Aker Carbon Capture

Investor Presentation • Apr 25, 2024

Q1 2024

25 April 2024

Egil Fagerland, Chief Executive Officer Julie Berg, Chief Financial Officer David Phillips, Head of Capital Markets

Introduction and first-quarter highlights

Financials

Q&A

Aker Carbon Capture in brief

Pure play carbon capture company offering modular and configurable capture units

Health, Safety and Environmentally

friendly and proprietary patented technology for optimized all-round plant performance

Proven market-leading proprietary technology with over 60,000 operating hours and seven carbon capture units being delivered

...and engagement with new industry segments like refining, process industries as well as pulp and paper

Highlights

Strategic development

● Agreement to form Joint Venture with SLB

Market

• Continued high activity and demand for pre-FEED, FEED and studies
• Working closely with multiple opportunities in the North American market:
  -
  -
  • ⁃ First US mobile test unit campaign awarded for pulp & paper industry ⁃ Strategic alliance established with CO280 ⁃ MoU agreement targeting carbon removal signed with CO280 and Microsoft

Projects

• Twence CCU: hot commissioning ongoing
• Brevik CCS: second heavy lift campaign completed ahead of schedule
• Ørsted CCS: groundwork started on both sites

Financials

● Strong backlog (NOK 2.3 billion), continued revenue growth (an increase of NOK 279 million compared to Q1 2023) and solid cash position (NOK 902 million)

Forming carbon capture JV with SLB

• ACC retains 20% ownership in JV
• Accelerating technology development
• Bringing solutions to market faster and more economically

Up to NOK 5.91bn in consideration 80/20 JV with SLB Key deal terms

for 80% ownership in ACCH and retained cash

• SLB carbon capture business will be combined with ACCH
• ACCH will receive balance of cash above NOK 0.4bn from ACC ASA
• SLB will fund the business plan and working capital fluctuations during the lock-up period and the USD 50 million purchase of SLB's carbon capture business
• Three year lock-up period
• Exit mechanics after lock-up: ⁃ ACC ASA put option for 20% JV
  • share at fair market value (FMV) with a floor at NOK 1bn ⁃ SLB call option for 20% JV share at
  • FMV and a cap of NOK 2.5bn
• Closing expected during 2Q

Forming carbon capture JV with SLB

Reaching Net Zero

• Combining Aker Carbon Capture and SLB's respective carbon capture businesses
• Supporting accelerated industrial decarbonization at scale

Strong partnership

• Complementary technology portfolios
• Leading process design expertise
• Established project delivery platform

Technology and Innovation

• Leveraging the Aker Carbon Capture product offering
• SLB's new technology developments and industrialization capability
• A vehicle for accelerating the introduction of earlystage technologies

Long-term value creation

• The combined business will create a diversified, global carbon capture player
• Positioned to profitably scale faster, to the benefit of customers, employees and shareholders

Rapid progress in North American market

Mobile Test Unit campaign

● Enabling the full-scale implementation of multiple Just Catch™ 400 modular capture facilities with permanent storage, and the creation of carbon removal credits

Strategic alliance with CO280

• Development of large-scale Carbon Dioxide Removal (CDR) projects
• Point source carbon capture plants for pulp and paper mills, ambition to deploy modularized Just Catch™ series

MoU agreement with CO280 and Microsoft

• Explore opportunities for scaling the full physical and digital value chain of carbon removal in the US and Canada
• Aims to create a scalable model to deploy large-scale projects quickly to meet global net zero targets

Continued high commercial activity in Europe

Pre-FEED for Statkraft in Norway

• Just Catch™ FEED for waste-to-energy facility in Heimdal
• Targeted emissions of 220,000 tonnes CO2 per year

Study and test campaign for WACKER

● Eight-months test campaign at WACKER's metallurgical-grade silicon production at the Holla plant in Kyrksæterøra, Norway.

Study for Nordbex in Sweden

• Just Catch™ study for electric power generation facility
• Targeted emissions of 200,000 tonnes CO2 per year

Study for waste-to-energy plants in Northern Europe

• Four initial plants based on Just Catch™ units
• Integrating carbon capture at multiple biomass and waste-to-energy facilities

Operations

December 2021 SIGNED CONTRACT

© 2024 Aker Carbon Capture

End 2023 PLANT MECHANICAL COMPLETE

Q2 2024 COMMISSIONING IN FINAL PHASE

WASTE TO ENERGY TWENCE CCU Netherlands

• Capturing 100,000 tonnes CO2 per year
• First of a kind modular carbon capture project on track
• All equipment and piping installed
• Hot commissioning ongoing
• CO2 will boost local greenhouse production

HEIDELBERG MATERIALS SEMENT NORGE BREVIK CCS

Norway

• per year capture and liquefaction plant
• All heavy lift campaigns completed
• Creating local employment and strong partnerships
• © 2024 Aker Carbon Capture 400,000 tonnes CO2 ● CO ² transport by ship to permanent storage as part of Northern Lights

2020 PROJECT START March 2024 ALL HEAVY LIFTS COMPLETED 2024 PLANNED DELIVERY

May 2023 CONTRACT AWARD

© 2024 Aker Carbon Capture

March 2024 GROUNDWORK STARTED ON BOTH SITES

End 2025 PLANNED DELIVERY

ØRSTED KALUNDBORG CCS Denmark

• Design capture capacity of 500,000 tonnes CO2 per year
• Container fabrication started
• Five Just Catch ™ units at wood chip -fired Asnæs Power Station and straw fired Avedøre Power Station
• First full -scale CCS value chain in Denmark, delivered by Ørsted, Aker Carbon Capture, Microsoft and Northern Lights

Financials

First quarter 2024 | Income statement

Revenue and EBITDA NOK million

Revenue

• Revenue ended at NOK 566 million which was NOK 279 million higher compared to the same period last year. The increase is mainly driven by ongoing Big Catch™ and Just Catch™ projects
• EBITDA excluding transaction and other related costs ended at negative NOK 22 million compared to negative NOK 51 million in the same period last year
  • Positive contribution from ongoing projects, FEEDs, pre-FEEDs and studies
  • The overall negative EBITDA continues to be driven by high commercial and tender activity, North America entry and technology and product development activities
  • Non-recurring transaction and other related costs of NOK 48 million brings the total EBITDA to negative NOK 70 million for the quarter

First quarter 2024 | Balance sheet

● Net Current Operating Assets (net working capital) ended at negative NOK 522 million which represents a positive cash position on key projects

● NOK 257 million negative Net Capital Employed signalling that operating capital is currently funded by project working capital

• Cash and cash equivalents balance at NOK 902 million
• Solid Equity position at NOK 649 million

First quarter 2024 | Cash flow

• The quarter ended with an overall cash outflow of NOK 210 million
  • Loss before tax of NOK 68 million
  • Outflow of NOK 141 million related to change in Net Current Operating Assets mainly related to milestone payments to key vendors
  • CAPEX of NOK 20 million was mainly related to product development and Mobile Test Unit upgrades for the upcoming US campaign
  • Payment of financial lease liabilities and adjustment for other non-cash items was net positive and represented NOK 19 million
• Cash and cash equivalents ended the quarter at NOK 902 million

Cash flow development NOK million

© 2024 Aker Carbon Capture

Appendices

P&L | Balance sheet | Cash flow

Condensed consolidated income statement

					Full year					Full year
Amounts in NOK thousand	Q1 2022	Q2 2022	Q3 2022	Q4 2022	2022	Q1 2023	Q2 2023	Q3 2023	Q4 2023	2023	Q1 2024
Revenues	144,319	193,640	203,613	239,290	780,863	287,283 -	305,495 -	439,564	572,758	1,605,101	566,317
Materials, goods and services	(129,170)	(171,708)	(181,301)	(222,607)	(704,786)	(258,542)	(279,923)	(424,219)	(529,167)	(1,491,850)	(493,060)
Currency hedge effects	-	-	(1,982)	962	(1,020)	(3,089)	1,773	8,708	5,604	12,996	(15,917)
Salary and other personnel costs	(34,135)	(38,357)	(44,574)	(35,073)	(152,140)	(52,615)	(56,143)	(52,928)	(55,126)	(216,812)	(54,062)
Other operating expenses	(41,689)	(32,159)	(31,353)	(29,463)	(134,663)	(24,408)	(24,383)	(18,612)	(34,220)	(101,623)	(25,180)
EBITDA excl. transaction costs1	(60,675)	(48,584)	(55,597)	(46,891)	(211,746)	(51,372)	(53,181)	(47,487)	(42,694)	(194,734)	(21,903)
Transaction and other related costs	-	-	-	-	-	-	-	-	(2,544)	(2,544)	(48,299)
EBITDA	(60,675)	(48,584)	(55,597)	(46,891)	(211,746)	(51,372)	(53,181)	(47,487)	(45,238)	(197,278)	(70,202)
Depreciation and amortization	(2,597)	(3,014)	(2,597)	(2,799)	(11,008)	(3,871)	(3,196)	(3,826)	(5,137)	(16,029)	(5,384)
Operating profit (loss)	(63,272)	(51,598)	(58,194)	(49,690)	(222,754)	(55,243)	(56,377)	(51,313)	(47,831)	(210,763)	(75,585)
Net financial items	3,257	1,808	6,618	6,998	18,682	5,996	9,862	11,471	12,621	39,950	7,864
Profit (loss) before tax	(60,015)	(49,790)	(51,576)	(42,692)	(204,072)	(49,246)	(46,515)	(39,842)	(35,210)	(170,813)	(67,721)
Income tax benefit (expense)	-	-	-	-	-	-	-	-	-	-	-
Net profit (loss)	(60,015)	(49,790)	(51,576)	(42,692)	(204,072)	(49,246)	(46,515)	(39,842)	(35,210)	(170,813)	(67,721)

1Transaction costs include advisor fees and other costs directly related to the preparation and execution of the contemplated establishment of the joint venture with SLB

Condensed consolidated balance sheet | Assets

Amounts in NOK thousand	Q1 2022	Q2 2022	Q3 2022	Q4 2022	Q4 2022	Q1 2023	Q2 2023	Q3 2023	Q4 2023	Q1 2024
Non-current assets
Intangible assets	12,256	26,722	57,453	73,152	73,152	97,469	117,845	152,567	178,688	186,086
Right-of-use assets	11,751	9,677	7,604	5,530	5,530	3,456	1,382	(0)	41,221	41,618
Property, plant and equipent	12,382	21,812	26,108	48,892	48,892	57,451	59,546	65,139	73,198	82,192
Total non-current assets	36,389	58,211	91,165	127,573	127,573	158,376	178,774	217,706	293,107	309,895
Current assets
Trade and other receivables	153,686	40,366	50,171	75,668	75,668	40,042	154,244	117,649	269,715	238,814
Derivative financial assets	-	-	7,208	677	677	172	8,199	21,130	12,913	3,966
Cash and cash equivalents	1,485,257	1,451,912	1,372,880	1,092,669	1,092,669	1,348,241	1,137,853	1,322,620	1,111,853	902,121
Total current assets	1,638,944	1,492,279	1,430,258	1,169,013	1,169,013	1,388,455	1,300,296	1,461,399	1,394,481	1,144,901
Total assets	1,675,333	1,550,490	1,521,423	1,296,587	1,296,587	1,546,832	1,479,070	1,679,105	1,687,588	1,454,797

Condensed consolidated balance sheet | Equity and liabilities

Amounts in NOK thousand	Q1 2022	Q2 2022	Q3 2022	Q4 2022	Q4 2022	Q1 2023	Q2 2023	Q3 2023	Q4 2023	Q1 2024
Equity
Share capital	604,242	604,242	604,294	604,242	604,242	604,290	604,242	604,242	604,242	604,242
Other equity and reserves	411,064	362,581	318,286	273,597	273,597	229,437	189,759	148,592	97,714	44,528
Total equity	1,015,307	966,823	922,580	877,839	877,839	833,727	794,001	752,834	701,956	648,770
Non-current liabilities
Pension liabilities	2,475	2,487	2,836	3,112	3,112	2,979	2,969	2,948	3,167	3,190
Non-current lease liabilities	3,545	1,273	-	-	-	-	-	-	36,844	37,318
Total non-current liabilities	6,020	3,760	2,836	3,112	3,112	2,979	2,969	2,948	40,011	40,508
Current liabilities
Trade and other payables	644,292	570,193	587,106	409,279	409,279	706,129	680,491	923,322	941,105	760,685
Current lease liabilities	9,714	9,714	8,686	6,356	6,356	3,997	1,609	(0)	4,515	4,834
Derivative financial liabilities	-	-	215	-	-	-	-	-	-	-
Total current liabilities	654,006	579,907	596,007	415,635	415,635	710,126	682,100	923,322	945,620	765,519
Total equity and liabilities	1,675,333	1,550,490	1,521,423	1,296,587	1,296,587	1,546,832	1,479,070	1,679,105	1,687,587	1,454,797

Condensed consolidated statement of cash flow

					Full year					Full year
Amounts in NOK thousand	Q1 2022	Q2 2022	Q3 2022	Q4 2022	2022	Q1 2023	Q2 2023	Q3 2023	Q4 2023	2023	Q1 2024
Profit before tax	(60,015)	(49,790)	(51,576)	(42,692)	(204,072)	(49,246)	(46,515)	(39,842)	(35,210)	(170,813) -	(67,721)
Adjustment for:
Depreciation and amortization	2,597	3,014	2,597	2,799	11,008	3,871	3,196	3,826	5,137	16,029	5,384
Hedge adjustment, no cash flow effect	-	-	-	1,020	1,020	3,089	9,045	(3,111)	(15,624)	(6,601)	7,397
Changes in net current operating assets (including change in derivatives)	229,186	40,663	7,721	(203,982)	73,589	331,084	(146,406)	267,880	(119,379)	333,179	(141,325)
Accrued interest and foreign exchange	1,284	(887)	128	196	721	910	(1,756)	846	(561)	(561)	(524)
Cash flow from operating activities1	173,053	(6,999)	(41,130)	(242,658)	(117,734)	289,708	(182,435)	229,598	(165,637)	171,234	(196,790)
Acquisition of property, plant and equipment	(4,953)	(9,733)	(4,597)	(23,290)	(42,573)	(6,379)	(3,936)	(6,468)	(15,586)	(32,369)	(10,587)
Payments for capitalized development	(1,184)	(14,686)	(30,952)	(15,919)	(62,741)	(27,351)	(20,597)	(36,248)	(30,255)	(114,451)	(9,042)
Cash flow from investing activities	(6,137)	(24,419)	(35,549)	(39,209)	(105,314)	(33,730)	(24,533)	(42,716)	(45,841)	(146,820)	(19,629)
Payment of finance lease liabilities	(2,429)	(2,787)	(2,429)	(1,804)	(9,448)	(2,359)	(2,388)	(1,609)	(1,741)	(8,097)	(1,142)
Net purchase of treasury shares	-	-	-	-	-	-	(991)	-	0	(991)	-
Cash flow from financing activities	(2,429)	(2,787)	(2,429)	(1,804)	(9,448)	(2,359)	(3,379)	(1,609)	(1,741)	(9,088)	(1,142)
FX revaluation of cash	(499)	862	74	3,460	3,896	1,953	(41)	(506)	2,451	3,857	7,829
Net cash flow	163,988	(33,344)	(79,033)	(280,211)	(228,601)	255,572	(210,388)	184,768	(210,768)	19,184	(209,732)
Cash and cash equivalent at the beginning of the period	1,321,270	1,485,257	1,451,913	1,372,880	1,321,270	1,092,669	1,348,241	1,137,853	1,322,620	1,092,669	1,111,853
Cash and cash equivalent at the end of the period	1,485,257	1,451,912	1,372,880	1,092,669	1,092,669	1,348,241	1,137,853	1,322,620	1,111,853	1,111,853	902,121

1Cash flow from operating activities includes paid transaction costs of NOK 10.5 million for Q1 2024

Copyright and disclaimer

Copyright

Copyright of all published material including photographs, drawings and images in this document remains vested in Aker Carbon Capture Norway AS and third party contributors as appropriate. Accordingly, neither the whole nor any part of this document shall be reproduced in any form nor used in any manner without written prior permission and applicable acknowledgements. No trademark, copyright or other notice shall be altered or removed from any reproduction.

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.

© 2024 Aker Carbon Capture