12 August 2011
Type	Ground mounted
Feed-in tariff (€/KWh): 0.242

DT Srl

Plant Name:	DT
Company:	DT Srl
Municipality:	Terni
Council:	Umbria
Power (kWp):	995.22
Connection date:	8 April 2011
Type	Ground mounted
Feed-in tariff (€/KWh): 0.318

Collesanto Srl

Plant Name:	Porchiano
Company:	Collesanto Srl
Municipality:	Amelia
Council:	Umbria
Power (kWp):	997.6
Connection date:	29 April 2011
Type	Ground mounted
Feed-in tariff (€/KWh): 0.318

Collesanto Srl

Plant Name:	Collesanto Narni
Company:	Collesanto Srl
Municipality:	Narni
Council:	Umbria
Power (kWp):	990
Connection date:	11 January 2011
Type	Ground mounted
Feed-in tariff (€/KWh): 0.318

JER-12 Srl

Plant Name:	Magnacavallo
Company:	Jer-12 Srl
Municipality:	Magnacavallo
Council:	Lombardia
Power (kWp):	992.64
Connection date:	28 June 2012
Type	Ground mounted
Feed-in tariff (€/KWh): 0.167

Piano Mulino Srl

Plant Name:	Piano Mulino
Company:	Piano Mulino Srl
Municipality:	Casoli
Council:	Abruzzo
Power (kWp):	999.58
Connection date:	30 December 2009
Type	Ground mounted
Feed-in tariff (€/KWh): 0.292

Financials

Profit and loss

		Unaudited	Unaudited	Unaudited	Unaudited
(EUR)	Note	Q4 2016	Q4 2015	2016	2015
Feed-In Tariff revenue	1, 6	366 447	259 977	2 030 159	799 831
Sales of electricity	1, 6	60 910	36 969	294 062	140 314
Other revenue		70 444	2 049	81 971	2 049
Revenues	1, 6	497 801	298 995	2 406 192	942 194
Cost of operations	2	(133 999)	(31 858)	(316 257)	(90 146)
Sales, general and administration expenses	2, 7	(190 802)	(49 998)	(1 114 276)	(172 745)
Acquisition and transaction costs	2	25 075	(410 955)	(1 196 872)	(431 653)
EBITDA		198 075	(193 816)	(221 213)	247 650
Depreciation, amortizations and write downs	3	(296 134)	(197 567)	(998 427)	(373 613)
Other Operating profit before OGL (EBIT)		(98 059)	(391 383)	(1 219 640)	(125 963)
Finance income		-	17 690	2 294	17 692
Finance costs	9	(154 374)	(159 129)	(560 502)	(262 750)
Mark to market adjustment derivatives	9	132 314	1 035	46 079	24 839
Net foreign exchange gain/(losses)		35 642	106 653	(71 825)	165 836
Profit before income tax		(84 477)	(425 134)	(1 803 594)	(180 346)
Income tax gain/(expense)		25 693	(160 292)	41 174	(180 469)
Profit/(loss) for the period		(58 784)	(585 426)	(1 762 421)	(360 816)
Other comprehensive income
Currency translation differences		484 346	358 499	(226 129)	242 289
Other comprehensive income net of tax		484 346	358 499	(226 129)	242 289
Total comprehensive income		425 562	(226 926)	(1 988 550)	(118 526)
Profit for the period attributable to:
Equity holders of the parent company		(58 784)	(585 426)	(1 762 421)	(360 816)
Total comprehensive income attributable to:
Equity holders of the parent company		425 562	(226 926)	(1 988 550)	(118 526)
Earnings per share		0.01	(0.076)	(0.06)	(0.086)
Avg. no of shares	10	35 890 957	2 978 193	31 078 951	1 382 798

Balance sheet

		Unaudited	Unaudited
(EUR)	Note	31 Dec 2016	31 Dec 2015
ASSETS
Property, plant and equipment	3	14 894 551	13 017 982
Intangibles and DTA	11	384 059	539 848
Other long term assets		-	-
Non-current assets		15 278 610	13 557 831
Receivables	8	1 033 002	627 660
Other current assets	8	1 686 519	893 532
Cash and short term deposits	5	688 104	1 387 494
Current assets		3 407 625	2 908 685
TOTAL ASSETS		18 686 234	16 466 516
EQUITY AND LIABILITIES
Share capital	10	3 823 384	60 442
Share premium	10	6 879 843	5 090 574
Other paid in equity		49 211	(260 655)
Paid in capital		10 752 438	4 890 361
Accumulated profit & loss		(4 599 784)	(451 201)
Other equity		-	-
Foreign Currency translation reserve		16 160	242 289
Other equity		(4 583 624)	(208 911)
Total equity		6 168 815	4 681 449
Long term loans	9	3 028 157	3 185 958
Leasing	9	7 195 140	6 249 475
Other long term debt	9	-	-
Total non-current liabilities		10 223 297	9 435 433
Trade payables and other payables		581 148	786 024
Short term financing - interest bearing		941 499	772 214
Derivative financial instruments		771 477	791 395
Other current liabilities		-	-
Total current liabilities		2 294 123	2 349 634
Total liabilities		12 517 421	11 785 066
TOTAL EQUITY AND LIABILITIES		18 686 235	16 466 516

Cash flow

	Unaudited	Unaudited
(EUR) Note	Q4 2016	Q4 2015
Ordinary profit before tax	(84 477)	(426 169)
Paid income taxes	-	-
Depreciation 3	296 134	197 567
Write down	-	-
Changes in trade receivables and trade payable	168 186	47 630
Changes in other accruals	(366 172)	399 474
Cash flow from operations	13 671	218 502
Acquisition of subsidiary, net of cash acquired	-	1 125 578
Cash flow from investments	-	1 125 578
Proceeds from issue of share capital	-	-
Dividends or shareholder distributions	(118 500)	(141 581)
Proceeds from new loans	-	-
Repayment of loans	(221 115)	(99 934)
Cash flow from financing	(339 615)	(241 516)
Cash at beginning of period	1 014 049	284 930
Net currency translation effect	-	-
Net increase/(decrease) in cash and cash equivalents	(325 945)	1 102 565
5 Cash at end of period	688 104	1 387 495

Change in equity

					Foreign
(EUR)	Share capital	Share premium fund	Other paid in equity	Other equity	Currency translation reserve	Total equity
Equity as at 31 December 2014	977 768	-	139 822	(23 494)	-	1 094 096
Dividends or distribution to shareholders		(152 317)	(155 884)			(308 201)
Merger Aega Yieldco	(923 051)	4 726 544	(244 593)	(66 891)		3 492 009
Share issue 16-Dec-15	5 725	516 347				522 071
Profit (loss) After tax				(385 655)		(385 655)
Other comprehensive income				24 839	242 289	267 128
Policy changes and other						-
Equity as at 31 December 2015	60 442	5 090 574	(260 655)	(451 201)	242 289	4 681 449

					Foreign Currency translation
		Share premium	Other paid in		reserve and
(EUR)	Share capital	fund	equity	Other equity	derivates	Total equity
Equity as at 31 December 2015	60 442	5 090 574	(260 655)	(451 201)	242 289	4 681 449
Acqusition NOFIN, inc. Increase denomination	2 845 745	251 619	309 866	(2 475 061)		932 169
Dividends or distribution to shareholders		(296 743)		(119 302)		(416 045)
Capital increase 30.5.2016	917 197	1 834 393				2 751 590
Profit (loss) After tax				(1 762 421)		(1 762 421)
Other comprehensive income				46 079	(226 129)	(180 050)
Policy changes and other				162 121		162 121
Equity as at 31 December 2016	3 823 384	6 879 843	49 211	(4 599 785)	16 160	6 168 813

Note 1: Summary of significant accounting policies

Aega ASA is a public limited company, incorporated and domiciled in Norway. The registered office of Aega ASA is Munkedamsveien 35, NO-0250 Oslo, Norway. Aega Energy Prima AS was the first company in the group, and was founded on 28 April 2014. Aega ASA owns and operates 6 photovoltaic power plants in Italy, and has as its business to invest in photovoltaic power plants in Italy.

Basis for preparation of the interim financial statement

These condensed interim consolidated financial statements are prepared in accordance with recognition, measurement and presentation principles consistent with International Financing Reporting Standards as adopted by the European Union ("IFRS") for interim reporting under International Accounting Standard ("IAS") 34 Interim Financial Reporting. These condensed interim consolidated financial statements are unaudited.

Aega Energy Prima AS was established 28 April 2014 and bought the first solar power park in August 2014, Photo-Volt One Srl. In the end of Q1 2015 it bought the second park DT Srl. In November 2015, Aega Yieldco AS purchased Aega Prima Energy AS, Aega Seconda Energy AS and Aega Terza Energy AS, with consideration in shares, for accounting purposes. In January 2016 Aega Yieldco AS was purchased by Nordic Financials ASA with consideration in shares (now Aega ASA), the transaction was considered a reverse takeover for accounting purposes.

The group's presentation currency is the Euro (EUR) and the parent company's functional currency is the Norwegian Krone (NOK). Balance sheet items in the group companies with a functional currency other than EUR are converted to EUR by applying the currency rate applicable on the balance sheet date. Currency translation differences are booked against other comprehensive income. Income statement items are converted by applying the average currency rate for the period. The interim financial report is prepared under the assumption of going concern.

We refer to the Q1 report for a full overview of the accounting principles applied by Aega ASA.

Key risk factors

(EUR)

There has not been any significant change in the risk exposures or the risks and uncertainties described in the Q1 report.

Note 3: Property plant and equipment

Q4 2015	Photo-Volt One S.r.l	DT S.r.l	Collesanto S.r.l	Jer-12 S.r.l		Other	Total
Power plant 31 Dec 2015	1 978 224	-				2 037 956	4 016 180
Additions	-	2 592 036	5 368 692	1 414 688		-	9 375 416
Depreciation	(123 695)	(123 892)	(56 396)	(38 361)		(31 269)	(373 613)
Value at 31 December 2015	1 854 529	2 468 144	5 312 296	1 376 327		2 006 687	13 017 983
(EUR)
Q4 2016	Photo-Volt One S.r.l	DT S.r.l	Collesanto S.r.l	JER-12 S.r.l	Piano Mulino S.r.l	Other	Total
Power plant 31 Dec 2015	1 854 705	2 468 143	5 310 992	1 410 118	-	2 018 476	13 062 434
Additions	-	-	-	-	2 524 003	306 541	2 830 544
Depreciation	(123 568)	(165 190)	(337 073)	(118 817)	(115 150)	(138 629)	(998 427)
Value at 31 December 2016	1 731 137	2 302 954	4 973 919	1 291 301	2 408 853	2 186 388	14 894 551

¹ Land rights have been reclassified from intangibles to PPE

Power plants are depreciated over the feed-in tariff period of 20 years.

Note 2: Operational cost breakdown

	AEGA	AEGA
(EUR)	2016	2015
Revenues	2 406 192	942 194
Cost of operations	(316 257)	(90 146)
Land rent	(7 000)	(7 000)
Insurance	(54 380)	(24 507)
Operation & Maintenance	(159 709)	(45 653)
Other operations costs	(95 168)	(12 986)
Sales, General & Administration	(1 114 276)	(172 745)
Commercial management	-	-
Accounting, audit & legal fees	(101 994)	(51 275)
IMU tax	(16 847)	(29 434)
AEGA Solar management fee	(466 463)	(110 606)
Other administrative costs	(528 971)	18 570
Acquisition & financing cost	(1 196 872)	(431 653)
Acquisition transaction costs	(724 419)	(195 859)
Funding & IPO costs	(355 022)	(9 097)
Other non-recurring items	(117 431)	(226 697)
EBITDA	(221 213)	247 650

Note 4: Group structure

Note 5: Cash and cash equivalents

(EUR)	Q4 2016	Q4 2015
Cash Norway	63 457	630 011
Cash Italy	524 647	657 483
Restricted cash Italy	100 000	100 000
Total cash	688 104	1 387 494

Note 6: Power production

Power production kWh	Q4 2016	Q3 2016	Q2 2016	Q1 2016	FY 2016	Q1 2015	Q2 2015	Q3 2015	Q4 2015	FY 2015
Photo-Volt One S.r.l	225 487	439 642	451 772	253 638	1 370 539	229 809	406 535	448 461	213 074	1 297 879
DT S.r.l	225 839	449 667	408 051	245 328	1 328 885	-	429 523	442 588	219 652	1 091 763
Collesanto S.r.l	489 379	944 590	864 215	508 619	2 806 803	-	-	-	477 666	477 666
JER-12 S.r.l	165 305	464 002	437 307	243 325	1 309 938	-	-	-	85 995	85 995
Piano Mulino S.r.l	221 388	431 711	-	-	653 099	-	-	-	-	-
Total	1 327 398	2 729 611	2 161 345	1 250 910	7 469 264	229 809	836 058	891 049	996 386	2 953 303
Base Case 1 Power production kWh	Q4 2016	Q3 2016	Q2 2016	Q1 2016	FY 2016	Q1 2015	Q2 2015	Q3 2015	Q4 2015	FY 2015
Photo-Volt One S.r.l	173 489	450 498	395 658	178 512	1 198 157	179 409	397 646	452 761	174 361	1 204 177
DT S.r.l	222 445	427 174	414 013	256 599	1 320 231	-	416 093	429 321	231 275	1 076 689
Collesanto S.r.l	466 080	902 111	858 926	561 427	2 788 543	-	-	-	468 422	468 422
JER-12 S.r.l	161 292	429 499	427 840	150 287	1 168 918	-	-	-	85 217	85 217
Piano Mulino S.r.l	220 738	438 458	-	-	659 196	-	-	-	-	-
Total	1 244 045	2 647 739	2 096 437	1 146 824	7 135 045	179 409	813 739	882 082	959 275	2 834 505

¹ Base case: Historic seasonally adjusted production. The company estimates that the production is reduced by 0.5 per cent yearly due to degradation of the solar modules.

Note 7: Related party transactions

Solex AS (earlier Aega Solar AS) owns approximately 12.77 per cent of Aega ASA.

Aega ASA had in Q4 2016 a management agreement with Solex AS. The management agreement was signed on 11 April 2016. The general assembly of Aega ASA approved the agreement on 18 May 2016. The agreement covers operations of the solar park portfolio, sourcing of new investments, due diligence and other services related to the solar plant business.

As consideration for the services provided Aega ASA will pay:

• A fixed base fee of NOK 3 Million a year, until the time Aega ASA has made equity investments of at least NOK 500 Million
• A variable fee of 2.5 per cent per year of invested equity in solar parks acquired after the signing of the management agreement
• A success fee of 23 per cent of cash flow exceeding 7.5 per cent of invested equity per year
• Management fee of 1 per cent per year of enterprise value of solar parks acquired before the date of signing of the new management agreement.

The management agreement was terminated on 31 January 2017.

	Management fee	Management fee
EUR	2016	2015
AEGA Solar managment fee	(166 479)	(110 606)
AEGA Solar basefee	(299 984)	-
Others	-	-
Total	(466 463)	(110 606)
	Balance	Balance
EUR	31 Dec 2016	31 Dec 2015
AEGA Solar	371 064	(92 327)
Total	371 064	(92 327)

As of 31 December 2016 Aega ASA has a net receivable of EUR 371k towards Solex AS (previously Aega Solar AS). This amount is mainly related to coverage of cost related to listing of Aega Yieldco AS and split of other fees related to capital raising.

From the 1.2.2017 Aega ASA and Solex AS have terminated the management contract and large parts of the above-mentioned liabilities between the companies have been settled. See Note 12 for further detail.

Note 8: Trade receivables and other current assets

Trade receivables are mainly accrued feed-in-tariff. 90 per cent of the feed-intariff on historical production is normally paid within 60 days, whereas surplus actual production is paid in June/July in the following year.

Note 9: Financing overview

	Financial	Financial
Financial liabilities:	liabilities at 31 Dec 2016	liabilities at 31 Dec 2015
Secured long term loans	3 028 157	3 185 958
Obligations under finance leases	7 195 140	6 249 475
Other long term debt	-	-
Trade and other payables	581 148	786 024
Current interest bearing loans and borrowings	156 929	156 929
Current leasing	562 691	377 876
Derivative financial instruments 1	771 477	791 395
Other current liabilities	221 878	237 410
Total	12 517 420	11 785 067
Total current	2 294 123	2 349 634
Total non-current	10 223 297	9 435 433
Financal costs	2016	2015
Interest paid on leasing	374 589	144 177
Interst paid on project finances	183 216	119 460
Other financial cost	2 697	(887)
Total finance costs	560 502	262 750

¹ The derivatives financial instruments are interest swap agreements entered into to fix the interest rate. Aega ASA has a swap agreement attached to each of the solar power plants, except for one. The swap agreements are marked to market.

Note 10: Shares and shareholder information

	31 Dec 2015
Shares AEGA Yieldco AS	5 813 900
Equal in AEGA ASA shares1	25 151 275

¹ Shares in Aega Yieldco are recalculated based on the transaction value in the reverse takeover of Aega ASA.

	31 Dec 2016
AEGA ASA Shares	35 890 957

AEGA ASA has only one shareclass.

Largest 20 shareholders as of 31 December 2016:

Shareholders	Shares	Percentage
AEGA SOLAR AS	4 582 534	12.8%
BEARHILL INC AS	2 615 034	7.3%
HARALDSEN THORVALD MORRIS	1 605 333	4.5%
SÆTREMYR TORE	943 694	2.6%
NEREM JAN STEINAR	919 724	2.6%
LJM AS	867 890	2.4%
MOGER INVEST AS	867 890	2.4%
VESAAS OLAV	710 141	2.0%
PENTHOUSE MIRADORES AS	686 667	1.9%
SØLAND TORSTEIN	668 890	1.9%
MORO AS	666 667	1.9%
STRØM-RASMUSSEN FINN	666 667	1.9%
RACCOLTA AS	595 840	1.7%
CLEAR THOUGHT AS	551 833	1.5%
JAN P HARTO AS	507 841	1.4%
NYGÅRD ROALD ARNOLD	500 000	1.4%
VIA GLORIA AS	500 000	1.4%
BETONGCONSULT EIENDOM AS	484 610	1.4%
SERCK-HANSSEN FIN	462 657	1.3%
MAGNOLIA SYSTEM AS	450 667	1.3%
Total 20 largest shareholders	19 854 579	55.3%
Aega ASA outstanding shares	35 890 957	100.0%

Note 11: Tax issues

Two company subsidiaries were notified with tax claims relating to pre-acquisition tax liabilities during the quarter. The total amount of the claimed tax liabilities is EUR 630k. The company has not made any provisions for this claim, both due to the merits of the claim and because the share purchase agreement signed between the company and the seller of the affected subsidiaries covers said liabilities. Hence, no provisions are made in the Q4 accounts because the company expects the seller to cover the liabilities. The company has so far paid about EUR 40k in instalments to the Italian tax authorities since these amounts were due before a final verdict have been reached.

Aega ASA has answered Norwegian tax authorities' questions regarding the handling of running cost for portfolio management for the period 2012–2014. At the time the company was a portfolio management company, investing mainly in listed securities in the Nordic region. The tax authorities deem that portfolio management cost should be treated as acquisition costs (non-deductible) as opposed to deductible operational costs. Aega ASA disagrees with the tax authorities' assessment. Own process cost is booked as they accrue. The company has not made provisions for potential penalty tax, as such penalty seems unlikely.

Aega ASA has since Q4 been registered in the Norwegian VAT register, the registration application is currently being reviewed by the tax authorities.

Note 12: Subsequent events

AEGA ASA and Solex AS (previously AEGA Solar AS) closed an asset purchase agreement on the 31 January 2017, whereby AEGA ASA purchased certain assets from Solex AS, including the management agreement (see Note 7), and eight employees/consultants from Solex AS. The consideration in this transaction was 3 million shares + 2 million warrants in addition to up to NOK 6.1 million in liabilities. Further details of the transaction have been issued separately as stock exchange notices.

AEGA ASA relocated and changed the office address in February 2017 to Oscars gate 52, 0258 Oslo.

Investor contact

Rolf M Normann Chief Executive Officer

Mobile: +47 91344134 E-mail: rmn@aega.no

Markus H Enge Chief Financial Officer

Mobile: +47 40064820 E-mail: mhe@aega.no

Aega ASA Oscars gate 52 N-0258 Oslo Norway

Web: www.aega.no