Aker Carbon Capture — Interim / Quarterly Report 2022

Nov 1, 2022

Q3 2022

Oslo, 1 November 2022 Valborg Lundegaard, CEO Egil Fagerland, CFO

Agenda

Introduction and third quarter highlights

Operations and business development

Delivery models

Financials

The way forward

Q&A

Aker Carbon Capture in brief

Pure play carbon capture company delivering ready-to-use capture plants

Best-in-class HSE friendly and proprietary patented technology for optimized all-round plant performance

Proven market-leading proprietary technology with more than 50,000 operating hours

...and engagement with new industry segments like refining and process industries

© 2022 Aker Carbon Capture

Highlights

In construction phase for two large-scale projects:

• Brevik CCS: installation of key equipment onsite
• Twence CCU: foundations installed

Carbon capture provider for two FEEDs in UK, both shortlisted for funding

High activity around Mobile Test Units: starting smelter campaign, new contract signed, second MTU being built

DNV qualifies Just Catch Offshore™

Recent milestones accelerating the CCUS market

Continued revenue growth and solid cash position

Operations and business development

NORCEM HEIDELBERG MATERIALS BREVIK CCS

Norway

• 2 capture and liquefaction plant
• Installation of major equipment onsite, incl. all three Waste Heat Recovery Units
• Creating local employment and strong partnerships
• © 2022 Aker Carbon Capture 400,000 TPA CO ● CO ² transport by ship to permanent storage as part of Northern Lights

2020 PROJECT START 25.05.2022 INSTALLATION OF FIRST KEY EQUIPMENT, FIRST SET OF WASTE HEAT RECOVERY UNITS

2024 PLANNED OPERATION

Key equipment is being delivered: plate heat exchangers, spiral heat exchanger

Installing foundations on site

WASTE TO ENERGY TWENCE CCU

Hengelo, Netherlands

• Capturing 100,000 TPA
• First of a kind modular carbon capture project on track
• Construction work started, installing foundations on site
• CO2 will boost local greenhouse production

Nov 2021 SIGNED CONTRACT

May 2022 GROUND-BREAKING

End 2023 PLANNED OPERATION

Gas-fired power plants in the UK

Two flagship projects in UK Track-1 East Coast Cluster

FEED for SSE Keadby 3 and FEED for bp Net Zero Teesside Power

• Each with design capacity of 2 million tonnes CO2 per year
• Carbon capture partner to a consortium of Aker Solutions, Siemens Energy and Altrad Babcock
• Both shortlisted for funding
• UK carbon capture aim of 20-30 Mt CO2 per year by 2030
• Carbon Capture and Storage Infrastructure Fund (CIF) of £1bn

High Mobile Test Unit activity Advanced CO ² capture pilot

• Smelter campaign started in Mo i Rana, Norway for Elkem Rana and SMA Mineral
• Contract signed for new campaign in 2024
• Second MTU being built mid 2023

DNV qualified Just C atch OffshoreTM

• carbon capture facility foroffshore installations
• Qualified by DNV, the global independent energy expert and assurance provider
• © 2022 Aker Carbon Capture Modularized ● Offshore CCS potential cost - efficient alternative for Power from Shore

" We are pleased to provide validation of the technology in a frontier application area – power generation in the offshore sector. "

Jørg Aarnes, Global Lead, Hydrogen and CCS, Energy Systems, DNV

Protecting human rights and decent working conditions

Aligning business activities with the Norwegian Transparency Act

• Management commitment
• Implementing policies and procedures
• Training employees and creating awareness
• Conducting risk assessment and due diligence of business partners globally
• Continuously improve and correct
• Ongoing communication with stakeholders

Continued progress toward 10 in 25

Recent milestones accelerating the CCUS market

Increased CO2 storage capacity in Northern Europe

• Several storage sites will be in operation second half of the decade
• New storage operators on the Norwegian Continental Shelf (NCS)

CO2 pipeline from Germany to Norway

• Connecting continental European emitters to offshore storage sites on NCS
• Wilhelmshaven key access point for joint CCS/H2 infrastructure

US Inflation Reduction Act signed by President Biden

• Enhancing 45Q tax credit system, making CCUS economically viable to implement in a wider range of industries
• Climate and energy spending of at least \$369 billion

Delivery models

Broad product offering with range of delivery models

Three core carbon capture products offered by Aker Carbon Capture

Indicative levelized cost of Carbon Capture as a Service

Full CCS value chain economics turning positive

• Volatile quarter, with EUA currently around 80 EUR/tonne
• Higher EU ETS uncertainty on the back of political talks to finance the REPowerEU legislative package through selling allowances, increasing supply in the short term
• Long term outlook remains sound and analysts still predict a range between 80-150 EUR per tonne in 2030
• Supported by IEA's World Energy Outlook, which based on announced net zero pledges expect a carbon price at EUR 135 per tonne in 20301

Financials

Q3 2022 | Income Statement

Revenue and EBITDA NOK million

• Revenue ended at NOK 204 million which was doubling compared to the same period last year
• Mainly driven by Brevik CCS, Twence Just Catch CCU, bp Net Zero Teesside Power FEED and SSE Keadby 3 FEED
• Other FEEDs and studies also contributed in the period
• EBITDA ended at negative NOK 56 million which was in line with the same quarter last year
• Brevik CCS main positive EBITDA driver in the period
• Contribution from ongoing FEED projects and studies also contributed favourably in the quarter
• Profit has not yet been recognised on Twence Just Catch CCU. Profit will only be recognized when the outcome and estimates can be reliably measured, which for Twence is expected when the site installation purchase order has been successfully placed.
• The overall negative EBITDA continued to be driven by expenses related to R&D projects, digitalization projects,

Q3 2022 | Balance Sheet

Balance sheet NOK million

● Net Current Operating Assets (net working capital) ended at negative NOK 537 million which represented a strong positive cash position on key projects

● NOK 457 million negative Net Capital Employed signalling that the business' operating capital is currently funded by project working capital

• Healthy Cash and cash equivalents balance at NOK 1.4 billion which could cover all liabilities 2.3 times
• Strong Equity position at NOK 0.9 billion

Q3 2022 | Cash flow

• The quarter ended with an overall cash outflow of NOK 79 million
• Loss before tax of negative NOK 51 million represented a cash outflow
• Inflow of NOK 8 million related to change in Net Current Operating Assets in the period
• CAPEX of NOK 36 million was mainly related to product development and standardization, and the construction of a new mobile test unit
• Payment of financial lease liabilities and adjustment for other non-cash items was net neutral and represented NOK 0 million
• Cash and cash equivalents ended the quarter at NOK 1,373 million

Cash flow development NOK million

Slide 21

Financial outlook

• Total salary, personnel and other operating costs reached NOK 76 million in Q3 2022
• Excluding costs associated with projects, we expect to see operating expenses through the next six months around similar levels, with significant flexibility

Cash balance

• Q3-22 net cash of NOK 1.4 billion, driven by expected project-related cash outflows
• Expect further project progress to use cash this year, with net cash around NOK 1.1 billion by year end, but positive project-related flows in 2023

Way forward

Way forward

Industries and geomarkets

Cement, bio/waste-to-energy, gas-to-power, blue hydrogen, refining, process industries Northern Europe initially; opportunities emerging in North America

Technology and innovation Further improve energy efficiency and capture rate Increased focus on new technologies

Cost-efficient product portfolio Standardization, modularization, digitalization Collaboration with strategic suppliers

Flexible contracts and business models EPC, License and Carbon Capture as a Service

Rapid growth through partnership

Integrated offerings, joint market positioning and bold innovation Aker group, Siemens Energy, Microsoft, SINTEF, HZI, Northern Lights, Carbfix etc.

People

A flexible international organization built on a collaborative and innovative culture

Deliver on ongoing projects

10 in 25

Secure contracts to capture 10 million tonnes CO2 per annum by 2025

Appendices

P&L ● Balance sheet ● Cash flow ● ESG

Condensed consolidated income statement

Amounts in NOK thousand	Q1 2021	Q2 2021	Q3 2021	Q4 2021	Q1 2022	Q2 2022	Q3 2022	YTD 2022
Revenues	63,452	69,318	100,848 -	129,560 -	144,319	193,640	203,613 -	541,573
Materials, goods and services	(62,811)	(67,978)	(83,508)	(118,517)	(129,170)	(171,708)	(183,284)	(484,162)
Salary and other personnel costs	(8,007)	(14,446)	(35,313)	(34,336)	(34,135)	(38,357)	(44,574)	(117,066)
Other operating expenses	(15,298)	(34,085)	(36,454)	(42,267)	(41,689)	(32,159)	(31,353)	(105,201)
EBITDA	(22,664)	(47,192)	(54,427)	(65,561)	(60,675)	(48,584)	(55,597)	(164,855)
Depreciation	(1,334)	(1,334)	(1,334)	(1,343)	(2,597)	(3,014)	(2,597)	(8,208)
Operating profit (loss)	(23,998)	(48,526)	(55,761)	(66,904)	(63,272)	(51,598)	(58,194)	(173,064)
Financial income	327	234	633	1,954	2,445	3,078	5,286	10,808
Financial expenses	(174)	(163)	(168)	(154)	(186)	(272)	(170)	(628)
Foreign exchange gain (loss)	19	(102)	49	433	998	(997)	1,503	1,504
Net financial items	172	(32)	514	2,234	3,257	1,808	6,618	11,684
Profit (loss) before tax	(23,826)	(48,558)	(55,247)	(64,670)	(60,015)	(49,790)	(51,576)	(161,380)
Income tax benefit (expense)	-	-	-	-	-	-	-
Net profit (loss)	(23,826)	(48,558)	(55,247)	(64,670)	(60,015)	(49,790)	(51,576)	(161,380)

Condensed consolidated balance sheet - Assets

Amounts in NOK thousand	Q1 2021	Q2 2021	Q3 2021	Q4 2021	31/ 12/ 2021	Q1 2022	Q2 2022	Q3 2022
Non-current assets
Intangible assets	3,884	3,884	4,210	11,292	11,292	12,256	26,722	57,453
Right-of-use assets	11,928	10,673	9,417	14,242	14,242	11,751	9,677	7,604
Property, plant and equipent	3,597	3,606	5,345	7,732	7,732	12,382	21,812	26,108
Total non-current assets	19,410	18,162	18,973	33,266	33,266	36,389	58,211	91,165
Current assets
Trade and other receivables	202,643	239,468	146,072	255,306	255,306	153,686	40,366	50,171
Derivative financial assets	-	-	-	-		-	-	7,208
Cash and cash equivalents	483,666	552,452	1,398,182	1,321,270	1,321,270	1,485,257	1,451,912	1,372,880
Total current assets	686,309	791,920	1,544,255	1,576,576	1,576,576	1,638,944	1,492,279	1,430,258
Total assets	705,719	810,082	1,563,227	1,609,841	1,609,841	1,675,333	1,550,490	1,521,423

Condensed consolidated balance sheet – Equity and liabilities

Amounts in NOK thousand	Q1 2021	Q2 2021	Q3 2021	Q4 2021	31/ 12/ 2021	Q1 2022	Q2 2022	Q3 2022
Equity
Share capital	566,060	566,060	604,242	604,242	604,242	604,242	604,242	604,294
Other equity and reserves		(138,026) (186,584)	537,493	472,034	472,034	411,064	362,581	318,286
Total equity	428,034	379,476	1,141,736	1,076,276	1,076,276	1,015,307	966,823	922,580
Non-current liabilities
Pension liabilities	2,849	2,981	2,981	2,685	2,685	2,475	2,487	2,836
Non-current lease liabilities	7,896	6,508	5,109	6,091	6,091	3,545	1,273	-
Total non-current liabilities	10,745	9,489	8,090	8,934	8,775	6,020	3,760	2,836
Current liabilities
Trade and other payables	261,547	415,239	407,202	515,076	515,076	644,292	570,193	587,106
Current lease liabilities	5,393	5,877	6,200	9,714	9,714	9,714	9,714	8,686
Derivative financial liabilities	-	-	-	-		-	-	215
Total current liabilities	266,940	421,116	413,402	524,631	524,790	654,006	579,907	596,007
Total equity and liabilities	705,719	810,082	1,563,227	1,609,841	1,609,841	1,675,333	1,550,490	1,521,423

Condensed consolidated statement of cash flow

Amounts in NOK thousand	Q1 2021	Q2 2021	Q3 2021	Q4 2021	Q1 2022	Q2 2022	Q3 2022	YTD 2022
Profit before tax	(23,826)	(48,558)	(55,247)	(64,670)	(60,015)	(49,790)	(51,576)	(161,380)
Adjustment for:							- -
Amortisation and depreciation	1,334	1,334	1,334	1,343	2,597	3,014	2,597	8,208
Changes in net current operating assets	50,508	117,000	77,264	(1,733)	229,186	40,663	7,721	277,571
Accrued interest and foreign exchange	174	162	151	109	1,284	(887)	128	525
Cash flow from operating activities	28,190	69,939	23,502	(64,951)	173,053	(6,999)	(41,130)	124,924
Acquisition of property, plant and equipment	(1,066)	(87)	(1,819)	(2,369)	(4,953)	(9,733)	(4,597)	(19,283)
Payments for capitalized development	(92)	-	(326)	(7,351)	(1,184)	(14,686)	(30,952)	(46,822)
Cash flow from investing activities	(1,158)	(87)	(2,145)	(9,720)	(6,137)	(24,419)	(35,549)	(66,106)
Payment of finance lease liabilities	(1,066)	(1,066)	(1,227)	(1,530)	(2,429)	(2,787)	(2,429)	(7,644)
Share issue, net of transaction costs	-	-	825,600	(712)	-	-		-
Cash flow from financing activities	(1,066)	(1,066)	824,373	(2,242)	(2,429)	(2,787)	(2,429)	(7,644)
FX revaluation of cash	-	-	-	-	(499)	862	74	436
Net cash flow	25,966	68,787	845,730	(76,913)	163,988	(33,344)	(79,033)	51,610
Cash and cash equivalent at the beginning of the period	457,699	483,665	552,452	1,398,182	1,321,270	1,485,257	1,451,913	1,321,270
Cash and cash equivalent at the end of the period	483,665	552,452	1,398,182	1,321,270	1,485,257	1,451,913	1,372,880	1,372,880

Copyright and disclaimer

Copyright

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Disclaimer

This presentation includes and is based, inter alia, on forward-looking information and statements that are subject to risks and uncertainties that could cause actual results to differ. These statements and this presentation are based on current expectations, estimates and projections about global economic conditions, the economic conditions of the regions and industries that are major markets for Aker Carbon Capture Norway AS and Aker Carbon Capture Norway AS's (including subsidiaries and affiliates) lines of business. These expectations, estimates and projections are generally identifiable by statements containing words such as "expects", "believes", "estimates" or similar expressions. Important factors that could cause actual results to differ materially from those expectations include, among others, economic and market conditions in the geographic areas and industries that are or will be major markets for Aker Carbon Capture Norway AS's businesses, market acceptance of new products and services, changes in governmental regulations, interest rates, fluctuations in currency exchange rates and such other factors as may be discussed from time to time in the presentation. Although Aker Carbon Capture Norway AS believes that its expectations and the presentation are based upon reasonable assumptions, it can give no assurance that those expectations will be achieved or that the actual results will be as set out in the presentation. Aker Carbon Capture Norway AS is making no representation or warranty, expressed or implied, as to the accuracy, reliability or completeness of the presentation, and neither Aker Carbon Capture Norway AS nor any of its directors, officers or employees will have any liability to you or any other persons resulting from your use.