Nordic Financials ASA — Investor Presentation 2017

Aug 15, 2017

AEGA ASA SECOND QUARTER 2017

15 August 2017

Agenda

• Q2 highlights
• Business overview
• Financial review
• Guidance
• Q & A

Highlights from the quarter

Key figures

• Revenue: EUR 1036k
• EBITDA: EUR 543k
• Net profit: EUR 92k

Power production

• Power production of 3 094MWh in the second quarter of 2017
• 10% increase compared to the same period the year before (adjusted for capacity increase)
• 10% above investment base case

Acquistions

• Acquired Casale S.r.l., a 1MWp solar PV plant located in Emilia-Romagna, Italy on 21 April 2017
• Total production capacity increased to 7MWp or around 9GWh clean electric power produced per year
• Performance since take-over has been better than expected (investment base case)

Key events after the quarter

• The private placement planned in Q2 has been postponed

BUSINESS OVERVIEW Aega ASA – Q2 report

Aega ASA © All rights reserved 4

Overview of current Solar PV portfolio

Seven high quality solar parks with a combined production capacity of 7MWp Close proximity secures operational efficiency

Solar PV Power Plants	Capacity (MWp)	FiT (EUR/kWh)
Montalto di Castro (Photo-Volt One S.r.l) • Acquired in Q3 2014 • Commenced commercial operation in August 2011	1.0	0.24
Terni (DT S.r.l) • Acquired in Q1 2015
• Commenced commercial operation in April 2011	1.0	0.32
Narni (Collesanto S.r.l)
• Acquired in Q1 2015 • Commenced commercial operation in January 2011	1.0	0.32
Porchiano/Amelia (Collesanto S.r.l)
• Acquired in Q1 2015 • Commenced commercial operation in April 2011	1.0	0.32
Magnacavallo (Jer-12 S.r.l)
• Acquired in Q4 2015 • Commenced commercial operation in June 2012	1.0	0.17
Piano Mulino (Piano Mulino S.r.l)
• Acquired in Q2 2016 • Commenced commercial operation in December 2009	1.0	0.29
Casale (Casale S.r.l)
• Acquired in Q2 2017 • Commenced commercial operation in March 2011	1.0	0.32
Total	7.0

Significant growth opportunities

Immediate pipeline of new solar power plants	Equity price indication (EURm)	Capacity (MWp):	Estimated equity IRR	Location:
Plants 1-3	2.9	3.5	15.0%	Marche/Piemonte/Lombardi a
Short-term pipeline of new solar power plants	Equity price indication (EURm)	Capacity (MWp):	Estimated equity IRR	Location:
Plant 4-14	13.0	15.3	15.0%	North of Rome
Long-term pipeline of new solar power plants	Equity price indication (EURm)	Capacity (MWp):	Estimated equity IRR	Location:
Plant 15-34	~100	111	15.0%	North of Rome

Significant growth opportunities cont'd

The company owns and operates 7MWp of installed capacity; has 130MWp at various stages in the pipeline and ca. 1 870MWp in additional opportunities

• In total, the management team estimates that roughly 2 000MWp out of the total 19 000MWp installed in Italy meets the company's investment criteria
• Immediate pipeline to acquire three high quality solar parks for an equity consideration of approx. EUR 2.9 million, with a combined capacity of 3.5MWp. For these three plants, Aega has signed exclusive agreements to acquire the plants and enter into a Share Purchase Agreement (SPA) within weeks. The DD process is well underway, and we are confident about the quality of these three parks in almost all respects.
• Short-term pipeline of combined 15.3MWp at an equity cost of EUR 13.0 million. These are parks we have visited, and for some, even DDs have been done. We are on «Term Sheet level» with the relevant Sellers, and we are ready to accelerate the process once we have security on available funding.
• Long-term pipeline of combined 111MWp at an expected equity cost of approx. EUR 100 million.

FINANCIAL REVIEW Aega ASA – Q2 report

Key financial results

Revenues of EUR 1036k

• 56% increase compared to Q2 2016
• Production of 3 094MWh
• 10% increase compared to Q2 2016*
• Market price on electricity has in addition been slightly higher then expected in the quarter, resulting in total revenues 11,4% above forecasts

EBITDA of EUR 543k

• Non-recurring cost in Q2 2017 due to due diligence work, tax consulting and private placement fees (-128kEUR)

Financial development

* Adjusted for installed capacity

Revenue EBITDA Non-recurring

Power production

Power production of 3 094MWh

• Up 43% compared to same quarter last year
• Up 10% compared to Base Case
• One solar park added from 1 July 2016 (from 5 to 6MWp installed capacity)
• One solar park added with effect from 1 May 2017 (from 6 to 7MWp installed capacity)
• High irradiation in Q2 2017
• High Performance Ratio (PR) 81,5% for the quarter
• High Plant Availability (PA) 99,4% for the quarter

Power production MWh/quarter

Opex reached target level

Opex has been downward trending and has now reached the target which we consider being a sustainable level. The figures include:

• Operation
• Maintenance
• Spare parts
• Security
• Insurance
• O&M Management

Base Case vs Actual vs Target Opex (k€/MWp/year)

Market price on electricity higher than forecasts

• The market price component of Aega's revenue represent around 15-20% of total revenue
• The average market price on electricity has increased 20% from Q4 2016 average to YTD average in 2017.

Spot price increase due to:

• Higher electricity demands
• Increased alternative power source cost

Aega uses currently a spot price of 0.04EUR/kWh (=40EUR/MWh) when assessing investment opportunities.

Average National Single Price Italy (EUR/MWh)

Financial results

• Naturally the Q2 and Q3 revenues are the highest because of the high irradiation and subsequent power production in the summer months.
• HQ cost and admin, are cost that to a large extent are fixed. Salary to administration and the Board in Oslo, auditors, accounting, listing fees etc. is not expected to grow notably with MWp under management compared to other costs that are proportional with the size of the portfolio.
• Non-recurring in Q2 2017 are cost related to due diligence work and legal fees not materialised in acquisitions.

Key figures
(EUR 000')	Q1 16	Q2 16	Q3 16	Q4 16	FY 16	Q1 17	Q2 17
Revenue	390	662	857	578	2 487	567	1 037
EBITDA operations	160	455	590	290	1 495	413	917
HQ cost and admin	(121)	(185)	(96)	(141)	(543)	(277)	(245)
Non recurring cost	(637)	(509)	(76)	81	(1 141)	(124)	(128)
EBITDA	(599)	(239)	418	230	(189)	13	544

Balance sheet

• The assets on the balance sheet mainly consists of Balance sheet the portfolio of seven individual solar parks in Italy
• The solar parks are financed with bank loans or leasing finance, where the assets of the parks are registered as collateral
• The solar parks are held in separate single purpose vehicles (SPVs), and each SPV has separate loan financing (ring fenced)
• Cash position of EUR 682k at the end of the first quarter of 2017
• Equity ratio of 36% in Q2 2017 compared to 31% previous year.

(EUR 000')	Q2 2017	31 Dec 2016
Property, plant and equipment	17 577 097	15 168 954
DTA and Goodwill	2 548 266	691 449
Receivables	1 523 768	1 104 031
Other current assets	522 269	1 002 556
Cash and short term deposits	681 556	688 066
Total assets	22 852 916	18 655 056
Long term loans	2 960 733	3 019 563
Leasing	8 660 307	7 182 426
Trade payables and other payables	904 558	629 451
Short term financing	1 122 393	963 660
Current tax	-	19 152
Derivative financial instruments	866 048	771 477
Total liabilities	14 514 039	12 585 729
Share capital	4 786 290
		3 950 008
Share premium	8 015 782	6 524 409
Accumulated profit & loss	(4 893 965)	(4 737 873)
Foreign Currency translation reserve	430 771	332 784
Total equity	8 338 877	6 069 327

Cash flow

Cash flow from operating activities of EUR 128k

• Ordinary profit before tax EUR 92k
• Depreciation of EUR 617k

Cash flow from investing activities of EUR - 854k

• Acquisition of Casale S.r.l.

Cash flow from financing activities of EUR -152k

Cash development from Q1 2017 to Q2 2017 (In EUR)

GUIDANCE Aega ASA – Q2 report

Q3 and 2017 guidance

Production		Revenue
	MWh		kEUR
Q3	3 168	Q3	1 008
2017	9 402	2017	3 080

• The above estimates are based on actual figures to date, and base case figures for the remainder of the relevant periods
• It is further based on the existing 7MWp portfolio only no further acquisitions included in the forecasts

APPENDIX Aega ASA – Q2 report

Profit and loss

(EUR)	Q2 2017	Q2 2016	1H 2017	1H 2016	FY 2016
Feed-In Tariff revenue	895 631	602 257	1 368 301	928 710	2 078 247
Sales of electricity	139 116	59 456	233 351	122 573	314 270
Other revenue	2 051	-	2 051	-	93 863
Revenues	1 036 798	661 712	1 603 703	1 051 283	2 486 380
Cost of operations	(88 784)	(53 852)	(161 127)	(113 012)	(358 516)
Sales, general and administration expenses	(275 962)	(338 196)	(633 858)	(629 848)	(1 176 135)
Acquisition and transaction costs	(128 403)	(508 519)	(252 187)	(1 145 894)	(1 141 020)
EBITDA	543 649	(238 855)	556 532	(837 471)	(189 293)
Depreciation, amortizations and write downs	(314 020)	(202 682)	(617 019)	(405 315)	(975 720)
Other Operating profit before OGL (EBIT)	229 630	(441 537)	(60 487)	(1 242 786)	(1 165 013)
Finance income	5 288	(253)	7 034	109	2 246
Finance costs	(159 960)	(113 053)	(257 173)	(186 474)	(577 983)
Mark to market adjustment derivatives	9 901	(78 015)	17 897	(100 248)	45 950
Net foreign exchange gain/(losses)	7 142	(53 721)	6 681	(54 138)	(70 229)
Profit before income tax	92 000	(686 579)	(286 048)	(1 583 536)	(1 765 029)
Income tax gain/(expense)	(13)	(35 624)	21 820	(36 317)	(106 249)
Profit/(loss) for the period	91 988	(722 204)	(264 228)	(1 619 853)	(1 871 278)

Other comprehensive income

(EUR)	Q2 2017	Q2 2016	1H 2017	1H 2016	FY 2016
Currency translation differences	48 983	(120 424)	97 987	1 663	93 738
Other comprehensive income net of tax	48 983	(120 424)	97 987	1 663	93 738
Total comprehensive income	140 970	(842 628)	(166 242)	(1 618 190)	(1 777 541)
Profit for the period attributable to:
Equity holders of the parent company	91 988	(722 204)	(264 228)	(1 619 853)	(1 871 278)
Total comprehensive income attributable to:
Equity holders of the parent company	140 970	(842 628)	(166 242)	(1 618 190)	(1 777 541)
Earnings per share	0.00321	(0.028)	0.00	(0.06)	(0.06)
Avg. no of shares	43 882 141	30 203 849	43 882 141	26 266 945	31 078 951

(EUR)	30 Jun 2017	31 Mar 2017	31 Dec 2016
Property, plant and equipment	17 577 097	14 875 700	15 168 954
Intangibles and DTA	427 020	596 239	635 776
Goodwill	2 121 206	1 883 684	-
Other long term assets	-	-	-
Non-current assets	20 125 323	17 355 623	15 804 730
Receivables	1 523 768	1 111 085	1 104 031
Other current assets	522 269	796 872	1 039 077
Cash and short term deposits	681 556	1 462 192	688 066
Current assets	2 727 593	3 370 149	2 831 174
TOTAL ASSETS	22 852 916	20 725 771	18 635 904

Balance sheet – Assets Balance sheet – Equity and liabilities

(EUR)	30 Jun 2017	31 Mar 2017	31 Dec 2016
Share capital	4	4	3
	786	786	950
	290	290	008
Share premium	8	8	6
	015	329	524
	782	427	409
Paid in capital	12	13	10
	802	115	474
	072	717	417
Accumulated profit & loss	(4	(5	(4
	893	003	737
	965)	098)	873)
Other equity	-	-	-
Foreign Currency translation reserve	430	381	332
	771	788	784
Other equity	(4	(4	(4
	463	621	405
	195)	311)	089)
Total equity	8	8	6
	338	494	069
	877	407	327
Long term loans	2	2	3
	960	978	019
	733	993	563
Leasing	8	7	7
	660	025	182
	307	567	426
Other long term debt	-	-	-
Total non-current liabilities	11	10	10
	621	004	201
	040	561	990
Trade payables and other payables	904	501	629
	558	203	451
Short term financing - interest bearing	1 122 393	964 895	963 660
Derivative financial instruments	866	760	771
	048	707	477
Other current liabilities	-	-	-
Total current liabilities	2	2	2
	892	226	364
	999	804	588
Total liabilities	14	12	12
	514	231	566
	039	365	578
TOTAL EQUITY AND LIABILITIES	22	20	18
	852	725	635
	916	771	905

Cash flow

(EUR)	Q1 2017	Q1 2016	FY 2016
Ordinary profit before tax	92 000	(686 579)	(1 765 029)
Paid income taxes	-	-	(138 341)
Depreciation	617 019	202 682	975 720
Changes in trade receivables and trade payable	(87 550)	(319 642)	(536 670)
Changes in other accruals	(492 864)	628 596	(8 995)
Cash flow from operations	128 605	(174 943)	(1 473 315)
Acquisition net of cash acquired	(854 640)	(1 200 458)	(1 106 449)
Cash flow from investments	(854 640)	(1 200 458)	(1 106 449)
Proceeds from issue of share capital	-	2 530 961	3 148 217
Dividends or shareholder distributions	-	(220 629)	(732 091)
Repayment of loans	(152 587)	(131 329)	(629 553)
Cash flow from financing	(152 587)	2 179 004	1 786 574
Cash at beginning of period	1 462 192	944 141	1 387 519
Net currency translation effect	97 987	(120 424)	93 738
Net increase/(decrease) in cash and cash equivalents	(878 622)	803 603	(793 191)
Cash at end of period	681 556	1 627 320	688 066

Change in equity

				Foreign
	Share	Share	Other	Currency translation	Total
(EUR)	capital	premium fund	equity	reserve	equity
Equity 2016	3 950 008	6 524 408	(4 737 873)	332 784	6 069 327
Share issue 3 January 2017	498 749	1 129 951			1 628 700
Share issue asset purchase	337 534	675 068	90 990		1 103 591
Profit (loss) After tax			(264 228)		(264 228)
Other comprehensive income		(313 645)	17 146	97 987	(198 512)
Equity 30 June 2017	4 786 290	8 015 782	(4 893 965)	430 770	8 338 877
(EUR)	Share capital	Share premium fund	Other equity	Foreign Currency translation reserve and derivates	Total equity
Equity 2015	60 442	4 829 919	(387 621)	239 046	4 741 786
Share issue Aega Yieldco 7 January 2016	4 710	562 342			567 052
Acqusition NOFIN, inc. Increase denomination	2 969 549	198 380	(2 478 974)		688 955
Dividends or distribution to shareholders		(732 091)			(732 091)
Capital increase 30 June 2016	915 307	1 665 859			2 581 166
Profit (loss) After tax			(1 871 278)		(1 871 278)
Other comprehensive income				93 738	93 738
Other					-
Equity 2016	3 950 008	6 524 408	(4 737 873)	332 784	6 069 327

Aega ASA

Visit us at: Oscars gate 52, 0258 Oslo, Norway | www.aega.no Markus H. Enge | CFO | +4740064820 | mhe@aega.no Rolf M. Normann | CEO | +4791344134 | rmn@aega.no