Nordic Financials ASA — Interim / Quarterly Report 2018

Aug 31, 2018

Aega ASA Q2 REPORT – 2018

Contents

About Aega
Second quarter in brief	3
Highlights from the reporting period	3
Financial review	4
Aega Portfolio at the end of second quarter 2018	5

Financials

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:	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
	Responsibility statement	15
	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).

SECOND QUARTER IN BRIEF

• Solar irradiation in northern Italy was well below the historical average in the second quarter of 2018, resulting in an output 1.7 per cent below budget and 9.1 per cent below the same period of last year when adjusted for installed capacity. Opex per MWp rose somewhat in the quarter owing to upgrading and maintenance projects at several parks which have not been capitalised.
• Despite the poor weather conditions, net profit for the quarter was the highest ever for Aega at EUR 201 000, which is 118 per cent higher than in the corresponding period of last year. This record reflects 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.
• Revenues in the second quarter were EUR 1.11 million, up by 6.65 per cent from the second quarter of 2017.
• Conversion of shareholder loan totalling EUR 432 000 to equity.

HIGHLIGHTS FROM THE REPORTING PERIOD Operations

Output was 3.8 per cent below seasonally adjusted base-case generation at 30 June 2018 owing to low irradiation so far in 2018. Aega also had some minor downtime at its plants because of maintenance and upgrading. This activity primarily involved work which had been postponed because of earlier liquidity constraints. Revenues were 1.2 per cent below budget owing to the low output, but this was offset to some extent by a market price for electricity about 30 per cent above the budgeted level of EUR 40 per MWh.

As mentioned in both the fourth quarter of 2017 and the first quarter of 2018 reports, when the new board of directors 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. The board and administration believe that they have now begun to get the group's costs 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 has established two new objectives for the company.

• 1. Return Aega to a position where it can pay dividends to its shareholder by the end of the second quarter of 2019.
• 1. Facilitate company growth by capitalising fully on the infrastructure already in place and try to grow opportunities:
• 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.

Portfolio Cumulated Production vs. Base Case

Corporate events

Loan converted to equity

As resolved by the annual general meeting (AGM), the shareholder loan, including an interest rate of eight per cent per annum, has been converted to shares in Aega at a conversion rate of NOK 1 per share. This has increased the share capital of the company by NOK 4 093 808. In addition, one warrant has been issued per 10 shares received. These will have a conversion price of NOK 1, with a deadline for exercise of 14 days after the 2019 AGM. If all the warrants are exercised, the share capital will increase by NOK 400 000.

Following the conversion, the following key directors and senior executives control shares as specified.

Person	Role	Ownership with control	Other
Halldor Christen Tjoflaat	Chair	Through Kolstad AS, controls 102 345 shares (0.21 per cent) and 10 000 warrants.	Also chair of Solex AS, which owns 933 667 shares (2.03 per cent), and a shareholder in AFT Development AS, which owns 2 250 152 shares (4.69 per cent)
Kathrine Breistøl	Director	Through Vesoldo AS, controls 465 880 shares (0.97 per cent) and 25 000 warrants.	N/A
Nils Petter Skaset	Director	Through Brezza AS, controls 358 208 shares (0.75 per cent) and 35 000 warrants.	N/A
Markus Huseby Enge	CEO	Through E3 Consulting AS and Klunken Blessenborg Invest AS, controls 241 928 shares (0.5 per cent).	N/A
Fabio Buonsanti	COO	Owns 35 526 shares in the company in addition to a small number of warrants with a strike price of NOK 3.1.	N/A

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 on a regular basis.

Key figures

(EUR 1 000)	Q2 2018	Q2 2017
Electricity generation (MWh)	3 164	3 094
Total revenues	1 106	1 037
Operating costs	(88)	(89)
Operating profit	1 018	948
Other costs Italy	(33)	(31)
EBITDA Operations	985	917
Head office and admin cost	(141)	(245)
Non recurring	(7)	(128)
EBITDA	837	544
Net profit	201	92
Quarterly yield solar parks1	5.37%	5.22%
Total assets	22 249	22 853
Equity (%)	31%	36%
Net interest-bearing debt	12 577	11 621
Earnings per share (EUR) 2	0.004	0.003
Stock price end of quarter (NOK)	0.95	2.00
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 second quarter of 2018, compared with 6.7MWp in the same period of last year. This should be taken into consideration when comparing the quarters.

Total revenues in the second quarter of 2018 were EUR 1 106 000, compared with EUR 1 037 000 in the same period of last year. Total power generation was 3 164MWh, down by 1.7 per cent from seasonally adjusted base-case output of 3 219MWh.

Operating costs in the second quarter of 2018 were EUR 88 000, compared with EUR 89 000 in the same period of last year, despite operating one more solar park in the second quarter this year and making several smaller investments on maintenance and upgrades which had previously been deferred because of poor liquidity in the company. Total operating costs amounted to EUR 268 000 in the second quarter of 2018, compared with EUR 493 000 in the corresponding period of 2017.

Having achieved its goal of cutting operating costs by EUR 50 000 per MWp per annum, the company has set a new reduction target of roughly EUR 42 000 per annum, assuming a portfolio capacity of 8MWp or EUR 42 000 per MWp per annum. The company's non-recurring expenses came to EUR 7 000 owing to the loan-to-shares conversion.

Financial expenses came to EUR 161 000 in the second quarter of 2018, compared with EUR 160 000 in the same period of last year. The pre-tax profit was EUR 291 000 in the second quarter of 2018 and tax came to EUR 90 000, resulting in a net profit of EUR 201 000 in the quarter compared with a profit of EUR 92 000 in the same period of last year.

Earnings per share (EPS) came to EUR 0.008 in the second quarter of 2018, compared with a negative EUR 0.003 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 1 002 000 at 30 June 2018, compared with EUR 717 000 at 1 January 2018.

AEGA PORTFOLIO AT THE END OF SECOND 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	Q2 2018	Q2 2017	H1 2018	H1 2017	FY 2017
Feed-In tariff revenue	1, 6	887 039	895 631	1 317 656	1 368 301	2 672 196
Sales of electricity	1, 6	169 260	139 116	253 520	233 351	483 665
Other revenue		49 702	2 051	87 911	2 051	37 605
Revenues	1, 6	1 106 001	1 036 798	1 659 088	1 603 703	3 193 466
Operating costs	2	(87 782)	(88 784)	(207 005)	(161 127)	(297 083)
Sales, general and administrative expenses	2	(174 199)	(275 962)	(377 786)	(633 858)	(1 403 530)
Acquisition and transaction costs	2	(7 126)	(128 403)	(28 890)	(252 187)	(2 156 307)
EBITDA		836 894	543 649	1 045 407	556 532	(663 454)
Depreciation, amortisations and write downs	3	(369 196)	(314 020)	(721 251)	(617 019)	(1 279 463)
Other operating profit before OGL (EBIT)		467 698	229 630	324 156	(60 487)	(1 942 918)
Finance income		62	5 288	112	7 034	7 824
Finance costs	9	(161 470)	(159 960)	(322 644)	(257 173)	(644 986)
Mark to market adjustment derivatives	9	12 885	9 901	26 918	17 897	145 890
Net foreign exchange gain/(losses)		(28 269)	7 142	(31 016)	6 681	77 725
Profit before income tax		290 907	92 000	(2 475)	(286 048)	(2 356 465)
Income tax gain/(expense)		(89 535)	(13)	(52 509)	21 820	(204 653)
Profit/(loss) for the period		201 372	91 988	(54 984)	(264 228)	(2 561 118)
Other comprehensive income
Currency translation differences		172 135	48 983	210 772	97 987	(80 355)
Other comprehensive income net of tax		172 135	48 983	210 772	97 987	(80 355)
Total comprehensive income		373 507	140 970	155 788	(166 242)	(2 641 473)
Profit for the period attributable to:
Equity holders of the parent company		201 372	91 988	(54 984)	(264 228)	(2 561 118)
Total comprehensive income attributable to:
Equity holders of the parent company		373 507	140 970	155 788	(166 242)	(2 641 473)
Earnings per share		0.008	0.003	0.004	(0.004)	(0.061)
Average no of shares	10	44 526 111	43 882 141	44 204 126	43 882 141	43 533 876

Balance sheet

(EUR)	Note	30 Jun 2018	31 Dec 2017
ASSETS
Property, plant and equipment	3	18 329 417	16 731 740
Intangibles and DTA		690 953	398 239
Goodwill		-	-
Other long-term assets		200 000	200 000
Non-current assets		19 220 370	17 329 979
Receivables	8	1 215 980	1 492 902
Other current assets	8	811 082	768 032
Cash and short-term deposits	5	1 001 751	717 030
Current assets		3 028 814	2 977 964
TOTAL ASSETS		22 249 183	20 307 943
EQUITY AND LIABILITIES
Share capital	10	5 274 262	4 842 179
Share premium	10	8 208 942	8 208 942
Paid-in capital		13 483 204	13 051 121
Accumulated profit and loss		(7 128 952)	(7 073 968)
Other equity		-	-
Foreign currency translation reserve		463 201	252 429
Other equity		(6 665 751)	(6 821 539)
Total equity		6 817 453	6 229 582
Long-term loans	9	4 647 366	2 933 328
Leasing	9	7 929 156	8 274 430
Other long-term debt	9	-	-
Total non-current liabilities		12 576 522	11 207 758
Trade payables and other payables		599 590	1 120 794
Short-term financing - interest-bearing	7, 9	1 496 735	1 052 174
Derivative financial instruments		758 884	697 635
Other current liabilities		-	-
Total current liabilities		2 855 209	2 870 603
Total liabilities		15 431 731	14 078 361
TOTAL EQUITY AND LIABILITIES		22 249 183	20 307 943

Oslo, 31 August 2018

Halldor Christen Tjoflaat Chair

Nils Petter Skaset Director

Kathrine Breistøl Director

Kristine Larneng Director

Markus H Enge CEO

Cash flow

(EUR)	Note	Q2 2018	Q2 2017	2017
Ordinary profit before tax		290 907	92 000	(2 356 465)
Paid income taxes		-	-	(9 675)
Depreciation	3	369 196	617 019	1 279 463
Write down		-	-	-
Changes in trade receivables and payables		(682 812)	(87 550)	102 473
Changes in other accruals		(168 541)	(492 864)	10 229
Cash flow from operations		(191 251)	128 605	(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 Dividends or shareholder distributions		-	- -	2 732 291 -
Proceed from loan		- -	-	-
Repayment of loans		(264 651)	(152 587)	(874 712)
Cash flow from financing		(264 651)	(152 587)	1 857 579
Cash at beginning of period		1 285 518	1 462 192	688 066
Net currency translation effect		172 135	97 987	-
Net increase/(decrease) in cash and cash equivalents		(455 902)	(878 622)	28 964
Cash at end of period		1 001 751	681 556	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	-	-	(54 984)	-	(54 984)
Other comprehensive income	-	-	-	210 772	210 772
Loan conversion	432 082	-	-	-	432 082
Equity 30 June 2018	5 274 262	8 208 942	(7 128 952)	463 201	6 817 452

(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 preparation of the interim financial statement

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 second-quarter report, compared with those described in the annual report.

Note 3: Property plant and equipment

Q2 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	-	271 683	16 827 352
Currency effect	-	-	-	-	-	-	-	(117 681)	(117 681)
Additions	-	-	-	-	-	-	2 340 997	-	2 340 997
Depreciation	(65 281)	(86 562)	(223 726)	(64 165)	(132 365)	(96 943)	(52 208)	-	(721 251)
Value at 30 June 2018	1 650 081	2 178 993	5 527 465	1 398 672	2 460 332	2 671 082	2 288 789	154 002	18 329 417

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)	H1 2018	H1 2017	FY 2017
Revenues	1 659 088	1 603 703	3 193 466
Operating costs	(207 005)	(161 127)	(297 083)
Land rent	-	-	-
Insurance	(31 395)	(31 737)	(42 860)
Operation and maintenance	(54 033)	(53 389)	(113 772)
Other operating costs	(121 577)	(76 002)	(140 452)
Sales, general & administrative	(377 786)	(633 858)	(1 403 530)
Accounting, audit and legal fees	(84 317)	(103 725)	(149 632)
IMU tax	(10 075)	(5 868)	(10 771)
AEGA Solar management fee	-	(70 354)	(140 000)
Other administrative costs	(283 394)	(453 910)	(1 103 127)
Acquisition and financing cost	(28 890)	(252 187)	(2 156 307)
Acquisition transaction costs	(18 835)	(149 872)	(1 958 274)
Funding and IPO costs	(3 691)	(98 495)	(198 033)
Other non-recurring items	(6 364)	(3 820)	-
EBITDA	1 045 407	556 532	(663 454)

Note 4: Group structure ¹

SPV structure minimizes financial and operational risk

Note 5: Cash and cash equivalents

(EUR)	Q2 2018	2017
Cash Norway	138 788	48 838
Cash Italy	862 963	468 192
Restricted cash Italy	200 000	200 000
Total cash	1 201 751	717 030

Note 6: Power generation

Power generation kWh	Q2 2018	Q1 2018	YTD 2018	Q4 2017	Q3 2017	Q2 2017	Q1 2017	YTD 2017
Photo-Volt One Srl	412 946	248 827	661 773	236 126	462 742	465 450	284 699	1 449 017
DT Srl	405 798	228 774	634 572	240 376	446 577	451 307	289 792	1 428 052
Collesanto Srl	825 983	417 907	1 243 890	490 266	932 985	942 200	596 726	2 962 177
JER-12 Srl	455 331	208 721	664 052	205 020	465 538	464 401	268 165	1 403 124
Piano Mulino Srl	433 825	223 609	657 434	244 274	469 790	467 523	261 544	1 443 131
Casale Srl	386 178	145 536	531 714	197 051	412 515	303 579	-	913 145
Solar Park Luino Srl	244 306	67 184	311 490	-	-	-	-	-
Total	3 164 367	1 540 558	4 704 925	1 613 113	3 190 147	3 094 460	1 700 927	9 598 647
Base Case 1 Power generation kWh	Q2 2018	Q1 2018	YTD 2018	Q4 2017	Q3 2017	Q2 2017	Q1 2017	YTD 2017
Photo-Volt One Srl	393 004	176 731	569 735	172 622	448 245	393 679	177 619	1 192 165
DT Srl	411 310	254 039	665 349	221 332	425 038	411 942	255 317	1 313 629
Collesanto Srl	853 366	555 826	1 409 192	463 751	897 600	854 632	558 620	2 774 603
JER-12 Srl	425 098	148 788	573 886	160 486	427 351	425 701	149 536	1 163 074
Piano Mulino Srl	437 446	242 469	679 915	219 635	436 266	438 125	243 688	1 337 714
Casale Srl	417 731	223 588	641 319	181 400	400 600	293 900	-	875 900
Solar Park Luino Srl	280 805	70 393	351 198	-	-	-	-	-
Total	3 218 759	1 671 834	4 890 593	1 419 226	3 035 100	2 817 979	1 384 780	8 657 085

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: Related party transactions

As resolved by the AGM, the shareholder loan, including the interest rate of eight per cent per annum, has been converted to shares in Aega at a conversion rate of NOK 1 per share. This increased the share capital of the company by NOK 4 093 808. In addition, one warrant has been issued per 10 shares received. These warrants will have a conversion price of NOK 1, with a deadline for their exercise of 14 days after the AGM in 2019. If all warrants are exercised, the share capital will increase by NOK 400 000.

Following the conversion, the following key directors and senior executives control shares as specified.

Person	Role	Ownership with control	Other
Halldor Christen Tjoflaat	Chair	Through Kolstad AS, controls 102 345 shares (0.21 per cent) and 10 000 warrants.	Also chair of Solex AS, which owns 933 667 shares (2.03 per cent), and a shareholder in AFT Development AS, which owns 2 250 152 shares (4.69 per cent)
Kathrine Breistøl	Director	Through Vesoldo AS, controls 465 880 shares (0.97 per cent) and 25 000 warrants.	N/A
Nils Petter Skaset	Director	Through Brezza AS, controls 358 208 shares (0.75 per cent) and 35 000 warrants.	N/A
Markus Huseby Enge	CEO	Through E3 Consulting AS and Klunken Blessenborg Invest AS, controls 241 928 shares (0.5 per cent).	N/A
Fabio Buonsanti	COO	Owns 35 526 shares in the company in addition to a small number of warrants with a strike price of NOK 3.1.	N/A

Note 8: 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 Jun 2018	31 Dec 2017
Trade receivables	1 176 417	1 409 423
Tax outstanding and VAT	774 561	768 032
Other current assets	-	-
Receivable financial instruments	1 950 978	2 177 455
Prepayments	39 564	83 479
Receivables	1 990 541	2 260 934

Note 9: Financing overview

Financial liabilities		30 Jun 2018	2017
Secured long-term loans		4 647 366	2 933 328
Obligations under finance leases		7 929 156	8 274 430
Trade and other payables		599 590	1 120 794
Current leasing or loans		1 496 735	1 052 174
Derivative financial instruments 1		758 884	697 635
Total		15 431 731	14 078 361
Total current		3 454 023	2 870 603
Total non-current		12 841 173	11 207 758
Financal costs	Q2 2018	Q2 2017	2017
Interest paid on leasing	219 304	118 010	393 575
Interest paid on project finances	93 366	38 986	251 411
Other financial costs	9 974	(686)	-
Total finance costs	322 644	156 310	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 10: Shares and shareholder information

	30 Jun 2018
Aega ASA Shares	47 975 949
Aega ASA warrants 1	2 000 000
Aega ASA warrants 2	400 000
	31 Dec 2017
Aega ASA Shares	43 882 141
Aega ASA warrants	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 30 June 2018

Shareholders	Shares	Percentage
BEARHILL INC AS	3 359 034	7.7%
AFT DEVELOPMENT AS	2 250 152	5.1%
HARALDSEN THORVALD MORRIS	1 627 119	3.7%
LJM AS	1 441 926	3.3%
SÆTREMYR TORE	1 277 694	2.9%
MOGER INVEST AS	1 134 890	2.6%
JAN STEINAR NEREM	1 022 069	2.3%
SOLEX AS	972 660	2.2%
MORO AS	933 667	2.1%
VESAAS OLAV	877 141	2.0%
STRØM-RASMUSSEN FINN	769 012	1.8%
PENTHOUSE MIRADORES AS	761 884	1.7%
JAN P HARTO AS	753 042	1.7%
FIN SERCK-HANSSEN	715 780	1.6%
RACCOLTA AS	698 186	1.6%
SØLAND TORSTEIN	668 890	1.5%
MAGNOLIA SYSTEM AS	655 357	1.5%
KÅRE REIDAR JOHASEN	624 722	1.4%
C - BY - C AS	558 208	1.3%
CLEAR THOUGHT AS	551 833	1.3%
Total 20 largest shareholders	21 653 266	49.3%
Aega ASA outstanding shares	43 882 141	100.0%

Note 11: 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 65 000 related to this case.

Note 12: Subsequent events

Nothing to note.

Responsibility statement

We confirm to the best of our knowledge that the condensed set of financial statements for the period 1 January 2018 to 30 June 2018 has been prepared in accordance with the IAS 34 Interim Financial Reporting and gives a true and fair view of the company's assets, liabilities, financial position and results for the period viewed in their entirety, and that the interim report includes a fair review of any significant events which arose during the six-month period and their effect on the half-yearly financial report and any significant related party transactions. The report includes, to the best of our knowledge, a description of the material risks which the board of directors deems at the time of this report might have a significant impact on the financial performance of the company.

Oslo, 31 August 2018

Halldor Christen Tjoflaat Chair

Nils Petter Skaset Director

Kathrine Breistøl Director

Kristine Larneng Director

Markus H Enge CEO

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