Nordic Financials ASA — Interim / Quarterly Report 2021

Nov 30, 2021

Aega ASA Q3 REPORT 2021

About Aega3
Quarterly report4
Highlights of the quarter 4
Subsequent events4
Letter from the CEO4
Profit and loss8
Balance sheet9
Cash flow11
Change in equity 12
Notes 13

About Aega

Aega ASA is an investment company listed on Euronext Expand in Oslo. Aega's main focus is on the solar power market. We acquire and operate smaller existing Italian solar power plants, following strict investment criteria. In addition to being an industrial player we also consider financial investments in the solar and renewable sector.

The company's head offices are in Oslo (NO) and Trento (IT).

Quarterly report

Highlights of the quarter

• Aega had five operating solar parks in the quarter, total production in Q3 was 1 931 313 kwh.
• Planned for a rights issue with warrants and called for EGM. EGM approved the rights issue.
• Maintenance and upgrade of operational assets.
• Continues work with acquisition pipeline.

Subsequent events

• Successfully executed right issue with warrants and secured funds to continue to grow the portfolio of solar parks.
• Signed a non-binding offer for the potential acquisition of two solar parks with a total capacity of 1.35 MV.
• Extended our pipeline and backlog of potential solar parks in Italy.

Figure 1: Power Generation (kWh)

Note that reported production is positively impacted by the increased number of solar parks over the period.

Letter from the CEO

Dear shareholders,

Throughout Q3 Aega have taken new significant steps forward. One important milestone was the now fully conducted first part of the rights issue and through this we have secured the funds to continue to grow our portfolio of solar parks. The rights issue was considerably oversubscribed, and I am pleased to see that our strategy of reaching out to existing shareholders was well received.

In the third quarter of 2021 Aega ASA had revenues of EURt 658 (Q3 2020: EURt 278). EBITDA was positive at EURt 172 (Q3 2020: EURt 72). I am pleased to report a positive EBITDA as it proves that we handle the increased production well. The financial results are highly affected by the production of electrical power, and it shows that our operational team do a good job in tuning the production and that we can grow both the number of parks and production. As stated earlier I am confident that we can increase our portfolio with regards to number of parks further without expanding the organization significantly.

Going forward, and over the next quarters, we are in an acquisition phase and are working hard to close several of the deals we have in our pipeline. The access to potential acquisition targets is good. We are able to keep our threshold for acceptable returns (internal rate of return) at levels that are competitive and are still able to find solar parks that are non-dilutional for us with regards to IRR. The willingness to do the groundwork and meet a variety of potential seller's and ability to close deals on relatively short timeframes are key advantages in the part of the market where Aega operates. I am confident that we will continue to hold this position.

Our outspoken goal of 10MW operating assets during next year stands. When reached, this will represent a milestone as it will increase revenues and undoubtedly affect the value of the portfolio when we consider yield compression. Additional possibilities lay both in terms of access to other sources of financing, opportunities to do even better or larger deals, or even enter new business opportunities along our value chain. 10MW is therefore an important next steppingstone to establish us as an even more known player in the Italian and European market.

Finally, I would like to comment on our investment in Norsk Solar. As communicated earlier Norsk Solar from Q2 this year is a listed company and Aega book our shareholding at market value from end of Q2. This has the obvious implication that the value will fluctuate, and it will affect our financial numbers in the "net finance" on the P&L. This was evident last report, and it is in this one. From my perspective this investment has a considerable potential not yet recognised.

Concluding remark from me is that we will continue to execute our Italian acquisition strategy, develop our existing assets, improve all operational aspects in Aega and contribute to develop our financial assets on behalf of our investors to support their investment in a greener future!

Best regards, Nils Petter Skaset CEO

Operational development

Aega had five operating solar parks in the quarter, total production in Q3 was 1 931 313 kwh.

The local team in Italy has continued working with optimizing of the production and conducted regular maintenance on the newly acquired parks.

Financial development

At the end of the quarter Aega had 5 operating solar parks in Italy and a financial holding in Norsk Solar as main assets.

In Q3 total revenues was EURt 658 (Q3 2020: EURt 278), while EBITDA for the period ended at EURt 172 (Q3 2020: EURt 72). Negative share price development in Norsk Solar contributed to a net finance loss of EURt 779 and loss for the period of EURt 941. However, year to date this investment is significantly positive.

Risks and uncertainties

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.

Forward-looking statement

This report contains statements regarding the future in connection with the company's growth initiatives, profit figures, outlook, strategies, and objectives. In particular, the section "Outlook" contains forward-looking statements regarding the company's expectations. All statements regarding the future are subject to inherent risks and uncertainties, and many factors can lead to actual results and developments deviating substantially from what has been expressed or implied in such statements. These factors include the risk factors related to the company's activities as described in the above section "Risks and Uncertainties".

Outlook

The company is currently pursuing 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 approximately 15MWp with today's infrastructure. Aega remain optimistic with regards to its deal flow.

Financial statements

Aega ASA Q3 report 2021 7

Profit and loss

(EUR)	Note	Q3-2021	Q3-2020	YTD-2021	YTD-2020	FY 2020
Feed-In Tariff revenue		492 982	238 018	1 035 308	485 917	549 283
Sales of electricity		165 561	40 058	323 590	98 746	117 747
Revenues		658 543	278 076	1 358 898	584 662	667 030
Cost of operations		-92 163	-17 388	-228 723	-67 578	-87 254
Personnel expenses		-116 680	-51 257	-347 887	-153 468	-210 333
Other operating expenses		-276 727	-136 531	-769 454	-300 774	-506 509
EBITDA		172 974	72 900	12 834	62 842	-137 067
Depreciation and amortization		-320 043	-125 749	-717 250	-294 243	-425 789
Operating profit		-147 069	-52 849	-704 416	-231 401	-562 856
Net finance		-779 322	-2 037	690 417	566 231	432 682
Profit before income tax		-926 391	-54 886	-13 999	334 830	-130 174
Income tax		-14 544	-27 237	-39 535	-6 924	-56 428
Profit for the period		-940 935	-82 123	-53 534	327 906	-186 602
Other comprehensive income
Items that may be reclassified to P&L
Translation differences and other elements		-84 526	27 763	266 641	-757 310	-249 377
Total comprehensive income		-1 025 461	-54 360	213 107	-429 405	-435 980
Profit for the period attributable to:
Equity holders of the parent company		-1 025 461	-54 360	213 107	-429 405	-435 980
Earnings per share		-0,02	0,00	0,00	0,01	0,00

Balance sheet

(EUR)	Note	30.09.2021	31.12.2020
ASSETS
Property, plant and equipment		7 425 587	4 642 154
Right-to-use assets		3 965 312	539 106
Financial investments		2 982 557	1 910 154
Other long-term assets		341 184	331 235
Non-current assets		14 714 640	7 422 650
Receivables		785 339	693 187
Other current assets		699 966	136 170
Cash and short-term deposits		1 912 101	3 086 962
Current assets		3 397 406	3 916 319
TOTAL ASSETS		18 112 046	11 338 969
EQUITY AND LIABILITIES
Share capital	2	5 162 293	5 162 293
Share premium	2	7 056 247	7 056 247
Paid in capital		12 218 540	12 218 540
Other equity	2	-4 354 919	-4 301 385
Foreign Currency translation reserve	2	6 070	-260 571
Other equity		-4 348 849	-4 561 956
Total equity		7 869 691	7 656 584
Long term loans		4 627 765	2 624 709
Leasing		3 989 713	479 117
Total non-current liabilities		8 617 478	3 103 826
Short term leasing		154 623	73 419
Trade payables and other payables		1 065 816	168 395
Short term financing		295 796	275 291
Current tax		108 642	61 453
Total current liabilities		1 624 877	578 558
Total liabilities		10 242 355	3 682 385
TOTAL EQUITY AND LIABILITIES		18 112 046	11 338 969

Oslo, 30 November 2021

Halldor Christen Tjoflaat Chairman

Jan Peter Harto Board member

Kristine Malm Larneng Board member

Nils Petter Skaset CEO

Cash flow

(EUR)	Note	Q3-2021	Q3-2020	FY 2020
Profit before tax		-926 391	-54 886	-186 602
Paid income taxes		0	0	0
Depreciation		320 043	125 749	425 789
Changes in trade receivables and payable		111 136	-160 638	-87 211
Changes in other accruals		-46 156	48 752	-20 713
Fair value adjustment financial assets		725 482	0	0
Cash flow from operations		184 113	-41 023	131 264
Acquisition net of cash acquired		0	-1 644 699	-1 573 768
Financial investments		0	0	-1 910 154
Cash flow from investments		0	-1 644 699	-3 483 922
Dividends or shareholder distributions		0	0	-181 222
Lease payments		-115 344	0	-38 300
Repayment of loans		-220 505	-39 911	-395 498
Cash flow from financing		-335 849	-39 911	-615 020
Cash at beginning of period		1 928 452	6 617 778	7 304 018
Net currency translation effect		135 385	27 763	-249 377
Net change in cash and cash equivalents		-151 736	-1 725 633	-3 967 678
Cash at end of period		1 912 101	4 919 905	3 086 962

Change in equity

(EUR)	Share capital	Share premium fund	Other equity	Currency translation reserve	Total equity
Equity 01.01.2021	5 162 293	7 056 247	-4 301 385	-260 571	7 656 584
Profit (loss) after tax			-53 534		-53 534
Other comprehensive income				266 641	266 641
Equity 30.09.2021	5 162 293	7 056 247	-4 354 919	6 070	7 869 691

(EUR)	Share capital	Share premium fund	Other equity	Currency translation reserve	Total equity
Equity 01.01.2020	5 162 293	7 237 469	-4 114 783	-11 193	8 273 785
Profit (loss) after tax			-186 602		-186 602
Other comprehensive income				-249 377	-249 377
Capital repayment		-181 222			-181 222
Equity 31.12.2020	5 162 293	7 056 247	-4 301 385	-260 571	7 656 584

Notes

Note 1: General information and summary of significant accounting policies

General information

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. The parent company was listed on Euronext Expand in 2011.

Basis for preparing the interim financial statements

The condensed interim consolidated financial statements have been prepared in accordance International Financing Reporting Standards (IFRS) as adopted by the European Union and interpretations issued by the International Accounting Standards Board (IASB) that are relevant to the Group. The 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 annual report for a full overview of the accounting principles applied by the group.

Key risk factors

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

Note 2: Shares and shareholder information

General

As of 30 September 2021, Aega ASA had a share capital of NOK 48 375 949 comprising 48 375 949 shares with a par value of NOK 1. Aega ASA has only one share class. All shares have equal voting rights and rights to dividends from the Company. All shares are fully paid.

Largest 20 shareholders on 30 September 2021

Shareholders	Share	Percentage
PENTHOUSE MIRADORES AS	1 090 237	2,25 %
RYBO NOR AS	1 085 005	2,24 %
HARALDSEN	1 000 000	2,07 %
MORO AS	933 667	1,93 %
NORDNET BANK AB	858 822	1,78 %
VESAAS	836 142	1,73 %
NORDNET LIVSFORSIKRING AS	815 824	1,69 %
JAN P HARTO AS	810 566	1,68 %
SERCK-HANSSEN	742 605	1,54 %
JOHANSEN, KÅRE R.	644 722	1,33 %
NEREM, JAN S.	632 069	1,31 %
C - BY - C AS	593 208	1,23 %
HEDEN HOLDING AS	590 000	1,22 %
WAHLSTRØM, ERIK	579 962	1,20 %
NYGÅRD, ROALD A.	549 319	1,14 %
BREZZA AS	532 793	1,10 %
SANDBERG JH AS	500 994	1,04 %
KT GLOBAL INVEST AS	499 030	1,03 %
VESOLDO AS	490 880	1,01 %
LÅSHUSET HOLDING AS	488 595	1,01 %
Total 20 largest shareholders	14 274 440	29,51 %
Aega ASA outstanding shares	48 375 949	100 %

Aega ASA

E-mail: ceo@aega.no