Nordic Financials ASA — Interim / Quarterly Report 2020

May 29, 2020

Aega ASA Q1 REPORT – 2020

Contents

About Aega		3
	First quarter report	4
	First quarter in brief	4
	Highlights from the reporting period	4
	Financial review	4
	Structural changes	4
	Subsequent events	4
	Financial statement	5
Profit and loss		6
Balance sheet		7
Cash flow		8
	Change in equity	9
Notes		10
Note 1:	Summary of significant accounting policies	10
Note 2:	Group structure	10
Note 3:	Cash and cash equivalents	10
Note 4:	Power generation	11
Note 5:	Shares and shareholder information	12
Note 6:	Subsequent events	12
	Investor contact	13

About Aega

Aega ASA is an investment company listed on the Oslo Axess exchange. AEGA's main focus is to acquire and operate solar power plants. The company recently sold a portfolio of eight solar parks located in Italy, and has now started to establish a new portfolio. Aega ASA invests mainly in small operating solar parks (below 5 MWp capacity) which meet its strict investment criteria. The company's head offices are in Oslo (NO) and Trento (IT).

First quarter report

FIRST QUARTER IN BRIEF

• The company had one solar park during the quarter, total production was 256 634 kWh. 5 per cent below base case, due to poor irradiation in the first period of March.
• The first quarter results are strongly influenced by the EUR/NOK movements from 9.86 at the end of Q4 2019 to 11.51 at the end of Q1 2020. The functional currency of the group is NOK, therefore a weakening in NOK vs EUR results in a financial income. However, the presentation currency is EUR, therefore the assets held in NOK lowers the net equity and comprehensive income.
• Continued work on due diligences related to solar parks in pipeline, however, the work has been delayed due to the ongoing COVID 19 situation and curfew implemented during Q1. Italy is now slowly reopening allowing Aega to continue the due diligence work at full speed.

HIGHLIGHTS FROM THE REPORTING PERIOD Outlook

The company is currently following several investment opportunities in the Italian solar market. Aega has the team and infrastructure on the ground in Italy to find and operate a solar portfolio up to 15 MWp.

Aega's operations are mainly in Italy. With regards to the Corona virus we have not had any material effects of the outbreak except delays in due diligences processes.

FINANCIAL REVIEW

In Q1 2019 Aega had 8 solar parks, these solar parks were sold with effect from 1 July 2019, these parks are classified as discontinued operations in the 2019 numbers. Aega had 1 solar park in Q1 2020. When comparing the numbers this should be taken into consideration. Also the sold parks were first classified as discontinued business during Q3.

Total revenues in the first quarter was EUR 97 000 compared to a 843 000

a year previous. Total power generation in the quarter was 256 MWh compared to 2 306 MWh for the continued portfolio in Q1 2019.

Operating costs for the business was 36 000 compared to EUR 45 000 in Q1 2019, it was high in the quarter due to upgrade works performed. The SG&A cost was EUR 130 000 in the first quarter of 2020 compared to EUR 197 000 a year previous.

The company's non-recurring expenses came to EUR 7 000 in the first quarter of 2020, this is related to due diligence work for potential future purchases. In the same quarter in 2019 the non-recurring cost was EUR 42 000.

The balance sheet contains now mainly cash from the proceed of the sale and some payables.

STRUCTURAL CHANGES

None to report.

SUBSEQUENT EVENTS

None to report.

Portfolio Cumulated production vs. Base case

Financial statement

	Profit and loss	6
	Balance sheet	7
Cash flow		8
	Change in equity	9
Notes		10
	Note 1: Summary of significant accounting policies	10
	Note 2: Group structure1 2	10
	Note 3: Cash and cash equivalents	10
	Note 4: Power generation	11
	Note 5: Shares and shareholder information	12
	Note 6: Subsequent events	12

Profit and loss

(EUR)	Note	Q1 2020	Q1 2019	FY 2019
Feed-In tariff revenue	1, 4	87 507	713 216	62 647
Sales of electricity	1, 4	9 990	127 889	9 479
Other revenue		-	2 199	-
Revenues	1, 4	97 496	843 303	72 127
Operating costs		(36 212)	(44 840)	(77 418)
Sales, general and administrative expenses		(130 324)	(196 991)	(701 747)
Acquisition and transaction costs		(7 174)	(41 991)	(144 379)
EBITDA		(76 214)	559 481	(851 417)
Depreciation, amortisations and write downs Other operating profit before OGL (EBIT)		(83 933) (160 147)	(428 167) 131 314	(90 668) (942 085)
Finance income		(4 249)	27	-
Finance costs		(7 929)	(124 177)	6 604
Mark to market adjustment derivatives		-	(15 421)	(16 339)
Net foreign exchange gain/(losses)		864 754	(10 372)	(64 289)
Profit before income tax		692 429	(18 629)	(1 016 109)
Income tax gain/(expense)		20 313	3 329	-
Profit from continuing operations		712 742	(15 300)	(1 016 109)
Profit from discontinued operation (attributable to equity holders of the company)		-	-	3 818 462
Profit for the period		712 742	(15 300)	2 802 353

Other comprehensive income

(EUR)	Q4 2019	Q4 2018	FY 2019
Currency translation differences	(1 161 878)	(162 836)	301 926
Other comprehensive income net of tax	(1 161 878)	(162 836)	301 926
Total comprehensive income	(449 136)	(178 137)	(714 183)
Profit for the period attributable to:
Equity holders of the parent company	712 742	(15 300)	(1 016 109)
Total comprehensive income attributable to:
Equity holders of the parent company	(449 136)	(178 137)	(714 183)
Earnings per share	(0.009)	(0.004)	(0.015)
Avgerage no of shares	48 375 949	47 975 949	46 090 037

Balance sheet

(EUR)	Note	31 Mar 2019	31 Dec 2019
ASSETS
Property, plant and equipment		3 352 245	3 436 051
Other long-term assets		316 612	364 245
Non-current assets		3 668 857	3 800 296
Receivables		449 935	515 402
Other current assets		119 966	54 918
Cash and short-term deposits	3	6 807 691	7 304 018
Current assets		7 377 592	7 874 338
TOTAL ASSETS		11 046 449	11 674 634
EQUITY AND LIABILITIES
Share capital	5	5 162 293	5 162 293
Share premium	5	7 237 469	7 237 469
Paid-in capital		12 399 761	12 399 762
Accumulated profit and loss		(3 402 041)	(4 114 783)
Foreign currency translation reserve		(1 173 071)	(11 193)
Other equity		(4 575 112)	(4 125 976)
Total equity		7 824 650	8 273 785
Long-term loans		2 832 272	3 020 207
Leasing		-	46 838
Other long-term debt		-	-
Total non-current liabilities		2 832 272	3 067 045
Trade payables and other payables		89 553	44 449
Short-term financing – interest-bearing		275 291	275 291
Current tax		-	14 063
Derivative financial instruments		-	-
Other current liabilities		24 683	-
Total current liabilities		389 527	333 803
Total liabilities		3 221 799	3 400 848
TOTAL EQUITY AND LIABILITIES		11 046 448	11 674 633

Oslo, 29 May 2020

Halldor Christen Tjoflaat Chair

Kathrine Breistøl Director

Kristine Larneng Director

Nils Petter Skaset Chief Executive Officer

Cash flow

(EUR)	Q1 2020	Q1 2019	2019
Profit before tax	692 429	199 576	2 802 353
Paid income taxes	-	-	-
Depreciation	83 933	428 167	90 668
Write down	-	-	-
Changes in trade receivables and payables	63 734	(194 520)	(422 670)
Changes in other accruals	168 476	(197 891)	(268 122)
Change in other accruals from discontinued business			(3 580 894)
Cash flow from operations	1 008 572	17 128	(1 378 665)
Sale of solar portfolio net cash	-	-	8 840 391
Acquisition net of cash acquired	-	-	(328 102)
Cash flow from investments	-	-	8 512 289
Proceeds from issue of share capital	-	-	41 048
Dividends or shareholder distributions	-	-	(971 473)
Repayment of loans	(343 019)	(175 181)	(68 823)
Cash flow from financing	(343 019)	(175 181)	(999 248)
Cash at beginning of period	7 304 018	1 175 971	1 175 971
Net currency translation effect	(1 161 878)	(162 836)	-
Net increase/(decrease) in cash and cash equivalents	665 553	(158 053)	6 128 047
Locked cash	-	200 000	-
Cash at end of period	6 807 693	855 081	7 304 018

Change in equity

(EUR)	Share capital	Share premium fund	Other equity	Foreign currency translation reserve	Total equity
Equity 2019	5 162 293	7 237 469	(4 114 783)	(11 193)	8 273 785
Profit (loss) after tax	-	-	712 742	-	712 742
Other comprehensive income	-	-	-	(1 161 878)	(1 161 878)
Equity 31 March 2020	5 162 293	7 237 469	(3 402 041)	(1 173 071)	7 824 650

(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	-	-	2 802 353	-	2 802 353
Other comprehensive income	-	-	-	(565 548)	(565 548)
Capital increase	41 048	-	-	-	41 048
Capital repayment	-	(971 473)	-	-	(971 473)
Own shares acquired	(133 784)	-	-	-	(133 784)
Equity 31 December 2019	5 162 293	7 237 469	(4 114 783)	(11 193)	8 273 785

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 sold eight photovoltaic power plants in Italy in August 2019, and its business is to find and invest in new 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

SPV structure minimizes financial and operational risk

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 2019 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 compared with those described in the annual report.

shares in Allebo Eiendom AS.

Note 2: Group structure ^{1 2}

Note 3: Cash and cash equivalents

(EUR)	Q1 2020	2019
Cash Norway	6 550 524	7 017 874
Cash Italy	257 167	286 143
Locked cash discontinued operations	-	-
Total cash	6 807 691	7 304 018

Note 4: Power generation

Power generation kWh	Q1 2020	Q4 2019	Q3 2019	Q2 2019	Q1 2019	YTD 2019
Photo-Volt One Srl	-	-	-	393 995	304 806	698 801
DT Srl	-	-	-	384 948	304 776	689 724
Collesanto Srl	-	-	-	804 718	623 607	1 428 325
JER-12 Srl	-	-	-	410 140	302 542	712 681
Piano Mulino Srl	-	-	-	409 314	294 257	703 571
Casale Srl	-	-	-	359 764	286 054	645 818
Solar Park Luino Srl	-	-	-	272 242	189 773	462 015
Produzioni Energia Cori Srl	256 634	187 086	-	-	-	187 086
Total	256 634	187 086	-	3 035 121	2 305 815	5 528 021
Base Case 1 Power generation kWh	Q1 2020	Q4 2019	Q3 2019	Q2 2019	Q1 2019	YTD 2019
Photo-Volt One Srl	-	-	-	389 752	175 847	565 600
DT Srl	-	-	-	407 834	252 769	660 602
Collesanto Srl	-	-	-	846 106	553 047	1 399 153
JER-12 Srl	-	-	-	421 455	148 044	569 499
Piano Mulino Srl	-	-	-	433 755	241 257	675 012
Casale Srl	-	-	-	415 642	222 470	638 112
Solar Park Luino Srl	-	-	-	238 779	146 263	385 042
Produzioni Energia Cori Srl	270 304	229 145	-	-	-	229 145
Total	270 304	229 145	-	3 153 323	1 739 697	5 122 165

¹ Base case generation is based on the forecast Aega made for the solar plant before acquisition.

Note 5: Shares and shareholder information

	31 Mar 2020
Aega ASA Shares	48 375 949
Aega ASA warrants 1	2 000 000
Own shares	325 116
	31 Dec 2019
Aega ASA Shares	48 375 949
Aega ASA warrants 1	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.

Largest 20 shareholders at 31 March 2020

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	1 420 237	2.9%
SÆTREMYR, TORE	1 277 694	2.6%
GN POWER INVEST AS	1 180 000	2.4%
MOGER INVEST AS	1 134 890	2.3%
RYBO NOR AS	1 085 005	2.2%
NEREM, JAN STEINAR	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	770 566	1.6%
WAHLSTRØM, ERIK	764 933	1.6%
SERCK-HANSSEN, FIN	740 780	1.5%
MAGNOLIA SYSTEM AS	715 357	1.5%
RACCOLTA AS	708 186	1.5%
SØLAND, TORSTEIN	668 890	1.2%
JOHANSEN, KÅRE REIDAR	644 722	1.3%
Total 20 largest shareholders	23 441 380	48.2%
Aega ASA outstanding shares	48 375 949	100.0%

Note 6: Subsequent events

None to report.

Investor contact

Nils Petter Skaset Chief Executive Officer

E-mail: ceo@aega.no

Aega ASA Thunes vei 2 N-0274 Oslo Norway

www.aega.no