Nordic Financials ASA — Interim / Quarterly Report 2022

Aug 31, 2022

Aega ASA Q2 REPORT 2022

About Aega 3
Quarterly report 4
Highlights of the quarter 4
Subsequent events 4
Letter from the CEO 5
Profit and loss 9
Balance sheet 10
Cash flow 11
Notes 13
Responsibility statement 15

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 seven operating solar parks at the end of the quarter, total production in Q2 was 2 666 874 kwh.
• Signed a mutually binding offer for the acquisition of two solar parks in Italy with a total capacity of 2MW. The solar parks have a capacity of 1MW each and are located at Sardinia and Sicily.
• Issued convertible loan of NOKm 19.9.

Subsequent events

• No significant subsequent events.

Figure 1: Power Generation (kWh)

Letter from the CEO

Dear shareholders,

In the second quarter of 2022 Aega delivered revenues of EURt 727 (Q2 2021: EURt 510). EBITDA was positive at EURt 238 (Q2 2021: EURt 14).

The numbers reflect the increased scale of Aega's solar park portfolio. I am pleased to see that our acquisition activity over the past 12-18 months, plus successful integration, and optimization of new solar parks in our portfolio has had the expected result.

As we now exit Q2 2022 we have 7 operating solar parks due to high M&A activity over the last 18 months, (2.5 times initial volume). The production capacity follows the same trend and so do revenues. Aega delivers positive EBITDA and cash flow, and the underlying operations are well run. Our focus is still to grow the portfolio and to continue to run an efficient operation.

During the quarter we have focused on onboarding the two newly acquired parks Actasol 4 and Actasol 16, we have had some maintenances on the rest of the portfolio, and we are in negotiations regarding further acquisitions.

European energy crises

We have continued to use time and energy on purchasing new parks as our growth initiative is still in place. This work has taken somewhat longer than expected due to circumstances and events not completely in our control. The ongoing energy crises in Europe and how political decisionmakers decides to respond to it, makes it more challenging to predict how the next 6-12 months will turn out in the energy markets. Nevertheless, Aega continues to use conservative business models which gives headroom for several outcomes when new acquisitions are considered.

As we read the current situation it is a though call to invest in new business if you use the very aggressive spot-market prices in the calculations as changes may occur abrupt and we also notice increased political risk. This view has been supported by government initiatives that could put a temporarily cap on revenues for energy producers. There are no signs that the Feed in Tariff itself will be touched and for Aega a possible outcome is therefore a time limited reduction of revenues from sale of electricity, while our by far largest revenue component (Feed in Tariff) will be untouched.

Economies of scale

Through Q2 we are starting to see the effect of economies of scale, and we are eager to continue to grow further into improved profitability. To realize this goal, we have issued a convertible loan that will give us opportunities for further investments in Italian Solar parks.

Pipeline

Through Q2 we have continued to develop our pipeline and focused on cultivating near term targets with the aim of progressing through Q3 and Q4. How we are to execute the strategy further through the winter 2023 is among other factors depending on how the situation in the energy markets plays out. To a large extent we are a small player in a large market, with the benefit that we can make up our own mind and choose to do the deals we believe to be attractive for Aega.

Financial investments

Norsk Solar is our only financial investment of any mentionable size outside our industrial business. Aega holds approximately 5.3% of the outstanding shares in the company, and as Norsk Solar from Q2/21 is a listed company we book our holding at market value from that point. Through Q2 the share price of Norsk Solar has had a negative development, this is reflected in our net financials in the P&L with a net effect of EURt 430.

Norsk Solar is active in many projects and they now start to see traction especially with regards to the first (18 Mw) phase of their 37 Mw Brazil project as an important milestone.

Concluding remark

Concluding remark is that our underlying business is safe and sound. We do see a lot of general imbalances in the energy supply chain and even though we seem to be clear of most issues related to this, we may not be completely untouched. Most of this will probably be related to governments/authorities showing some will to intervene to secure energy supply in an attempt to keep prices at acceptable levels for the end user.

Aega's position as an EBITDA positive company, with free cash flow and a balance sheet backed by real assets is confirmed and we will work hard to continue to stay in good shape!

Best regards, Nils Petter Skaset CEO

Operational development

Aega had seven operating solar parks at the end of the quarter, total production in Q2 was 2 666 874 kwh.

The level of production is in line with expected season variations and solar park business cases at the time of acquisition.

Financial development

Total revenues for Q2 was EURt 727 (Q2 2021: EURt 510), while EBITDA for the period ended at EURt 238 (Q2 2021: EURt 14).

Aega's investment in Norsk Solar is booked at market value at the end of the quarter. Fluctuation in share price is reflected in Net Finance.

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 20MWp with today's infrastructure. Aega remain optimistic with regards to its deal flow.

Financial statements

Aega ASA Q2 report 2022 8

Profit and loss

		Q2-2022	Q2-2021	H1-2022	H1-2021	FY 2021
(EUR)	Note	(unaudited)	(unaudited)	(unaudited)	(unaudited)	(audited)
Feed-In Tariff revenue		542 685	379 879	1 000 202	542 326	1 352 686
Sales of electricity		183 986	130 263	322 867	158 029	488 098
Revenues		726 671	510 142	1 323 069	700 355	1 840 784
Cost of operations		-162 159	-81 265	-265 722	-136 561	-268 358
Personnel expenses		-118 098	-123 084	-227 255	-231 208	-435 070
Other operating expenses		-208 182	-291 372	-381 557	-492 727	-748 035
EBITDA		238 231	14 421	448 535	-160 140	389 321
Depreciation and amortization		-333 628	-267 197	-622 256	-397 207	-899 309
Operating profit		-95 397	-252 776	-173 722	-557 347	-509 987
Net finance		-473 304	1 544 394	-1 572 199	1 469 739	288 925
Profit before income tax		-568 701	1 291 617	-1 745 921	912 392	-221 062
Income tax		-53 900	-20 640	-95 917	-24 991	-75 331
Profit for the period		-622 600	1 270 977	-1 841 838	887 401	-296 393
Other comprehensive income
Items that may be reclassified to P&L
Translation differences and other elements		-387 063	364 706	-54 900	351 167	362 310
Total comprehensive income		-1 009 663	1 635 683	-1 896 738	1 238 568	65 917
Profit for the period attributable to:
Equity holders of the parent company		-1 009 663	1 635 683	-1 896 738	1 238 568	65 917

Earnings per share	-0,01	0,03	-0,03	0,02	-0,01
--------------------	-------	------	-------	------	-------

Aega ASA Q2 report 2022 9

Balance sheet

		30.06.2022	31.12.2021
(EUR)	Note	(unaudited)	(audited)
ASSETS
Property, plant and equipment		9 258 815	6 367 486
Right-to-use assets		3 529 038	3 698 258
Financial investments		1 391 593	2 894 992
Non-current assets		14 179 446	12 960 736
Receivables		1 044 079	1 095 273
Other current assets		967 269	1 144 024
Cash and short-term deposits		4 421 412	4 300 351
Current assets		6 432 759	6 539 648
TOTAL ASSETS		20 612 205	19 500 384
EQUITY AND LIABILITIES Paid in capital	2	14 760 033	14 760 033
Other equity		-6 392 776	-4 496 039
Total equity		8 367 257	10 263 994
Long term loans		7 858 132	4 337 490
Leasing		3 399 329	3 556 364
Total non-current liabilities		11 257 461	7 893 853
Short term leasing		276 548	232 291
Trade payables and other payables		638 082	541 665
Short term financing		62 784	474 260
Current tax		10 074	94 320
Total current liabilities		987 488	1 342 537
Total liabilities		12 244 949	9 236 390
TOTAL EQUITY AND LIABILITIES		20 612 205	19 500 384

Cash flow

		H1-2022	H1-2021	FY 2021
(EUR)	Note	(unaudited)	(unaudited)	(unaudited)
Profit before tax		-1 745 921	912 392	-221 062
Paid income taxes		0	0	-61 453
Depreciation		622 256	397 207	899 309
Changes in trade receivables and payable		135 421	234 093	35 594
Changes in other accruals		-163 811	187 855	29 889
Fair value adjustment financial assets		1 454 488	-1 561 883	-704 054
Cash flow from operations		302 434	169 665	-21 778
Acquisition net of cash acquired		-1 652 711	-524 744	-344 131
Financial investments		0	-178 826	-176 301
Cash flow from investments		-1 652 711	-703 570	-520 433
Share rights issue		0	0	2 460 133
Sale of own shares		0	0	81 361
Convertible loan issue		1 991 874	0	0
Lease payments		-195 412	-73 594	-345 966
Repayment of loans		-325 124	-197 749	-439 928
Cash flow from financing		1 471 338	-271 343	1 755 600
Cash at beginning of period		4 300 351	3 086 962	3 086 962
Net change in cash and cash equivalents		121 061	-1 158 510	1 213 389
Cash at end of period		4 421 412	1 928 452	4 300 351

Change in equity

(EUR)	Share capital	Share premium fund	Other equity	Currency translation reserve	Total equity
Equity 01.01.2022	6 996 859	7 763 174	-4 597 778	101 739	10 263 994
Profit (loss) after tax	0	0	-1 841 838	0	-1 841 838
Other comprehensive income	0	0	0	-54 900	-54 900
Equity 30.06.2022	6 996 859	7 763 174	-6 439 616	46 839	8 367 257

(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	0	0	887 401	0	887 401
Other comprehensive income	0	0	0	351 167	351 167
Equity 30.06.2021	5 162 293	7 056 247	-3 413 984	90 596	8 895 152

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 2022, Aega ASA had a share capital of NOK 66 375 949 comprising 66 375 949 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 2022

Shareholders	Share	Percentage
ASBJØRN JOHN BUANES	2 086 470	3,14 %
ERIK WAHLSTRØM	2 084 749	3,14 %
RYBO NOR AS	1 738 735	2,62 %
MORO AS	1 622 777	2,44 %
THORVALD MORRIS HARALDSEN	1 452 100	2,19 %
NORDNET LIVSFORSIKRING AS	1 318 441	1,99 %
SOHAIL SARWAR MIRZA	1 241 055	1,87 %
JAN P HARTO AS	1 210 566	1,82 %
FIN SERCK-HANSSEN	1 160 741	1,75 %
NORDNET BANK AB	1 154 447	1,74 %
HEDEN HOLDING AS	909 681	1,37 %
BREZZA AS	882 793	1,33 %
KÅRE REIDAR JOHANSEN	844 722	1,27 %
OLAV VESAAS	836 142	1,26 %
ROALD ARNOLD NYGÅRD	753 720	1,14 %
VESOLDO AS	690 880	1,04 %
RACCOLTA AS	689 022	1,04 %
PENTHOUSE MIRADORES AS	666 666	1,00 %
JAN STEINAR NEREM	632 069	0,95 %
C - BY - C AS	593 208	0,89 %
Total 20 largest shareholders	22 568 984	34,00 %
Aega ASA outstanding shares	66 375 949	100,00 %

Responsibility statement

We confirm that, to the best of our knowledge, the condensed interim financial statement for the period 1 January 2022 to 30 June 2022 has been prepared in accordance with IAS 34 Interim Financial Reporting, and that the information gives a true and fair view of the Group's assets, liabilities, financial position, and result for the period.

To the best of our knowledge, the interim report for the first six months of 2022 includes a fair review of important events that have occurred during the period and their impact on the condensed financial statements, the principal risks and uncertainties for the remaining half of 2022, and major related party transactions.

Oslo, 30 August 2022

Halldor Christen Tjoflaat Chairman

Jan Peter Harto Board member

Kristine Malm Larneng Board member

Nils Petter Skaset CEO

Aega ASA

0274 Oslo, Norway E-mail: ceo@aega.no