Nordic Financials ASA — Interim / Quarterly Report 2019

Aug 30, 2019

Aega ASA Q2 REPORT – 2019

Contents

About Aega		3
CEO letter		4
	Second quarter report	5
Second quarter in brief		5
	Highlights from the reporting period	5
	Financial review	5
Portfolio sold		6
	Financial statement	8
Profit and loss		9
Balance sheet		10
Cash flow		11
Change in equity		12
Notes		13
Note 1:	Summary of significant accounting policies	13
Note 2:	Breakdown of operational costs	13
Note 3:	Breakdown assets and liabilities in discontinued business	13
Note 4:	Group structure	14
Note 5:	Cash and cash equivalents	14
Note 6:	Power generation	14
Note 7:	Shares and shareholder information	15
Note 8:	Tax issues	15
Note 9:	Profit and loss statement	16
	Note 10: Subsequent events	16
Responsibility statement		17
	Investor contact	18

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 recently sold a portfolio of eight solar parks located in Italy, with a combined generating capacity of about 8MWp or around 10GWh 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).

CEO letter

On 6 August 2019 Aega ASA (the "Company" or "Aega") completed its sale of all its solar parks to Italia T1 Roncolo S.r.l (the Buyer), a subsidiary of Mareccio Energia ("Mareccio"). Aega received EUR 9.46 million and EUR 0.55 million was paid into an escrow account.

Due to the transaction, the accounts are presented in accordance with IFRS 5, hence the continued business (Aega ASA, Aega Management AS and Aega Yieldco) are the only companies included in the profit and loss of continued business , while discontinued business (that will be transferred to the Buyer through the expected transaction), is presented on a separate line as "Profit/loss from discontinued business". In Q3 the transaction gain will be accounted since it occurred after the end of Q2.

The transaction involves a takeover by Mareccio of all of Aega's Italian subsidiary companies and their respective solar power plants. A total of eight solar power plants in Italy, with a combined production capacity of 8 MW, are part of the transaction.

The total enterprise value as of the cut-off date (30 June 2018) was EUR 22.6 million and an equity value of EUR 10.6 million. Since 30 June 2018 Aega ASA has taken out more than EUR 0.6 million in dividends and shareholder loan repayments. Due to these payments and other adjustments in the agreement, Aega consideration is EUR 9.96 million where EUR 550 000 of the consideration will be paid into escrow mainly related to a specific tax issue.

Proposed extraordinary dividend payment

In the second quarter 2018 report, Aega's board of directors announced two new key objectives for the Company:

• 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

"With the sale of our eight solar parks in Italy we are delivering on the first objective. The board has now proposed and the company has paid an extraordinary capital repayment of NOK 0.20 per share. The Company will now focus on the second objective, we have already an attractive pipeline of projects, however, its important that we keep buying the right projects.The board of directors has concluded that the strategy of the Company stays firm and that this transaction demonstrates the value of the infrastructure and experience of the team." says Halldor Christen Tjoflaat, chairman of the board in Aega.

Markus H Enge Chief Executive Officer

Second quarter report

SECOND QUARTER IN BRIEF

• Q2 in Italy had irradiation below average compared to previous years. For the quarter the solar irradiation in northern Italy below the historic average, resulting in an output 3.7 per cent below budget and 4.5 per cent below the same period of last year when adjusted for installed capacity. Opex for the discontinued business was below budget mainly due to renegotiations of O&M contracts done in 2018.
• The lower solar irradiation and about 40 000 in costs related to the transaction decreased the result from last year. The net profit for the continued and discontinued business for the quarter was 105 000 compared to 201 000 one year previous. For the continued business the net result was a loss of 148 000 compared to a loss of 132 000 in Q2 2018. Mainly due to extraordinary costs related to the transaction mentioned in the CEO letter.
• All warrants due in 2019 has been exercised increasing the share capital with NOK 400 000.
• As reported in previous quarters two of Aega's subsidiaries had been involved in a tax case against the Italian tax office. The SPV's now won in the second instance, as it did in the first instance for one income year and tax office has not appealed other income years. The tax office have appealed the rulings to the supreme court. Timing of the hearings in the supreme court are uncertain.

HIGHLIGHTS FROM THE REPORTING PERIOD Operations

Output was 9.2 per cent above seasonally adjusted base-case generation at 30 June 2019 owing to high irradiation in the first quarter of 2019 and close to zero downtime. Revenues for discontinued operations were 9.2 per cent above budget. The market price for electricity has been at an average of EUR 55 per MWh versus the budgeted level of EUR 50 per MWh.

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. At the present Aega has started due diligence on two 1 MWp solar parks and have another 10MWp in immediate pipeline.

FINANCIAL REVIEW

Total revenues for the continued business was 0 in the quarter as it was in Q2 2018. The discontinued operations had revenues of 942 000 in the first quarter of 2019, compared with EUR 1 106 000 in the same period of last year. Total power generation was 3 035MWh, down by 3.7 per cent from seasonally adjusted base-case output of 3 153MWh.

Operating costs for the continued business was 0 as it was in the same quarter of last year. For the discontinued business the second quarter of 2019 were EUR 69 000, compared with EUR 88 000 in the same period of last year. The reduction is due renegotiation of operational contracts done in 2018.

The company's non-recurring expenses came to EUR 39 000 in the second quarter this is mainly related to the sale process of the Italian portfolio.

The balance sheet assets in the continued business is quite limited, mainly cash and some payables. The assets held for sale comprise of 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).

Portfolio Cumulated production vs. Base case

PORTFOLIO SOLD

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

Financial statement

Please note that all of Aega's Italian subsidiaries are classified as discontinued business, due to the sale agreement signed 24 May 2019 and completed on 6 August 2019. The continued business consists of Aega ASA, Aega Yieldco AS and Aega Management AS, mainly the Board of directors, two employees, infrastructure to manage solar power plants and pipeline of new investment possibilities. In the Profit and loss, balance sheet etc. we have separated out the discontinued business also for previous reporting periods.

Profit and loss	9
Balance sheet	10
Cash flow	11
Change in equity	12
Notes	13
Note 1: Summary of significant accounting policies	13
Note 2: Breakdown of operational costs	13
Note 3: Breakdown assets and liabilities in discontinued business	13
Note 4: Group structure	14
Note 5: Cash and cash equivalents	14
Note 6: Power generation	14
Note 7: Shares and shareholder information	15
Note 8: Tax issues	15
Note 9: Profit and loss statement	16
Note 10: Subsequent events	16
Responsibility statement	17

Profit and loss

Continued operations

(EUR)	Note	Q2 2019	Q2 2018	H1 2019	H1 2018	FY 2018
Feed-In tariff revenue	3, 6	-	-	-	-	-
Sales of electricity	3, 6	-	-	-	-	-
Other revenue	3, 6	-	-	-	-	500
Revenues	3, 6	-	-	-	-	500
Operating costs	3	-	-	-	-	-
Sales, general and administrative expenses	3	(110 564)	(128 514)	(276 433)	(293 676)	(563 183)
Acquisition and transaction costs	3	(38 571)	(7 127)	(80 562)	(28 890)	(129 678)
EBITDA		(149 134)	(135 641)	(356 995)	(322 566)	(692 361)
Depreciation, amortisations and write downs	3	-	-	-	-	(190)
Other operating profit before OGL (EBIT)		(149 134)	(135 641)	(356 995)	(322 566)	(692 551)
Finance income		78	62	105	112	290
Finance costs		-	9 845	-	-	(11 096)
Mark to market adjustment derivatives		-	-	-	-	-
Net foreign exchange gain/(losses)		752	(7 226)	(9 620)	(9 974)	(14 040)
Profit before income tax		(148 305)	(132 959)	(366 510)	(332 428)	(717 397)
Income tax gain/(expense)	8	-	-	-	-	-
Profit/(loss) Continued operations		(148 305)	(132 959)	(366 510)	(332 428)	(717 397)

Discontinued operations
(EUR)	Note	Q2 2019	Q2 2018	H1 2019	H1 2018	FY 2018
Profit/loss from discontinued operations	3, 6	260 489	334 331	463 393	277 444	560 565
Profit/loss for the period		112 184	201 371	96 883	(54 984)	(156 832)

Other comprehensive income

(EUR)	Note	Q2 2019	Q2 2018	H1 2019	H1 2018	FY 2018
Currency translation differences		293 521	172 309	130 685	210 947	301 926
Other comprehensive income net of tax		293 521	172 309	130 685	210 947	301 926
Total comprehensive income		405 705	373 681	227 568	155 963	145 094
Profit for the period attributable to:
Equity holders of the parent company		405 705	373 681	227 568	155 963	145 094
Total comprehensive income attributable to:
Equity holders of the parent company		405 705	373 681	227 568	155 963	145 094
Earnings per share		0.008	0.008	0.005	0.004	0.003
Avgerage no of shares	7	48 020 893	44 526 111	47 998 421	43 533 876	46 090 037

Balance sheet

(EUR)	Note	30 Jun 2019	31 Dec 2018
ASSETS
Non-current assets		-	-
Receivables		15 474	(504)
Other current assets		-	-
Cash and short-term deposits	5	76 497	60 088
Assets held for sale	3	21 142 819	21 709 116
Current assets		21 234 790	21 768 699
TOTAL ASSETS		21 234 790	21 768 699
EQUITY AND LIABILITIES
Share capital	7	5 296 077	5 255 029
Share premium	7	7 965 351	8 208 942
Paid-in capital		13 261 428	13 463 970
Accumulated profit and loss		(7 020 318)	(6 897 327)
Other equity		(19 738)	(19 809)
Foreign currency translation reserve		685 040	554 355
Other equity		(6 355 016)	(6 362 781)
Total equity		6 906 413	7 101 189
Total non-current liabilities		-	-
Trade payables and other payables		84 951	104 802
Other current liabilities		7 337	1 568
Liabilities held for sale	3	14 236 090	14 561 141
Total current liabilities		14 328 378	14 667 511
Total liabilities		14 328 378	14 667 511
TOTAL EQUITY AND LIABILITIES		21 234 790	21 768 700

Oslo, 30 June 2019

Halldor Christen Tjoflaat Chair

Nils Petter Skaset Director

Kathrine Breistøl Director

Kristine Larneng Director

Markus H Enge Chief Executive Officer

Cash flow

(EUR)	Note	Q2 2019	Q2 2018	2018
Profit before tax continued business	2	(148 305)	290 907	(717 397)
Ordinary profit before tax	2	-	-	878 134
Paid income taxes		-	369 196	-
Depreciation		339 576	-	1 361 009
Changes in trade receivables and payables		(87 843)	(682 812)	(441 806)
Changes in other accruals		268 349	(486 364)	406 234
Cash flow from operations		371 777	(509 073)	1 486 174
Acquisition net of cash acquired		-	-	(260 108)
Cash flow from investments		-	-	(260 108)
Proceeds from issue of share capital		41 048	-	385 049
Dividends or shareholder distributions		-	-	-
Proceed from loan		-	-	-
Repayment of loans		(269 924)	(152 587)	(1 152 174)
Cash flow from financing		(228 876)	(152 587)	(767 125)
Cash at beginning of period		855 081	1 462 192	717 030
Net currency translation effect		-	97 987	-
Net increase/(decrease) in cash and cash equivalents		142 901	(878 622)	458 941
Locked cash		200 000	200 000	200 000
Cash at end of period		997 982	681 556	975 971

Change in equity

(EUR)	Share capital	Share premium fund	Other equity	Foreign currency translation reserve	Total equity
Equity 2018	5 255 029	8 208 942	(6 917 136)	554 355	7 101 189
Profit (loss) after tax	-	-	(366 510)	-	(366 510)
Other comprehensive income	-	-	-	130 685	130 685
Capital increase	41 048	-	-	-	41 048
Adjustment	-	(243 591)	243 591	-	-
Equity 30 June 2019	5 296 077	7 965 351	(7 040 055)	685 040	6 906 412

equity
6 229 582
432 082
301 926
156 832
(19 233)
7 101 189

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 which Aega agreed to sell in May 2019, 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 con-

Note 2: Breakdown of operational costs

Continued business

(EUR)	H1 2019	H1 2018
Revenues	-	-
Operating costs	-	-
Land rent	-	-
Insurance	-	-
Operation and maintenance	-	-
Other operating costs	-	-
Sales, general & administrative	(316 433)	(293 676)
Commercial management	-	-
Accounting, audit and legal fees	(39 045)	(83 083)
IMU tax	-	-
AEGA Solar management fee	-	-
Other administrative costs	(277 388)	(210 593)
Acquisition and financing cost	(40 562)	(28 890)
Acquisition transaction costs	(40 562)	(25 199)
Funding and IPO costs	-	(3 691)
Other non-recurring items	-	-
EBITDA	(356 995)	(322 566)

verted 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 2018 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. However, after the quarter all the solar parks was sold which has changed the risks somewhat. After the sale the main asset in the company is cash held in NOK and EUR, so the currency development of this will change the underlying values, also the currency risk described in the annual report is larger. Also the availability of good solar parks at attractive prices are now more important to the company to be able to secure future returns on capital.

Note 3: Breakdown assets and liabilities in discontinued business

Assets held for sale
(EUR)	30 Jun 2019	31 Dec 2018
Property, plant and equipment	16 643 807	17 548 323
Other long-term assets	200 000	200 000
Non-current assets	16 843 807	17 748 323
Receivables	1 483 833	1 227 182
Other current assets	1 893 694	1 817 727
Cash and short-term deposits	921 486	915 883
Current assets	4 299 013	3 960 792
Total assets held for sale	21 142 819	21 709 116

Liabilities held for sale

(EUR)	30 Jun 2019	31 Dec 2018
Long-term loans	4 317 767	4 473 595
Leasing	7 182 396	7 471 673
Other long-term debt	319 557	272 961
Total non-current liabilities	11 819 719	12 218 229
Trade payables and other payables	318 080	307 962
Short-term financing - interest-bearing	1 024 896	1 079 682
Derivative financial instruments	861 672	758 484
Other current liabilities	211 722	196 783
Total current liabilities	2 416 371	2 342 912
Total liabilities held for sale	14 236 090	14 561 141

					Home Contents About Aega CEO letter Quarter report Financial statement Contact			14/18
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Note 4: Group structure ¹ 2

SPV structure minimizes financial and operational risk

² As mentioned in the CEO letter and subsequent events Aega has agreed to sell Photo-Volt One S.r.l, DT S.r.l, Piano Mulino S.r.l, Solar Park Luino S.r.l, Collesanto S.r.l, Casale S.r.l and JER-12 S.r.l. This sale was completed on 6 August 2019.

Note 5: Cash and cash equivalents

(EUR)	H1 2019	2018
Cash continued operations	76 497	60 088
Cash discontinued operations	921 486	715 883
Locked cash discontinued operations	200 000	200 000
Total cash	1 197 983	975 971

Note 6: Power generation

Power generation kWh	Q2 2019	Q1 2019	YTD 2019	Q4 2018	Q3 2018	Q2 2018	Q1 2018	2018
Photo-Volt One S.r.l	393 995	304 806	698 801	216 743	363 569	418 322	247 651	2 643 887
DT S.r.l	384 948	304 776	689 724	226 957	434 028	408 750	228 824	2 678 006
Collesanto S.r.l	804 718	623 607	1 428 325	442 454	899 205	830 621	419 672	5 448 602
JER-12 S.r.l	410 140	302 542	712 681	175 196	459 157	455 358	208 667	2 723 740
Piano Mulino S.r.l	409 314	294 257	703 571	200 046	458 520	423 378	228 574	2 717 660
Casale S.r.l	359 764	286 054	645 818	163 997	411 960	395 760	150 168	2 413 522
Solar Park Luino S.r.l	272 242	189 773	462 015	81 114	281 699	245 807	67 184	1 599 833
Total	3 035 121	2 305 815	5 340 935	1 506 508	3 308 138	3 177 995		1 550 739 20 225 250
Base Case 1 Power generation kWh	Q2 2019	Q1 2019	YTD 2019	Q4 2018	Q3 2018	Q2 2018	Q1 2018	2 018
Photo-Volt One S.r.l	389 752	175 847	565 600	172 622	448 245	393 004	176 731	2 321 801
DT S.r.l	407 834	252 769	660 602	221 333	425 039	411 310	254 039	2 632 925
Collesanto S.r.l	846 106	553 047	1 399 153	463 750	897 600	853 366	555 826	5 568 849
JER-12 S.r.l	421 455	148 044	569 499	160 485	427 351	425 098	148 788	2 300 720
Piano Mulino S.r.l	433 755	241 257	675 012	219 635	436 266	437 446	242 469	2 685 838
Casale S.r.l	415 642	222 470	638 112	180 493	398 597	417 731	223 588	2 496 632
Solar Park Luino S.r.l	238 779	146 263	385 042	140 988	280 047	280 805	70 393	1 542 316
Total	3 153 323	1 739 697	4 893 020	1 559 305	3 313 145	3 218 759		1 671 834 19 549 083

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: Shares and shareholder information

	30 Jun 2019
Aega ASA Shares	48 375 949
Aega ASA warrants 1	2 000 000
Own shares	191 332
	31 Dec 2018
Aega ASA Shares	47 975 949
Aega ASA warrants 1	2 000 000
Aega ASA warrants 2	400 000
Own shares	191 332

The own shares have been bought because the Board felt the price of the stock was attractive. The Board plans to in the future to cancel own shares.

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 was 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 was 14 days after the AGM in 2019. All the warrants was used during Q2, increasing the share capital with NOK 400 000.

Largest 20 shareholders at 30 June 2019

Shareholders	Shares	Percentage
BEARHILL INC AS	3 359 034	6.9%
AFT DEVELOPMENT AS	2 250 152	4.7%
HARALDSEN THORVALD MORRIS	1 627 119	3.4%
LJM AS	1 471 926	3.0%
PENTHOUSE MIRADORES AS	1 371 884	2.8%
SÆTREMYR TORE	1 277 694	2.6%
MOGER INVEST AS	1 134 890	2.3%
KOLSTAD AS	1 085 055	2.2%
JAN STEINAR NEREM	1 032 069	2.1%
MORO AS	933 667	1.9%
VESAAS OLAV	877 141	1.8%
STRØM-RASMUSSEN FINN	779 012	1.6%
JAN P HARTO AS	768 042	1.6%
FIN SERCK-HANSSEN	740 780	1.5%
MAGNOLIA SYSTEM AS	715 357	1.5%
RACCOLTA AS	708 186	1.5%
TORSTEIN SØLAND	668 890	1.4%
KÅRE REIDAR JOHANSEN	644 722	1.3%
GN Power Invest AS	600 000	1.2%
C - BY - C AS	593 208	1.2%
Total 20 largest shareholders	22 638 828	46.7%
Aega ASA outstanding shares	48 375 949	100.0%

Note 8: 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 1 500 000. The group has disputed this claim in court, and won in the court of first and second instance related to the year 2012. The Italian tax authorities have appealed for the supreme court.

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 120 000 related to this case to the tax authorities.

As mentioned in subsequent event following the transaction the risk is now carried by the Buyer of the solar parks. However, there is an escrow amounting to EUR 550 000 will be held by the Buyer to cover potential future damages.

Note 9: Profit and loss statement

The attached P&L statement shows how the P&L would have been if the sales agreement discussed in the CEO letter was not closed.

(EUR)	Q2 2019	Q2 2018	H1 2019	H1 2018	FY 2018
Feed-In tariff revenue	775 374	887 039	1 488 590	1 317 656	2 679 309
Sales of electricity	159 046	169 260	286 934	253 520	586 332
Other revenue	7 970	49 702	10 169	87 911	14 208
Revenues	942 390	1 106 001	1 785 692	1 659 088	3 279 849
Operating costs	(68 883)	(87 782)	(113 723)	(207 005)	(355 463)
Sales, general and administrative expenses	(167 222)	(174 199)	(364 213)	(377 786)	(748 514)
Acquisition and transaction costs	(38 571)	(7 126)	(80 562)	(28 890)	(129 868)
EBITDA	667 714	836 894	1 227 195	1 045 407	2 046 005
Depreciation, amortisations and write downs	(339 576)	(369 196)	(767 744)	(721 251)	(1 361 009)
Other operating profit before OGL (EBIT)	328 138	467 698	459 451	324 156	684 996
Finance income	78	62	105	112	290
Finance costs	(173 413)	(161 470)	(297 590)	(322 644)	(601 257)
Mark to market adjustment derivatives	1	12 885	(15 421)	26 918	68 544
Net foreign exchange gain/(losses)	752	(28 269)	(9 620)	(31 016)	8 165
Profit before income tax	155 555	290 907	136 926	(2 475)	160 737
Income tax gain/(expense)	(49 925)	(89 535)	(46 596)	(52 509)	(317 569)
Profit/(loss) for the period	105 630	201 372	90 330	(54 984)	(156 832)
Other comprehensive income
Currency translation differences	293 521	172 309	130 685	210 947	301 926
Other comprehensive income net of tax	293 521	172 309	130 685	210 947	301 926
Total comprehensive income	399 152	373 681	221 015	155 963	145 094
Profit for the period attributable to:
Equity holders of the parent company	105 630	201 372	90 330	(54 984)	(156 832)

Total comprehensive income attributable to:

399 152	373 681	221 015	155 963	145 094
0.008	0.008	0.005	0.004	0.003
48 020 893	44 526 111	47 998 421	44 204 126	46 090 037

Note 10: Subsequent events

On 6 August 2019 Aega ASA (the "Company" or "Aega") completed its sale of all its solar parks to Italia T1 Roncolo S.r.l (the Buyer), a subsidiary of Mareccio Energia ("Mareccio"). completed and Aega received EUR 9.46 million and EUR 0.55 million was paid into an escrow account.

For further information see the CEO letter.

As of the reporting date the Company has no solar parks only cash in the ac-

counts. The Company decided to keep about 30 per cent in NOK and 70 per cent in EUR. This might change going forward.

For further information see the CEO letter.

On 22 August 2019 the board of the Company announced a NOK 0.2 per share extraordinary repayment to be paid on 30 August 2019.

Responsibility statement

We confirm to the best of our knowledge that the condensed set of financial statements for the period 1 January 2019 to 30 June 2019 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, 30 June 2019

Halldor Christen Tjoflaat Chair

Nils Petter Skaset Director

Kathrine Breistøl Director

Kristine Larneng Director

Markus H Enge Chief Executive Officer

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