Nordic Financials ASA — Interim / Quarterly Report 2023

May 31, 2023

Aega ASA Q1 REPORT 2023

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 energy company listed on Euronext Expand in Oslo. Aega's main focus is the solar power market. We acquire and operate smaller existing Italian solar power plants. In addition to being an industrial energy producer we also consider 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 nine operating solar parks during the quarter. Total production in Q1 was 2 107 042 kwh.
• Main focus has been to continue a cost-effective operation of all our assets.
• Strong cash flow from operations.

Subsequent events

• Normal production, no specific events to report.

Figure 1: Power Generation (kWh)

Letter from the CEO

Dear shareholders,

In the first quarter of 2023 Aega delivered revenues of EURt 722 (Q1 2022: EURt 596). EBITDA was positive at EURt 303 (Q1 2022: EURt 210). Making this our eight consecutive quarter with positive EBITDA. For Q1 2023 it is also worth mentioning that we saw a strong cash flow from operations with EURt 494 (Q1 2022: EURt 152).

Energy Markets and opportunities

The energy markets are still volatile and even though Italian (gas) inventories are high, as the winter was mild, we still see disturbances in the supply of electricity that leads to large, if no longer extreme, price fluctuations. The International Energy Agency (IEA) estimates a global reduction in available gas from 2022 to 2023, partly because of increased demand and the lack of Russian gas offered. Coupled with the re-opening of China (post covid), IEA believes that the gas market and hence the European electricity market will be quite tight into the second half of 2023. In Aega we prepare for several outcomes when it comes to the second half of 2023 and will take measures to hedge some of this risk.

To counter the dependence on gas Italy has initiated aggressive goals to install more renewable energy. In particular solar and wind power. The outspoken goal is to triple Italy's installed capacity of solar power over the next 10 years. This is an ambitious goal both in relative and absolute terms as Italy holds second place in Europe, behind Germany, when it comes to solar power capacity. The Italian focus seems to be continued development of parks from 0.8MW to 10MW, and to continue to increase these types of parks in number. This is the segment they have succeeded with in previous years, and it seems to suit the Italian business life and culture well. It is also the part of the market where Aega operates and where we have expertise, skills, and knowledge. I am working together with our team, and the board of directors, to investigate possible ways to further fund a growth phase for Aega on the ground in Italy.

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. As a subsequent event to this report, the original CEO of Norsk Solar handed the helm to a new and experienced recourse; Mr. Torbjørn Elliot Kirkeby-Garstad in mid May. We are supportive of this development and look forward to continuing to work with Mr Garstad and Norsk Solar in the exciting journey ahead of them.

Pipeline

The pipeline is mentioned in previous reports, and it is firm and well-developed. It includes several dozen MW of secondhand parks and an even greater number of green fields. The board and I are looking at ways to capitalize on this pipeline.

Concluding remarks

We have through Q1-23 focused on efficient operations, result is observed with positive EBITDA, and we see strong cash flow from operations. The development also supports our view that any new acquisition on terms like the existing portfolio will have a non-dilutive and positive effect on EBITDA. Further we are getting closer to the end of June when the capping of our revenues is to be terminated, and we will again be able to sell energy on the free market. Having said that we expect some lag before the cash effect is completely taken out.

As always, the Aega team is committed to further developing the company and delivering green solar power to the market we believe to be most suited for solar energy in Europe – Italy!

Best regards, Nils Petter Skaset CEO

Operational development

Aega had nine operating solar parks during the quarter, total production in Q1 was 2 107 042 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 Q1 was EURt 722 (Q1 2022: EURt 596), while EBITDA for the period ended at EURt 303 (Q1 2022: EURt 210).

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. In addition, the company is looking at ways to best finance further growth. Aega has the team and infrastructure on the ground in Italy to find and operate a solar portfolio of up to approximately 30MWp with today's infrastructure. Aega remains optimistic regarding its deal flow.

Financial statements

Aega ASA Q1 report 2023 7

Profit and loss

		Q1-2023	Q1-2022	FY 2022
(EUR)	Note	(unaudited)	(unaudited)	(audited)
Feed-In Tariff revenue		530 075	457 517	2 143 942
Sales of electricity		192 021	138 881	496 213
Revenues		722 096	596 398	2 640 155
Cost of operations		-168 856	-103 563	-609 642
Personnel expenses		-117 651	-109 157	-497 045
Other operating expenses		-132 455	-173 375	-589 892
EBITDA		303 134	210 303	943 577
Depreciation and amortization		-440 309	-288 628	-1 399 719
Operating profit		-137 176	-78 325	-456 142
Net finance		-352 494	-1 098 895	-1 455 930
Profit before income tax		-489 669	-1 177 220	-1 912 071
Income tax		-26 950	-42 017	-62 866
Profit for the period		-516 619	-1 219 237	-1 974 937
Other comprehensive income
Items that may be reclassified to P&L
Translation differences and other elements		165 658	332 163	-32 658
Total comprehensive income		-350 961	-887 074	-2 007 595
Profit for the period attributable to:
Equity holders of the parent company		-350 961	-887 074	-2 007 595

Balance sheet

		31.03.2023	31.12.2022
(EUR)	Note	(unaudited)	(audited)
ASSETS
Property, plant and equipment		11 429 337	11 721 516
Right-to-use assets		5 207 289	5 355 419
Financial investments		987 314	1 501 612
Non-current assets		17 623 940	18 578 547
Receivables		1 236 004	1 858 711
Other current assets		1 292 478	1 240 192
Cash and short-term deposits		2 688 883	2 534 385
Current assets		5 217 364	5 633 288
TOTAL ASSETS		22 841 304	24 211 835
EQUITY AND LIABILITIES
Paid in capital	2	15 165 602	15 165 602
Other equity		-6 854 595	-6 572 715
Total equity		8 311 007	8 661 968
Long term loans		5 061 062	5 241 641
Convertible loans		2 622 433	2 841 979
Leasing		5 004 869	5 055 788
Total non-current liabilities		12 688 364	13 139 408
Short term leasing		453 116	467 351
Trade payables and other payables		566 130	1 060 868
Short term financing		745 828	769 260
Current tax		76 859	112 980
Total current liabilities		1 841 933	2 410 459
Total liabilities		14 530 297	15 549 867
TOTAL EQUITY AND LIABILITIES		22 841 304	24 211 835

Cash flow

		Q1-2023	Q1-2022	FY 2022
(EUR)	Note	(unaudited)	(unaudited)	(audited)
Profit before tax		-389 669	-1 177 220	-1 912 071
Depreciation		440 309	288 628	1 399 719
Changes in NWC items		167 464	3 691	-798 115
Fair value adjustment financial assets		275 863	1 037 159	1 448 561
Cash flow from operations		493 967	152 258	138 094
Acquisition net of cash acquired		0	-1 652 711	-3 826 327
Financial investments		0	0	0
Cash flow from investments		0	-1 652 711	-3 826 327
Proceeds from issue of shares		0	0	405 569
Convertible loan issue		0	0	2 823 183
Lease payments		-135 458	-101 586	-555 683
Repayment of loans		-204 011	-197 482	-750 802
Cash flow from financing		-339 469	-299 068	1 922 267
Cash at beginning of period		2 534 385	4 300 351	4 300 351
Net change in cash and cash equivalents		154 498	-1 799 522	-1 765 966
Cash at end of period		2 688 883	2 500 829	2 534 385

Change in equity

(EUR)	Share capital	Share premium fund	Other equity	Currency translation reserve	Total equity
Equity 31.12.2022	7 499 938	7 665 664	-6 572 715	69 081	8 661 968
Profit (loss) after tax	0	0	-516 619	0	-416 619
Other comprehensive income	0	0	0	165 658	65 658
Equity 31.03.2023	7 499 938	7 665 664	-7 089 334	234 739	8 311 007

(EUR)	Share capital	Share premium fund	Other equity	Currency translation reserve	Total equity
Equity 31.12.2021	6 996 859	7 763 174	-4 597 778	101 739	10 263 994
Profit (loss) after tax	0	0	-1 974 937	0	-1 974 937
Other comprehensive income	0	0	0	-32 658	-32 658
Share issue	503 079	-97 510	0	0	405 569
Equity 31.12.2022	7 499 938	7 665 664	-6 572 715	69 081	8 661 968

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 with 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 the 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 2023, Aega ASA had a share capital of NOK 71 375 949 comprising 71 375 949 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.

CONTENTS / ABOUT AEGA / QUARTERLY REPORT / FINANCIAL STATEMENTS

Largest 20 shareholders as of 31 March 2023

Shareholders	Share	Percentage
MAMALAO AS	5 086 643	7,13 %
ASBJØRN JOHN BUANES	2 753 136	3,86 %
ERIK WAHLSTRØM	2 220 955	3,11 %
RYBO NOR AS	1 738 735	2,44 %
MORO AS	1 622 777	2,27 %
THORVALD MORRIS HARALDSEN	1 452 100	2,03 %
SOHAIL SARWAR MIRZA	1 241 055	1,74 %
FIN SERCK-HANSSEN	1 211 247	1,70 %
JAN P HARTO AS	1 210 566	1,70 %
NORDNET LIVSFORSIKRING AS	1 166 560	1,63 %
Nordnet Bank AB	1 166 378	1,63 %
BREZZA AS	882 793	1,24 %
KÅRE REIDAR JOHANSEN	844 722	1,18 %
OLAV VESAAS	836 142	1,17 %
RACCOLTA AS	772 441	1,08 %
ROALD ARNOLD NYGÅRD	753 720	1,06 %
VESOLDO AS	690 880	0,97 %
JAN STEINAR NEREM	632 069	0,89 %
C - BY - C AS	593 208	0,83 %
RUDNOR INVEST AS	590 951	0,83 %
Total 20 largest shareholders	27 467 078	38,48 %
Aega ASA outstanding shares	71 375 949	100,00 %

Aega ASA Thunes vei 2 0274 Oslo, Norway

E-mail: ceo@aega.no