Nordic Financials ASA — Interim / Quarterly Report 2022

May 31, 2022

Aega ASA Q1 REPORT 2022

About Aega3
Quarterly report4
Highlights of the quarter 4
Subsequent events4
Letter from the CEO5
Profit and loss9
Balance sheet10
Cash flow11
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 seven operating solar parks at the end of the quarter, total production in Q1 was 1 596 466 kwh.
• Finalized the acquisition of Actasol 4 S.r.l. and Actasol 16 S.r.l. The two parks have a combined installed power of ca. 1.4 MWp. Both parks are located near each other, in the Marche region of Italy.

Subsequent events

• 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. Both parks have the same owner. If either of the parties chooses to withdraw from the deal, it would trigger a compensation clause.

Figure 1: Power Generation (kWh)

Letter from the CEO

Dear shareholders,

When we released our Q4 2021 numbers I stated that Aega was in good shape. When we now present our first quarter 2022 numbers, I am glad to say that this trend continues. Even though the first quarter is the weakest period when it comes to production, obviously because of seasonality with lower irradiation than in the other quarters, we have good reason to be satisfied.

With this backdrop, I am glad to present first quarter numbers that shows another quarter with positive EBITDA and positive cash flow from operations, meaning that the underlying business is cash generating. Revenues came in at EURt 596 and EBITDA was EURt 210.

During the quarter we have focused on onboarding the two newly acquired parks; Actasol 4 and Actasol 16. This work has gone according to plan and when I write this both parks are maintained and more or less already upgraded to Aega standards. The other five operating assets have performed as expected, and production and performance are in line with our business plans for these solar parks. It is therefore fair to say that we are on a steady course as earlier communicated and planed for.

Economies of scale

Aega is about to prove its potential as a green company, with moderate debt, well producing solar parks, efficient operations, cost-control, positive EBITDA and free cash flow. When we know that our business model still can increase revenues considerably without cost following at same speed, we have lots of reasons to be positive when it comes to the future.

I remind you of the previously mentioned economies of scale and as the figure below indicates we have capacity to increase revenues and EBITDA margin considerably without cost following at same pace. I am confident that given a scenario where we want to grow, Aega of today is rigged to tackle a 20 MW portfolio.

Pipeline

Through Q1 we have used a considerably amount of time to research and secure our pipeline. We have a firm and good Italian pipeline that under the right circumstances can be executed, and we see that this pipeline today is around 20-25MW. If we look at the less firm, but still relevant pipeline this one is 4-5 times this, reaching + 80MW. This gives us opportunities and confirms my view that our operation in the secondhand market is relevant and a good place to be!

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 Q1 the share price of Norsk Solar has had a negative development, like many other in the renewable energy space. The decrease in Norsk Solar share price reflectes the entire loss in our "net finance" in the P&L table.

Concluding remark

Concluding remark from me to our shareholders is that Aega is in good shape!

Even though financial markets have been more challenging in 2022 than last year, my view is that when we now confirm our position as an EBITDA positive company, with free cash flow and a balance sheet backed by real assets, it is reason

to raze your gaze and look at the future with a positive attitude.

We will continue our efforts to develop both our portfolio and our pipeline to increase our production of renewable energy, increase our revenues and continue to strengthen our balance sheet.

Best regards, Nils Petter Skaset CEO

Operational development

Aega had seven operating solar parks at the end of the quarter, total production in Q1 was 1 596 466 kwh.

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

Financial development

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

In Q4 total revenues was EURt 596 (Q1 2021: EURt 190), while EBITDA for the period ended at EURt 210 (Q1 2021: EURt -175).

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 Q1 report 2022 8

Profit and loss

		Q1-2022	Q1-2021	FY 2021
(EUR)	Note	(unaudited)	(unaudited)	(audited)
Feed-In Tariff revenue		457 517	162 447	1 352 686
Sales of electricity		138 881	27 766	488 098
Revenues		596 398	190 213	1 840 784
Cost of operations		-103 563	-55 295	-268 358
Personnel expenses		-109 157	-108 124	-435 070
Other operating expenses		-173 375	-201 355	-748 035
EBITDA		210 303	-174 561	389 321
Depreciation and amortization		-288 628	-130 010	-899 309
Operating profit		-78 325	-304 571	-509 987
Net finance		-1 098 895	-74 654	288 925
Profit before income tax		-1 177 220	-379 226	-221 062
Income tax		-42 017	-4 350	-75 331
Profit for the period		-1 219 237	-383 576	-296 393
Other comprehensive income
Items that may be reclassified to P&L
Translation differences and other elements		332 163	-13 539	362 310
Total comprehensive income		-887 074	-397 115	65 917
Profit for the period attributable to:
Equity holders of the parent company		-887 074	-397 115	65 917

Balance sheet

(EUR)	Note	31.03.2022	31.12.2021
		(unaudited)	(audited)
ASSETS
Property, plant and equipment		9 891 590	6 367 486
Right-to-use assets		3 613 648	3 698 258
Financial investments		1 918 384	2 894 992
Other long-term assets		0	0
Non-current assets		15 423 622	12 960 736
Receivables		1 143 695	1 095 273
Other current assets		1 167 291	1 144 024
Cash and short-term deposits		2 500 829	4 300 351
Current assets		4 811 815	6 539 648
TOTAL ASSETS		20 235 437	19 500 384
EQUITY AND LIABILITIES
Paid in capital	2	14 760 033	14 760 033
Other equity		-5 383 113	-4 496 039
Total equity		9 376 920	10 263 994
Long term loans		5 810 984	4 337 490
Leasing		3 494 708	3 556 364
Total non-current liabilities		9 305 692	7 893 853
Short term leasing		237 558	232 291
Trade payables and other payables		515 187	541 665
Short term financing		568 241	474 260
Current tax		231 839	94 320
Total current liabilities		1 552 825	1 342 537
Total liabilities		10 858 517	9 236 390
TOTAL EQUITY AND LIABILITIES		20 235 437	19 500 384

Cash flow

(EUR)	Note	Q1-2022	Q1-2021	FY 2021
Profit before tax		-1 177 220	-379 226	-221 062
Paid income taxes		0	0	-61 453
Depreciation		288 628	130 010	899 309
Changes in trade receivables and payable		85 412	290 071	35 594
Changes in other accruals		-81 721	53 666	29 889
Fair value adjustment financial assets		1 037 159	0	-704 054
Cash flow from operations		152 258	94 522	-21 778
Acquisition net of cash acquired		-1 652 711	-524 744	-344 131
Financial investments		0	-176 301	-176 301
Cash flow from investments		-1 652 711	-701 045	-520 433
Share rights issue		0	0	2 460 133
Sale of own shares		0	0	81 361
Lease payments		-101 586	-9 575	-345 966
Repayment of loans		-197 482	-98 875	-439 928
Cash flow from financing		-299 068	-108 450	1 755 600
Cash at beginning of period		4 300 351	3 086 962	3 086 962
Net change in cash and cash equivalents		-1 799 522	-714 973	1 213 389
Cash at end of period		2 500 829	2 371 990	4 300 351

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 31 March 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 31 March 2022

Shareholders	Share	Percentage
ASBJØRN JOHN BUANES	2 086 470	3,14 %
ERIK WAHLSTRØM	1 885 081	2,84 %
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	1 430 665	2,16 %
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	1 140 531	1,72 %
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 %
SANDBERG JH AS	750 994	1,13 %
HEDEN HOLDING AS	722 763	1,09 %
RUDNOR INVEST AS	692 002	1,04 %
VESOLDO AS	690 880	1,04 %
PENTHOUSE MIRADORES AS	666 666	1,00 %
JAN STEINAR NEREM	632 069	0,95 %
Total 20 largest shareholders	22 441 472	33,81 %
Aega ASA outstanding shares	66 375 949	100,00 %

Aega ASA