Nordic Financials ASA — Interim / Quarterly Report 2018

Feb 28, 2019

Aega ASA Q4 REPORT – 2018

Contents

About Aega		3
	Fourth quarter in brief	3
	Highlights from the reporting period	3
Financial review		4
	Aega Portfolio at the end of fourth 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 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).

FOURTH QUARTER IN BRIEF

• Q4 has the lowest solar irradiation of any quarter in Italy. For the quarter, the solar irradiation in northern Italy was below the historic average, resulting in an output 3.4 per cent below budget and 11.6 per cent below the same period last year when adjusted for installed capacity. Opex was below budget mainly due to renegotiations of O&M contracts done in 2018.
• The net profit in the fourth quarter 2019 was a loss of 246 000 compared to a loss of 2 336 000 in the same period last year. 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.
• As reported in previous quarters, two of Aega's subsidiaries had been involved in a tax case against the Italian tax office. The SPVs won in the second instance, as it did in the first instance for one income year. The tax office has not appealed other income years. The tax office may appeal the ruling to the supreme court before the end of Q2 2019.

HIGHLIGHTS FROM THE REPORTING PERIOD Operations

Output was 2.2 per cent below seasonally adjusted base-case generation at 31 December 2018 owing to low irradiation in 2018. Aega also had some minor downtime at its plants because of maintenance and upgrading and problems with one inverter. Revenues were 3.2 per cent above budget due to a market price for electricity about 50 per cent above the budgeted level of EUR 40 per MWh.

The board announced two new objectives for the company in Q2 2018:

• 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 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.

The board remains firm on its objective to reinstate dividends in 2019. The level of the dividend will depend on the solar irradiation at the start of the year and the outcome of certain strategic opportunities.

With regards to point 2a above, the Board is considering strategic processes with the objective of highlighting what it believes is the real underlying value of the assets in Aega's solar power plant portfolio.

Furthermore, the company has identified about 5MWp that seems to satisfy Aega's investments criteria. The Board and management are working together on a solution to finance potential acquisitions.

As a result of the changing in accountants in Q3 2018 Aega has not received all MTM reports of the derivates in time for the fourth quarter report, this figures is largely unchanged from the Q3 report, but will be updated for the annual report.

Corporate events

Nothing to note.

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

Q4 2018	Q4 2017
1 507	1 613
547	534
(76)	(78)
472	456
(66)	(89)
406	367
(164)	(320)
(58)	(1 975)
184	(1 929)
	(2 336)
	2.17%
21 293	20 504
31%	31%
12 073	11 244
0.000	(0.050)
0.94	1.00
0.000	0.00
0.00%	0.00%
	(246) 2.35%

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 fourth 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 fourth quarter of 2018 were EUR 547 000, compared with EUR 534 000 in the same period of last year. Total power generation was 1 507MWh, down by 3.4 per cent from seasonally adjusted base-case output of 3 313MWh.

Operating costs in the fourth quarter of 2018 were EUR 76 000, compared with EUR 78 000 in the same period of last year. Since there is one park more under management in the fourth quarter 2018, the improvement per park is quite substantial.

The company's non-recurring expenses came to EUR 58 000 in the fourth quarter. This is mainly related to due diligence work conducted and development of new web pages.

Net Financial costs came to EUR 150 000 in the fourth quarter of 2018, compared with EUR 6 000 in the same period of last year. The low number in 2018 was due to favourable development of the MTM value of the interest swap agreements. The pre-tax profit was a loss of EUR 301 000 in the fourth quarter of 2018 and tax cost reversal of EUR 55 000, resulting in a net loss of EUR 246 000 in the quarter compared with a loss of EUR 2 336 000 in the same period of last year.

Earnings per share (EPS) came to a loss of EUR 0.003 in the fourth quarter of 2018, compared with a negative EUR 0.05 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 1 023 000 at 31 December 2018, compared with EUR 717 000 at 1 January. So in a year with bad weather, the company has had a net positive cash flow of about EUR 300 000. Overdue invoices at the end of 2017 of about EUR 350 000 have also been settled in 2018. In addition, necessary investments in the solar parks have been made in 2018. All in all the company is satisfied with the progress it made in 2018 and believes it has a solid structure in place to return the business to delivering positive financial results.

AEGA PORTFOLIO AT THE END OF FOURTH 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	Q4 2018	Q4 2017	FY 2018	FY 2017
Feed-In tariff revenue	1, 6	425 692	453 258	2 687 243	2 672 196
Sales of electricity	1, 6	118 799	80 557	598 075	483 665
Other revenue		3 005	39	35 415	37 605
Revenues	1, 6	547 495	533 854	3 320 733	3 193 466
Operating costs	2	(75 602)	(78 079)	(354 442)	(297 083)
Sales, general and administrative expenses	2	(229 996)	(408 895)	(757 729)	(1 403 530)
Acquisition and transaction costs	2	(58 391)	(1 975 397)	(129 678)	(2 156 307)
EBITDA		183 506	(1 928 516)	2 078 884	(663 454)
Depreciation, amortisations and write downs	3	(335 155)	(314 536)	(1 483 038)	(1 279 463)
Other operating profit before OGL (EBIT)		(151 648)	(2 243 052)	595 846	(1 942 918)
Finance income		95	105 306	271	7 824
Finance costs	9	(170 211)	(300 320)	(602 121)	(644 986)
Mark to market adjustment derivatives	9	23 016	117 718	57 481	145 890
Net foreign exchange gain/(losses)		(2 601)	70 827	(33 866)	77 725
Profit before income tax		(301 350)	(2 249 521)	17 611	(2 356 465)
Income tax gain/(expense)		54 902	(86 189)	(197 553)	(204 653)
Profit/(loss) for the period		(246 448)	(2 335 710)	(179 942)	(2 561 118)
Other comprehensive income
Currency translation differences		89 894	153 563	167 263	(80 355)
Other comprehensive income net of tax		89 894	153 563	167 263	(80 355)
Total comprehensive income		(156 555)	(2 182 146)	(12 680)	(2 641 473)
Profit for the period attributable to:
Equity holders of the parent company		(246 448)	(2 335 710)	(179 942)	(2 561 118)
Total comprehensive income attributable to:
Equity holders of the parent company		(156 555)	(2 182 146)	(12 680)	(2 641 473)
Earnings per share		(0.003)	(0.050)	0.000	(0.061)
Avgerage no of shares	10	47 975 949	43 882 141	46 090 037	43 533 876

Balance sheet

(EUR)	Note	31 Dec 2018	31 Dec 2017
ASSETS
Property, plant and equipment	3	17 318 865	16 731 740
Intangibles and DTA		579 168	398 239
Goodwill		-	-
Other long-term assets		200 000	200 000
Non-current assets		18 098 032	17 329 979
Receivables	8	1 299 418	1 492 902
Other current assets	8	872 254	768 032
Cash and short-term deposits	5	1 023 224	717 030
Current assets		3 194 897	2 977 964
TOTAL ASSETS		21 292 929	20 307 943
EQUITY AND LIABILITIES
Share capital	10	5 274 261	4 842 179
Share premium	10	8 208 942	8 208 942
Paid-in capital		13 483 203	13 051 121
Accumulated profit and loss		(7 253 911)	(7 073 968)
Other equity		(19 233)	-
Foreign currency translation reserve		419 692	252 429
Other equity		(6 853 452)	(6 821 539)
Total equity		6 629 752	6 229 582
Long-term loans	9	4 513 100	2 933 328
Leasing	9	7 560 302	8 274 430
Other long-term debt	9	-	-
Total non-current liabilities		12 073 402	11 207 758
Trade payables and other payables		577 606	1 120 794
Short-term financing – interest-bearing	7, 9	1 024 896	1 052 174
Derivative financial instruments		987 272	697 635
Other current liabilities		-	-
Total current liabilities		2 589 774	2 870 603
Total liabilities		14 663 177	14 078 361
TOTAL EQUITY AND LIABILITIES		21 292 929	20 307 943

Oslo, 28 February 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	Q4 2018	Q4 2017	2017
Ordinary profit before tax		(301 350)	(2 249 521)	(2 356 465)
Paid income taxes		-	-	(9 675)
Depreciation	3	335 155	314 536	1 279 463
Write down		-	-	-
Changes in trade receivables and payables		42 477	436 759	102 473
Changes in other accruals		130 207	1 646 066	10 229
Cash flow from operations		206 490	147 840	(973 975)
Acquisition net of cash acquired		-	-	(854 640)
Cash flow from investments		-	-	(854 640)
Proceeds from issue of share capital		-	-	2 732 291
Dividends or shareholder distributions		-	-	-
Proceed from loan		-	-	-
Repayment of loans		(240 171)	(130 716)	(874 712)
Cash flow from financing		(240 171)	(130 716)	1 857 579
Cash at beginning of period		967 011	699 906	688 066
Net currency translation effect		89 894	-	-
Net increase/(decrease) in cash and cash equivalents		(33 681)	17 124	28 964
Cash at end of period		1 023 224	717 030	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			(179 942)		(179 942)
Other comprehensive income				167 263	167 263
Loan conversion	432 082				432 082
Own shares acquired			(19 233)		(19 233)
Equity 31 December 2018	5 274 262	8 208 942	(7 273 143)	419 691	6 629 752

(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 3.1.2017	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 fourth-quarter report, compared with those described in the annual report.

Note 3: Property plant and equipment

Q4 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	-	-	-	-	-	-	-	(291 807)	(291 807)
Additions	-	-	-	-	-	-	2 341 346	-	2 341 346
Depreciation	(130 562)	(173 125)	(447 452)	(128 330)	(254 832)	(216 358)	(161 394)	29 016	(1 483 038)
Value at 30 September 2018	1 584 800	2 092 431	5 303 739	1 334 507	2 337 865	2 551 666	2 179 952	(66 095)	17 318 865

2017	Photo-Volt				Piano
(EUR)	One Srl		DT Srl Collesanto Srl	JER-12 Srl	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)	FY 2018	FY 2017
Revenues	3 320 733	3 193 466
Operating costs	(354 442)	(297 083)
Land rent	-	-
Insurance	(49 726)	(42 860)
Operation and maintenance	(251 207)	(113 772)
Other operating costs	(53 508)	(140 452)
Sales, general & administrative	(757 729)	(1 403 530)
Accounting, audit and legal fees	(178 284)	(149 632)
IMU tax	(19 316)	(10 771)
AEGA Solar management fee	-	(140 000)
Other administrative costs	(560 129)	(1 103 127)
Acquisition and financing cost	(129 678)	(2 156 307)
Acquisition transaction costs	(129 678)	(1 958 274)
Funding and IPO costs	-	(198 033)
Other non-recurring items	-	-
EBITDA	2 078 884	(663 454)

Note 4: Group structure ¹

SPV structure minimizes financial and operational risk

Note 5: Cash and cash equivalents

(EUR)	Q4 2018	2017
Cash Norway	107 341	48 838
Cash Italy	915 883	468 192
Restricted cash Italy	200 000	200 000
Total cash	1 223 224	717 030

Note 6: Power generation

Power generation kWh	Q4 2018	Q3 2018	Q2 2018	Q1 2018	YTD 2018	Q4 2017	Q3 2017	Q2 2017	Q1 2017	YTD 2017
Photo-Volt One Srl	216 743	363 569	418 322	247 651	1 246 284	236 126	462 742	465 450	284 699	1 449 017
DT Srl	226 957	434 028	408 750	228 824	1 298 558	240 376	446 577	451 307	289 792	1 428 052
Collesanto Srl	442 454	899 205	830 621	419 672	2 591 952	490 266	932 985	942 200	596 726	2 962 177
JER-12 Srl	175 196	459 157	455 358	208 667	1 298 378	205 020	465 538	464 401	268 165	1 403 124
Piano Mulino Srl	200 046	458 520	423 378	228 574	1 310 518	244 274	469 790	467 523	261 544	1 443 131
Casale Srl	163 997	411 960	395 760	150 168	1 121 885	197 051	412 515	303 579	-	913 145
Solar Park Luino Srl	81 114	281 699	245 807	67 184	675 804	-	-	-	-	-
Total	1 506 508	3 308 138	3 177 995	1 550 739	9 543 379	1 613 113	3 190 147	3 094 460	1 700 927	9 598 647
Base Case 1 Power generation kWh	Q4 2018	Q3 2018	Q2 2018	Q1 2018	YTD 2018	Q4 2017	Q3 2017	Q2 2017	Q1 2017	YTD 2017
Photo-Volt One Srl	172 622	448 245	393 004	176 731	1 190 602	172 622	448 245	393 679	177 619	1 192 165
DT Srl
	221 333	425 039	411 310	254 039	1 311 720	221 332	425 038	411 942	255 317	1 313 629
Collesanto Srl	463 750	897 600	853 366	555 826	2 770 542	463 751	897 600	854 632	558 620	2 774 603
JER-12 Srl	160 485	427 351	425 098	148 788	1 161 723	160 486	427 351	425 701	149 536	1 163 074
Piano Mulino Srl	219 635	436 266	437 446	242 469	1 335 815	219 635	436 266	438 125	243 688	1 337 714
Casale Srl	180 493	398 597	417 731	223 588	1 220 409	181 400	400 600	293 900	-	875 900
Solar Park Luino Srl	140 988	280 047	280 805	70 393	772 233	-	-	-	-	-

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)	31 Dec 2018	31 Dec 2017
Trade receivables	1 299 418	1 409 423
Tax outstanding and VAT	872 254	768 032
Other	-	83 479
Receivables	2 171 672	2 260 934

Note 8: Financing overview

Financial liabilities	31 Dec 2018	2017
Secured long-term loans	4 513 100	2 933 328
Obligations under finance leases	7 560 302	8 274 430
Trade and other payables	577 606	1 120 794
Current leasing or loans	1 024 896	1 052 174
Derivative financial instruments 1	987 272	697 635
Total	14 663 177	14 078 361
Total current	2 589 774	2 870 603
Total non-current	12 073 402	11 207 758
Financal costs	12M 2018	2017
Interest paid on leasing	404 247	393 575
Interest paid on project finances	197 298	251 411
Other financial costs	576	-
Total finance costs	602 121	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

	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 cancel the company's own shares in the future.

	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 December 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 and second instance. The Company is awaiting to see if the Italian tax authorities will appeal. 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