Nordic Financials ASA — Interim / Quarterly Report 2021

Aug 31, 2021

Aega ASA Q2 REPORT 2021

About Aega3
Quarterly report4
Highlights of the quarter 4
Subsequent events4
Letter from the CEO5
Profit and loss8
Balance sheet9
Cash flow10
Change in equity 11
Notes 12

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 at the end of the quarter, total production in Q2 was 2 015 613 kwh.
• As part of the scale-up of operations, Aega has entered into a cooperation with an Italian asset management company. The cooperation is expected to contribute to further streamlining of operations and reporting across Aega's solar assets.
• Norsk Solar was successfully listed on Euronext Growth 19 April 2021. On 30 June 2021, Aega's stake in Norsk Solar was 3 989 170 shares, equivalent to 5,3% and a market value of approximately NOK 37 million.

Subsequent events

• Working together with management, the board has initiated a financing plan to meet Aega's next milestone, a 10MW solar park portfolio. The board will call for an extraordinary general meeting to propose a right issue with warrants directed towards existing shareholders of Aega.

Figure 1: Power Generation (kWh)

Letter from the CEO

As stated earlier we have used Q2 to optimise the Q1 acquisitions and gotten them up to Aega standards. This goes especially for EnergyLife and to some extent for our two new Sardinian parks; Rio Verde and STA. This includes a co-operation with an Italian asset management company, a co-operation that will give us better and more united reporting from our solar parks as our portfolio grows.

In the second quarter of 2021 Aega ASA (Aega) delivered revenues of EURt 510 (Q2 2020: EURt 209). EBITDA was positive at EURt 14 (Q2 2020: EURt 66). The numbers reflect the increased scale of Aega's solar park portfolio and the fact that we now have the organisation and adequate resources at hand to handle increased growth. We are pleased to see that our acquisition activity in the past year, plus successful integration and optimisation of new solar parks in our portfolio has had the intended result. As mentioned in my last report, we also now see the effect from the Q1 acquisitions.

In the Q1 report I mentioned that we are on track for Aega's next milestone, a 10MW operated solar park portfolio. A 10MW portfolio is interesting because it is a steppingstone for further growth, and it will secure operating profit without considering realization of financial assets and without considering yield compressions. Yield compression is something we observe on portfolio level among our competitors, even though Aega has so far not taken it into our accounts. In clear language "yield compression" means that a portfolio of solar parks is worth more than the parks on a stand-alone basis. 10MW will also establish us to a much greater extent as a serious player in our niche.

This brings me to the next topic for second half of 2021. The Aega bord have decided to call for an extraordinary general meeting to propose a right issue with warrants directed towards existing shareholders of Aega. This is in line with our aim to treat all our shareholders equal, and at the same time secure the financial flexibility to pursue our growth strategy and to increase the value of our

assets and holdings further. The structure is described in a separate stock exchange message released today. I would like to underline my support to the board's growth ambitions and the proposed structure.

Norsk Solar was listed on Euronext Growth in Q2 and Aega holds approximately 5,3% of the outstanding shares in the company. As Norsk Solar from Q2 this year is a listed company we book our holding at market value going forward. From my perspective this investment has a considerable potential as the company is in an exciting phase with strong growth, high level of activity and a competent and forward leaning organization.

At the end of the quarter, and together with Mondi Lucani, we hosted a workshop for 10 selected students plus staff from the University of Basilicata at our solar plant in Cori. The initiative was very well received by all participants and gave Aega good media coverage exposure to talented resources in Italy.

Concluding remark from me to our shareholders is that we will continue our Italian acquisitions with full force and at the same time develop both our portfolio and our pipeline. With the board's plan for further expansions voted through by our shareholders I am confident that Aega has both the capacity and the funding needed to develop our role as a profitable player within the renewable energy business in Europe.

Best regards, Nils Petter Skaset CEO

Operational development

Aega had five operating solar parks during the quarter. Total production was 2 015 613 kWh. As part of the scale-up of operations, Aega has entered a cooperation with an Italian asset management company. The cooperation is expected to contribute to further streamlining of operations and reporting across Aega's solar assets.

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.

The increased number of Aega owned and operated solar parks through the entire quarter lead to increased production of electricity and therefore higher revenues, while the listing of Norsk Solar contributed to a mark-up on our holding in the company. In Q2 total revenues was EURt 510 (EURt 209), while operating cost was EURt 496 (EURt 143) and profit for the period ended at EURt 1 270.

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 Q2 report 2021 7

Profit and loss

(EUR)	Note	Q2-2021	Q2-2020	H1-2021	H1-2020	FY 2020
Feed-In Tariff revenue		379 879	160 392	542 326	247 899	549 283
Sales of electricity		130 263	48 698	158 029	58 688	117 747
Revenues		510 142	209 090	700 355	306 586	667 030
Cost of operations		-81 265	-13 978	-136 561	-50 190	-87 254
Personnel expenses		-123 084	-45 632	-231 208	-102 211	-210 333
Other operating expenses		-291 372	-83 324	-492 727	-164 243	-506 509
EBITDA		14 421	66 156	-160 140	-10 058	-137 067
Depreciation and amortization		-267 197	-84 561	-397 207	-168 494	-425 789
Operating profit		-252 776	-18 405	-557 347	-178 552	-562 856
Net finance		1 544 394	-284 308	1 469 739	568 268	432 682
Profit before income tax		1 291 617	-302 714	912 392	389 716	-130 174
Income tax		-20 640	0	-24 991	20 313	-56 428
Profit for the period		1 270 977	-302 714	887 401	410 028	-186 602
Other comprehensive income
Items that may be reclassified to P&L
Translation differences and other elements		364 706	376 805	351 167	-785 072	-249 377
Total comprehensive income		1 635 683	74 091	1 238 568	-375 044	-435 980
Profit for the period attributable to:
Equity holders of the parent company		1 635 683	74 091	1 238 568	-375 044	-435 980
Earnings per share		0,03	-0,01	0,02	0,01	0,00

Balance sheet

(EUR)	Note	30.06.2021	31.12.2020
ASSETS
Property, plant and equipment		7 596 960	4 642 154
Right-to-use assets		1 654 759	539 106
Financial investments		3 702 210	1 910 154
Other long-term assets		340 959	331 235
Non-current assets		13 294 887	7 422 650
Receivables		777 613	693 187
Other current assets		820 211	136 170
Cash and short-term deposits		1 928 452	3 086 962
Current assets		3 526 277	3 916 319
TOTAL ASSETS		16 821 164	11 338 969
EQUITY AND LIABILITIES
Share capital Share premium	2 2	5 162 293 7 056 247	5 162 293 7 056 247
Paid in capital		12 218 540	12 218 540
Other equity	2	-3 413 984	-4 301 385
Foreign Currency translation reserve	2	90 596	-260 571
Other equity		-3 323 388	-4 561 956
Total equity		8 895 152	7 656 584
Long term loans		4 670 194	2 624 709
Leasing		1 620 274	479 117
Total non-current liabilities		6 290 468	3 103 826
Leasing		108 969	73 419
Trade payables and other payables		1 086 916	168 395
Short term financing		325 796	275 291
Current tax		113 864	61 453
Total current liabilities		1 635 544	578 558
Total liabilities		7 926 012	3 682 385
TOTAL EQUITY AND LIABILITIES		16 821 164	11 338 969

Cash flow

(EUR)	Note	H1-2021	H1-2020	FY 2020
Profit before tax		912 392	389 715	-186 602
Paid income taxes		0	0	0
Depreciation		397 207	168 494	425 789
Changes in trade receivables and payable		234 093	-41 291	-87 211
Changes in other accruals		187 855	174 609	-20 713
Fair value adjustment financial assets		-1 561 883	0	0
Cash flow from operations		169 665	691 527	131 264
Acquisition net of cash acquired		-524 744	0	-1 573 768
Financial investments		-178 826	0	-1 910 154
Cash flow from investments		-703 570	0	-3 483 922
Dividends or shareholder distributions		0	-181 222	-181 222
Lease payments		-73 594	-19 150	-38 300
Repayment of loans		-197 749	-392 322	-395 498
Cash flow from financing		-271 343	-592 694	-615 020
Cash at beginning of period		3 086 962	7 304 018	7 304 018
Net currency translation effect		-353 262	-785 073	-249 377
Net change in cash and cash equivalents		-805 248	98 833	-3 967 678
Cash at end of period		1 928 452	6 617 778	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			887 401		887 401
Other comprehensive income				351 167	351 167
Equity 30.06.2021	5 162 293	7 056 247	-3 413 984	90 596	8 895 152

(EUR)	Share capital	Share premium fund	Other equity	Currency translation reserve	Total equity
Equity 31.12.2019	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 June 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 June 2021

Shareholders	Share	Percentage
THORVALD MORRIS HARALDSEN	1 300 000	2,69 %
PENTHOUSE MIRADORES AS	1 160 237	2,40 %
RYBO NOR AS	1 085 005	2,24 %
NORDNET BANK AB	993 288	2,05 %
MORO AS	933 667	1,93 %
OLAV VESAAS	836 142	1,73 %
JAN P HARTO AS	810 566	1,68 %
FIN SERCK-HANSSEN	767 605	1,59 %
NORDNET LIVSFORSIKRING AS	683 787	1,41 %
KÅRE REIDAR JOHANSEN	644 722	1,33 %
JAN STEINAR NEREM	632 069	1,31 %
C - BY - C AS	593 208	1,23 %
ROALD ARNOLD NYGÅRD	549 319	1,14 %
HEDEN HOLDING AS	540 000	1,12 %
BREZZA AS	532 793	1,10 %
SANDBERG JH AS	500 994	1,04 %
VESOLDO AS	490 880	1,01 %
LÅSHUSET HOLDING AS	488 595	1,01 %
RACCOLTA AS	408 000	0,84 %
SIGMUND VATLE	383 943	0,79 %
Total 20 largest shareholders	14 334 820	29,63 %
Aega ASA outstanding shares	48 375 949	100 %

Aega ASA

E-mail: ceo@aega.no