Nordic Financials ASA — Interim / Quarterly Report 2018

Nov 30, 2018

Aega ASA Q3 REPORT – 2018

Contents

About Aega		3
	Third quarter in brief	3
	Highlights from the reporting period	3
Financial review		4
	Aega Portfolio at the end of third quarter 2018	5
Financials		7
Profit and loss		7
Balance sheet		8
Cash flow		9
Change in equity		10
Notes		11
Note 1:	Summary of significant accounting policies	11
Note 2:	Breakdown of operational costs	11
Note 3:	Property plant and equipment	11
Note 4:	Group structure	12
Note 5:	Cash and cash equivalents	12
Note 6:	Power generation	12
Note 7:	Trade receivables and other current assets	13
Note 8:	Financing overview	13
Note 9:	Shares and shareholder information	13
	Note 10: Tax issues	14
	Note 11: Subsequent events	14
	Investor contact	16

About Aega

Aega ASA is a solar utility company listed on the Oslo Axess exchange. It acquires and operates solar power plants, benefitting from government incentives in the form of feed-in tariffs. The company currently owns a portfolio of eight solar parks located in Italy, with a combined generating capacity of about 8MWp or around 11GWh per year. Aega ASA invests mainly in small operating solar parks (below 5MWp capacity) which meet its strict investment criteria. The company's head offices are in Oslo (NO) and Trento (IT).

0

THIRD QUARTER IN BRIEF

• Solar irradiation in northern Italy was close to the historical average in the third quarter of 2018, resulting in an output 0.5 per cent above budget and 4.6 per cent below the same period of last year when adjusted for installed capacity. Opex in line with budget.
• Despite the poor weather conditions so far in 2018, net profit for the quarter was EUR 121 000 compared to a loss of EUR 20 000 in the third quarter of 2017. The improved results year on year is mainly due to reductions in head office expenses as well as selling, general and administrative (SG&A) costs following renegotiations and optimisation of the organisation to fit the scale of the business.
• Loss in arbitration court regarding the exit compensation to former CEO resulted in extra EUR 42 000 in non-recurring costs, the total cost was approximately EUR 240 000, however about EUR 200 000 was reserved in the fourth quarter of 2017.

HIGHLIGHTS FROM THE REPORTING PERIOD Operations

Output was 2.1 per cent below seasonally adjusted base-case generation at 30 September 2018 owing to low irradiation so far in 2018. Aega also had some minor downtime at its plants because of maintenance and upgrading and problems with two inverters. Revenues were 3.0 per cent above budget due to a market price for electricity about 50 per cent above the budgeted level of EUR 40 per MWh.

As mentioned in the report for the second quarter, the new board of directors started to optimise costs immediately after its appointment. The board and administration have now begun to get costs in the group under control. However, the board still sees some low-hanging fruit, and the target is to reduce SG&A and operational costs by EUR 700 000 for 2019 compared with 2017. Two-thirds of this goal has already been met.

The board announced two new objectives for the company in Q2:

• 1. Be in a position to reinstate dividends before the annual general meeting in 2019.
• 1. Use the structure already in place and try to grow opportunities a. The board estimates that the current share price is below the asset

July August September

value of the company. It will therefore carefully consider future expected cash flow per share before and after transactions, taking account of dilutions.

b. The most likely growth path is through structures which do not require new share issues. These could include internal funds, partial participation in companies with assets, debt issues and so forth.

In the third quarter Aega has changed accountants in Norway and Italy, in the implementation phase we have reviewed and reclassified some items, incl. repairs and spare parts are now a part of Operation and maintenance costs in note 2. In addition we have not received most of the MTM reports of the derivates in time for the third quarter report, so this is largely unchanged from Q2. The Euribor has increased during the quarter so it would have an positive P&L impact on the results if included.

Corporate events

The company bought 191 332 own shares in the market at an average price of NOK 0.92 per share.

The holding companies Aega Energy Prima AS, Aega Energy Seconda AS and Aega Energy Terza AS have been merged into Aega Yieldco AS during the quarter. This is another step to simplify the structure and reduce costs. Please refer to Note 4 for the updated organisation chart.

Outlook

The company does not see investment opportunities as a limiting factor for the company's growth plans, and will continue to screen and evaluate new prospects. However, the immediate priority is to return the company to delivering positive financial results.

Key figures

(EUR 1000)	Q3 2018	Q3 2017
Electricity generation (MWh)	3 328	3 190
Total revenues	1 114	1 009
Operating costs	(72)	(66)
Operating profit	1 042	943
Other costs Italy	(56)	(43)
EBITDA Operations	987	900
Head office and admin cost	(94)	(302)
Non recurring	(42)	(20)
EBITDA	850	578
Net profit	121	(20)
Quarterly yield solar parks 1	5.59%	5.21%
Total assets	21 704	22 734
Equity (%)	31%	38%
Net interest-bearing debt	12 314	11 374
Earnings per share (EUR) 2	0.003	(0.002)
Stock price end of quarter (NOK)	1.00	1.11
Distribution to shareholders in the quarter (NOK)	-	-
Quarterly distributed yield	0.00%	0.00%

1 = EBITDA operations/power plant and equipment

2 = Total comprehensive income/average number of shares

FINANCIAL REVIEW

Aega ASA had an average installed capacity of 7.8MWp in the third quarter of 2018, compared with 7MWp in the same period of last year. This should be taken into consideration when comparing the quarters.

Total revenues in the third quarter of 2018 were EUR 1 114 000, compared with EUR 1 009 474 in the same period of last year. Total power generation was 3 328, up by 0.5 per cent from seasonally adjusted base-case output of 3 313MWh.

Operating costs in the third quarter of 2018 were EUR 72 000, compared with EUR 66 000 in the same period of last year. Since there is one park more under management in this quarter the cost per park has been reduced.

The company's non-recurring expenses came to EUR 42 000 owing to a loss in arbitration court regarding the exit compensation to former, the total cash consideration was approximately EUR 240 000 including taxes, however about EUR 200 000 was reserved in the fourth quarter of 2017.

Financial expenses came to EUR 109 000 in the third quarter of 2018, compared with EUR 168 000 in the same period of last year. The pre-tax profit was EUR 321 000 in the third quarter of 2018 and tax came to EUR 200 000, resulting in a net profit of EUR 121 000 in the quarter compared with a loss of EUR 20 000 in the same period of last year.

Earnings per share (EPS) came to EUR 0.000 in the third quarter of 2018, compared with a negative EUR 0.002 per share in the same period of last year.

Assets in the balance sheet comprise the portfolio of eight solar parks in Italy, receivables mainly from the GSE, VAT credits and cash in bank. The solar parks are financed by bank loans or leasing, where the assets of the parks are registered as collateral. The parks are held in separate single purpose companies (SPVs), each of which has separate loan financing (ring fenced).

The company had cash and current deposits of EUR 967 000 at 30 September 2018, compared with EUR 717 000 at 1 January.

AEGA PORTFOLIO AT THE END OF THIRD QUARTER 2018 Photo-Volt One Srl

DT 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

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

Casale Srl

Plant Name:	Casale
Company:	Casale Srl
Municipality:	Mercato Saraceno
Council:	Emilia-Romagna
Power (kWp):	999.58
Connection date:	30 December 2009
Type	Ground mounted
Feed-in tariff (€/KWh):	0.295

Solar Park Luino Srl

Plant Name:	Luino
Company:	Solar Park Luino Srl
Municipality:	Varese
Council:	Lombardy
Power (kWp):	800.64
Connection date:	30 April 2011
Type	Ground mounted
Feed-in tariff (€/KWh):	0.322

Financials

Profit and loss

(EUR)	Note	Q3 2018	Q3 2017	9M 2018	9M 2017	FY 2017
Feed-In tariff revenue	1, 6	943 895	850 637	2 261 551	2 218 938	2 672 196
Sales of electricity	1, 6	225 757	157 413	479 277	390 764	483 665
Other revenue		(55 501)	1 424	32 410	3 475	37 605
Revenues	1, 6	1 114 150	1 009 474	2 773 238	2 613 177	3 193 466
Operating costs	2	(71 835)	(66 494)	(278 840)	(227 621)	(297 083)
Sales, general and administrative expenses	2	(149 947)	(344 987)	(527 733)	(978 845)	(1 403 530)
Acquisition and transaction costs	2	(42 398)	(20 432)	(71 287)	(272 619)	(2 156 307)
EBITDA		849 971	577 561	1 895 378	1 134 092	(663 454)
Depreciation, amortisations and write downs	3	(426 632)	(342 082)	(1 147 884)	(959 101)	(1 279 463)
Other operating profit before OGL (EBIT)		423 338	235 479	747 494	174 991	(1 942 918)
Finance income		64	19 575	176	24 330	7 824
Finance costs	9	(109 265)	(167 506)	(431 910)	(422 400)	(644 986)
Mark to market adjustment derivatives	9	7 547	4 538	34 465	22 435	145 890
Net foreign exchange gain/(losses)		(249)	217	(31 265)	6 898	77 725
Profit before income tax		321 435	92 302	318 960	(193 747)	(2 356 465)
Income tax gain/(expense)		(199 945)	(112 539)	(252 455)	(90 719)	(204 653)
Profit/(loss) for the period		121 490	(20 237)	66 506	(284 466)	(2 561 118)
Other comprehensive income
Currency translation differences		(133 578)	(75 823)	77 369	22 164	(80 355)
Other comprehensive income net of tax		(133 578)	(75 823)	77 369	22 164	(80 355)
Total comprehensive income		(12 088)	(96 061)	143 875	(262 303)	(2 641 473)
Profit for the period attributable to:
Equity holders of the parent company		121 490	(20 237)	66 506	(284 466)	(2 561 118)
Total comprehensive income attributable to:
Equity holders of the parent company		(12 088)	(96 061)	143 875	(262 303)	(2 641 473)
Earnings per share		-	(0.002)	0.003	(0.006)	(0.061)
Avgerage no of shares	10	47 975 949	43 882 141	45 461 400	43 417 788	43 533 876

Balance sheet

(EUR)	Note	30 Sep 2018	31 Dec 2017
ASSETS
Property, plant and equipment	3	17 662 543	16 731 740
Intangibles and DTA		596 057	398 239
Goodwill		-	-
Other long-term assets		200 000	200 000
Non-current assets		18 458 600	17 329 979
Receivables	8	1 570 068	1 492 902
Other current assets	8	708 334	768 032
Cash and short-term deposits	5	967 011	717 030
Current assets		3 245 412	2 977 964
TOTAL ASSETS		21 704 012	20 307 943
EQUITY AND LIABILITIES
Share capital	10	5 274 261	4 842 179
Share premium	10	8 208 941	8 208 942
Paid-in capital		13 483 203	13 051 121
Accumulated profit and loss		(7 026 056)	(7 073 968)
Other equity		-	-
Foreign currency translation reserve		329 798	252 429
Other equity		(6 696 258)	(6 821 539)
Total equity		6 786 944	6 229 582
Long-term loans	9	4 568 566	2 933 328
Leasing	9	7 745 007	8 274 430
Other long-term debt	9	-	-
Total non-current liabilities		12 313 573	11 207 758
Trade payables and other payables		805 778	1 120 794
Short-term financing - interest-bearing	7, 9	1 024 896	1 052 174
Derivative financial instruments		772 821	697 635
Other current liabilities		-	-
Total current liabilities		2 603 495	2 870 603
Total liabilities		14 917 068	14 078 361
TOTAL EQUITY AND LIABILITIES		21 704 012	20 307 943

Oslo, 30 November 2018

Halldor Christen Tjoflaat Chair

Nils Petter Skaset Director

Kathrine Breistøl Director

Kristine Larneng Director

Markus H Enge Chief Executive Officer

Cash flow

(EUR)	Note	Q3 2018	Q3 2017	2017
Ordinary profit before tax		321 435	92 302	(2 356 465)
Paid income taxes		-	-	(9 675)
Depreciation	3	426 632	342 082	1 279 463
Write down		-	-	-
Changes in trade receivables and payables		(378 738)	(103 604)	102 473
Changes in other accruals		233 457	(65 856)	10 229
Cash flow from operations		602 787	264 924	(973 975)
Acquisition net of cash acquired		-	(854 640)	(854 640)
Cash flow from investments		-	(854 640)	(854 640)
Proceeds from issue of share capital		-	-	2 732 291
Dividends or shareholder distributions		-	-	-
Proceed from loan Repayment of loans		- (503 949)	- (246 574)	- (874 712)
Cash flow from financing		(503 949)	(246 574)	1 857 579
Cash at beginning of period		1 001 751	681 556	688 066
Net currency translation effect		(133 578)	-	-
Net increase/(decrease) in cash and cash equivalents		98 839	18 350	28 964
Cash at end of period		967 012	699 906	717 030

Change in equity

(EUR)	Share capital	Share premium fund	Other equity	Foreign currency translation reserve	Total equity
Equity 2017	4 842 179	8 208 942	(7 073 968)	252 429	6 229 582
Profit (loss) after tax	-	-	66 506	-	66 506
Other comprehensive income	-	-	-	77 369	77 369
Loan conversion	432 082	-	-	-	432 082
Own shares acquired	-	-	(18 594)	-	(18 594)
Equity 30.9.2018	5 274 262	8 208 942	(7 026 056)	329 798	6 786 945

(EUR)	Share capital	Share premium fund	Other equity	Foreign Currency translation reserve	Total equity
Equity 2016	3 950 008	6 524 408	(4 737 873)	332 784	6 069 327
Share issue 3 January 2017	554 638	1 009 466	-	-	1 564 104
Share issue asset purchase	337 534	675 068	225 023	-	1 237 624
Profit (loss) after tax	-	-	(2 561 118)	-	(2 561 118)
Other comprehensive income	-	-	-	-	-
Other	-	-	-	(80 355)	(80 355)
Equity 31 December 2017	4 842 179	8 208 942	(7 073 968)	252 429	6 229 582

Notes

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 Thunes vei 2, NO-0274 Oslo, Norway. Aega Energy Prima AS was the first company in the group, founded on 28 April 2014. Aega ASA owns and operates eight photovoltaic power plants in Italy, and its business is to invest in photovoltaic power plants in Italy.

Basis for preparing the interim financial statements

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

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 group companies with a functional currency other than the 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 has been prepared on the assumption that the company is a going concern.

See the 2017 annual report for a full overview of the accounting principles applied by Aega ASA.

Key risk factors

No significant change has occurred in risk exposures or risks and uncertainties as described in the third-quarter report, compared with those described in the annual report.

Note 3: Property plant and equipment

Q3 2018 (EUR)	Photo-Volt One Srl		DT Srl Collesanto Srl	JER-12 Srl	Piano Mulino Srl	Casale Srl	Solar Park Luino Srl	Other	Total
Power plant 31 December 2017	1 715 363	2 265 556	5 751 191	1 462 838	2 592 697	2 768 025	-	196 696	16 752 365
Currency effect	-	-	-	-	-	-	-	(283 095)	(283 095)
Additions	-	-	-	-	-	-	2 341 156	-	2 341 156
Depreciation	(97 922)	(129 844)	(335 589)	(96 248)	(191 124)	(162 269)	(134 888)	-	(1 147 883)
Value at 30 September 2018	1 617 441	2 135 712	5 415 602	1 366 590	2 401 573	2 605 756	2 206 268	(86 399)	17 662 542

2017 (EUR)	Photo-Volt One Srl		DT Srl Collesanto Srl	JER-12 Srl	Piano Mulino Srl	Casale Srl	Other	Total
Power plant 31 December 2016	1 845 925	2 437 778	6 198 052	1 591 168	2 847 529	-	248 502	15 168 955
Currency effect	-	-	-	-	-	-	(51 806)	(51 806)
Additions	-	2 700	-	-	-	2 911 979	-	2 914 679
Depreciation	(130 562)	(174 922)	(446 861)	(128 330)	(254 832)	(143 955)	-	(1 279 463)
Value at 31 December 2017	1 715 363	2 265 556	5 751 191	1 462 838	2 592 697	2 768 025	196 696	16 752 365

Power plants are depreciated on a straight-line basis over the feed-in tariff period of 20 years.

Note 2: Breakdown of operational costs

(EUR)	9M 2018	9M2017	FY 2017
Revenues	2 773 238	2 613 177	3 193 466
Operating costs	(278 840)	(227 621)	(297 083)
Land rent	-	-	-
Insurance	(37 556)	(40 291)	(42 860)
Operation and maintenance	(203 957)	(81 084)	(113 772)
Other operating costs	(37 327)	(106 246)	(140 452)
Sales, general & administrative	(527 733)	(978 845)	(1 403 530)
Accounting, audit and legal fees	(123 796)	(116 055)	(149 632)
IMU tax	(10 075)	(5 868)	(10 771)
AEGA Solar management fee	-	(69 975)	(140 000)
Other administrative costs	(393 862)	(786 946)	(1 103 127)
Acquisition and financing cost	(71 287)	(272 619)	(2 156 307)
Acquisition transaction costs	(71 287)	(167 739)	(1 958 274)
Funding and IPO costs	-	(97 883)	(198 033)
Other non-recurring items	-	(6 997)	-
EBITDA	1 895 378	1 134 092	(663 454)

Note 4: Group structure ¹

SPV structure minimizes financial and operational risk

Note 5: Cash and cash equivalents

(EUR)	Q3 2018	2017
Cash Norway	90 554	48 838
Cash Italy	876 457	468 192
Restricted cash Italy	200 000	200 000
Total cash	1 167 010	717 030

Note 6: Power generation

Power generation kWh	Q3 2018	Q2 2018	Q1 2018	YTD 2018	Q4 2017	Q3 2017	Q2 2017	Q1 2017	YTD 2017
Photo-Volt One Srl	394 487	412 946	248 827	1 056 260	236 126	462 742	465 450	284 699	1 449 017
DT Srl	433 897	405 798	228 774	1 068 469	240 376	446 577	451 307	289 792	1 428 052
Collesanto Srl	893 505	825 983	417 907	2 137 395	490 266	932 985	942 200	596 726	2 962 177
JER-12 Srl	459 245	455 331	208 721	1 123 297	205 020	465 538	464 401	268 165	1 403 124
Piano Mulino Srl	468 730	433 825	223 609	1 126 164	244 274	469 790	467 523	261 544	1 443 131
Casale Srl	392 497	386 178	145 536	924 211	197 051	412 515	303 579	-	913 145
Solar Park Luino Srl	286 107	244 306	67 184	597 597	-	-	-	-	-
Total	3 328 468	3 164 367	1 540 558	8 033 393	1 613 113	3 190 147	3 094 460	1 700 927	9 598 647
Base Case 1 Power generation kWh	Q3 2018	Q2 2018	Q1 2018	YTD 2018	Q4 2017	Q3 2017	Q2 2017	Q1 2017	YTD 2017
Photo-Volt One Srl	448 245	393 004	176 731	1 017 980	172 622	448 245	393 679	177 619	1 192 165
DT Srl	425 039	411 310	254 039	1 090 387	221 332	425 038	411 942	255 317	1 313 629
Collesanto Srl	897 600	853 366	555 826	2 306 792	463 751	897 600	854 632	558 620	2 774 603
JER-12 Srl	427 351	425 098	148 788	1 001 237	160 486	427 351	425 701	149 536	1 163 074
Piano Mulino Srl	436 266	437 446	242 469	1 116 181	219 635	436 266	438 125	243 688	1 337 714
Casale Srl	398 597	417 731	223 588	1 039 916	181 400	400 600	293 900	-	875 900
Solar Park Luino Srl	280 047	280 805	70 393	631 245	-	-	-	-	-

¹ Base case: Historical seasonally adjusted output on acquisition. The company estimates that generating capacity declines by 0.5 per cent per annum owing to degradation of the solar PV modules.

Note 7: Trade receivables and other current assets

Trade receivables relate mainly to accrued feed-in tariff. Ninety per cent of the feed-in tariff on historical output is normally paid within 60 days, with the tariff on surplus actual output paid in June/July of the following year.

(EUR)	30 Sep 2018	31 Dec 2017
Trade receivables	1 570 068	1 409 423
Tax outstanding and VAT	708 334	768 032
Other	-	83 479
Receivables	2 278 401	2 260 934

Note 8: Financing overview

Financial liabilities		30 Sep 2018	2017
Secured long-term loans		4 568 566	2 933 328
Obligations under finance leases		7 745 007	8 274 430
Trade and other payables		805 778	1 120 794
Current leasing or loans		1 024 896	1 052 174
Derivative financial instruments 1		772 821	697 635
Total		14 917 068	14 078 361
Total current		2 603 495	2 870 603
Total non-current		12 313 573	11 207 758
Financal costs	9M 2018	9M 2017	2017
Interest paid on leasing	284 158	287 731	393 575
Interest paid on project finances	148 206	120 594	251 411
Other financial costs	(455)	14 076	-
Total finance costs	431 910	422 400	644 986

¹ The derivative financial instruments are interest swap agreements entered into in order to fix the interest rate. With two exceptions, Aega ASA has a swap agreement attached to each of its solar power plants. The swap agreements are marked to market.

Note 9: Shares and shareholder information

30 Sep 2018
47 975 949
2 000 000
400 000
31 Dec 2017
43 882 141
2 000 000

Warrants 1

The warrants are freely tradable non-listed warrants, each of which entitles the holder to subscribe for one share in Aega at an exercise price of NOK 3.10 per share. The exercise price for each warrant is adjusted downwards on a NOK-for-NOK basis by any dividend per share paid by Aega in excess of an annual dividend of seven per cent on NOK 3.10 in the period from 31 January 2017 until the exercise of the warrant.

The warrants are exercisable during exercise periods which last for four weeks from the date of publication of Aega's annual financial statements for the 2017, 2018, 2019 and 2020 fiscal years, provided, however, that the last exercise period ends no later than 30 June 2021. Any unexercised warrants will expire without compensation to Solex on 30 June 2021.

Warrants 2

The warrants are freely tradable non-listed warrants, each of which entitles the holder to subscribe for one share in Aega at an exercise price of NOK 1.00 per share. The deadline for exercising the subscription right is 14 days after the AGM in 2019.

Largest 20 shareholders at 27 November 2018

Shareholders	Shares	Percentage
BEARHILL INC AS	3 359 034	7.0%
AFT DEVELOPMENT AS	2 250 152	4.7%
HARALDSEN THORVALD MORRIS	1 627 119	3.4%
LJM AS	1 441 926	3.0%
SÆTREMYR TORE	1 277 694	2.7%
MOGER INVEST AS	1 134 890	2.4%
KOLSTAD AS	1 075 005	2.2%
JAN STEINAR NEREM	1 022 069	2.1%
MORO AS	933 667	1.9%
VESAAS OLAV	877 141	1.8%
STRØM-RASMUSSEN FINN	769 012	1.6%
PENTHOUSE MIRADORES AS	761 884	1.6%
JAN P HARTO AS	753 042	1.6%
FIN SERCK-HANSSEN	715 780	1.5%
RACCOLTA AS	698 186	1.5%
SØLAND TORSTEIN	668 890	1.4%
MAGNOLIA SYSTEM AS	655 357	1.4%
KÅRE REIDAR JOHASEN	624 722	1.3%
C - BY - C AS	558 208	1.2%
GN Power Invest AS	555 923	1.2%
Total 20 largest shareholders	21 759 701	45.4%
Aega ASA outstanding shares	47 975 949	100.0%

Note 10: Tax issues

Tax dispute in Italy

The group is currently involved in a tax dispute with the Italian tax authorities with respect to two of the group's Italian subsidiaries. The Italian tax authorities have claimed repayment from the group of about EUR 1 200 000. The group has disputed this claim in court, and won in the court of first instance. The Italian tax authorities have appealed. Should the outcome be unfavourable, the group's view is that any liability deriving from the said claims is covered by the warrants provided for in the share purchase agreements signed with the seller of the relevant plants, as the (potential) tax due dates from the period before Aega purchased the assets, and the warrants in the purchase agreements place liability for any tax claims prior to the acquisition solely on the seller. The company has deemed it necessary to pay instalments on the tax claim until a final ruling is made. So far, the group has paid about EUR 68 000 related to this case.

Note 11: Subsequent events

Nothing to note.

Investor contact

Markus H Enge

Chief Executive Officer

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

Aega ASA Thunes vei 2 N-0274 Oslo Norway

www.aega.no