Aker Solutions - 2023 Annual Report

Content

Where we are 7
Highlights 8
CEO Introduction 9
Board of Directors' Report 11
Sustainability Performance 30
Consolidated Financial Statements 78
Parent Company Financial Statements 159
Independent Auditor's Report 176
Alternative Performance Measures 178
Appendix 184

Helping the World Meet its Energy Needs. At Aker Solutions, our purpose is to solve energy challenges for future generations. It shapes our enterprise strategy and connects our sustainability agenda to the way we operate. We see sustainability as a strategic differentiator for us, and this is reflected in our activities, in dedicated efforts for improving solutions and in further development of our technologies and competencies. Hence, we also welcome the continuous increase in expectations and standardization within ESG reporting. It helps us and the rest of the industry to be more transparent and build trust in our transition journey.

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	2023	2022
REVENUE NOK million	36,262	27,500
EBITDA NOK million	1,166	647
EBIT NOK million	422	109
ORDER INTAKE NOK million	35,303	67,811
EBITDA MARGIN Percent	3.2	2.4
EBIT MARGIN Percent	1.2	0.4
FEMALE TOP MANAGEMENT Percent	30.4	30.5
TRIF Per million worked hours	1.29	1.07
tCO2 EMISSIONS Per million worked hours	391	461

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1 Includes scope 1 and scope 2 emissions only, market-based.

Key Figures 2023 2022

ORDERS AND RESULTS
Order backlog December 31 NOK mill | 72,680 | 72,784
Order intake NOK mill | 35,303 | 67,811
Revenue NOK mill | 36,262 | 27,500
EBITDA NOK mill | 1,166 | 647
EBITDA margin Percent | 3.2 | 2.4
EBITDA ex. special items NOK mill | 1,295 | 669
EBITDA margin ex. special items Percent | 3.6 | 2.4
EBIT NOK mill | 422 | 109
EBIT margin Percent | 1.2 | 0.4
EBIT ex. special items NOK mill | 611 | 102
EBIT margin ex. special items Percent | 1.7 | 0.4
Net income (loss) from continuing operations NOK mill | -15 | -142
Net income (loss) from discontinued operations NOK mill | 11,540 | 1,312
Net income from total operations NOK mill | 11,525 | 1,170
Net income total operations ex. special items NOK mill | 2,428 | 1,225

CASH FLOW
Cash flow from operating activities NOK mill | 6,216 | 4,518

2023 2022

BALANCE SHEET
Net interest-bearing debt NOK mill | -6,003 | -5,147
Equity ratio Percent | 45.9 | 27.9
Liquidity reserve NOK mill | 9,003 | 11,170

SHARE
Share price December 31 NOK | 42.0 | 37.4
Basic earnings per share NOK | 23.81 | 2.42
Basic earnings per share ex. special items NOK | 5.20 | 2.53

EMPLOYEES
Total employees December 31
Own employees | 11,473 | 11,004

Our workforce
Nationalities | 92 | 96
Female top management Percent | 30.4 | 30.5

HSSE
Lost time injury frequency Per million worked hours | 0.20 | 0.13
Total recordable injury frequency Per million worked hours | 1.29 | 1.07
Sick-leave rate Percent of total working hours | 3.37 | 3.59

CO2 Emissions Intensity
2 tCO2e per million worked hours | 391 | 461

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2 Includes scope 1 and scope 2 emissions only, market-based.

Key Figures cont.

Revenue NOK billion

EBITDA and EBITDA margin NOK billion and percent

Order Intake and Backlog NOK billion

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Sustainability Performance
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Appendix

Segment Performance

Renewables and Field Development
Life Cycle

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LOCATIONS
Together we Make a Difference

Operations in 15 countries

Angola
Brazil
Brunei
Canada
China
Finland
France
India
Malaysia
Norway
Saudi Arabia
Sweden
UAE 3
UK
USA

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3 Establishment in UAE ongoing.

Highlights

People
During 2023, Aker Solutions welcomed more than 1,650 new employees. The company was ranked as the 2nd most attractive employer by engineering and computer science students in Norway.

HSSE
Safety is a core priority. Aker Solutions delivered good HSSE performance especially considering the increased workload and increased proportion of skilled workers in risk-exposed roles.

Financials
Revenues in 2023 increased by 32 percent from 2022, with EBITDA margins, excluding special items improving from 2.4 percent to 3.6 percent.

Backlog
Backlog at year-end stood at NOK 73 billion, dominated by projects under the well-proven alliance model with Aker BP.

Tendering
Tender pipeline at year-end was more than NOK 74 billion, which is higher than before the record-intake in December of 2022.

Transition
Key project wins within Renewables and Transitional Energy Solutions such as the Norfolk HVDC contracts and Draugen electrification.

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CEO Introduction

I am pleased to report that 2023 was another successful year for Aker Solutions. We have delivered significant revenue growth, improved profitability, and progressed well on our transformation journey and strategy. Across our organization, 2023 has been a year of high activity, executing some of the most interesting and challenging energy projects in the world. From oil and gas to offshore wind, carbon capture and storage, hydrogen and hydropower, Aker Solutions’ competences and solutions are in high demand. In October 2023, we closed the transaction to create the new OneSubsea entity together with SLB. This marks a milestone for Aker Solutions, transitioning from having a stand-alone subsea business to becoming a proud co-owner of a world-leading subsea company. We are also making significant headway in our digital initiatives, as well as growing our energy consulting business. Overall, we met our priority targets and delivered a solid foundation for executing our strategy moving forward.

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Change is the only constant, which is true both for Aker Solutions and the energy landscape we operate in. The year has seen continued geopolitical disruptions with the wars in Ukraine and Gaza creating massive human suffering. The energy markets continue to be impacted by the trilemma of energy security, affordability and sustainability. Oil and gas will continue to play an important role in the energy mix and is a key input factor for industrial processes.# Board of Directors’ Report

2023 was an important year in the development of Aker Solutions. Revenues grew by more than 32 percent year-on-year with improved profitability. The outlook for the company is positive, with a solid backlog of secured projects and high tendering activity across energy markets. In October 2023, the transaction to create the leading subsea company with SLB and Subsea7 was completed. Aker Solutions will own 20 percent of the new company and will receive a total consideration of USD 700 million as part of the transaction. All in all, Aker Solutions is well positioned to continue delivering value to its people, shareholders and the broader society.

Aker Solutions delivered revenue of NOK 36.3 billion in 2023, a 32 percent increase from 2022. EBITDA excluding special items increased from NOK 0.7 billion to NOK 1.3 billion improving the EBITDA margin from 2.4 percent to 3.6 percent. Further, Aker Solutions secured an order intake of NOK 35 billion in 2023, resulting in an order backlog at year-end of NOK 73 billion, reflecting a continued strong energy market outlook and high demand for the company’s products and services.

Overview

Building on nearly two centuries of technological and engineering excellence, Aker Solutions is a digitally driven engineering and project execution company. The company enables oil and gas production with reduced emissions and develops renewable solutions to meet future energy needs. By combining innovative digital solutions and predictable project execution, it accelerates the transition to sustainable energy production. Aker Solutions provides products, systems and services ranging from concept studies and front-end engineering to integrated project execution and services for enhancing and extending the life of a field. Aker Solutions also delivers consultancy and engineering services as well as technical solutions to support energy transition projects within offshore wind, electrification, hydrogen, carbon capture and storage (CCS) and hydropower. The main customers are international, national and independent energy companies involved with production of oil and gas, and renewable energy. The head office is at Fornebu, Norway. Aker Solutions ASA is listed on the Oslo Stock Exchange under the ticker AKSO.

Who is Aker Solutions

For nearly 200 years, Aker Solutions has played a significant role in driving some of the world’s most complex and strategically important energy projects to completion. By leveraging its experience and capabilities to meet the world’s growing demand for sustainable, dependable, and affordable energy, the company is accelerating the transition towards sustainable energy production. Aker Solutions employs approximately 11,500 people in 15 countries. Aker Solutions’ purpose is to solve global energy challenges for future generations. In all that the company does, it is guided by a sustainability mindset. The company ensures safe operations for its people and the environment, and has robust social and governance programs in place. Aker Solutions’ Climate Action Plan provides a pathway to ensure that it meets emissions targets, supports clients in their ambitions, and further develop renewable and transitional energy solutions. Read more about the company on its website.

Attitudes

Aker Solutions is powered by Attitudes. They describe who the company is, what it does and how it will deliver its purpose. The Attitudes also define what the company’s employees expect and encourage from each other to succeed. It is how they #PowerTheChange.

They are Safeguarders that commit to Health, Safety, Security and Environment (HSSE) and quality, acting with integrity.
They are Solutioneers that solve the hardest challenges for their customers with optimism and determination.
They are experienced Changemakers challenging accepted truths, accelerating the transformation.
They are Co-creators that mobilize their collective capabilities and respect each other’s views.

Organization

In April 2023, Aker Solutions’ new organizational set-up was put into effect. The new structure reflected a fine-tuning of the strategy and expected operational synergies related to the execution of the large project portfolio and the company’s growth agenda. The organization was divided into five business segments; New Build, New Energies, Life Cycle, Power Solutions, and Subsea. In 4Q, the Subsea segment became part of the new OneSubsea entity, where Aker Solutions holds a 20 percent share. After the subsea transaction, the company has two external reporting segments: Renewables and Field Development, and Life Cycle. The organizational changes involved some adjustments at the executive management level. Maria Peralta took on a leadership position in OneSubsea. Jo Krabbe was appointed executive vice president (EVP) for the new segment Power Solutions. Anders Hannevik stepped down as EVP and into another senior role in Aker Solutions. Marianne Hagen resigned from the executive management team to pursue opportunities outside Aker Solutions. In November 2023, Marte Mogstad resigned from her role as EVP for the New Energies segment, with Henrik Inadoni acting as interim EVP until Mogstad’s permanent successor is in place.

Subsea Transaction

In early October 2023, Aker Solutions announced the closing of the subsea transaction with SLB and Subsea7. The new entity, called OneSubsea, comprise Aker Solutions’ and SLB’s subsea businesses. Aker Solutions will own 20 percent in the new company, with SLB owning 70 percent and Subsea7 owning 10 percent.As part of the transaction, Aker Solutions receives a total consideration of USD 700 million for the sale of a 20 percent ownership. In the fourth quarter 2023, Aker Solutions recognized an accounting gain of NOK 9.7 billion from the transaction. OneSubsea will be headquartered in Oslo, Norway, and Houston, Texas with 11,000 employees working in all key operating regions around the world. Mads Hjelmeland, a Norwegian national previously SLB’s Director of Subsea Production Systems, has been appointed Chief Executive Officer of OneSubsea. OneSubsea will be an important contributor to Aker Solutions profits and cash generation moving forward through the 20 percent ownership in a larger and stronger subsea company. The estimated synergy potential in the new company is more than USD 100 million per annum in the medium term. The company will have an attractive dividend policy. Starting from the third quarter 2023, Aker Solutions has treated Subsea as discontinued operations. Also historical figures have been re-presented without Subsea. From 4Q 2023 onwards, Aker Solutions will, in accordance with IFRS, report its 20 percent ownership in OneSubsea according to the equity accounting method.

Global Presence

Aker Solutions is pursuing international growth in targeted markets, while safeguarding its existing market positions. The company is represented in major energy hubs around the world, including the North Sea, North America, Africa and Asia. Aker Solutions has more than 11,500 employees at over 35 locations in 15 countries around the world.

Market Outlook and Strategy

There are considerable changes across Aker Solutions’ global markets, driven by the energy trilemma of balancing the need for energy reliability, affordability and sustainability. Going forward, significant shifts in the global energy markets are anticipated, with accelerated growth in renewable energy production. Oil and gas demand is likely to decline over time, however significant investments in existing and new production are needed in the years to come to bridge the gap between demand and natural decline, and to decarbonize the production. The global oil and gas markets continue to be important for Aker Solutions. With a solid order backlog of projects with balanced risk-reward profiles, Aker Solutions has good visibility on activity levels in the years to come. In addition, the company had a tender pipeline of about NOK 74 billion at year end.

“ Aker Solutions is committed to be a supplier that accelerates the transition to sustainable energy production. Aker Solutions is committed to be a supplier that accelerates the transition to sustainable energy production. The company’s ambition is that renewables and transitional energy projects will represent two thirds of its revenue by 2030. Aker Solutions has furthermore set clear emissions reduction targets and is working to reduce scope 1 and 2 emissions by 50 percent by 2030 4 and become net zero for all scopes by 2050. Aker Solutions’ has a broad offering within renewables markets, including offshore wind, hydrogen production facilities, hydropower generation solutions and installations for carbon capture and storage (CCS). Within offshore wind, Aker Solutions delivers solutions and services for full field developments, including foundations, converter and substations, and power distribution solutions. Aker Solutions is currently working on several milestone projects, particularly within HVDC converter platforms to the UK and US markets. Within CCS, Aker Solutions is engaged across the entire CO2 value chain, with key contracts for the Heidelberg carbon capture plant and for the Northern Lights terminal for receiving captured CO2. Despite high interest and ambitions, the renewables industry remains immature. Profit levels are currently insufficient to ensure that the industry makes the required investments to deliver on government targets. The industry is dependent on authorities and policy makers taking an active role in developing frameworks that increase predictability and improve commercial models to ensure industrialization of the industry. Aker Solutions remains selective on which projects to take on, exclusively focusing on customers and projects with balanced risk- reward profiles. In addition, Aker Solutions is working closely with its customers and strategic partners to improve delivery models and develop innovative solutions driving down the cost of energy. “

Energy Consulting business growing almost 50 percent in 2023.

Aker Solutions has an ambition to position its energy consultancy business as a leading advisory and engineering force for driving the energy transition. The entity is engaged in work across different energy markets, such as oil and gas, offshore wind, CCS and hydrogen, as well as combination of these in integrated energy systems. In 2023, study revenues in the Energy Consulting entity increased almost 50 percent compared to 2022. About half of the volume was related to renewables and transitional energy projects. By engaging early in emerging markets, Aker Solutions is developing new customer relationships, deepening its market insights and growing its position for the future.

Technology & Innovation

Building on a history of technological and engineering accomplishments, Aker Solutions is well positioned to leverage core capabilities and maintain a strong position in oil and gas, while growing its offering within renewables and transitional energy solutions. Aker Solutions’ technology strategy is focused around working closely with customers and industry partners to develop and industrialize new solutions that reduces cost of energy. Drawing on the experience from the oil and gas industry, Aker Solutions is pioneering the use of subsea technology for offshore wind and electrification purposes. One example is the subsea collector station which will be piloted on the Marine Energy Test Centre in Norway.

Due to significant changes in the company operations in 2023, we are setting a new baseline for emissions accounting. Details of the new 2023 baseline can be found in the Climate Change Adaptation and Mitigation chapter of this report. By placing equipment on the seabed, one can significantly reduce both CapEx, OpEx and environmental footprint, enabling lower cost of energy. Aker Solutions has a key role in the Linking Carbon Capture and Storage (LINCCS) R&D project. The initiative is funded by NOK 100 million from the Research Council of Norway and a similar amount from industry partners including important customers. The objective for Aker Solutions' work is to develop new solutions for transport and storage of CO2 after capture on offshore oil and gas installations. The ambition is to reduce costs for such solutions by 70 percent. Digitalization is a key enabler for Aker Solutions’ transformation journey and has become a vital part of how the company is executing its projects and services. The company is collaborating with partners, including companies in the Aker group, to develop, commercialize and scale new and innovative digital tools and solutions. The company’s strong focus on digitalization continued throughout 2023. The Yggdrasil field development, operated by Aker BP, aims to transform the way Aker Solutions delivers projects through a fully digitalized project execution model, which is setting new standards for cost efficiency. In addition, Aker Solutions is working closely with its partners to adopt and apply artificial intelligence across its operations to improve efficiency.

Long-term Targets and Strategy Execution

Through the enterprise performance management process, Aker Solutions sets long-term targets and yearly objectives to execute on the company’s strategy. The framework for execution consists of Objectives and Key Results (OKRs), and Key Performance Indicators (KPIs) that define Aker Solutions’ strategic focus areas and the performance towards long-term targets. The long-term targets and KPIs are divided into three categories - financial, organizational, and transitional.

“ Through the enterprise performance management process, Aker Solutions sets yearly objectives and targets to execute on the company’s long-term strategy. Financial KPIs focus on profitability and cash generation from operations. Organizational and operational KPIs center around health and safety, people engagement and effectiveness measured through people surveys. Transitional KPIs focus on the transition journey: e.g. use of digital solutions, share of revenues from renewables and transitional energy solutions, commercial margin improvements and emission reductions. In 2023, Aker Solutions has met or exceeded its Financial KPIs. Performance has also improved on the Organizational and Operational targets, Within Transitional KPIs, usage of digital solutions increased in the year, while share of revenues from renewables and transitional energy solutions is lagging, driven by a more cautious tendering activity in these segments and very high activity in the oil and gas markets during 2023.

ESG/Sustainability

Aker Solutions’ ambition is that projects within renewable and transitional energy solutions will represent two thirds of total revenues by 2030. It is also important that the company’s own business and value chain with thousands of suppliers are sustainable. The company has set ambitious emissions reduction targets to reduce own emissions by 50 percent by 2030 5. By 2050, the goal is to be net zero. The Sustainability Performance section of this report highlights environment, social and governance areas that can have a positive and/ or negative impact on employees, customers, investors and the societies where Aker Solutions operates.# Board of Directors’ Report

Sustainability Performance

This includes strategies, activities and ambitions to reduce the company’s environmental footprint, improve health, safety and well-being, and manage a responsible supply chain.

Climate Action Plan: Roadmap to Net Zero

Aker Solutions’ Climate Action Plan, launched in 2021, began as a roadmap to transform the business towards a net zero future while helping society solve global energy challenges for future generations. In close collaboration with customers and suppliers, the company’s goal is to leverage its core capabilities to grow within renewables and transitional energy solutions to decarbonize oil and gas production. The plan has now successfully evolved from a corporate initiative to business-driven transition programs owned by each segment in Aker Solutions. These segment plans address reducing emissions, optimizing energy use, reducing waste and spills, improving circularity and protecting biodiversity, following the Science Based Targets initiative’s guidance and criteria. The company is committed to engaging with its entire value chain to enhance environmental and social governance and boost the power of data insights for continuous improvements.

Financial Statements

Financial Overview

Financial Performance

Aker Solutions presents its consolidated financial statements in accordance with IFRS® Accounting Standards as adopted by the EU. All financial information, except those in the Parent Company Financial Statements, relate to the consolidated financial statements for the group, since the parent company has very limited operations. All figures refer to continued operations.

Consolidated Financial Results

Aker Solutions’ revenue increased significantly to NOK 36.3 billion in 2023 from NOK 27.5 billion in the prior year. Earnings before interest and other financial items, taxes, depreciation and amortization (EBITDA) for the full year 2023 increased to NOK 1,166 million (3.2 percent) compared to NOK 647 million (2.4 percent) a year earlier. EBITDA excluding special items was NOK 1,295 million, compared to NOK 669 million a year earlier. This corresponds to an increase of the EBITDA margin excluding special items to 3.6 percent compared to 2.4 percent for 2022. The positive EBITDA development for 2023 was driven mainly by improved performance in the Renewables and Field Development segment. Interest income was NOK 353 million in 2023, compared to NOK 105 million in the previous year. Interest expenses were NOK 227 million compared to NOK 290 million the year before. Income before tax increased to NOK 95 million in 2023 from NOK -50 million the year before. Net income from continuing operations in 2023 was NOK -15 million compared with NOK -142 million the previous year. Net income excluding special items in 2023 was NOK 2,428 million compared with NOK 1,225 million the previous year. This includes net income from the Subsea segment for 9 months of the year and Aker Solutions’ share of net income from OneSubsea in the fourth quarter. Earnings per share were NOK 23.81 versus NOK 2.42 in 2022. Excluding special items, the earnings per share for 2023 were NOK 5.20 versus NOK 2.53 the previous year.

External Reporting Segments

The company has two reporting segments for communication to shareholders and the financial markets: The Renewables and Field Development segment, and the Life Cycle segment.

Segment Key Figures

Renewables and Field Development

The Renewables and Field Development segment designs and delivers integrated solutions for oil and gas platforms, onshore facilities, offshore wind developments and carbon capture and storage facilities. Renewables and Field Development revenue increased to NOK 22.1 billion in 2023 from NOK 14.9 billion the year before. The EBITDA margin increased to 4.4 percent from 3.3 percent the year earlier. Several projects in the portfolio were still in earlier phases of execution in 2023, with no margin recognition. In addition, legacy renewables projects continued to be a drag on margins in 2023. The full-year order intake decreased to NOK 22.5 billion in 2023 from NOK 51.4 billion in the prior year. This represented a book-to-bill of 1.0 times. The order backlog was NOK 51.4 billion at the end of the year 2023 versus NOK 50.8 billion a year earlier.

Life Cycle

The Life Cycle segment optimizes field life solutions. It has specialized capabilities for efficient execution of a range of maintenance and modifications services for offshore infrastructure, and offers decarbonization and environmentally sound offerings including electrification. Life Cycle revenue increased to NOK 13.1 billion in 2023 from NOK 12.2 billion the year before. The EBITDA margin was 5.2 percent versus 5.5 percent a year earlier.

	Renewables & Field Development	Life Cycle
Amounts in NOK million	2023	2022	2023	2022
Revenue	22,126	14,857	13,072	12,164
EBITDA	973	487	686	663
EBITDA margin	4.4%	3.3%	5.2%	5.5%
EBITDA ex. special items	979	488	686	663
EBITDA margin ex. special items	4.4%	3.3%	5.2%	5.5%
EBIT	597	185	565	558
EBIT margin	2.7%	1.2%	4.3%	4.6%
EBIT ex. special items	603	189	565	558
EBIT margin ex. special items	2.7%	1.3%	4.3%	4.6%
NCOA (or working capital)	-6,035	-2,912	537	245
Order Intake	22,523	51,398	11,781	16,190
Order Backlog	51,405	50,790	20,579	21,617
Employees	6,121	5,484	4,220	4,381

The full-year order intake was NOK 11.8 billion in 2023, compared to NOK 16.2 billion the prior year. This represented a book-to-bill of 0.9 times. The order backlog stood at NOK 20.6 billion at the end of 2023 versus NOK 21.6 billion a year earlier.

Assets, Equity and Liability

Non-current assets totaled NOK 17.3 billion at the end of 2023, compared with NOK 13.8 billion the year before. Goodwill and other intangible assets were NOK 3.6 billion at year- end compared to NOK 5.9 billion in 2022. The company had a net cash position of NOK 6.0 billion in 2023, compared with a net cash position of NOK 5.1 billion in the prior year. The net cash consists of current and non-current borrowings and cash and cash equivalent. In addition, Aker Solutions invested NOK 3 billion in liquid funds in 2023, which is not treated as cash and cash equivalents under IFRS. The company ended the year with a total liquidity buffer of NOK 9.0 billion, excluding investments in liquid funds, consisting of cash and bank deposits of NOK 6.0 billion as well as committed long-term revolving bank credit facilities of NOK 3.0 billion. In the first quarter of 2023, Aker Solutions successfully refinanced its revolving credit facility. It has been reduced to NOK 3 billion with maturity in 2028. The liquidity buffer in the prior year was NOK 11.2 billion. The book value of equity, including non-controlling interests, was NOK 19.0 billion at the end of 2023. The company’s equity ratio was 45.9 percent, up from 27.9 percent a year earlier.

Cash Flow

Consolidated cash flow from operating activities depends on several factors, including progress on and delivery of projects, changes in working capital and prepayments from customers. Net cash flow from operating activities was NOK 6,216 million in 2023 compared with NOK 4,518 million a year earlier. Net current operating assets was NOK -8.5 billion at the end of 2023 versus NOK -4.0 billion a year earlier. Net current operating assets may fluctuate due to the timing of large milestone payments on projects as well as other timing effects and working capital movements. Aker Solutions’ net cash outflow for investing activities was NOK 4,147 million in 2023, compared with net cash outflow of NOK 476 million a year earlier. Investments in technology development and IT were NOK 388 million, compared with NOK 113 million a year earlier. Net cash outflow related to financing activities was NOK 2,483 million, compared to NOK 2,566 million in 2022. Total 2023 R&D expenditure was NOK 420 million, of which NOK 361 million was capitalized and NOK 59 million was expensed. The research and development portfolio included several key development programs for future and current prospects.

Parent Company Financial Statements

Aker Solutions ASA, the parent company of the Aker Solutions group, owns and manages the group’s subsidiaries. Aker Solutions ASA has outsourced all company functions to other companies in the group, mainly Aker Solutions AS. Assets and liabilities related to the corporate treasury function are held by Aker Solutions ASA. Aker Solutions ASA had a net income of NOK 9,262 million in 2023. The income is mainly group contribution while costs in the company mainly consist of corporate costs and interest expenses. The net income was NOK -107 million in 2022. More information on the allocation of profits can be found in the income statement of the parent company in this report.

Dividend Policy

Aker Solutions’ overall objective is to create long-term value for its owners in the form of an increase in the value of the company’s shares over time and/or dividend payments or share buy-backs, or a combination of these. The company has revised its dividend policy targeting annual distributions of 40-60 percent of adjusted net profit over time, through a combination of dividends and share buybacks. Any dividend is subject to an annual evaluation by the board and will be based on the company’s financial position and re-investment opportunities based on strict principles for capital allocation.

Appendix

Page 15
Page 16The dividend policy supports the company in balancing the target of annual dividends over time while building financial robustness and maintaining a strong balance sheet with adequate liquidity reserves to handle future obligations as well as realizing objectives for strategic development and delivering of shareholder value. Given the company’s solid financial position and positive outlook, the Board of Directors has proposed a dividend payment of NOK 2.00 per share to be paid in 2024, for the fiscal year 2023. This equals 40 percent of the 2023 adjusted net profit, an increase from NOK 1.00 per share for 2022. In addition, Aker Solutions has announced a share buyback program of up to NOK 500 billion to be executed in 2024.

17 Risk Factors

Aker Solutions’ global footprint, operations and exposure to energy markets provide both opportunities and risks that may affect the company’s operations, performance, finances, reputation and share price. External risk factors such as market risk, supply chain risks, pandemics, cybercrime, compliance and integrity risks, political risks, risks related to civil or political unrest including war, and climate-related risks may have a significant adverse impact on the company, in addition to internal risk factors such as operational risks and financial risks. Several of these risk factors are described below.

Looking ahead, Aker Solutions sees that possible increased polarization in the geopolitical landscape may influence business opportunities and supply chains. The development is monitored closely, and the company will if required seek to take proactive measures.

“ Looking ahead, Aker Solutions sees that possible increased polarization in the geopolitical landscape may influence business opportunities and supply chains.

Cybercrime Risk

There is a risk of cybercriminals and cyber attacks causing system downtime or significant loss of intellectual property. Insufficient capacity and capabilities within current teams to follow up information security controls and threat advisories may cause unproductive time (internal and external) because of system downtime, loss of intellectual property and impact on reputation. Aker Solutions is continuously improving its cyber security incident response capabilities.

Market Risk

The market outlook for Aker Solutions remains positive, with increased spending forecasted across relevant energy markets. The energy trilemma (security, transition and affordability) is expected to drive investments across energy sources in both oil and gas and renewables. However, the energy industry continues to be affected by several external factors which may impact future activity levels. Some of the principal factors that contribute to market risk are outlined below:

Instability in the world economy as a result of virus pandemics or risks related to civil or political unrest and war, including impacts such as supply chain disruptions
Volatile oil and gas market, major changes in supply, demand and storage having an adverse impact on energy prices which is likely to impact activity levels
Uncertainty regarding future contract awards and their impact on future earnings and profitability
Climate change and speed of the energy transition to renewables and lower carbon economy, including environmental requirements, impact upon oil company activities and the overall development of the market
Regional, state and local regulations and government practices impacting commercial frameworks and approval processes for relevant markets
Local content requirements, legislative restrictions and/or prohibitions on oil and gas activities in countries of existing or planned operations
Contracting models with unbalanced risk- reward profiles
Liabilities under environmental laws or regulations

These factors will influence underlying energy prices and customer investment activity levels across relevant markets. Market developments will lead to capacity adjustments and changes in the valuation of company assets and liabilities. The main uncertainties include delivering on the company’s growth ambitions, entry and establishment in new growth markets, and delivering a competitive cost base.

18

Aker Solutions is committed to an active policy of risk management and will take mitigating actions to increase flexibility in its operations, for instance by seeking to drive down costs, build a sustainable global workforce, invest in developing sustainable energy solutions such as floating offshore wind and technology to capture emissions such as carbon capture and storage, and enhance standardization and simplification. The company aims to be agile in its approach to the market, effectively adapting to industry demand, environment social and governance (ESG) requirements, and fluctuations to deliver optimal value and rewards across the value chain. A focus on continuous improvement in productivity and sustainability is central to these efforts. Entering new market segments also presents new opportunities and risks.

Operational Risk

Aker Solutions uses both reimbursable and fixed-price contracts. Contracts that include fixed prices for all or parts of the deliverables are subject to the risk of potential cost overruns. Aker Solutions is involved in projects that are both demanding and complex in nature, with significant design and engineering requirements, as well as extensive procurement and manufacturing of equipment, sourcing supplies and construction management. In certain situations, the projects may also require the development of innovative new technology and solutions. These can impact upon the company’s ability to deliver on time and in accordance with a contract, potentially harming Aker Solutions’ reputation, performance and finances.

Factors that may have an adverse material effect on the business, results of operations and finances of Aker Solutions include, but are not limited to:

Labor markets and resources required to execute projects
The ability to safeguard multiple large projects
The loss of business from a significant customer, the failure to deliver a significant project as agreed, or alterations to the order backlog
The ability to compete effectively and maintain market positions and sales volumes
The ability to successfully commercialize new technology, including within digitalization
Partnerships, joint ventures and other types of cooperation that expose the company to risks and uncertainties outside its control
Non-delivery and/or disputes with key supplier(s)
Delays or quality issues impacting project delivery or performance
Supply chain disruptions and prices of raw materials, longer lead times, capacity of fabrication years, logistics

Risks related to HSSE are defined as a risk category in the Enterprise Risk Management (ERM) procedure. On a company level, these risks include physical security threats, crisis management risks, the risk of major accidents related to malfunctions in our products and/or insufficient service and the risk for fatalities, serious injuries or environmental spills in our own operations. Additional information on management of safety-related risks is included in the Health, Safety and Well-being chapter of this report.

Compliance and Integrity Risks

Aker Solutions shall conduct its business with integrity, respecting the laws, cultures, dignity and rights of individuals in all of the countries where the company operates. Aker Solutions has a Code of Conduct which is endorsed by the Board of Directors and constitutes a framework for managing compliance and integrity risks. It describes Aker Solutions' commitments and requirements regarding business practice, personal conduct and expectations towards business partners. The Code of Conduct and other compliance procedures are implemented and operationalized in the line of business through a global compliance program. The global compliance program is designed to help the company promote a culture of compliance and integrity, and to prevent, detect and respond to non-compliances, breaches of law, regulations or internal policies.

Aker Solutions has established policies and procedures in order to comply with applicable ethical standards, laws and regulations domestically and internationally. Aker Solutions could, nevertheless, potentially become involved in unethical behavior, either directly or through third parties or partners. The company has operations in countries associated with high political, corruption and human rights risks. Key tools to reduce these risks are the company’s code of conduct, global compliance program including anti-corruption and human rights frameworks, which are implemented at Aker Solutions’ locations globally. Risks are managed through country risk assessments, sanctions and trade compliance assessments, mandatory compliance and integrity awareness training, compliance reviews and integrity due diligence process of business partners.

The company is certified to the management system requirements of ISO 9001, 14001, 45001 and 3834, and is working toward certification for ISO 50001. As these certifications commit Aker Solutions to follow applicable laws and regulations, these can be viewed as mitigation measures for compliance risk in general.

Aker Solutions has zero tolerance for corruption and works vigilantly to prevent such behavior. The company has control systems in place throughout the organization that are designed to identify and limit the effects of violations of the Code of Conduct. Employees violating the code face consequences ranging from a warning to dismissal. Aker Solutions is committed to building a culture of trust where employees are comfortable to ask questions, seek guidance, raise concerns and report suspected violations.# Board of Directors’ Report

Sustainability Performance

Aker Solutions’ whistleblowing channel allows anyone (including externals) to report concerns, incidents, breaches or suspected breaches of the Code of Conduct, other internal policies, or laws and regulations. The company does not tolerate retaliation against anyone who speaks up in good faith.

Climate-related Risks

Aker Solutions follows the Financial Stability Board’s Task Force on Climate-related Financial Disclosures (TCFD) recommendations. Each year, the company conducts a climate- related scenario analysis using the TCFD guidelines. The purpose of the analysis is to improve company strategy resilience based on a thorough assessment of energy transition and physical climate risks and opportunities. Together with an external consulting partner, Aker Solutions has developed three customized climate scenarios tailored to consider our full value chain and operations in oil and gas and renewable energy markets, such as offshore wind, hydrogen and carbon capture and storage (CCS). These scenarios were based on publicly available scenarios published by the International Energy Agency and the Intergovernmental Panel on Climate Change (IPCC) and titled Net Zero 2050 (1.5°C), Announced Pledges (1.7-2°C), and Stated Policies (2.4-3°C).

The Net Zero scenario describes an orderly transition where ambitious climate policies are implemented immediately and with a high degree of global cooperation and collaboration and low physical risk. The Announced Pledges scenario assumes lower global policy coordination and a disorderly transition, and the Stated Policies scenario tests assumes business as usual and severe physical risk.

As a part of the scenario analysis, short term, medium term, and long-term was defined as 2025, 2030, and 2050 respectively. A workshop was held with key personnel in order to assess the climate scenarios with risks and opportunities, including financial materiality and potential impact on the company’s business model and strategy. Aker Solutions re-confirmed two material climate- related risks and two climate-related opportunities as a result of the scenario analysis:

Risk 1: Declining investment in upstream oil and gas in core markets
Risk 2: Attraction and retention of talent
Opportunity 1: Increase competitiveness in oil and gas through decarbonization solutions and services
Opportunity 2: Revenue diversification into markets supported by the energy transition

Details about the financial impact, risk mitigations, and strategies to capture these opportunities can be found in the independent Climate Risk Review published on the company’s website, along with information on Aker Solutions' governance of climate-related risks and opportunities, and the metrics and targets used to assess and manage them. The risks will be tracked through Aker Solutions’ enterprise risk management system. Moving forward, the company will continue to carefully monitor climate risk especially with regard to regulatory and market changes.

Pandemics

In mid-2023, the World Health Organization announced that the COVID-19 pandemic no longer constituted a public health emergency of international concern. A negative development in the COVID-19 situation or other pandemics may impact Aker Solutions and the energy industry at large:

Long-term impact on the global economy may result in loss and impairment of the assets and future decrease of the market as clients reduce investments
Personnel may not be able to work due to illness, quarantines, travel restrictions and social distancing causing shut down of manufacturing sites, service bases or office buildings of the company and our suppliers
Clients may face delays and losses and may claim reimbursement from Aker Solutions and other suppliers

Financial Risks

The objective of financial risk management is to manage exposure from financial risks to increase predictability of earnings and minimize potential adverse effects on financial performance. Financial risk management and exposures are described in detail in note 23 and capital management is described in note 24. The main financial risks are:

Currency risk: Aker Solutions has international operations and is exposed to currency risk on commercial transactions, assets, and liabilities when payments and revenues are denominated in a currency other than the functional currency of the respective entity. The currency risks in all major contracts that contain currency exposure are hedged with external banks in the foreign exchange market. More than 80 percent of the hedging volume either qualifies for hedge accounting or is presented separately as hedges of embedded derivatives. Contracts in split currency and contracts reimbursable per cost currency are also used to avoid or reduce currency exposure in contracts. Aker Solutions has historically operated in some jurisdictions where regulations and requirements limit the convertibility of local currency and restrict free flow of cash. Aker Solutions has in previous years experienced currency losses on subsea projects in Angola as currency hedging instruments were generally not available. The subsea activities were transferred to OneSubsea in 2023 and Treasury has hedged parts of the currency exposure from USD denominated proceeds from the subsea transaction with financial derivatives. All open positions are continuously monitored on a mark to market basis. Currency variation clauses, escalation mechanisms and currency options are also used to mitigate contingent currency exposures, for example in tenders and other transactions pending final approval or investment decision.
Liquidity risk: Liquidity risk is the risk that the company is unable to meet the obligations associated with its financial liabilities. The corporate treasury department ensures financial flexibility by forecasting cash flow needs and maintaining sufficient liquidity reserves and available committed credit lines. Continued strong order intake in 2023 and cash generation from operations has contributed to a strong balance sheet and good visibility on future activity levels. The undrawn revolving credit facility (RCF) of NOK 3,000 million is maturing in January 2028. The RCF and cash reserve together constitute a sufficient liquidity reserve for the company.
Interest rate risk: The company’s interest exposure mainly arises from the cash position of more than NOK 6,000 million as of year- end 2023, as well as financial investments in liquid funds of more than NOK 3,000 million. Currently Aker Solutions has no external debt. In 2023 Treasury has invested surplus liquidity in time deposits and liquidity funds to distribute the risk among debtors and enhance the return compared to the interest rate in the cash pool. As the company has no significant interest-bearing operating assets, operating income and operating cash flow are substantially independent of changes in market interest rates.
Credit risk: Credit risk is the risk of financial losses if a customer or counterparty to financial receivables and financial instruments fails to meet contractual obligations. Financial instruments and financing are done with reputable and highly rated banks and financial institutions, of which the credit risk is considered to be low. The credit risk related to customers’ ability to pay is assessed in the bid phase and during execution of a project. Most of the customers in traditional oil and gas projects are highly rated energy companies, where the credit risk is considered to be limited. New customers in the renewable energy sector may represent an increased credit risk. However, most customers in the renewables sector are leading renewable energy companies and highly rated energy companies where Aker Solutions’ products support their decarbonization efforts and transition to renewables. The credit risk is monitored closely, especially for lower rated companies, new customers, key partners and suppliers. As a result of the COVID-19 pandemic, tense geopolitical situation and general market uncertainties, credit risk has increased in most industries over the past few years. Due to a predominance of large international companies with a relatively low credit risk in its customer base, Aker Solutions’ overall exposure to credit risk related to customers’ ability to pay is low.
Price risk: Aker Solutions is exposed to fluctuations in market prices which are mitigated in the bid process to a great extent by locking in committed prices with vendors or through escalation clauses with customers.

Risk Management

Aker Solutions’ approach to enterprise risk management, risk management and internal controls are based on the principles in ISO 31000, Project Management Institute and the Committee of Sponsoring Organizations of Treadway Commission (COSO) frameworks, however, without applying all elements of these standards. Climate- related risk is also evaluated in accordance with Task Force on Climate-related Financial Disclosures (TCFD). Aker Solutions has company-wide governing documents and tools for each defined risk category on how to assess, respond to and report on risks actively and systematically. The assessment, definition, follow-up and implementation of adequate mitigating actions towards the main risk factors are all integral parts of the overall governance of the company. Aker Solutions applies a combination of risk management practices in order to effectively manage the risk to the company such as: mandatory internal key controls and safeguarding processes for tender and projects in execution, scenario planning, sensitivity analysis, and regular reviews.# Going Concern

While uncertainties from 2022 and 2023, including energy market transition direction and supply chain challenges amplified by Russian invasion of Ukraine continue to influence the outlook for 2024, Aker Solutions is now better positioned to mitigate these challenges. The order backlog is strong and balanced, and the financial platform has been improved. Nevertheless, uncertainties in labor markets and availability of qualified resources remains a concern. Market volatility remains a concern for most companies, and this is also the case for Aker Solutions. Potential future effects of instability are difficult to predict. However, the assessment is that Aker Solutions has the resources, organization, competence, assets and customer base well suited for the future energy markets. In accordance with the Norwegian Accounting Act, the Board of Directors confirms that the consolidated financial statements and parent company financial statements have been prepared based on the going-concern assumption.

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Human Rights

Aker Solutions supports and respects internationally proclaimed human and labor rights, as defined by the International Bill of Rights and the International Labor Organization’s (ILO) Fundamental Conventions. The company is prepared to say no to business opportunities that could infringe on human or labor rights rather than risk negatively impacting people. Aker Solutions often engages in work under challenging conditions, requiring the highest level of diligence to maintain the human and labor rights and the safety of employees and customers, subcontractors, consultants and other parties. Moreover, Aker Solutions has own operations as well as supply chain in countries that are associated with high political, corruption and human rights risks. Because of the nature of the company’s work and the locations it operates, Aker Solutions has actual and potential impacts on the working conditions and worker-related rights of its own workforce and indirectly on the workforce of its value chain. Inadequate working conditions or the minimization of other work-related rights can lead to a variety of negative impacts on the well-being and rights of workers, including physical and mental health issues, decreased job satisfaction, reduction in individual freedoms, reduced work-life balance, and increased potential for workplace accidents. By promoting fair treatment, fostering a positive working environment, and aligning with international labor standards the company can minimize these negative impacts. Working conditions and other work-related rights of Aker Solutions’ own workforce and the workers in its value chain are material topics for Aker Solutions.

The Norwegian Transparency Act and the UK Modern Slavery Transparency Statement

Pursuant to Section 5 (§ 5) of the Norwegian Transparency Act (2021) we hereby present Aker Solutions’ report that has been developed to comply with the legal requirements as stated in the act. The reporting requirements apply to Aker Solutions as an enterprise resident in Norway which fulfills the requirements for “larger enterprises” as set out in § 3 of the Transparency Act and is therefore subject to the obligations of the Norwegian Transparency Act. The information in the Transparency Act report is valid for Aker Solutions ASA and its consolidated subsidiaries. These include, but are not limited to, Aker Solutions AS, ASK JV AS, Benestad Solutions AS and Aker Solutions Hydropower AS. Entities that are not fully owned, but are controlled by Aker Solutions, can have different policies. It is expected that their relevant policies are aligned with the ones of Aker Solutions. This Transparency Act report was approved by Aker Solutions’ Board of Directors on March 15, 2024. The UK Modern Slavery Transparency Statement as per the UK Modern Slavery Act 2015, is hereby approved and signed by the Board of Directors of the parent company Aker Solutions ASA and constitutes an Annex to Aker Solutions 2023 annual report. The sections Human Rights and Responsible Supply Chain have been developed to comply with the legal requirements as stated in the Norwegian Transparency Act. For a full overview of Aker Solutions’ operations, business activities, organization structure, see the Organization and Responsible Supply Chain chapters of this report.

Approach

Human rights concerns are by their very nature multi-faceted and linked to multiple business processes. Aker Solutions strives to integrate human rights considerations into core business processes in its own operations as well as in cooperation with suppliers and business partners and in interactions with communities where it operates. Such a holistic approach contributes to building a company culture where managing human rights risk and minimizing harm to people is considered as part of the company’s core business. To meet commitments to respect and support of human rights, Aker Solutions shall maintain a human rights program which is embedded in the company’s global compliance program managed by the Compliance and Integrity function. The global compliance program is risk-based and designed to prevent, detect and respond to compliance and integrity risks, including human rights risks arising from the company’s own activities and business relationships with suppliers and other partners. Aker Solutions’ approach to human and workers’ rights management consists of these key elements and is based on the OECD Due Diligence Guidance for Responsible Business Conduct:
1. Governance and commitment
2. Activities to identify negative human rights impacts
3. Activities to prevent and mitigate negative human rights impacts

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1. Governance and Commitment

The multifaceted nature of human rights requires cross-functional coordination. Aker Solutions has therefore established a Human Rights Committee with participation from the following functions/representatives: HSSE, Compliance and Integrity, People and Transformation, Data Protection, Sustainability, Supply Chain, as well as representatives from the Unions to the Board of Directors. The Human Rights Committee’s mandate is to ensure that the company has a sound human rights system and to continuously improve the operations. The Committee’s mandate is authorized by the CEO. The committee reports to the Audit Committee on a quarterly basis. Aker Solutions has a Code of Conduct which is endorsed by the Board of Directors, and it constitutes a framework for managing compliance and integrity risks. It describes the company’s commitments and requirements regarding business practice, personal conduct and expectations towards business partners. The Code of Conduct outlines clear principles and rules in key compliance and integrity areas, including Caring for People which comprises human rights and labor rights, health, safety and security, anti-harassment and diversity topics. Aker Solutions has introduced a stand-alone Human Rights Policy anchored in the existing commitment to respecting human rights as expressed in the Code of Conduct. It constitutes a building block in the company’s framework for managing human rights risks. The Human Rights Policy is approved by the executive management team, is available in seven languages and can be found in the company’s management system as well as on its website.

Policies and Procedures

Our governing documents are crucial for developing effective and consistent human rights standards across our business and for setting expectations for suppliers’ and employees’ decision-making on a day-to-day basis. A list of the governing documents we have in place to address human rights risks can be found below along with links where appropriate:
* Code of Conduct
* Business Integrity Policy
* Human Rights Policy
* Supplier and Subcontractor Declaration Form
* Business Integrity procedure
* Country risk procedure
* Country entry procedure
* HR Global recruitment principles and guidance document
* Business Partner Qualification and Integrity Due Diligence Procedure
* Supplier Approval Procedure
* Supply Chain Risk and Compliance Management Procedure
* Terms and Conditions for Suppliers
* Business Ethics Training Procedure
* Global Whistleblowing Procedure

Commitments

In addition to the above policies and procedures, Aker Solutions continues to adhere to the Voluntary Principles on Security and Human Rights and to be a signatory to the UN Global Compact. The company’s commitment to human and labor rights is covered by the Global Framework Agreement between Aker ASA and the Norwegian and international trade unions Fellesforbundet, IndustriALL Global Union, NITO and Tekna. The principles of all these agreements, initiatives and memberships underpin Aker Solutions’ respect and support for international standards and are reflected in the company’s visions and values and through its policies and procedures. Human rights are part of the company’s supplier qualification requirements. Aker Solutions uses its influence with suppliers and encourages them to work in compliance with its Code of Conduct, and company attitudes to ensure that they are also committed to avoid harm to people in their own business and supply chains.

“ Aker Solutions has introduced a stand-alone Human Rights Policy anchored in the existing commitment to respecting human rights as expressed in the Code of Conduct. It constitutes a building block in the company’s framework for managing human rights risks.

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2. Activities to Identify Negative Human Rights Impacts

Risk Assessment

Aker Solutions has identified that potential significant risk exposure to negative human rights impacts may be detected in the global supply chain.# Aker Solutions' Commitment to Human Rights in the Supply Chain

The most important prescriptions in the International Bill of Human Rights related to supply chain management are:
* Right not to be subjected to slavery, servitude, forced labor, or child labor
* Right to enjoy just and favorable conditions of work, and
* Right to health

Integrity Due Diligence

Aker Solutions performs integrity due diligence (IDD) on customers, suppliers and other business partners such as JV partners, third-party representatives, and alliance partners. Projects and new country entries are subject to integrity and country risk assessments. The purpose of the IDD process is to ensure that an adequate level of risk assessment and risk mitigation is performed on the background and profile of potential new or existing business partners or other stakeholders when evaluating whether they meet Aker Solutions’ compliance and integrity standards. In the IDD review, a business partner or a stakeholder is analyzed to identify potential integrity and compliance concerns with the purpose to mitigate compliance and reputational risks for Aker Solutions. Potential integrity and compliance concerns and risks may relate to:
* Corruption
* Human rights violations
* Violations of international sanctions
* Other economic crimes (e.g. money laundering, terror financing)
* Environmental breaches
* Other material risks

Key procedures governing this process are: Business Integrity Policy and Procedure, Country Risk Procedure, Business Partner Qualifications and Integrity Due Diligence Procedure and Supplier Approval Procedure. Detailed information on supplier qualification process can be found in the section on Responsible Supply Chain.

In addition to the processes described above, in previous sections and pursuant to the Norwegian Transparency Act obligations and OECD guidelines, an extended human rights due diligence has been conducted across business lines, purchase categories and locations with the goal of identifying, classifying, and prioritizing the risks of potential adverse impact by country and goods/services/works sub-categories in the supply chain. Based upon a combination of 11 human and labor rights indices provided by Maplecroft and other market indices, combined with a risk level associated to Aker Solutions’ detailed operations, the company has finalized a risk mapping by country and purchase category.

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The figures below illustrate Aker Solutions’ risk-based approach to human rights due diligence:

Based on such risk assessment, the company has identified the following findings:
Main countries where the potential inherent adverse human rights impact is assessed as higher are:
* China, India, Malaysia, Brazil, Brunei and the UAE
* In all of these countries, the potential significant risk of adverse impact is represented by:
* Limited awareness of implementation of inadequate local labor practices, especially for what concerns lower-tier suppliers in the supply chain.
* Adaptation to local laws in tolerating long-lasting local labor enforcement, such as recruitment fees.
* Limited influence and contribution in preventing, ceasing and mitigating such practices in lower tiers of supply chain.
* Reduced short-term effects of mitigating actions, as these are part of a broader program where outcomes will be appreciable on the medium to long-term.

In terms of operations, the following activities have been assessed to be associated with inherently high risk of negative human rights impacts:
* Subcontracting, construction works, general services, logistics and some of the industrial transformations (e.g. fabrication).

Identified potential adverse impacts in parts of the company’s supply chain:
* Risk of forced or compulsory labor indicators among contractors and subcontractors in the Middle East.

For the identified inherent high-risk impact areas, Aker Solutions is currently working on targeted adequate measures to further mitigate and prevent these potential risks from turning into actual negative impacts to people. Aker Solutions did not identify severe negative human rights impacts in its own operations in 2023.

The next section describes Aker Solutions’ activities to mitigate or remediate the potential for actual adverse impacts.

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3. Activities to Prevent and Mitigate Negative Human Rights Impacts

Aker Solutions expects that the initiatives presented in this paragraph will result in positive effects in the short, medium and long-term, depending on the immediate or delayed impact on operations. Due diligence and site audits within the supply chain contribute to continuous improvement and a more responsible supply chain. One of the audits at a major contractor site resulted in a joint working group with the client and our contractor in an identified geographical risk area. We believe that this collaborative approach within the value chain contributed to specific executed improvements of identified areas at risk, raised awareness on working conditions and positively aligned partners with Aker Solutions’ commitment to human and workers’ rights.

An overview of Aker Solutions’ approach and key mitigating measures embedded in its processes:

Cascading the Requirements in the Supply Chain

The company strives to ensure that our suppliers, vendors and subcontractors share its commitment to safety, business integrity, respect for human and workers’ rights and compliance. The company also expects that they in turn also apply the same principles towards their own employees, suppliers, subcontractors and agents with whom they work in the delivery of goods and services to Aker Solutions. Aker Solutions therefore cascades its expectations and requirements for human rights protections to suppliers and subcontractors. These requirements are included in the Aker Solutions’ Supplier Declaration, available on the company’s website. The Supplier Declaration is used in supplier pre-qualification processes, and a commitment to the Supplier Declaration is a prerequisite for becoming qualified as a supplier, vendor or subcontractor to Aker Solutions.

Contractual Clauses

Contractual clauses signal expectations of respect for internationally recognized human rights to business associates. Contractual clauses can allow Aker Solutions to demand a contractual party address and eventually rectify human rights violations or terminate a contract if deemed necessary. The company includes ‘audit rights’ clauses in contracts with suppliers to have the possibility to verify their compliance with the Supplier Declaration commitments on a risk basis.

Inspections, Reviews and Audits

Aker Solutions performs regular inspections of its own locations, projects and business partners. Controls of human rights guidelines and directives are regularly carried out, sometimes also in conjunction with a broader review of health and safety, procurement procedures and/or quality. A key risk exposure to human and workers’ rights violations can potentially be found in the supply chain. Supply chain teams conduct ISO-based supplier audits, where human rights and anti-corruption are parts of the audit program. A risk-based audit selection methodology has been developed to ensure that high-risk suppliers are subject to audits. The company has engaged three external specialized human rights audit service providers to support supply chain auditing efforts and expand on-site and worker-centric audit capacity and capabilities. As one of the risk mitigation activities during 2023, the company conducted several worker-centric human rights audits at subcontractors’ sites in various countries where it conducts such activities. The purpose was to assess working conditions and compliance against local laws and international standards, including relevant ILO Conventions, as well as Aker Solutions’ expectations of suppliers. The scope of all these audits was closely linked to defined salient issues relevant for potential negative impacts to people in the supply chain, including addressing forced labor indicators, responsible recruitment systems, fair wages and reasonable working hours, safe, healthy and secure workplaces and accommodations, and in some cases also implementing effective subcontractor due diligence systems.

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Reporting of Concerns, Whistleblowing and Grievance Mechanisms

Aker Solutions is committed to building a culture of trust where employees feel comfortable to ask questions, seek guidance, raise concerns and report suspected breaches or violations. The company’s whistleblowing channel allows employees and external parties to report concerns, incidents, breaches or suspected breaches of the Code of Conduct, other internal policies, or laws and regulations. Everyone has a responsibility to speak up promptly about ethical questions or issues, and anything believed, in good faith, to be a suspected violation. Notifications can be sent anonymously through Aker Solutions’ whistleblowing channel or by email to [email protected]. The company does not tolerate retaliation against anyone who speaks up in good faith to ask questions, raise a concern, report a suspected violation or participate in an internal company investigation.

Internal Investigations

All notifications to the whistleblowing channel are received and managed by the Compliance and Integrity (C&I) department and are treated with strict confidentiality. C&I has a mandate from Aker Solutions’ Board of Directors to investigate alleged compliance violations. Investigations are carried out in accordance with the rules set out in the Whistleblowing Procedure and the Investigation Procedure.# Incidents and Investigations

Incidents and investigations that uncover malpractices or breaches of causing, contributing to or being complicit in human rights violations shall result in recommended remediation and improvement actions. In such cases, remediation and improvement actions will be directed at the negatively impacted people and will prevent and mitigate the adverse effects now and reduce the risk of causing adverse effects in the future.

Awareness sessions and Capacity Building with Suppliers

During 2023, Aker Solutions continued engagement with its suppliers which includes activities such as site visits, audits and capacity building. There were organized sessions on capacity building and best practice sharing with several subcontractors in Poland with focus on health and safety and working conditions. Another initiative was a subcontractor capacity building initiative focusing on upskills subcontractors to the company’s key partner in the UAE. This initiative focused on the ILO Forced Labor Indicators as well as lessons learned sharing on implementation of a responsible recruitment system. The sessions were well attended by participants and representatives from approximately 30 subcontracting companies from the area. More information about the company’s approach to stakeholder engagement can be found in the Stakeholder Engagement section in this report and in the appendix.

Training, Communication and Awareness building

Awareness training is one of Aker Solutions’ key initiatives in building awareness about business integrity and preventing unethical behavior or breaches of the Code of Conduct, including human rights infringements. In 2023, approximately 11,450 of all personnel completed the company’s annual Code of Conduct certification e-learning where they confirmed to have read and understood Aker Solutions’ Code of Conduct. Additionally, approximately 6,400 employees completed the mandatory introduction to business integrity e- learning. Approximately 780 employees in high-risk roles or locations, such as supply chain and business development, have been trained on relevant compliance topics through dedicated face-to-face or Teams-based training sessions. Aker Solutions conducts regular communication campaigns to build awareness in the organization around the Code of Conduct, whistleblowing, and other relevant business integrity topics, including human rights. In 2023, the company celebrated International Human Rights Day on December 10 and marked it with a campaign on its internal communication channel to commemorate the 75th anniversary of the Universal Declaration of Human Rights.

Remediation

Aker Solutions is committed to providing remediation for negative impacts or harm to people caused by the company’s operations or through those of its immediate suppliers when such instances have been identified. Where incidents further in its supply chain are identified, the company is committed to facilitate remediation, where it is able to. The company has identified a process for human rights due diligence in the supply chain. In instances where it identifies potential risks or weaknesses of measures implemented at its suppliers, Aker Solutions implement a number of actions, including enhanced due diligence, supplier questionnaires, compliance follow-up with supplier representatives, or it can call for an audit by an external services provide.

Remediation and Collaboration with Business Partners

In collaboration with one of its strategic partners, Aker Solutions has jointly conducted a human/labor rights assessment of overall project supply base. Based on undertaken due diligence, several human rights audits were conducted at suppliers in Malaysia and Brazil. The same approach was applied with the same customer to another project, and this has resulted in a human rights audit conducted at the supplier in China. In a specific case during 2023, the collaboration with Aker Solutions’ business partners allowed the establishment of a joint human rights due diligence follow-up plan for a strategic supplier in a higher risk country and secure their engagement and commitment. This collaboration made it possible to monitor progress in order to mitigate the risk of potential deterioration of working conditions for the workers. Partner collaboration areas focus on these key topics: forced labor indicators, responsible recruitment system, fair wages and reasonable working hours, safe, healthy and secure workplace and accommodations, and implementing effective sub-contractor due diligence systems. Remediation actions undertaken include the areas of responsible recruitment system, fair wages and reasonable working hours.

Internal and External Reporting

Aker Solutions is listed on the Oslo Stock Exchange and follows the Norwegian Accounting Act for annual reporting. Pursuant to the UK Modern Slavery Act 2015, the company reports annually on steps that have been taken to ensure that there is no slavery or human trafficking in the supply chain. Internally, the Human Rights Committee reports on a quarterly basis to the Audit Committee through Head of Compliance and Integrity.

Priorities for Human Rights Program Going Forward

Throughout 2023, Aker Solutions continued further development of its human rights program. It continued a valuable cross functional collaboration across departments on human rights risks and mitigation. Overall, the human rights program is maturing with each year. Looking into 2024 the company has new ambitions and goals to be achieved to continuously improve its performance in this area and to avoid harm to people. The priority areas for 2024 have been defined and include activities to:

Continue strengthening the Human Rights framework in the supply chain
Continue building awareness and competence on human rights and business for our employees
Reviewing risk and continue human rights salient issues mapping to ensure it corresponds with developments in our business and supply chain
Carry-out risk based human rights and worker-centric audits of selected suppliers based on established plan
Enhance collaboration with key external stakeholders to ensure a lasting positive impact on human rights and working conditions for identified higher risk areas of common supply chains

“ Throughout 2023, Aker Solutions continued further development of its human rights program. It continued a valuable cross functional collaboration across departments on human rights risks and mitigation. Overall, the human rights program is maturing with each year.

The Board of Directors confirms that the Annual Report for 2023 gives a true and fair overview of the development during the year and the impact on the financial statements, the most significant risks and uncertainties facing the company.

Fornebu, March 15, 2024

Board of Directors of Aker Solutions ASA

Leif-Arne Langøy
Chairman

Øyvind Eriksen
Deputy Chairman

Kjell Inge Røkke
Director

Birgit Aagaard-Svendsen
Director

Hilde Karlsen
Director

Jan Arve Haugan
Director

Elisabeth Heggelund Tørstad
Director

Lone Fønss Schrøder
Director

Arne Christian Rødby
Director

Stian Pettersen Sagvold
Director

Line Småge Breidablikk
Director

Kjetel Digre
Chief Executive Officer

Sustainability Performance

Sustainability at Aker Solutions means being a supplier that accelerates the transition to sustainable energy production by making responsible business decisions that create value while protecting the environment and contributing to the good of society. We work to ensure safe operations for our people and the environment, and have robust social and governance programs in place. Some highlights from 2023 include:

Aker Solutions’ Climate Action Plan has evolved from a corporate initiative to business-driven transition programs owned by each segment and following the Science Based Targets initiative’s (SBTi) guidance and criteria
Two key sites in Norway were certified to ISO 50001 Energy Management
The percentage of women in leadership roles increased to 24.5 percent and we established a distinct role and function for the advancement of diversity, equality and inclusion (DEI) in the organization
Suppliers were informed about upcoming expectations related to emissions and energy management and we will implement these in procurement contracts from January 2025 onwards

Through our double materiality assessment process, the following sustainability matters are considered material for reporting purposes in 2023:

Topics covered in the Human Rights chapter:

Working conditions and other work-related rights of Aker Solutions’ own workforce and workers in the value chain
Equal treatment and opportunities for workers in the value chain

Topics covered in the Stakeholder Engagement chapter:

Communities’ economic, social and cultural rights
Political engagement

Topics covered in the Environment chapter:

Climate change adaptation and mitigation
Energy
Water pollution
Impacts on the state of species
Resource inflow and outflows
Waste

Topics covered in the Social chapter:

Health and safety of own workforce
Corporate culture
Equal treatment and opportunities for Aker Solutions’ own workforce

Topics covered in the Governance chapter:

Corruption and bribery
Protection of whistleblowers
Cybersecurity
Management of relationships with suppliers

Materiality Determination

Each year Aker Solutions undertakes a review of material topics for reporting. The review process includes commissioning an external analysis of existing material topics and identifying potentially new material topics.# Board of Directors’ Report

Sustainability Performance

Our recent materiality review is based on the implementation guidance for the double materiality assessment (DMA) requirement of the European Sustainability Reporting Standards (ESRS) as set forth by the Corporate Sustainability Reporting Directive (CSRD). The standard requires reporting companies to assess the significance of their actual and potential impacts across two dimensions, impact materiality and financial materiality, independently from one another. Though Aker Solutions’ 2023 sustainability reporting is in accordance with the GRI standards, the DMA process prescribed by the ESRS meets the GRI materiality assessment requirement. This assessment has been used for 2023 reporting.

Over 30 internal experts participated in Aker Solutions’ DMA process. In addition, a comprehensive survey was sent to 270 members of our workforce. To reduce bias and maintain an open and transparent dialogue, external stakeholder interviews were managed by a third party. The four-month process of assessing over 150 impacts, risks and opportunities was documented in an online tool, also managed by a third party. The final topics were validated with Aker Solutions’ executive management and presented to the Audit Committee for review. A complete report of our materiality assessment is available on our website.

The 2023 report is organized around 22 sustainability matters (sub-topics) as defined by the ten ESRS topics. Each sub-topic is included in either the Human Rights, Stakeholder Engagement, Environment, Social or Governance chapter of this report. Each section describes why the topic is material and our management and performance related to the topic. The material topics are also reported in the GRI Index, under reporting standard GRI-3 (2021), included in the appendix of this report.

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31

UN Sustainable Development Goals: Our Commitment

Starting with the highest level of the organization, key performance indicators (KPIs) and specific targets hold leadership, managers and employees accountable for sustainability. Throughout this report we will share many of these KPIs and targets to demonstrate the company’s global commitment to responsible business.

Aker Solutions supports the UN Sustainable Development Goals (SDGs), a collection of 17 global goals set by the United Nations General Assembly in 2015. We have prioritized seven SDGs where we believe we can have the most impact and where we seek to contribute positively.

Stakeholder Engagement

Aker Solutions has in-depth and ongoing dialogue with our key stakeholders on sustainability impacts and other topics throughout the year. Our key stakeholders include customers, investors, financial institutions, employees, non-governmental organizations (NGOs), unions, governments and national authorities, partners and suppliers. Our participation and communication with unions is an example of formalized stakeholder engagement. Examples throughout this report demonstrate how we incorporate stakeholder feedback into our management and approach for each material topic.

Engaging with and understanding the impact of a company’s operations on local communities and the positive impact this can have on the development of a community’s economic, social and cultural rights is especially important where a company’s presence is sizeable and influential. Our active engagement and dialogue with communities where we have operations aims to understand their expectations and create lasting local value for affected stakeholders.

There is also potential impact, positive and negative, when it comes to Aker Solutions’ political engagement, primarily in Norway. Our involvement in the energy sector, which is known for substantial lobbying efforts, may indirectly influence government policies. This can be a potential financial opportunity for the company. Aker Solutions’ input in such dialogues focuses on providing facts and information regarding the company’s ongoing activities and outlook for future development of the business, including information like potential future employment numbers. In addition, the input will in some cases include the company’s view on different technical alternatives of possible relevance to future projects, and the effects of frame conditions such as taxes and financing research and development. There are established procedures to ensure the company’s involvement in these activities is ethical, responsible, and complies with the Code of Conduct.

Communities’ economic, social and cultural rights and political engagement are material topics for Aker Solutions. An explanation of type and frequency of stakeholder engagement as well as topics discussed is included in the appendix of this report.

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Key Memberships and Associations

Since 2008, Aker Solutions has been a signatory to the UN Global Compact, the world’s largest corporate sustainability initiative, and is committed to its ten principles. We respect and adhere to the precautionary principle (Principle 7). We have published corporate responsibility/ sustainability reports since 2006, with annual releases since 2010.

Aker Solutions has formal participation and memberships in many industry associations, advocacy groups and non-governmental organizations. We participate in governance bodies and advisory committees where relevant, and are active members of local and regional industry, safety, community and ESG organizations in the countries where we do business. A sample of organizations across the industry, environment and social spectrum is included in the GRI Index in the appendix of this report.

Reporting Frameworks

The company’s commitment to human and labor rights is covered by the Global Framework Agreement between Aker ASA and the Norwegian and international trade unions Fellesforbundet, IndustriALL Global Union, NITO and Tekna.

For 2023, Aker Solutions reports and communicates on sustainability according to the Global Reporting Initiative (GRI), Carbon Disclosure Project (CDP) and the Task Force on Climate Related Financial Disclosures (TCFD). Beginning in 2024, the company will report in accordance with the EU’s Corporate Sustainability Reporting Directive (CSRD). The company also follows the Euronext guidance on ESG reporting of May 2022.

Aker Solutions’ strategy supports the UN Sustainable Development Goals and we have committed to the Science Based Targets initiative (SBTi). More information about reporting frameworks is available on our website.

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33

Material Topics covered in this chapter are:
* Climate change adaptation
* Climate change mitigation
* Energy
* Impacts on the state of the species
* Pollution of water
* Resource inflows including use
* Resource outflows related to products and services
* Waste

The former Subsea segment of Aker Solutions was excluded from data and information reported in the environmental section of the report.

Materiality analysis →

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34

Environment

Climate Change Adaptation and Mitigation

Given the nature of our business and our global operations, Aker Solutions has a role to play, not only in supplying renewable and transitional energy solutions as part of climate change mitigation, but also in reducing our own climate impact through adapting our internal operations and encouraging reduction throughout our value chain. Climate change adaptation and mitigation are material topics for Aker Solutions.

Aker Solutions has an actual impact on the environment through its Greenhouse Gas (GHG) emissions. These emissions are linked to the company's operations and upstream activities, particularly with tier 1 suppliers. GHG emissions are considered to have a negative impact on the environment as they contribute to global warming and climate change, leading to adverse effects such as extreme weather events.

In addition, the company’s active role in the energy transition can also have an actual positive impact on the environment. As the global push towards renewables gains momentum, the company's efforts in balancing its portfolio with renewable energy products and technologies play a crucial role. By developing renewable and transitional energy solutions, the company actively contributes to climate change mitigation and reduced CO2 emissions. This stands against the backdrop of the potential negative impacts of traditional energy consumption, which can lead to air and water pollution, global warming, and other environmental issues.

Global activities within, and attitudes toward, climate change adaptation and mitigation may lead to a global decline in oil and gas projects, regulatory changes in climate policy and ultimately the company’s inability to deliver on its strategic ambition. This poses potential risks of decreased demand, reduced revenue, lost market opportunities, and increased costs for Aker Solutions. There are also potential opportunities for the company in projects related to climate change mitigation, including wind, carbon capture and storage (CCS), electrification, aquaculture and decommissioning.

Approach

In 2020, Aker Solutions set emissions reduction targets to reduce 50 percent of own emissions (scope 1 and 2) by 2030, using 2019 as a baseline, and be net zero by 2050. Due to significant changes in the company operations last year, Aker Solutions set a new baseline for emissions accounting and will use 2023 for this purpose going forward. Our reduction target of 50 percent of own emissions by 2030 and to become net zero by 2050 remains unchanged.

Aker Solutions’ scope 1 and 2 emissions were 62,871 tCO2e in 2019 and 19,375 tCO2e in 2023. Our scope 3 emissions were 579,832 tCO2e in 2023.# Board of Directors’ Report

Sustainability Performance

Financial Statements

Appendix 35

2023 Emissions

Scope 1 and 2: 19,375 Metric tons CO2e
Scope 3: 579,832 Metric tons CO 2 e

More detail on scope 3 emissions is included later in the chapter. Our scope 1 and 2 emissions have reduced by 69 percent from 2019 (measured on the newly organized company, excluding subsea). The Subsea segment’s contribution to the reduction is approximately 12 percent, and the remaining 57 percent was from internal mitigation plans, including the purchase of renewable electricity.

“ Due to significant changes in the company operations last year, Aker Solutions set a new baseline for emissions accounting. Our reduction target of 50 percent of own emissions by 2030 and to become net zero by 2050 remains unchanged. We believe it is important to follow a science- based approach in our emissions reduction strategy and we have designed our emissions reduction plan to follow the Science Based Targets initiative (SBTi) requirements. Aker Solutions committed to the SBTi in 2022 and will submit targets for validation in 2024. The SBTi target, once verified, will provide credible short- and long-term values that are inline with the 1.5 degree Celsius requirement. For emissions accounting, we follow the GHG protocol and GRI frameworks and have internal targets based on absolute emissions. We use standardized methodology for emissions accounting and recognized emissions factors based on the type of data sets. Aker Solutions’ complete emissions accounting methodology statement is available on our website. We also conduct an annual third-party assurance process on our emissions data. For 2023, this was completed by PwC. More information on our climate accounting can be found in the appendix of this report.

Our Sustainability Policy drives a high-level commitment on environmental management including climate and energy requirements. In 2023, we have also formalized expectations on emissions and energy management for our future business partners. It is important that our suppliers and partners have a similar focus on emissions reduction and energy management so that negative impacts throughout the value chain are reduced. Internally, we have created engagement programs for our employees to participate in the journey towards net zero. It is valuable for employees to feel empowered to improve current work streams and identify potential design improvements. We also encourage changes in employees’ personal habits and champion the changes they are making at home and with their families to reduce their environmental footprint.

Climate Action Plan

Aker Solutions’ Climate Action Plan is our roadmap to transform our business towards a net zero future while helping society solve global energy challenges for future generations. In close collaboration with our customers and suppliers, we leverage our core capabilities to grow within renewables and transitional energy solutions to decarbonize oil and gas production. At the same time, we work systematically to reduce our emissions, optimize our energy use, reduce waste and spills, improve circularity and reduce negative impacts on biodiversity. We are committed to engage with our whole value chain to enhance environmental and social governance and boost the power of data insights to continuously chase further improvements together. The plan, which was initiated in 2022, has evolved from a corporate program to a business-driven transition fully integrated into our enterprise performance management system. We continue to track progress on initiatives for emissions reduction, ISO 50001 certification and improved quality of environmental data at an enterprise and segment level. In addition, we are developing a balanced portfolio of products and technologies that either generate renewable energy or remove or reduce CO2 emissions. While a global energy transition is underway, the pace of the transition will be dictated by a number of drivers, such as geopolitical turmoil, energy security and affordable access, efficiency gains, low-emission fuels and accelerated cost reductions of renewables.

Appendix 36

Aker Solutions leverages existing core capabilities to grow in selected renewable markets. Our experience and existing technology offerings and solutions are relevant to support our growth ambitions. An important feature of our strategy is to work in alliances and close collaboration with partners who are experts in their respective fields. Renewables and transitional energy solutions mainly includes projects with solutions and technologies for offshore wind, hydropower, aquaculture, carbon capture and storage (CCS), hydrogen, electrification of offshore and onshore facilities, and decommissioning and recycling.

In 2023, we have commercialized the lifecycle assessment (LCA) service to assess multiple environmental impacts of a project (including impacts of associated emissions on climate change) at all production phases, and have offered this as a service to our clients. This allows us to identify hot spots for emissions specifically at design and construction, but also during operations and at the end of asset life. Aker Solutions is at the final stage of approvals for our in-house LCA Software to be utilized as an Environmental Product Declaration (EPD) Generator. This approval will allow us to publish the results of LCA studies as EPDs. This is meaningful as EPDs are a verified, valuable and accurate source of data in external reporting. We see this as an area of growth due to the introduction of the new European Sustainability Reporting Standards.

In past years, our key focus has been on measuring and reducing our own emissions (scope 1 and 2). These accrue primarily from combustion of fuels for transportation, heating, work activity and electricity consumption. In our direct emissions, we still utilize fossil fuels that generate more emissions compared to electrification, however, to understand the overall impact, a lifecycle approach is necessary. Within scope 1, we have included data from fugitive emissions (e.g., refrigeration and refining our fuels) including biogenic fuels. Our indirect emissions are from electricity consumption.

In 2022, we began capturing and evaluating emissions data in earnest for ten relevant categories within scope 3. These include purchased goods and services, capital goods, fuel and energy related activities, upstream and downstream transportation and distribution, waste generated in operations, business travel, employee commuting, use of sold products and end-of-life treatment of sold products. Through digitalization efforts, our data pool is improving in quality and quantity. In 2023, we include another category within scope 3, related to the OneSubsea entity.

CDP

CDP, formerly the Carbon Disclosure Project, runs a global disclosure system for organizations to manage their environmental impacts. Aker Solutions discloses annual ESG performance data and targets in the annual CDP report and uses a third party for independent verification of our greenhouse gas (GHG) emissions accounts. The 2023 Climate Change Score Report is available on our website. Our 2023 CDP report (submitted using 2022 programs and data) received a score of B; while our 2022 score was A-. The reporting framework changes annually, and the company has seen increasing requirements on data quality and verification, higher focus on integration of climate action into the company- wide business strategy, and engagement of top management in the climate strategy and initiatives.

Performance

The removal of Aker Solutions’ Subsea segment as part of the OneSubsea results in significant changes in the operations of the company. All environmental data excludes subsea data for the entire reporting year.

Scope 1 and 2 Emissions

In 2023, our emissions for scope 1 and 2 were 19,375 tCO2e. Scope 1 is approximately 71 percent and Scope 2 is the remaining 29 percent at 5,683 tCO2e. An increase in activities in the first quarter of the year resulted in an increase in scope 1 emissions. Our scope 2 emissions were reduced predominantly due to the change in company operations with the removal of the Subsea segment and through the purchase of Energy Attribute Certificates (EACs). We continue to support the use of renewable energy on our sites by purchasing EACs. These certificates contribute to reducing our scope 2 emissions. In 2023, we purchased approximately 92,000 megawatt hours of electricity, which is 89 percent of our scope 2 emissions. This approach will help us to meet the 50 percent reduction of our own scope by 2030 and achieve 80 percent of renewable energy for the same period.

Appendix 37

This graph represents Aker Solutions’ projected scope 1 and 2 emissions over the next six years based on current work and projects. The information is expected to change year to year. Our ambition remains to reduce scope 1 and 2 emissions by 50 percent by 2030, however going forward we will use 2023 as the baseline.

	2030	2029	2028	2027	2026	2025	2024	2023

Appendix 38

Scope 3 Emissions

Aker Solutions reports on eleven categories within scope 3 for 2023. It has been a challenge to capture a complete picture of these emissions, but similar to our 2022 results, scope 3 is 97 percent of the overall company emissions. So far, we have quantified all known sources of scope 3 emissions for 2023 totaling 579,832 tCO2e. Our highest categories remain purchased goods and services (60 percent) and the use of sold products (22 percent).The 79 percent decrease in scope 3 compared to 2022 is mainly in categories 1 and 9 and is due to the improved methodology for calculating these emissions and the removal of emissions due to the divestment of the subsea business.

Scope 3 – Upstream Emissions

Within upstream scope 3 emissions, we have quality data due to the direct relationships with our suppliers and improved internal controls processes.

Purchased goods and services (Category 1)

The main activities that drive these emissions are purchased services and products (construction, metal, machinery, and electrical equipment) in our value chain and it is our highest emission category. It accounted for 347,507 tCO2e in 2023, a 79 percent reduction from 2022. The two main drivers for the reduction are an update in the calculation methodology (65 percent) and the removal of the Subsea segment emissions (14 percent). The new methodology introduced has improved the data quality of category 1 emissions by:
* Removing non-emissions related expenses as well as duplicate emissions reporting,
* Utilizing new emissions factors that have a geographic representation,
* Improving and increasing key bulk supplier- specific information obtained through the use of Environmental Product Declarations (EPDs) and lifecycle inventory database for product level calculations.

“ The 79 percent decrease in scope 3 compared to 2022 is due to the improved methodology for calculating these emissions and the removal of emissions from the Subsea segment. Work on the collection and use of supplier and product specific data for better emissions accounting continued in 2023. The EPDs from our key suppliers provided data on purchased bulk structural products with supplier-specific emissions, and we have also used life cycle inventory databases to calculate emissions on a product category level, increasing the quality of the emissions inventory. This share of the emissions calculated with supplier and product specific activity data is important to provide Menu Board of Directors’ Report Sustainability Performance Financial Statements Appendix 39 valuable insights and enhance our decarbonization effort and emissions reduction strategies. In 2023, it accounts for 12 percent of our category 1 emissions, while our ambition is to gradually increase it.

Capital goods (Category 2)

The emissions associated with capital investment and fixed assets account for 56,817 tCO2e in 2023. All capital investments and fixed assets for the reporting year are included. The emissions in this category have increased 21 percent in 2023. The main emissions contributors are the investments in machinery equipment and construction activities and transportation equipment.

Fuel and energy-related activities (Category 3)

Upstream emissions from energy related activities account for 7,368 tCO2e. Upstream electricity-related activities account for 60 percent of these emissions, while the remaining 40 percent is from upstream emissions of purchased fuels. Limiting the use of non-fossil fuels and increasing the selection of sustainable biofuels based on feedstock will be key to bringing down emissions in this category.

Upstream transportation and distribution (Category 4)

The emissions from the transportation of purchased products to our facilities accounts for 9,495 tCO2e. The 47 percent reduction in emissions this year is due to the removal of the Subsea segment emissions. We have close collaboration with our freight agents who report transport and emissions data for our operations. We have obtained 86 percent of data from distance-based method, and the remaining 14 percent was based on spend. Road transport was the main transport mode for 2023 driving approximately 82 percent of the emissions.

Waste generation in operations (Category 5)

In 2023, total waste generated from all operational sites was 21,118 tonnes, or 1,898 tCO2e. The higher level of waste this year is attributed to one waste clearing event. Since 98 percent of the metal from that activity was recycled, there is minimal impact to emissions. We continue to investigate strategies for waste minimization and improvements in circularity of materials.

Business travel (Category 6)

In 2023, an increase in business travel from increased project activity and a return to more normal travel levels post-COVID-19 resulted in a small percentage increase in emissions in this category to 8,927 tCO2e.

Employee commuting (Category 7)

Aker Solutions has a flexible work policy in place for all its 35 locations, though the approved number of work-from-home days for office-based employees may vary by country, segment, and business requirements. In 2023, an employee commuting survey was conducted to obtain better representative data, which has previously been reported as general averages. The survey had a 35 percent response rate and provided a suitable average for the commuting and working from home patterns of our employees by location. Total employee commuting emissions for 2023 is 4,503 tCO2e. This amount is lower than the general average data used in our 2022 reporting, this is mainly contributed by removal of Subsea segment data and improvement in data quality.

Scope 3 – Downstream Emissions

For 2023, we collected data on four relevant categories of downstream scope 3 emissions. The other remaining categories are not relevant for Aker Solutions. Emissions from leasing of assets is included in scope 1 and 2 for 2023.

Downstream transportation (Category 9)

Emissions from downstream transportation are 8,766 tCO2e and originate from maritime operations and the delivery of products to final installation sites.

Use of sold products (Category 11)

Use of sold products is our second highest category of indirect emissions and accounts for 127,847 tCO2e. This data includes energy consumption according to engineering specifications for products delivered in 2023, mainly from the Life Cycle segment. The data collection methodology was further strengthened to provide equipment level energy consumption. The use-phase emissions for Aker Solutions’ business is highly dependent on the number and type of the delivered projects and can fluctuate throughout the years. However, decarbonizing and electrification solutions bring us closer to reaching our targets.

End-of-life treatment of sold products (Category 12)

Decommissioning activities generated approximately 636 tCO2e from disposal of materials from two main projects in 2023. These projects allowed for 98 percent of the old platforms and ancillary equipment to be recycled. We consider this an important part of a circular economy for the oil and gas industry.

Investments (Category 15)

For 2023, Aker Solutions will report on emissions from investments related to the equity accounted investee OneSubsea. As Aker Solutions is a 20 percent shareholder in OneSubsea, this category comprises 20 percent of the organizations’ scope 1 and 2 emissions and is 6,068 tCO2e.

Looking Forward

The introduction of the new regulations on ESG reporting and especially on environmental reporting will improve the data quality and collaboration with different stakeholders. Some key focus areas for 2024 include:
* Stronger emphasis on including environmental aspects in the company’s strategy and long-term goals
* Developing effective transition goals
* Instilling business segment and location ownership, management and accountability of the emissions generated by different activities and parts of the business Menu Board of Directors’ Report Sustainability Performance Financial Statements Appendix 40

EU Taxonomy

In 2020, the European Union introduced the Taxonomy Regulation, which is a classification system of environmentally sustainable economic activities. The intention of the EU Taxonomy is to help scale up sustainable investments and implement the European Green Deal. With effect for 2022, Aker Solutions implemented the EU Taxonomy and the 2023 reporting builds on the diligent work previously performed. As a non-financial undertaking, Aker Solutions present the share of our group turnover and capital expenditure (CapEx) which are associated with Taxonomy- aligned activities.

Reporting Principles

Financial data used in the reporting is based on IFRS Accounting Standards as adopted by the EU. For turnover, the assessment of eligible and aligned activities is performed at project level, where allocation of revenues follows the assessment of the relevant project. Aker Solutions has performed a screening of ongoing projects against economic activities in the taxonomy. If a project is assessed to deliver an activity classified as an eligible activity in the taxonomy, a further assessment of the relevant project is performed to evaluate if the criteria of alignment are fulfilled. The assessment is performed through discussions and obtaining documentation from the project managers, project engineers and suppliers. Each project is classified to only one economic activity. Double counting of the relevant amounts of turnover across the reporting has been avoided as the eligible economic activities included in the KPI are independent projects. The assessment of eligible and aligned CapEx is based on discussions with controllers on the different sites where the investments have been made. Investments assessed to meet the economic activity are classified as eligible while further assessment have been made to evaluate the criteria of alignment. Double counting of relevant amounts of CapEx across the reporting has been avoided as each investment is classified to one economic activity.

Economic Activities of the Aker Solutions Group

We have examined all economic activities carried out by the group to see which of these are eligible and also aligned. The EU Taxonomy has defined six environmental objectives.# Menu

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Sales revenue, capital expenditure and operating expenditure are defined as the key performance indicators that must be reported on under the EU Taxonomy.

Sales Revenue

Total turnover corresponds with the amount reported as revenue from customer contracts in the consolidated financial statement. Revenue is recognized over time using a cost based progress method, or as time and materials are delivered to the customer.

Capital Expenditure

Total capital expenditures for the purposes of EU Taxonomy consists of additions resulting from business combinations to the following items in Aker Solutions’ financial statements: property, plant and equipment, intangible assets (excluding goodwill), lease assets and investment property. These are reported in the notes to the financial statements in note 10 Property, Plant and Equipment, note 11 Intangible Assets and Goodwill, and note 19 Leases and Investment Property.

Capitalized expenditure related to oil and gas projects are by interpretation of the Taxonomy regulation considered to be included in the KPI denominator as this is a part of Aker Solutions’ ongoing activity. Taxonomy aligned share of CapEx in 2023 relates to investments that is intended to expand Taxonomy-aligned activities. These investments are following our ambition of making renewable and transitional energy solutions represent two thirds of our revenue by 2030. Aker Solutions has made investments in 2023 that are not eligible or aligned under the EU Taxonomy even though they will be used to generate economic benefits for Taxonomy relevant projects.

Operating Expenditure

Total operating expenditures related to the EU Taxonomy consist of direct non-capitalized costs that are necessary to ensure the continued and effective functioning of assets. This definition is limited to research and development, building renovation measures, short-term lease, maintenance and repair, and any other direct expenditures relating to service of property, plant and equipment. The definition of operating expenditures deviates from the definition that is used in traditional financial reporting. Relevant operating expenses of NOK 60 million is included in numbers specified in note 6 Other Operating Expenses. The taxonomy-relevant amount of operating expenditure according to the EU taxonomy is immaterial for Aker Solutions and is omitted from reporting.

Aker Solutions has two reporting segments: Renewable and Field Development and Life Cycle. The Renewables and Field Development segment is working to accelerate the transition to renewables and carbon capture, in addition to improving efficiency and reducing carbon footprint in oil and gas deliveries. Some of our projects under this segment are not eligible under the EU Taxonomy.

Below are Aker Solutions’ eligible activities and the relevant EU taxonomy classifications.

Manufacture of renewable energy technologies (CCM 3.1)

Aker Solutions is delivering on several offshore wind projects where the company is in consortium with Siemens Energy to supply high-voltage, direct current (HVDC) converter platforms in different parts of the world. These activities are eligible under the activities 3.1 Manufacture of renewable energy technologies. Aker Solutions has included one project that will provide electricity to oil and gas platforms. Aker Solutions has several projects delivering on excitation, turbine governing and turbine technology towards new hydropower plants and rehabilitation and upgrades on existing hydropower plants. These activities are eligible under 3.1 Manufacture of renewable energy technologies. The assessment of CapEx associated with the delivery of these projects follows the conclusions made from the assessment of the projects. Most of our projects reported under activity 3.1 meets the relevant technical screening criteria and are reported as aligned. Aligned projects are making a substantial contribution to climate change mitigation and complies with the technical screening criteria in the Commission Delegated Regulation (EU) 2021/2139, including Appendix A.

Manufacture of other low carbon technologies (CCM 3.6)

Aker Solutions is responsible for the delivery of a complete new facility for capture, intermittent storage and offloading of CO2, with integrated waste-heat recovery. This project is classified under 3.6 Manufacture of other low carbon technologies. Aker Solutions’ scope includes engineering, procurement and management assistance. The project is making a substantial contribution to climate change mitigation and complies with the technical screening criteria in the Commission Delegated Regulation (EU) 2021/2039, including appendix A.

Transport of CO2 (CCM 5.11)

In the carbon capture and storage (CCS) industry, the company is delivering CO2 transport and storage onshore plant. These projects are classified under 5.11 Transport of CO2 . Aligned project is making a substantial contribution to climate change mitigation and complies with the technical screening criteria in the Commission Delegated Regulation (EU) 2021/2139, including Appendix A.

Construction of new buildings (CCM 7.1)

Aker Solutions has in 2022 and 2023 constructed new buildings, mainly at our yards in Verdal and Egersund. The buildings are required to deliver on our projects and the main purpose is to increase the capacity at our yards. The investments are reported as eligible. The technical screening criteria for activity 7.1 have not been met and the activity is not reported as aligned.

Installation, maintenance and repair of energy efficiency equipment (CCM 7.3)

Aker Solutions has made investments to replace ventilation systems at our yards and replaced oil boilers with heat pump systems and these investments are classified under activity 7.3. Some minor investments regarding replacement of energy efficient light sources is also included. The technical screening criteria for activity 7.3 have not been met and the activity is not reported as aligned.

Acquisition and ownership of buildings (CCM 7.7)

Under the EU taxonomy, new leases or changes to leases resulting in addition of RoU assets are considered CapEx similarly to buying a building. Additions to leases are reported under activity 7.7. Aker Solutions has screened all leases and consider leasing of permanent building as eligible activity. Further, the relevant leases are assessed for alignment. Available Energy Performance Certificates have been assessed and whether the respective buildings meet the specific criteria depending on the date when the buildings was built. As none of these buildings meet the technical screening criteria for this activity, the investments are not reported as aligned.

Key Performance Indicators 2023

Social safeguards:

The criteria related to social safeguards are assessed at a company level. Aker Solutions has continuous focus on human and labor rights, bribery, taxation and fair competition and has guidelines relating to these areas in our code of conduct, business integrity procedure, human rights policy, and sustainability policy.

Human and labor rights. Refer to chapter on human rights.
Bribery and corruption. Refer to chapter on corruption and bribery.
Taxation. Refer to note 9 Income tax in the Consolidated Financial Statements and our Country-by-country report which includes a description of Aker Solutions’ tax policy.
Fair competition: We carry out our activities in a manner consistent with all applicable competition laws and regulations, taking into account the competition laws of all jurisdictions in which our activities might have anti-competitive effects.

Aker Solutions assessed that the group is in compliance with all relevant social safeguard requirements.

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Do No Significant Harm (DNSH):

The DNSH- criteria have been assessed for all eligible projects and CapEx as a part of the alignment- screening. Relevant climate related hazards have been assessed, and durability and recyclability have been assessed where feasible. The assessment has been done through discussions with project managers, real estate controller and investment controller for each project or investment. As a contractor under various projects the alignment assessment relies on the project owner information and documentation, including assessment of physical climate risk and environmental impact assessment. For the DNSH criteria that reflect legal requirements under EU regulations, the technical screening criteria are considered met when the operations are conducted within normal, lawful operations, comply with permission permits, have been performed environmental impact assessment and necessary action have been taken when required. The projects and CapEx reported as aligned are considered to not do significant harm.

Aker Solutions has identified activities contribution to climate change mitigation. Proportion of Taxonomy-eligible and Taxonomy-aligned economic activities in total turnover and CapEx are as follows for 2023:

	2023
Total Turnover (NOK billion)	35.9
Taxonomy-eligible turnover (NOK billion)	19.3
Taxonomy-aligned turnover (NOK billion)	7.3
Proportion of Taxonomy-aligned turnover	20.3%
Total Capital Expenditure (NOK billion)	0.9
Taxonomy-eligible Capital Expenditure (NOK billion)	0.7
Taxonomy-aligned Capital Expenditure (NOK billion)	0.6
Proportion of Taxonomy-aligned Capital Expenditure	66.7%
Total Operating Expenditure (NOK billion)	5.6
Taxonomy-eligible Operating Expenditure (NOK billion)	0.1
Taxonomy-aligned Operating Expenditure (NOK billion)	0.0
Proportion of Taxonomy-aligned Operating Expenditure	0.0%
Total Revenue from eligible and aligned activities (NOK million)	7,275

Note on disclosure to nuclear and fossil gas related activities

Row	Nuclear energy related activities
1	The undertaking carries out, funds or has exposures to research, development, demonstration and deployment of innovative electricity generation facilities that produce energy from nuclear processes with minimal waste from the fuel cycle.# Sustainability Performance

No 2 The undertaking carries out, funds or has exposures to construction and safe operation of new nuclear installations to produce electricity or process heat, including for the purposes of district heating or industrial processes such as hydrogen production, as well as their safety upgrades, using best available technologies.
No 3 The undertaking carries out, funds or has exposures to safe operation of existing nuclear installations that produce electricity or process heat, including for the purposes of district heating or industrial processes such as hydrogen production from nuclear energy, as well as their safety upgrades.

No Fossil gas related activities
4 The undertaking carries out, funds or has exposures to construction or operation of electricity generation facilities that produce electricity using fossil gaseous fuels.
No 5 The undertaking carries out, funds or has exposures to construction, refurbishment, and operation of combined heat/cool and power generation facilities using fossil gaseous fuels.
No 6 The undertaking carries out, funds or has exposures to construction, refurbishment and operation of heat generation facilities that produce heat/cool using fossil gaseous fuels.
No Economic activities referring to row 4 above relates to deliveries to oil and gas fields which use gas from the field as source for electric power.

Sales revenue 2023 NOK million

	Eligible, not aligned	Aligned
3.1 Manufacture of renewable energy technologies	2,855	0.1%
3.6 Manufacture of other low carbon technologies	147	0.0%
5.11 Transport of CO2	656	0.0%
A. Taxonomy-eligible activities	3,658	10.2%
B. Taxonomy non-eligible activities	32,224	89.8%
Total (A + B)	35,882	100.0%

Capital expenditure 2023 NOK million

	Eligible, not aligned	Aligned
A. Taxonomy-eligible activities	1,328	41.2%
B. Taxonomy non-eligible activities	1,690	56.0%
Total (A + B)	3,018	100.0%

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Proportion of turnover from products or services associated with taxonomy economic activities

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Proportion of CapEx from products or services associated with taxonomy economic activities

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Energy

Aker Solutions has actual negative impacts on the environment through the company’s significant energy consumption, primarily from electricity used in operations and use of diesel for combustion. The majority of energy consumption is directly linked to the company's heating, transport and power generation where non-renewable resources are predominantly used. Energy consumption, especially from non-renewable sources is considered to have a negative impact on the environment as energy production and consumption can lead to air and water pollution, thermal pollution, and waste disposal. This intensifies global warming and climate change.

Type of Fuel/Energy	Consumption Units	2023	2022	Change from 2022
Acetylene	MWh	305	242	26%
Biofuels	MWh	408	1,276	-68%
Diesel	MWh	19,762	9,560	107%
Electricity	MWh	101,968	130,321	-22%
Gasoline	MWh	273	526	-48%
Marine Fuel Oil (MFO)	MWh	11,057	9,296	19%
Natural gas	MWh	24,453	15,401	59%
Propane	MWh	4,883	2,083	134%
Heating and cooling	MWh	5,106	N/A

Energy efficiency presents a significant opportunity for Aker Solutions to reduce operational costs and potentially benefit from incentives or lower cost of capital. Implementing energy-efficient practices and technologies can lead to substantial savings and align with the growing demand for sustainable business operations. Aker Solutions is committed to reducing its energy usage footprint through energy optimization, use of clean energy and energy waste reduction and has identified this as a material topic for Aker Solutions.

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Approach

To continue the focus on energy efficiency and conservation, we initiated the implementation process for ISO 50001 Energy Management in 2022. This is in addition to our existing ISO 14001 Environmental Management certification. The Energy Management certification program allows sites to systematically identify significant energy consumption, understand the factors affecting it and develop a reduction plan that will also reduce overall emissions. In 2023, we certified two key sites in Norway, our yard in Stord and our headquarters outside Oslo. The Energy Management certification process involves participation from facilities management, engineering design, supply chain, finance, HSSE, management, relevant suppliers, clients and employees. Together, they will assess current operations to develop the reduction plan and collaborate on improvements at the locations where we implement the program. Whether through use of equipment, day to day activities, procurement, or design for our clients, improving efficiency and reducing waste is critical. We manage our energy usage by monthly tracking and monitoring electricity consumption through a global emissions database. As part of our HSSE Policy and Sustainability Policy we are committed to conducting our operations through efficient use of materials and energy and to designing products and services to have no undue environmental impact, to be safe and to be efficient in consuming energy and natural resources.

Performance

In 2023, approximately 58 percent of our global energy was from renewable sources and 42 percent, or approximately 70,000 megawatt hours, was from non-renewable sources. The renewable sources were mainly from electricity generated hydroelectric and a small percent from use of biofuels. The total energy consumption for 2023 was 168,216 megawatt hours. The energy consumption was similar to 2022, even with the divestment of the subsea business. The contribution from that segment was approximately 20 percent. The increase in 2023 was directly from fuels and electricity use due to higher work activity during the first quarter of the year and for the purpose of heating. Even through we had started to implement the ISO 50001 requirements at some of our sites, the short term gains were insignificant due to the workload peak. We expect this to improve in the years to come.

Looking Forward

We will continue to integrate climate action into business processes throughout the company and increase focus on improving efficiency and reducing waste to reduce energy consumption. Some key areas that we will focus on are:

Photo: Northern Lights

Prioritizing infrastructure upgrades for energy efficiency
Electrification
Implementing ISO 50001 management system to drive continuous improvement on energy use in operations and in design of our products

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Nature and Biodiversity

As the natural world is rapidly disappearing due to over-development and exploitation, the importance of nature and biodiversity has received increasing attention. Protecting biological diversity is crucial for ensuring the survival and continuity of plant and animal species, genetic diversity, and natural ecosystems and is also linked to climate change impacts. Aker Solutions has a potential negative impact on species population size through its activities. Operations in sensitive ecological areas could disturb habitats and potentially reduce species population size and produce risk of species extinction. These potential disruptions may compromise the ecological balance, affect biodiversity, and lead to long-term environmental degradation. Impacts on the state of species is therefore one of Aker Solutions’ material topics.

Approach

We provide products and services to both land and marine environments and have operations in 15 countries. Aker Solutions has a role to play in conserving biodiversity and managing negative impacts of development and pollution. We do not have operations in many locations outside of existing industrial areas or within suitable designated land use classifications. We comply with local requirements to minimize our impacts. There are also indirect impacts to nature, through our value chain, from suppliers and sub-contracted work either from the materials we purchase for projects and/or from the services we obtain. Our Sustainability Policy includes a focus on biodiversity, ensuring that we mitigate impacts with proper management plans when operating in environmentally sensitive areas. We conduct risk assessments before embarking on new projects that may contribute to environmental impacts and ensure that adequate risk mitigation plans are prepared in accordance with requirements. Aker Solutions mandates the reporting of environmental incidents, including leaks or spills that may impact the natural environment. Any incidents are tracked and followed up. For more information on reporting and mitigation, see the Resource Use section of this report.

Performance

Most of our locations are within industrial areas, however there is still potential for adverse impacts. We ensure that spill and waste prevention plans are managed across all our operations to prevent pollutants from entering the marine environment. Our Verdal yard in Norway is located adjacent to an international bird area (IBA) and Ramsar wetland site 6. The yard has been operational since 1970 and we believe the current activities do not have impacts on the local birdlife. In addition, the development of any new areas must be within local and applicable legislation. Biodiversity issues could occur at project level and are managed by the facility owner or operator, mostly in marine areas. Aker Solutions’s role is to provide equipment and facility designs - in collaboration with our clients - that will reduce negative effects and promote potential nature positive measures.The latter particularly applies to redevelopment projects for power generation and carbon capture and storage.

Looking Forward
A screening of biodiversity and overall impact to nature will be conducted in 2024. This will provide a benchmark for Aker Solutions within biodiversity and nature and allow for improved reporting and risk and opportunity management for the topic in future years.

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6 A Ramsar site is a wetland site designated to be of international importance under the Ramsar Convention, also known as "The Convention on Wetlands", an international environmental treaty signed in 1971 in Ramsar, Iran. https://www.ramsar.org/

Resource Use and Circular Economy

In Aker Solutions’ operating environment, circular economy concepts and responsible management of resources to reduce and reuse waste are seen as highly material. In addition, actual and potential chemical spills and leaks to land, air and sea ecosystems are crucial and relevant to our environmental management system. Aker Solutions has potential impacts on the environment through its waste management practices. Waste can be a resource when reused, promoting a circular economy, while improper management can severely harm ecosystems, especially without containment. Inefficient waste management and resource use is considered to have a negative impact on the environment as it increases the amount of waste destined for landfills, leading to potential soil, water, and air pollution. The ineffective use of resources also undermines the principles of a circular economy, thereby causing unnecessary extraction and consumption of natural resources. Aker Solutions relies on a significant inflow of materials, both non-renewable and renewable, for its manufacturing and operations and this impacts the environment and economy. This consumption, especially of non-renewable resources, can strain natural reserves and disrupt local ecosystems. Resource extraction and transportation further contribute to emissions and potential habitat degradation. Post-use, products and components can become waste if not effectively recycled or repurposed. This waste can end up in landfills, contribute to environmental pollution, and waste valuable materials that could otherwise be reintroduced into the production cycle, fostering a circular economy. Aker Solutions has a potential negative impact related to resource outflows, specifically the waste generated from its products and services. Through its product design and decommissioning services, Aker Solutions has an actual positive impact on the environment related to the inflows of material. Aker Solutions’ products are made of materials with high repairability or recyclability and the company has been actively working on decommissioning offshore facilities. This promotes the principles of the circular economy, reducing waste, and minimizing resource depletion. Aker Solutions has a potential negative impact on the environment through chemical spills and leaks. Spills and water pollution incidents can have devastating effects on the ecosystem, especially when they occur without containment and in the natural environment. As a supplier to the energy industry, the company’s direct environmental impact is limited, however, the pollution of water is considered a material topic for Aker Solutions due to the location of facilities and the potential for contamination of coastal areas, soil and fisheries. As a leader in the energy transition, Aker Solutions is committed to maintain vigilance over its activities that could cause pollution. Waste, resource inflows and outflows and water pollution are material topics for Aker Solutions.

Approach

Our enterprise HSSE Policy and Sustainability Policy promote responsible handling of waste and prevention of spills and leakages from our operations. The management of these material aspects is part of our proactive business operations, and we work closely to ensure that if there are occurrences, there is a mitigating action planned and any incidents are investigated with lessons learned developed. We promote reporting of environmental related observations, and mandate reporting of all incidents, including near misses, as a means of rectification of any gaps in the operations. We continuously monitor governmental guidelines, directives and regulations regarding the environment to ensure that we are informed and prepared for changes. All of our waste is handled and disposed of third-party service providers, either contracted by Aker Solutions or by the facility management if not an Aker Solutions-owned property.

“ We take ownership in creating a more sustainable future. Our impact assessment includes minimal risk of chemical spills during transport, use and storage of all chemicals on a site. Small spills and leaks have occurred due to manual handling activities during transfer of chemicals, defects in storage containers and leakage from machinery or equipment containing chemicals due to loosing of seals, overfilling, movement, etc. Mitigation measures such as secondary containment and transportation processes are integrated into the designs for proper storage. In the event of a spill, there is an emergency mitigation plan for containment, for prevention of the spread and for contamination of the natural environment. Should a spill occur, it is reported, and necessary actions are taken. Lessons learned and future preventive measures are incorporated where relevant. We take ownership in creating a more sustainable future by promoting recycling, reuse, and circular design in our solutions and throughout our value chain. This is also an area that is promoted in the LCA process, where materials that have improved recyclability or reuse can be selected as an additional way to reduce waste and emissions.

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Performance

In 2023, Aker Solutions experienced only minor spills with limited impact. Aker Solutions was not subject to any significant fines or sanctions for non-compliance with environmental laws and regulations, and no grievances about environmental impact were filed through formal channels in 2023. There was 21,118 tonnes of waste generated in 2023, an increase of 42 percent from 2022. Of this increase, 26 percent was from one event, a site clearing activity in early 2023, that totaled 5,376 tonnes. 98 percent of that amount was metal waste that was recycled. The waste reported is from our direct operations and does not include decommissioning projects. Data from decommissioning is included in our emissions reporting for scope 3, category 12. Our top three waste categories are:
* Metal waste (53 percent, 119 percent increase over 2022): includes residual from fabrication/construction activities
* Residual waste (28 percent, 5 percent decrease from 2022): includes sandblasting residues that are sent to landfill
* Wood waste (8 percent, 5 percent decrease from 2022): includes packaging material

Looking Forward

We continue to strategize on prevention tactics, that includes pollution prevention, spills and unexpected releases from our activities. In addition, below are focus areas:
* Increasing waste management to reduce total waste, by waste reduction
* Promoting circularity strategies through project planning to increase recycling and reuse internally or externally

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Material Topics covered in this chapter are:
* Health and safety of own workforce
* Corporate culture
* Equal treatment and opportunities of own workforce

The former Subsea segment of Aker Solutions is excluded from data and information reported in the social section of the report, except where noted.

Materiality analysis →

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Social Health, Safety and Well-being

Aker Solutions believes in promoting safe, reliable and sustainable operations to achieve our goal of zero harm to people, assets and the environment. We employ about 11,500 people in 15 countries, and we work closely with our employees, clients and our wider supply chain to mitigate the impacts on employee health, safety and well-being. Inadequate health and safety management can lead to accidents, illnesses, and other harmful consequences for workers and other stakeholders. Aker Solutions has an actual impact on our employees as we directly influence their health and safety conditions. The likelihood of negative impacts is minimized by rigorous industry regulations and effective internal controls, and we strive to be a leader in managing potential impacts in these areas. By effectively caring and safeguarding our workforce, Aker Solutions may realize an opportunity as a preferred, responsible employer. Aker Solutions has a potential impact on the economy, environment, people, and society due to our responsibility towards handling emergency situations. These emergencies can severely disrupt business continuity and have ramifications that affect the broader community. The corporate culture of identifying hazards and managing risks combined with our emergency response preparedness is crucial to mitigating these potential impacts. On the other hand, a lack of preparedness can exacerbate the negative consequences of any emergency. The health and safety of our workforce and the corporate safety culture are material topics for Aker Solutions. The global security threat picture continues to be challenging with more intense warfare in Ukraine, the Hamas/Israel conflict and the general situation in the Middle East. Our emergency response procedures have been modified, and drills have been performed to be prepared for situations that may affect Aker Solutions.# Approach

Aker Solutions’ operating HSSE (health, safety, security and environment) management system provides clarity and drives accountability into the organization. The system is designed to deliver our HSSE Policy and defines how everyone in the organization shall focus on their own and their colleagues’ health, safety and well-being. Aker Solutions is certified to ISO 45001- Occupational Health and Safety and our management system is based on the principles and requirements provided in this standard. Procedures and work instructions are developed based on requirements in ISO as well as local and country-specific legislation. Compliance obligations for each country covers local legislation and requirements. Our HSSE management system includes requirements for all employees, external personnel, suppliers and visitors working at or visiting all Aker Solutions locations. To ensure continual improvement of the system, the business level annual reviews are also included in the Aker Solutions Management Review. In addition, regular internal audits at the location level and an annual external audit are important parts of our improvement process. In 2023, information regarding occupational health and safety was mostly distributed on Yammer, our internal communication and networking tool. Information is also shared on local intranet pages and screens in common areas, where available. Further information on Aker Solutions’ approach to safeguarding people and assets and our commitment to HSSE can be found on our website.

Working Environment Committee (WEC)

The goal of Aker Solutions’ Working Environment Committee (WEC) is to progress and implement a safe working environment in the company. The committee takes part in planning the safety and environmental work and carefully monitors developments in the working environment. Leadership of the committee alternates between Aker Solutions management and employees every second year. The committee operates on a quorum basis, and in the case of a tied vote, the chair has the casting vote. The chief safety representative is a permanent member, while other employee representatives are chosen by the trade unions and the management’s representatives are appointed by the company. Trade unions that do not have their own representative may state their views to one of the representatives or directly to the chief safety representative in the committee. The WEC meets at least four times per year, and extra meetings can be called if needed. Aker Solutions has one Corporate WEC and sub-committees per segment. Each sub- committee is made up of employees and delegates from the individual locations, with representatives from projects, departments and HSSE.

Responsibilities of the Working Environment Committee:

Answer questions relating to:
- Company health service and safety service
- Training and instruction in areas that may affect the working environment
- Adaptations for employees with disabilities
Manage plans for new buildings, processes or modifications that require the consent of the Norwegian Labour Inspection Authority and plans that may have a significant effect on the working environment, such as new machinery, rationalization measures, changes to work processes and preventive safety measures
Participate in Aker Solutions’ health, safety and environment work and in mapping and preparation of action plans. Provide advice on prioritizations and measures
Assess the health and welfare aspects of working schemes
Review all reports on accidents, near- accidents and illnesses that may be due to the working environment. Focus on the causes of incidents and ensure that the employer does whatever is necessary to prevent these from happening again
Review results and reports from occupational health surveys
Prepare an annual report describing the activities for the year

Safety Culture

In 2017, Aker Solutions launched a global HSSE mindset program. The quarterly program has continued with four new modules each year. In 2020, Aker Solutions entered into a collaboration agreement with key customers and peer companies to deliver common modules across our operations on a quarterly basis. More details can be found online at Always Safe. Key focus areas were avoid major accidents, prevent personal injuries, safe work at heights/prevent falling objects and working environment. The annual program creates awareness of the main HSSE risks and opportunities to ensure our employees are prepared to handle these situations correctly in their daily work. We collaborate closely with our clients on HSSE. It is a significant part of the onboarding process when contracts are awarded. Duty of Care audits are completed prior to mobilizing personnel and our personnel are encouraged to exercise their “Stop Work Authority” whenever they see a condition that they feel is unsafe, whether or not they are at an Aker Solutions site. We also work to influence and build health and safety measures through our participation in organizations like the International Association of Oil & Gas Producers (IOGP), Step Change in Safety (UK), Norsk Industri (Norway) and many other organizations around the world.

Identifying Hazards, Managing Risks

Risks related to HSSE are defined as a risk category in the Enterprise Risk Management (ERM) procedure. On a company level, these risks include physical security threats, crisis management risks, the risk of major accidents related to malfunctions in our products and / or insufficient service, and the risk for fatalities, serious injuries or environmental spills in our own operations.

Occupational Health Services

Aker Solutions has occupational health services contracts at all locations where mandated by national regulations or client requirements. Additional information about Aker Solutions’ Safety Culture is available on our website. This information includes the adoption of IOGP’s Life-Saving Rules, implementation of a global Stop Work Authority and the training and tools used to promote and monitor safety in the organization, our approach to identifying and managing HSSE risks, and occupational health services.

Performance

Target values 2024	Actuals 2023	Target values 2023	Actuals 2022	Actuals 2021
Fatalities 0	0.00	0.00	1.00	0.00
SIF <0.15	0.12	0.15	0.29	0.11
LTIF <0.22	0.20	0.13	0.34	0.18
TRIF <1.00	1.29	1.07	1.32	1.00
Sick leave (%) <3.50	3.37	3.59	3.16	3.60

Our overall safety performance in 2023 has been quite stable compared to the prior year. TRIF and LTIF have increased and SIF has decreased in 2023, as shown in the table above. These results are considered good when taking into account the increased workload and increased proportion of skilled workers in risk-exposed roles. Sick leave is improving slightly, and we see it slowly returning back to the level before the COVID-19 pandemic. Sick leave is very different in different countries, in Aker Solutions as for the rest of the world. We analyze sick leave country by country and the trend looks positive.

Looking Forward

2024 will see continued high activity and a large number of new recruits into our company. The workload at our subcontractor sites will also increase, especially in Dubai. Quality inductions to ensure that work is properly planned and executed safely will be our top priority. In summary, we intend to stay the course with our HSSE strategy for 2024. We will continue to focus on managing risks in our operations, implementing our Control of Work Process, and developing our HSSE leadership to reinforce a proactive HSSE Culture. We will also increase the focus on compliance and verifications to secure good performance in the upcoming high-activity period.

7 2023 actuals for SIF, LTIF, and TRIF based on man hours of 49,527,383. 2023 total recordable injuries = 64 (includes 10 lost time injuries); serious incident = 6 (1 serious incident resulted in 2 recordable injuries). Sick leave, incidents and injuries occurring prior to divestment of the subsea business includes any relevant injuries from subsea employees/operations.

Human Capital

Our people are at the heart of what we do and who we are as a company. Our goal is to make Aker Solutions a place where everyone can perform at their best by creating opportunities for all. Aker Solutions has one of the industry’s most admired environments for concept development and front-end engineering work. Our ability to solve challenges and deliver value to our stakeholders is empowered by the diversity of our workforce. In 2023, our workforce consisted of 19,454 own and contract employees globally. We employed 92 nationalities and our gender balance was 21 percent female. During the year, we welcomed over 1,650 new employees. We seek to increase the diversity of our workforce and see people’s differences as a potential source of creativity, innovation, and a key competitive advantage. To leverage this diversity we focus on building a strong inclusive culture where our colleagues feel they can bring their full self to work. A lack of workforce diversity and unequal treatment of employees can have significant negative social and economic impacts. As diversity ensures richer perspectives, enhances innovation, and promotes fairness in the workplace, a homogenous workplace can limit varied inputs and opinions in company decisions and has a negative social impact. In addition, unequal treatment undermines the work environment and may negatively impact the overall company morale and productivity. We acknowledge that our people and their competence will enable us to accelerate the speed of the energy transition.# Board of Directors’ Report

Sustainability Performance

We recognize the potential negative socio-economic impacts of rapidly changing employment opportunities during the energy transition and the positive impacts our workforce can experience when we invest in our employees and their professional development and personal growth. Through our emphasis on training and leadership development, Aker Solutions plays a pivotal role in preparing our employees for evolving opportunities amid the energy transition. As the energy sector shifts towards more sustainable alternatives, the competence and preparedness of our employees become even more crucial. This impact is considered to positively influence the workforce and our adaptability to industry changes. Equal treatment and opportunities for our own workforce is a material topic for Aker Solutions. Aker Solutions is a global company consisting of several legal entities. When describing the Norwegian part of the organization in this chapter, we are including all legal entities with employees in Norway. With regards to the threshold in Norwegian reporting obligations on workplace equality and diversity, the following Norwegian legal entities have more than 50 employees: Aker Solutions AS, Benestad Solutions AS and Aker Solutions Hydropower AS.

Diversity, Equality and Inclusion

Aker Solutions is committed to the principles of non-discrimination and equal opportunity, regardless of gender, age, nationality, or other factors. In accordance with our Code of Conduct and People Policy, we work hard to ensure that all personnel processes are free of biases both by design and in practice. We also monitor and promote diversity and equal treatment in recruitment, promotions, competency development and salary reviews. Aker Solutions has a procedure for handling whistleblower cases, and it is followed with respect to investigating discrimination allegations. For more information on the whistleblower channel, see the Corruption and Bribery section of this report. Aker Solutions has a diverse workforce, which we seek to develop and motivate further through strategy involvement, competency management, employee engagement, career development and leadership training. We are committed to enabling local staff to move into management positions, in support of rules for local content and job creation for nationals enacted in some countries. Local management teams actively seek to promote, build, and retain local talent, ensuring legal compliance and securing long-term operations. To strengthen our progress on diversity equality and inclusion (DEI), Aker Solutions established a distinct role and function for this in 2023. During the year, work has been ongoing in close collaboration with employee representatives to establish a strategy, clearer direction and corporate targets that will be launched in 2024. Our gender diversity targets were launched in early 2024 and are described later in this chapter.

Ensuring a good working environment is essential to our safety and performance. We continuously monitor and analyze statistics and survey data to get early indicators and focus on resolving any issues both on a structural and individual level. Aker Solutions builds on our Norwegian traditions for a strong and engaged collaboration with our employee representatives/trustees/safety delegates in relation to this work.

Working environment committees (AMU/ KAMU), Inclusive Worklife (IA utvalg) and DEI committees are an integrated part of our organization on all levels and follow an annual structured process for assessing risks, setting priorities and actions and evaluating the outcome of these. In 2022, a comprehensive survey on working environment was carried out in Norway. The results and analysis from this data have been utilized as an important source for identifying risks and improvement areas over the course of 2023. This resulted in concrete follow-up and actions locally, where focus groups participated together with leadership, safety delegates and unions. During 2023, the prioritized areas in Norway were actions to improve and address mental health, work life balance, addiction prevention (AKAN) and stress. Our efforts to prevent and handle cases of substance abuse and addiction were recognized by the national educational consultant group AKAN Norway, and Aker Solutions was awarded “AKAN company of the year” in 2023.

In the UK, our DEI committees have previously been split into individual committees – Gender Inclusion; Cultural; Well-being Champions and Neurodiversity. Going forward we are combining these into a joint DEI Forum which will allow us to work more cohesively together with our Employee Consultative Forum (ECF) and Young Solutioneers community. During 2023 we encouraged our personnel to note their volunteering hours and we saw a large increase in people giving their time.

Engagement and Awareness

Throughout 2023, we have arranged global and local events to raise awareness, engagement and competence on several topics related to DEI. In the UK, a national inclusion week was held, including events on women’s health and menopause awareness; men’s health awareness; and safety and environment. Moreover, various bake sales were organized for the benefit of local and national charities. Globally, we have marked the importance of diversity and inclusion through various internal campaigns such as celebrating International Women’s Day, Pride month and arranging a virtual Pride event, as well as workshops and training on mental health and cultural awareness.

A More Inclusive Working Life

Aker Solutions recognizes our societal role in improving equality and providing opportunities for those who face barriers in reaching their potential in the workplace. Creating an inclusive workplace also means that we need to scrutinize how we recruit and source talent, removing obstacles and mitigating any bias in our processes. We are an active contributor to the Norwegian cooperation on inclusive working life (The IA Agreement), and work systematically to reduce sick leave and withdrawal from work life. Through our collaboration and support to the VI foundation (Stiftelsen VI), we focus on the importance of including people who identify as disabled or neurodiverse. In 2023, we contributed to their conference on Inclusive Working Life (Ett Arbeidsliv - like muligheter), where more than 30 companies and governmental institutions participated. In 2023, our yard in Egersund established an agreement with NAV (the Norwegian Labour and Welfare Administration) to step up our efforts as an inclusive employer, and enable opportunities for people who are facing barriers in finding a job through regular recruitment. A dedicated role has been established to work exclusively with this group of candidates, matching them with opportunities and supporting line managers with onboarding and training towards a goal of permanent employment. So far, we have accepted 15 candidates through NAV, and seven have become permanent employees. Based on the positive experience from Egersund, we plan to expand this initiative and build on the lessons learned at other yards and office locations in 2024. As part of our work to address neurodiversity we have launched an initiative to improve inclusion of people with dyslexia. The initiative includes training and a toolbox as well as efforts to adapt courses, e-learning and internal communication to be increasingly dyslexia-friendly. The initiative will continue in 2024.

Training and Leadership Development

Our leaders are challenged to protect and improve our current position within oil and gas and successfully accelerate our entry into the renewables space, exploring opportunities of digitalization and innovation. This not only tests the balancing act of short-term/long-term business perspectives, but also requires that our leaders recognize the tension between two distinct leadership capabilities – the operational and the transformational parts of the leadership role. Close contact with operations and a solid understanding of the strategy and how we operationalize it is expected. Good industrial relationships are an important part of Aker Solutions’ history and culture. We encourage employee representation in our business units worldwide. Employee representatives provide employees with influence and lines of communication through their participation in working committees, on the board of directors and in operational improvement and organizational change projects. This is part of our commitment to human and labor rights. Our focus on accelerating the transition to sustainable energy production, and doing it responsibly, resonates with the next generation who want to contribute to the energy transition. Retention of talents and key personnel is instrumental to achieve this. We aim to strengthen our leadership pipeline, developing leaders that are diverse and multi- competent with a dialogue-based leadership mindset. Through execution of a structured succession planning process, we have been able to identify successors for our key leadership and project management roles and strengthen our leadership pipeline. We are currently building and developing a set of programs and concepts around the topic of leadership. These are customized for different target groups with different aims. ◼ The Project Execution Program was launched in 2022 with the goal of strengthening project execution capabilities. Focus is on strengthening project leaders’ total project value chain understanding, share knowledge and build networks across the company. In 2023, more than 100 leaders from EPCI(C) projects participated in the program.

Financial Statements

Appendix

Aker Solutions’ Mentoring Program was relaunched and evolved to include both professional and personal development.

Aker Solutions Leadership Practices, a framework that clearly defines expectations to all leaders, was built, launched and integrated in all our programs as well as worked on through a numerous workshops.

Leadership Learning Journey Program is our current global leadership development program. Participants included employees from Brazil, Brunei, Canada, China, Congo, UK, India, Malaysia, Norway and USA. More than 450 leaders have attended this program since it was established in 2020.

Leader team development was extensively executed as part of our reorganization in 2023. More than 60 leadership teams have worked through one or more modules with the aim of developing more efficient leadership teams.

CXO is an executive leadership development program across the Aker companies. This is run yearly, and Aker Solutions contributes with 4-6 participants. Programs and development concepts on Change Leadership, Leading transformation in a digital context, as well as a yearly leadership summit is currently work in progress and will be launched during 2024.

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People and Team Development in our Capital Projects

In 2023, we have invested in the build-up of capacity to drive the People and Teams agenda inside our most complex and strategically important client/partner projects with dedicated People and Teams Managers. Responsibilities include the overall design, planning, and execution of organizational development activities in the project. This includes:

Leadership Development
Tailored efforts to align and develop effective Leadership Teams (L1 - L3), both internal teams and towards Customers/Partners. People and Teams managers offer support to current leadership and the development of a strong succession pipeline; running leadership initiatives/programs, utilizing deputy roles, and collaborating with basis organization to support mentoring and succession processes.
Team Alignment and Development
Establish and continuously follow up common goals and ground rules for co- operation established together with Customer and/or Alliance partner to secure “one team mindset”, and clarify project and stakeholders’ expectations, roles, and responsibilities.
Competence Development
Secure effective onboarding and familiarization of new project personnel is important to get new team members quickly up to speed. People and Teams managers also do training- needs-analysis and deliver fit for purpose learning journeys to project members, closing specific project related competency gaps. Increased focus on building a holistic value chain understanding, driving a continuous improvement culture, accelerating adoption of new tools/systems and ways of working.
Culture and Employee Engagement
Each project run their own Pulse Checks to monitor organizational effectiveness and engagement, and results are being evaluated and follow-up measures put in place. Targeted social and communication activities are prioritized to build a strong project culture and employee engagement as part of the People and Teams managers’ areas of responsibility.
Project Organizational Structure and Efficiency
The People and Teams managers act as catalysts for cross functional collaboration (HSSE (Health, Safety, Security and Environment), Quality/ Continuous Improvement, IM/Digital etc.) around project specific improvement initiatives, and contribute to a project organization that is effective implementing structural /non-structural measures, such as change of key personnel and new team/ organizational set up.

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Project Execution Excellence sits at the core of Aker Solutions, and most of our employees ‘live their lives’ in projects. A high performing project organization does not only safeguard project objectives and delivery, but is also the main vehicle for developing our people and improving our ways of working for future success.

People Development

In 2023, we established a strategic workforce network and implemented a new strategic workforce planning process to ensure a stronger alignment between our strategy, business plans, project portfolio, and the people capabilities we develop. Our workforce planning process involves resource managers and key stakeholders, and defines the competencies and capacities needed to support our existing project portfolio and meet future capacity and competency requirements. We aim to effectively mitigate gaps through initiatives such as people development, recruitment, and partnerships.

Aker Solutions is committed to creating an environment where everyone has the opportunity to learn, build new skills and further develop. To support employees in developing their competence in the emerging market, Aker Solutions has an ongoing competency lift project called #SKILLS. The #SKILLS learning initiative, launched in 2022, is a platform and community consisting of multiple tools and resources to learn, develop and share knowledge. For example, we provide access to world-class online learning content, such as Coursera, and we collaborate with several universities and partners to upskill our employees within our critical skills identified.

Aker Solutions increased its own self-produced course offering by an impressive 73 percent in 2023 from the previous year. On average, our employees spent 5.9 hours each on formal training in 2023, in addition to other informal internal and external knowledge sharing activities.

8 At Aker Solutions, we are committed to empowering our workforce with the skills necessary to thrive in an increasingly digital world. As part of this commitment, we have introduced the App-Farm upskilling program—a comprehensive initiative designed to cultivate digital low code champions within our organization. This program offers employees the opportunity to immerse themselves in Power Platform low-code development, including training in Power BI, Power Apps, and Power Automate. Over a three-month period, participants not only acquire essential digital skills but also have the chance to apply their new knowledge by developing their first Minimum Viable Product (MVP) for the company.

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8 Hours included are from regular and temporary internal employees active at one point in 2023, including subsea employees up to October 7, 2023. The data includes all learning hours from course completions, both instructor-led and e-learning, as well as completions from Coursera that are registered in Aker Solutions internal learning portal. This data does not include project-related training/training paid for by clients.

In 2023, App-Farm trained 25 individuals in Power BI, Power Apps, and Power Automate, enabling them to develop custom solutions for their projects or departments. We also hosted a successful "Power Platform Week" in collaboration with Skills with 300 attendees throughout the week, and we conducted eight physical workshops across multiple locations like Bergen, Oslo, Trondheim, Stavanger, and Kuala Lumpur. These efforts led to improvements in digitalization across various administrative and project tasks, reaffirming our commitment to enhance everyday digitalization, upskill the organization and create citizen developers.

In 2023, Aker Solutions made a significant leap in our approach to talent development and recruitment with the establishment of the Stord Academy. This initiative represents an evolution from traditional training models in the industry, introducing a dedicated training center located just outside the yard premises. Equipped with state-of-the-art classrooms and facilities, the center is supported by a team of specialized instructors covering nearly all industrial trades. The mission of the Stord Academy is multifaceted: to attract, develop, and retain young talents who are the future workforce, to advance professional skills, and to provide training and certification for both new and existing employees. We are also setting a new industry benchmark in recruitment, skill enhancement, and operator- level competency requirements. By standardizing procedures across our yards and implementing models that ensure all contracted resources possess the necessary skills, we guarantee the quality of our work. This includes measures such as site tests, familiarization programs, and background checks. Additionally, we offer essential health, safety, security and environmental (HSSE) courses, including training on handling falling objects and fall protection, further underscoring our commitment to workplace safety. Through the Stord Academy, Aker Solutions reinforces its leadership in industrial competence and sets a new standard for the development of the future workforce.

Apprentice Program

During 2023, Aker Solutions recruited a total of 136 apprentices in nine locations in Norway: Verdal, Egersund, Sandnessjøen, Stord, Ågotnes, Moss, Tranby, Bergen and Stavanger. The aim of the apprentice program is to increase the number of skilled workers much needed in Aker Solutions and in Norway. Close collaboration between schools and the training offices ensures high-quality training in the use of advanced technology, such as robotics and automation. At Aker Solutions, apprentices can do a variety of work and gain experience on different sites, onshore and offshore.# Menu
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They can earn several certificates of apprenticeships and develop through different positions and degrees of responsibility in the organization. In 2023, Aker Solutions was awarded the prize for best apprenticeship company in Rogaland county, Norway.

Performance Development

In 2023, we also redesigned the Performance Development process where the purpose is to align people around common priorities, accelerate performance and support people in their growth and development. Frequent communication and dialogue between managers and employees about priorities, performance, improvement and personal and professional growth are core elements in our Performance Development approach.

Based on employee input from the strategy and culture workshops in 2021, and input gained through a systematic process including all segments and regions, six strategic skills have been identified as key to manage Aker Solutions’ strategic transformation:

Digital
Leadership
Change readiness
Technical and professional
Positioning, execution and commercial awareness
Environmental, social and governance (ESG)

Regardless of role or organizational belonging, all areas are relevant for development of Aker Solutions’ employees. Our collective competence is a key enabler for Aker Solutions’ ability to deliver on current and future ambitions. We are therefore supporting employees to build future-fit competence and are continuously updating our learning offering. We continuously monitor the uptake of all formal learning to ensure management focus and further optimize our learning portfolio.

Stakeholder Feedback

Aker Solutions’ Employee Pulse Check Survey was conducted twice in 2023. The survey is comprised of ten short statements, of which half address employee motivation and engagement while the other half address collaboration and organizational conditions. The main purpose is to monitor and gain insights into employees’ perceptions of own work motivation, team dynamics and organizational effectiveness and increase understanding of how the employee experience impacts our overall operations and drives our transformation agenda.

Line managers and teams meet to share the results and discuss plans to maintain or improve the work environment. The results are acted upon in different ways depending on the issues that surface in the reports. Support and reflection tools are available for teams and managers to foster this process. The results are also discussed in company democracy forums with union and safety representatives to ensure stakeholder engagement, capture valuable input and feedback, and collaborate on how the employee experience can be further improved.

We recognize that a balance between work and personal needs is important in supporting a healthy, motivated, and productive workforce. We have a variety of global and local programs and policies to help our team members achieve success at work and at home, while making their workplace an enjoyable and safe place. We have continued to stimulate and fund local welfare clubs and initiatives with a broad sport and social activity range for all employees. We have strengthened the platform for our global community of young professionals, Young Solutioneers. The valuable input from our young professionals, combined with our strong co-operation model with union representatives both in Norway and globally, continues to help our management team as we further develop the employee value proposition.

As a result of the new subsea company established together with SLB in 2023, the number of employees in Aker Solutions decreased. In addition, the reduction in our international footprint led to a decrease in the number of employees in most of our international locations. At the end of 2023, the number of own employees was 11,473. Building upon a strong and healthy company culture in line with our purpose and attitudes is important for us as we continue to grow. Employees in Norway account for 75 percent of our own employees. Additional data and figures on our employees can be found in the appendix.

Globally, we strengthened our focus on initiatives to promote greater diversity in 2023 through a focus on recruiting female candidates and promoting women to leadership roles. As the table above reflects, there was an increase in recruitment of females and an increase in the percentage of total share of female employees in Aker Solutions in 2023. In 2023, Norwegian students ranked us as 7th most attractive workplace in Norway and 2nd place within Engineering and Computer Science. According to the Universum’s Young professional survey fall 2023, Aker Solutions climbed from 21st to 11th place as most popular employer within IT.

	2023 Gender % Female	Age Groups	2023	2022
Board of Directors	45.0%	0.0%	27.3%	72.7%
Top Management 10	30.4%	0.0%	49.3%	50.7%
Own Employees office	26.6%
Own Employees non-office	7.4%
Total own employees	21.4%	16.1%	49.3%	34.6%
Recruited	25.5%	27.7%	59.6%	12.7%

The percentage of women in top management positions remained steady from 2022 to 2023 at 30 percent. However, the percentage of women in leadership roles has increased from 21.7 percent in 2022 to 24.5 percent in 2023. While this is an improvement, further increasing the share of female employees will remain a priority. As the majority of our work takes place in projects, increasing the number of females taking on project leadership roles also remains a priority. This is why, in early 2024, we announced enterprise gender diversity targets aimed at achieving gender balance, especially in leadership roles. This balance is essential for fostering an environment where all voices are heard and valued. Our targets are:

By 2030, gender balance among our top 200 leaders
By 2025, 15 percent increase in female leaders in both line and project roles
Gender balanced graduate intake in 2024

In the statistics for higher education in Norway within the Science,Technology, Engineering and Mathematics (STEM) subjects there is a skewed distribution of the number of female students compared to male students, which results in a similar and a lower gender diversity in the company. A concrete action in this regard is that Aker Solutions in Norway is an active partner and sponsor of the female and non-binary network for students at the Norwegian University of Science and Technology (NTNU), where we highlight female success stories and employee journeys (internally and externally). Diversity is also an integrated part of our recruitment processes, across all levels.

We have maintained our focus on providing employees with an adequate workplace and arenas to interact with other colleagues. This includes initiatives such as free online and in- person exercise classes for employees, relevant equipment for home office and use of digital tools to interact and connect with employees for work and socially. The framework for working from home is now incorporated into the company’s employee handbook.

Looking Forward

In 2024 we will continue to focus our efforts on initiatives to promote greater diversity, leadership, culture, organization and competence development. The following priorities within diversity and equal opportunity are a continuous focus:

Performance process and dialogue sessions for teams and individuals that will include culture and competence development
Focus on number of female employees in leadership positions and building a strong and diverse leadership pipeline
Talent recruitment and retention with increased focus on diversity in our workforce including demographic profile, nationalities and gender
Align corporate and country specific DEI forums to champion diversity and inclusion activities across the organization

According to the Norwegian Equality and Discrimination Act, Norwegian companies have an obligation to map and actively work to prevent discrimination and gender inequality in the company and must report on gender pay gap among employees every other year. The key findings from our gender pay analysis are presented below. The figures are related to employees in Norway only and reflect all registered Aker Solutions Norwegian companies. Gender pay reporting is not separated by company registration. Aker Solutions Norway’s pay structure is centrally organized and run (i.e. there is one pay structure and pay processes for all companies). Being employed in another registered company therefore has no impact on salary policies. The operation and leadership of the company is unified and transcends the legal company structure. For Norwegian reporting purposes (ARP), all legal entities are therefore included and described as inherent parts of the parent company. The entities with employees included in the total numbers are Aker Solutions AS, Aker Solutions Hydropower AS and Benestad Solutions AS. The reporting excludes employees transferred out of Aker Solutions in connection with the establishment of the OneSubsea entity. Diversity reporting in other countries is done according to local requirements.

Main Findings for Norway

The energy industry is a male dominated industry. Availability of female candidates with education within STEM is increasing, but is still low in most of the markets where we operate.# The uneven gender distribution in the organization influences the pay gap.

Our 2023 reporting shows a similar base salary pay gap in all levels of the organization compared with 2022. The gap is higher for total compensation than for base salary because men work more overtime and have more variable compensation elements (e.g., compensation for shift work or odd hours) than women. The level of temporary and part time work in the organization is low, and no involuntary part time work is identified.

Gender Distribution in the Norwegian organization

The gender distribution shows that 80 percent of our employees are men in Aker Solutions’ Norwegian organization. Among non-office employees, 93 percent of the employees are male.

Norwegian Gender Pay Gap

The gender pay gap reporting shows women’s average salary in percentage of men’s average salary for the relevant position level – both for base salary and total compensation. The 2023 analysis shows that the base salary pay gap remained largely the same compared to 2022 with an aggregate total reduction of one percent. In total compensation, however, the pay gap continues to exist between women and men.

In the executive and senior management levels, the reason for difference in total compensation is largely due to more female executives being promoted in 2022, impacting their bonus payments in 2023. As figures reported reflect paid remuneration as opposed to earned remuneration during the year, a higher proportion of females have 2023 payments related to positions at a lower level. For levels below senior management positions, the gap widens since men worked more overtime than women and had more variable compensation resulting from shift work, irregular hours, etc. For entry and junior professionals, the number of female employees in the data pool was less than ten. As such, the uneven gender distribution impacts the pay gap for both base salary and total compensation.

Aker Solutions has a mandatory global compensation procedure to ensure gender neutral pay and mitigate unconscious bias. The procedure includes principles for determining basic salary, for annual salary review process, and for out of cycle salary adjustments. There is no pay gap for non-office employees related to base salary as this group follows a tariff salary scheme based on education years. For total compensation the pay gap is 97 percent as more overtime and irregular payments related to working time is registered by men. The total weighted women’s average salary in percentage of men’s weighted average salary (including non-office roles) is 96 percent for base salary and 91 percent for total compensation.

63 Temporary Work, Part Time and Parental Leave in Norway

Temporary Work

Most of our Norwegian employees are employed on permanent employment contracts. Attracting and developing new competence is critical for Aker Solutions and the employment of apprentices is an essential part of this effort. Apart from a small number of seasonal workers (summer interns, etc.) all temporary workers identified are apprentices. A high percentage of our apprentices are offered permanent employment upon completing their apprentice period. On average, 1.9 percent of male employees and 0.5 percent of female employees worked on temporary contracts in 2023.

Women's Average Salary as Percentage of Men's Average Salary for Norway

Job Category	Base salary	Total compensation
Executives	96%	93%
Senior Management	97%	95%
Senior specialist and team leaders	94%	89%
Professionals	98%	85%
Entry level and junior professionals	89%	79%
Non office	100%	97%
Total Weighted Figures	96%	91%

Part-time Work

Aker Solutions had a very low level of part-time work in Norway during 2023. On average 1.89 percent of both male and female employees worked part-time. All of them did this as a result of their own request. No involuntary part- time work has been identified.

Parental Leave

Parental leave follows legal regulations and individual choices. During 2023, female employees on parental paid leave took an average of 39.8 weeks (about 9 months), while male employees took an average of 20.7 weeks (about 5 months) paid parental leave. Aker Solutions pays full salary to employees on parental leave – also for employees with higher salary than the cap in Norwegian social security regulations.

UK Gender Pay Gap

In the UK, we are required to report publicly and to the government on the gender pay gap. The initial 2023 results for Aker Solutions show a continuing decrease in the mean and median pay gap. The pay gap outcomes for 2023 will be published on our website.

64 Material Topics covered in this chapter are:

Corruption and bribery
Protection of whistleblowers
Cybersecurity
Management of relationships with suppliers

The former Subsea segment of Aker Solutions is excluded from data and information reported in the governance section of the report, except where noted.

Materiality analysis →

65 Governance

Corporate Governance

Good corporate governance at Aker Solutions shall ensure sustainable operations and value creation over time to the benefit of shareholders and other stakeholders. Corporate governance is a framework of processes, mechanisms, and responsibilities for managing the business and making sure the right objectives and strategies are set and implemented with results that can be measured and followed up. The Board of Directors is responsible for ensuring that the company conducts business using sound corporate governance, and sets the standards for corporate governance, ensuring these reflect the Norwegian Code of Practice for Corporate Governance.

The audit committee supports the Board of Directors in the quality assurance of guidelines, policies, and other governing instruments pertaining to the company. The audit committee supports the Board of Directors in safeguarding that the company has sound management and internal controls over financial reporting and enterprise risks. The audit committee also monitors compliance with the company’s Code of Conduct as well as anti-corruption and third-party representative policies.

Liability Insurance

The directors and officers of Aker Solutions ASA are covered under an Aker group Director and Officer’s Liability Insurance (D&O). The insurance covers personal legal liabilities including defense and legal costs. The officers and directors of the parent company and all subsidiaries globally (owned more than 50 percent) are covered by the insurance. The cover also includes employees in managerial positions or employees who become named in a claim or investigation.

Sustainability Governance

Aker Solutions works proactively to ensure sustainability, integrity and responsibility in its operations. Sustainability considerations are integrated in internal processes and business operations and tailored to diverse local contexts and stakeholder expectations. Aker Solutions’ Board of Directors, the highest governance body, is responsible for overseeing and safeguarding management of our sustainability work. There are eight ordinary board meetings per year, and extraordinary meetings when needed. Every ordinary board meeting includes an operational status report

66 from the CEO and/or CFO, including project updates. Climate-related issues are also a priority when presenting tenders to the Board for approval. Sustainability is a standard topic on the agenda for the quarterly audit committee meetings where material impacts, policies, reporting and other key topics are discussed and agreed. Annual sustainability reporting is discussed, reviewed and approved by the Board and audit committee in the first quarter of the year.

Under the CEO, the Executive Vice President of Sustainability has the responsibility to develop, drive and communicate the sustainability agenda, while our business segments and functions are responsible for implementation. Each of our locations is responsible for ensuring compliance with local legal requirements in addition to the corporate requirements. Aker Solutions’ employees are expected to adhere to our Sustainability Policy.

The Code of Conduct is the key governing document and the foundation of our drive to uphold the highest levels of integrity and avoid becoming complicit in unethical or illegal behavior. We strive to minimize harm to the environment by providing environmentally sound technology for our own activities and those of our customers’. We recognize our responsibility to positively impact societies and strive to ensure that they benefit from our operations.

Aker Solutions’ Management System is governed through 12 policies anchored at the highest level in the organization that describe the intention and direction of the organization as formally expressed by top management. They are valid for everyone in Aker Solutions and are shared with our customers and prospective customers. Our business processes are owned by our global functions and business segments with responsibility and authority to standardize and optimize our work processes to secure efficient operation. The 12 policies are: Governance, HSSE, Performance, People, Finance, Supply Chain, Data Protection and Information Security, Customers and Strategy, Segment Execution and Business Integrity, Sustainability and Human Rights. These policies can be found on our website. Sustainability is embedded into Aker Solutions enterprise strategy and is not a separately developed strategy.# Decisions are made every day that have an impact across our value chain: they affect people, customers and suppliers, as well as the environment and the communities in which we operate. We know that how we conduct ourselves as an employer and as a business has a profound impact on the company’s ability to create long-term value for society and for our shareholders. More information is available in the 2023 corporate governance report on our website.

Ongoing Proceedings

In January and February 2022, two managers in Aker Solutions Malaysia were charged by the Malaysian authorities, related to allegations of errors in the annual return form for 2017. Aker Solutions was very pleased to see that both managers were acquitted by the Kuala Lumpur High Court on December 23, 2022. The charges were struck out by the court, finding them to be groundless, defective and not known in law. Malaysian authorities have appealed the acquittal with respect to one of the managers and Aker Solutions continues to support him. Aker Solutions has operated in Malaysia for many years, and documentation and information regarding the company set-up have been disclosed to relevant authorities. In 2017, the licenses were renewed after clarification meetings. The latest renewals of the licenses were in late 2023 and early 2024.

Corruption and Bribery

Aker Solutions has a long and proud industrial history. We honor that legacy and secure our current and future license to operate by acting responsibly and with integrity. By adhering to the highest standards and honoring our commitments, we gain and maintain trust of one another, our customers, business partners and other stakeholders. Our presence in 15 countries, some with high corruption, political and human rights risks, exposes Aker Solutions to corruption and bribery challenges and the potential negative impact from these risks. Such misconduct can lead to mistrust, financial loss, and potential socio-economic repercussions in the communities where Aker Solutions operates. These impacts are further magnified in areas where rule of law is weak and where communities rely heavily on the integrity of corporations for their well-being. In addition, Aker Solutions has potential negative impacts related to political incidents of corruption within its business relationships. These incidents can involve unethical actions, bribery, or other forms of financial malfeasance that can distort market dynamics, impede fair competition and undermine the company’s integrity and reputation.

Aker Solutions has a potential impact on human rights through the protection of whistleblowers. Insufficient protection of whistleblowers may hinder reporting, thereby obstructing the formal identification of human rights violations. A robust whistleblowing system is paramount to ensure transparency, ethical practices, and the well- being of the workforce, especially in identifying and addressing any violations promptly.

Corruption and bribery, as well as the protection of whistleblowers, are material topics for Aker Solutions. During 2023 we have observed continuous geopolitical instabilities resulting in extensive use of political tools such as sanctions or blacklisting, all of which impacted Aker Solutions as a global company and our international supply chain. Additionally, Aker Solutions’ business partners in higher risk countries represent an inherent risk of being involved in or associated with corrupt activities and are therefore subject to thorough due diligence scrutiny as a risk reducing measure.

These topics are at the core of Aker Solutions’ compliance and integrity program. As such, they are subject to periodic communication and reporting to key stakeholders like the Board of Directors, Audit Committee, unions (through employee representatives to the Board), executive management team, business segment management and all employees. We engage in different ways with internal stakeholders on these topics. Some examples include periodic reporting on risk assessments, reporting on design and efficiency of the compliance program and risk mitigation relating to material topics, company-wide awareness campaigns and internal capacity building through compliance trainings. In addition, external stakeholders such as customers, suppliers and partners are consulted and involved during supply chain audits and the integrity due diligence process.

“We work continuously and systematically to improve operationalization of the compliance program across the global organization and to enable the right business conduct throughout the company.

Approach

Our approach to building a culture of compliance and integrity is based on a clear commitment and firm expectations from the Board of Directors and the company’s management. Aker Solutions’ commitment to compliance and integrity is operationalized and managed by implementation of a global compliance program. Aker Solutions’ compliance program is managed by the Compliance and Integrity function and has an independent reporting line to the Audit Committee. The Audit Committee regularly reviews the company’s compliance with the Code of Conduct and supporting compliance documents. The Head of Compliance and Integrity reports quarterly to the Audit Committee on the design, implementation and effectiveness of the company’s business integrity program and activities, and reviews performance in this respect. Particular focus is given to whistleblowing cases and independent investigations concerning the Code of Conduct, follow-up of high-risk business partners including third party representatives, and adherence with human rights and data privacy. Once a year, in the third quarter, the Audit Committee meets separately with the Head of Compliance and Integrity without members of management present.

Aker Solutions’ compliance program is designed to help us promote a culture of compliance and integrity and to prevent, detect and respond to issues of non-compliance, breaches of law, regulations, or internal policies.

1. Preventive Measures

a. Risk Assessment

Assessment of business integrity and compliance risks is an integrated part of the Enterprise Risk Management (ERM) process which is subject to a quarterly review. At the end of 2023, the risks identified and assessed in this category were relating to:

Business partners in terms of corruption and integrity
Geopolitical situation and use of tools such as sanctions and blacklisting
Potential breaches of human rights and adverse impacts to people though the supply chain
Potential breaches of data protection and privacy

b. Governing Documents

Aker Solutions’ Code of Conduct is endorsed by the Board of Directors and constitutes a framework for managing compliance and integrity risks. It describes our commitments and requirements regarding business practice, personal conduct, and expectations towards business partners. Our Business Integrity Policy is endorsed by the CEO and supplements the Code of Conduct and sets clear responsibilities and procedures for managing compliance and integrity risks at all business levels in the Aker Solutions organization globally. The Code of Conduct, Business Integrity Policy and other compliance procedures are implemented and operationalized in the line of business through a global compliance program.

c. Training and Awareness Building

Continuous focus on awareness of compliance and business integrity is important to ensure that our employees know what to do if they find themselves in a risk or dilemma situation. In 2023, approximately 8,700 own employees completed an annual Code of Conduct certification e-learning where they confirmed to have read and understood Aker Solutions’ Code of Conduct. This is approximately 75 percent of own employees. Additionally, approximately 2,750 sub-contractors and hired-ins completed the Code of Conduct e- learning. For more information on training programs, see the Human Rights section of this report. Details on number of employees trained, type of course and completion per region are available in the appendix.

d. Third Party Risk Management and Integrity Due Diligence

Country and Business Partner Risk

Aker Solutions is present at multiple locations in 15 countries, several of which have scores on internationally recognized indices that indicate high inherent integrity risk. Risks are managed through country risk assessments, sanctions and trade compliance assessments, mandatory compliance and integrity awareness trainings, compliance reviews and integrity due diligence (IDD) process of business partners. Aker Solutions performs IDD on our customers, suppliers and other business partners such as joint venture partners, third-party representatives and alliance partners. Projects and new country entries are subject to integrity and country risk assessments.

During 2023, there were 105 Country Risk Notifications (CRN) recorded triggering execution of an IDD process. Respective numbers for previous years are: 88 CRNs in 2022 and 117 CRNs in 2021. More information on our IDD process is included in the Human Rights section of this report.

Transparency International’s Corruption Perceptions Index (CPI) scores and ranks countries/territories based on how corrupt a country’s public sector is perceived to be by experts and business executives.# Corruption Risk Picture

It is a composite index, a combination of 13 surveys and assessments of corruption, collected by a variety of reputable institutions. The CPI is the most widely used indicator of corruption worldwide. The CPI scores for the 15 countries where Aker Solutions is are shown in the map below.

2. Detective Measures

a. Monitoring, Audits and Reviews

There is an established process for an annual compliance self-assessment and internal control testing. During 2023, the Compliance and Integrity team began establishing a new approach to compliance monitoring and designing a compliance analytics program including control testing, transaction monitoring data analytics and dashboards. The compliance analytics program will be implemented during 2024.

b. “Speaking Up” and Whistleblowing

Aker Solutions is committed to building a culture of trust where employees are comfortable to ask questions, seek guidance, raise concerns and report suspected violations. Aker Solutions’ whistleblowing channel allows anyone (including externals) to report concerns, incidents, breaches or suspected breaches of the Code of Conduct, other internal policies or laws and regulations. Notifications can be sent anonymously through Aker Solutions’ whistleblowing channel or by email to [email protected]. We do not tolerate retaliation against anyone who speaks up in good faith to ask questions, raise a concern, report a suspected violation or participate in an internal company investigation. Whistleblowing information posters are made available in several languages and provide key information about what to report, how to report and what channels are available. The number of cases reported in 2023 were 0.61 reports per 100 employees ¹¹ as compared to 0.24 for the previous year. There were 70 reports ¹² recorded in 2023, compared to 38 reports in 2022 and 95 reports in 2021. Around half of the received reports in 2023 concerned employee relations and human resources issues, which is similar to the 2022 level. The remaining cases were related to other business integrity topics. There are various channels available for employees to ask questions or seek guidance. Aker Solutions has established a common channel for employees: [email protected] which is managed by the Compliance and Integrity team. Guidance on the company’s policies, procedures and processes is available on the company’s intranet. Compliance and Integrity has set up a communication channel on the company’s intranet where awareness posts are published on a regular basis and employees can comment and ask questions to the team.

Whistleblower Reports

Year	Reports
2023	70
2022	38
2021	95

Reports concerning employee relations and human resources issues

Year	Percentage
2023	54%
2022	50%
2021	50%

¹¹ 2023 total number of employees (at year end, excluding subsea employees) is 11,473. 2022 total number of employees was 15,580. See additional key staff figures in the appendix.
¹² 2023 Whistleblowing case count of 70 includes 34 cases either from subsea employees or related to the subsea business.

3. Responding Measures

Aker Solutions has implemented several measures to respond to non-compliance. The key measures include adequate investigation of all reported concerns/whistleblowing cases, systematic capture of lessons learned from incidents, consistent implementation of response/improvement actions, including disciplinary actions, and regular reporting to the CEO and Audit Committee. All notifications to the whistleblowing channel are received and managed by our Compliance and Integrity department and are treated with strict confidentiality. Compliance and Integrity has a mandate from the Board of Directors to investigate alleged compliance violations. Investigations are conducted in accordance with the rules set out in the Whistleblowing Procedure and the Investigation Procedure.

Continuous Improvement

We work continuously and systematically to operationalize the compliance program across the global organization and to support and enable the right business conduct throughout the company.

Performance

Throughout 2023, we maintained the core elements of our global compliance program including anti-corruption, human rights and sanctions compliance frameworks. We conducted screenings of potential projects in high-risk countries and integrity due diligence processes of potential business partners as we pursued opportunities in higher-risk markets. All whistleblower reports received were investigated. A Code of Conduct annual certification e-learning was made available to company personnel. Activities requiring travel and/or in-person interaction, such as classroom training and on-site audits, were re- activated after being postponed or cancelled in previous years due to the global COVID-19 pandemic.

Looking Forward

In 2024, we will continue our efforts of enabling responsible business conduct and promoting a culture of compliance and integrity. We will continue shaping our global compliance program to ensure that it evolves and remains relevant in a dynamic global context and amid challenges like increased regulations, enforcement, geopolitical instability, complexity and external expectations as well as ESG impact and alignment with our strategic sustainability agenda. Our priorities for 2024 have been defined and we will concentrate our focus on:

Transforming the company’s global compliance and integrity program through increased use of data, transaction monitoring and automation
Continuous improvement of our end-to-end business partner follow-up process
Implementing innovative and engaging business ethics training concepts to build awareness and engagement

Security, Cybersecurity and Data Protection

Maintaining and protecting the security of our data is essential for legal compliance and continuity of operations. Aker Solutions is heavily reliant on access to data and IT (information technology) systems to deliver services to our clients, where data security has the highest priority. We are responsible for processing data about our employees, contractors, clients, projects and partners. They rely on Aker Solutions to protect their privacy and manage their data in a secure and confidential manner. Aker Solutions has a potential impact on its stakeholders through breaches in data protection rights and security and, similar to other emergency situations, has a responsibility to prepare for such events. Increasing digitalization also poses a risk of failure to protect intellectual property, secure sensitive data and protect the data protection rights of clients, employees and other stakeholders. A breach or non-compliance could lead to reputational harm, legal implications and potential loss of business opportunities. Cybersecurity is a material topic for Aker Solutions.

Approach

Aker Solutions’ commitment towards safeguarding employees, assets and reputation is demonstrated by the core team of security professionals and the operation of a 24/7 Global Security Operations Center. The center supports all aspects of Aker Solutions’ global operations as well as some of the affiliated Aker companies. Security is grouped into the disciplines of cyber and information security, physical security, personnel security, travel security and executive protection and managed holistically through proactive interaction between the multiple owning stakeholders with the common goal of protecting both Aker Solutions and our employees. The security professionals across the Aker Group have developed a strong multilateral network, bridging the security disciplines in the physical and cyber domain. We are confident that this initiative builds our joint security posture and business resilience towards an evolving threat environment – and that it enables our business to thrive in an increasingly complex geopolitical landscape. Aker Solutions is committed to the enhancement of the wider security environment by requiring our employees to complete an annual Code of Conduct training and through contractual deliverables that third party security personnel are trained in human rights, ethical behavior and anti-corruption procedures. In addition, all employees annually sign off that they will adhere to the company’s procedure for acceptable use of IT equipment. All employees also complete annual training on cybersecurity awareness. Aker Solutions’ framework for emergency and crisis management is based on ISO 22301 and 22320. The same structure is used for emergency response situations as well as for business continuity events. The structure for handling unwanted events is based on a three- tiered approach. In this model, a Tier 1 Emergency Response Team (ERT) will typically focus its activities at sites or at the project level and is responsible for the immediate management of the event and its short-term impacts. If required, a Tier 2 ERT, typically sitting at either the country or segment level, can be mobilized to provide additional resources to the Tier 1 team, coordinate activities with other parts of the business, manage the business continuity recovery or help reduce the impact of commercial and financial impacts. In an extreme situation, should an event be deemed sufficiently serious, affect multiple countries or segments or threaten the company’s core values, the Tier 3 Corporate Emergency Response Team (CERT) can be mobilized at the corporate level to either coordinate activities or lead the response as necessary, depending on the nature of the event.# Governance around emergency management has been revised and the roles, responsibility of functions and how they will interact with each other in an event have been refined. A new emphasis has been placed on training and exercises, which are now conducted at all three levels to ensure that teams, as standard, include leaders from the Human Resources, IT, HSSE, Security, Legal and Communications functions with subject matter experts included as appropriate. The teams receive training and take part in regular exercises. All findings and learnings are registered in Synergi, the digital reporting tool used throughout the organization. Aker Solutions has adopted the ISO 27001 and NIST (National Institute of Standards and Technology) SP 800-53 frameworks for managing data privacy and information security risks. The Audit Committee of the Board of Directors oversees the risk exposure and mitigating controls implemented by management. Risks are reviewed by management on a quarterly basis through the Enterprise Risk Management process. Audits are performed regularly towards internal organizations as well as external providers to ensure compliance with policies and controls.

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The risks posed by cyber criminals continue to be a major threat to operations. This risk is managed by IT with the security function actively engaged as a stakeholder. As such, the threat landscape is continuously monitored, and necessary steps are taken to safeguard employees, systems, data and products through internal procedures and proactive engagement with national authorities. Phishing emails remain the most commonly used vector for cyber-attacks. We conduct a minimum of six phishing exercises annually for all employees, aimed at increasing awareness and competency around phishing. The failure rate is determined by the number of recipients in the simulation that were compromised out of the total amount of recipients in the specific simulation. Additional training courses are mandated for those that fail more than one simulation per year. Further measures have been taken to secure email, improve capabilities to identify ongoing malicious activities, and increase employee awareness of cyber threats. With smarter products connected to the internet, there is an increased risk to these devices and the systems they are connected to. Precautions have been taken to protect Aker Solutions’ and clients' assets.

Performance

From a personal data protection perspective, key focus areas for 2023 were compliance related to international data transfers and data processor approval routines. With respect to international transfers of personal data, focus was spent on new work instructions for handling personal data in acquisition of new software. Nine phishing campaigns were launched during 2023 with a nine percent failure rate. This is a two percent increase in the failure rate from 2022. A similar number of exercises will be conducted in 2024. In addition, we report personal data protection breaches in accordance with applicable laws. Aker Solutions has not received any substantiated or unsubstantiated complaints related to breaches of customer privacy in 2023. In order to ensure that we manage our customer personal data in accordance with applicable data protection laws, we have invested in software solutions to ensure legal basis, safe and controlled storage and processing of customer personal data. In 2023, 87 security cases were reported. Most of the cases were related to physical security (general failure of technical components, personnel not adhering to security procedures including break-ins and the cyber attack in Brazil). No serious security incidents were reported in 2023 and 80 of the 87 cases were reported as low risk (green). In 2023, the CERT was mobilized two times, in response to the cyber attack in Brazil and a disturbance at our yard in Stord, Norway. In February 2023, Aker Solutions subsidiary C.S.E. Mecânica e Instrumentação Ltda in Brazil became the victim of a cyber attack. In response, we quickly mobilized a crisis management team, and with the support of external experts, worked to contain and resolve the situation.

Looking Forward

Cybersecurity remains a substantial risk for Aker Solutions. To reduce the adverse consequences of a major security incident, we have implemented several improvements to our information security programs. We will continue to improve proactive risk management processes ensuring the business has visibility of the threat landscape and mitigating actions are appropriate, in place and well-rehearsed. The geopolitical situation has increased the threat level. While our clients are seeing increased threats to their facilities, we see the threat to our company data and the threat to European energy infrastructure as our major risks and focus our analysis and training scenarios accordingly. 2024 will be a year in abundance of risks an geopolitical events. It will be vital to ensure that Aker Solutions has a holistic and risk- knowledgable approach that enables management to understand the risk landscape and facilitate decision-making. Aker Solutions must have the ability to manage incidents and long-lasting crises and understand business impact and business continuity in this new environment.

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Responsible Supply Chain

At Aker Solutions, we are committed to cultivating a responsible supply chain recognizing both its positive contributions and potential negative impacts on environmental, social and governance aspects. Through dedicated efforts, we actively address these considerations, striving for continuous improvement to ensure that sustainable practices and ethical standards resonate throughout our operations. Mismanagement of a global supply chain can cause negative environmental and social impacts and financial risks, as well as impacts related to governance issues such as corruption and data privacy violations. Aker Solutions has a duty to responsibly, and transparently, manage our relationships with our suppliers, monitor their activities and actively work to diversify our supplier portfolio. With more than 10,000 suppliers in our global supply chain, ensuring a responsible approach to managing our relationships with suppliers is a material topic for Aker Solutions.

Approach

We have a strong focus on sustainability across all our operations, and we expect that our suppliers meet the same high standards. Sustainable sourcing starts with setting clear expectations for our suppliers. We look for and work with suppliers and subcontractors who act responsibly within environmental, social and governance areas. As such, we require that they adhere to our Supplier Declaration including our standards for compliance and business ethics, health and safety, human and labor rights, environment, quality management, and corporate social responsibility, as well as being competent and trustworthy. Our approved supplier list (ASL) serves as the foundation for qualifying and monitoring our supplier base. Compliance with our standards is monitored and evaluated through a defined process, technical audits and due diligence analyses, of which the extent depend on the risk profile. Whether a supplier is direct or indirect, we expect them to meet specific key requirements and fully embrace our ethical standards. The ASL employs a thorough qualification, monitoring, and performance evaluation process, utilizing a fact and risk-based approach for supplier selection and development. The stringency of qualification requirements may be adjusted based on factors such as the complexity of the product or service needed and the supplier's country or location. The onboarding process includes a variety of checks related to HSSE, human rights and anti-corruption, and environmental and sustainability goals. In addition, our suppliers must formally commit to compliance with our requirements by signing our Supplier Declaration. Additional details regarding our expectations are outlined on our website.

Performance

In 2023, we continued to actively engage with our suppliers to enhance understanding of our supply chain emissions and other environmental and social impacts. We recognize the crucial role our suppliers play in contributing to our sustainability goals. Our suppliers’ active participation in this data-sharing initiative is fundamental to our collective success. As a consequence, we implemented additional environmental reporting requirements for selected projects and contracts where, beyond the standard monthly HSSE reporting, we focus on CO2 emissions and waste data. Recognizing the varying decarbonization maturity levels of our suppliers and subcontractors, we have introduced a straightforward CO2 calculation tool for specific contracts which ensures improved data quality and consistency; and reinforces our collaborative approach. Moreover, to further enhance the accuracy of our Scope 3 emissions data, we requested our selected bulk metal suppliers to provide environmental product declarations for relevant products where available. We continue to prioritize our commitment to addressing transport emissions. Consequently, during 2023 we increased considerations for the greenhouse gas emissions in our evaluation process. In addition, we expanded the use of modular vehicle trains between destinations with large volumes and we continuously explore ways to consolidate freight across different projects. Moreover, we initiated a regular transport route utilizing trucks powered by hydrotreated vegetable oil (HVO). Our efforts also extend to enhancing the quality of our emissions data related to transportation. One of the steps we took in this direction is to standardize reporting on environmental data from our key freight forwarders.As part of our ongoing efforts to enhance energy performance and energy efficiency management, we successfully completed the ISO 50001 certification process for our yard at Stord, Norway. This certification has prompted us to revise our yard procurement process, now incorporating considerations for energy performance when selecting suppliers related to the identified sources of significant energy uses (SEUs).

In line with our ongoing efforts to strengthen our environmental performance and increase transparency, consistency, and alignment throughout the value chain on all ESG ambitions and requirements, towards the end of 2023 we proactively informed our suppliers about our upcoming expectations related to emissions and energy management. We intend to implement this in our procurement contracts from January 2025 onwards. This open communication aims to ensure that our suppliers are well-informed and adequately prepared to align with evolving sustainability standards and contribute meaningfully to our shared environmental objectives. In summary, our expectations focus on the following areas: energy management, carbon emissions, carbon transparency, product emissions and compliance.

We recognize the pivotal role our frame agreements play in shaping our supply chain dynamics. We therefore initiated an early implementation of our emissions and energy management expectations in our 20 strategic frame agreements, and we aim to complete this within 2024. By commencing incorporation within some of our most significant agreements, we aim to set a precedent for sustainable practices and encourage alignment with emerging standards. More details on our expectations related to emissions and energy management can be found on our website.

Furthermore, Aker Solutions has proudly become a member of the First Mover Coalition (FMC) in the steel sector to support demand for innovative technologies crucial for achieving a net-zero transition.

Following our approach to managing risks of potential breaches of human and labor rights resulting in negative impact to people and in line with the OECD guidelines and the Norwegian Transparency Act, our risk assessment methodology, human rights due diligence planning and execution capacity have been improved during 2023. Collaboration with our clients and suppliers was strengthened and has become fundamental to anchoring and embedding human and labor rights requirements into operations, creating necessary awareness at various levels and implementing improvement plans. Due diligence initiatives with a specific focus on human and working conditions were conducted both on selected projects as well as on a country level, including some higher risk countries. These processes became an integrated element of our internal approach as well as an increasing expectation and requirement from our stakeholders.

Specifically, the collaboration with one of our clients allowed us to complete a joint human rights due diligence follow-up plan for a strategic contractor and secure their engagement. This collaboration made it possible to monitor progress to mitigate the risk of potential deterioration of working conditions for workers on site. More information is available in the Human Rights section of this report.

Looking Forward

As we progress on our sustainability journey, our commitment to further integrate ESG considerations into our procurement processes remains steadfast. We are committed to advancing our understanding of supply chain emissions, paving the way for targeted initiatives for reductions. Recognizing the importance of collaboration, we aim to strengthen our engagement with suppliers, partners and clients to collectively promote the sustainability agenda. This involves jointly exploring opportunities for the use of more sustainable products, materials and processes across the value chain. In 2024, our screening process will incorporate the emissions and energy management expectations to further assess the maturity of our suppliers in this area and increase their awareness of our expectations from January 2025.

“ We are committed to advancing our understanding of supply chain emissions, paving the way for targeted initiatives for reductions. Our focus on reducing freight emissions will persist. We will continuously work on expanding collaboration between projects to identify common logistics solutions and to increase the use of regular transport routes and more environmentally friendly fuels. Additionally, we will remain committed to enhancing our understanding of ESG topics within supply chain teams through additional training, fostering a culture of sustainability within our organization. Lastly, we will continue to monitor global trends and the rapidly evolving regulatory requirements in this domain to remain proactive, continuously improving our operational practices.

| Liabilities and Equity | Income Statement | Note 17 | Equity | Other Comprehensive Income (OCI) | Note 18 | Borrowings | Balance Sheet | Note 19 | Leases and Investment Property | Cash Flow | Note 20 | Pension Obligations | Equity | Note 21 | Provisions and Contingent Liabilities | Note 22 | Trade and Other Payables | General Financial and Capital Management | Note 1 | Company Information | Note 23 | Financial Risk Management and Exposures | Note 2 | Basis of Preparation | Note 24 | Capital Management | Note 25 | Derivative Financial Instruments | Performance | Note 3 | Revenue | Note 4 | Segments | Group Composition and Other Investments | Note 5 | Personnel Expenses | Note 6 | Other Operating Expenses | Note 7 | Financial Income and Expenses | Note 8 | Earnings per Share and Dividends | Note 9 | Income Tax | Note 10 | Assets | Other | Note 31 | Related Parties and Key Management Compensation | Note 11 | Property, Plant and Equipment | Note 32 | Audit fees | Note 12 | Intangible Assets and Goodwill | Note 33 | Climate Risk | Note 13 | Inventories | Note 14 | Trade and Other Receivables | Note 15 | Financial Investments and Interest-bearing Receivables | Note 16 | Cash and Cash Equivalents |
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Declaration by the Board of Directors and Chief Executive Officer

The Board and chief executive officer have today considered and approved the annual report and financial statements for the Aker Solutions group and its parent company Aker Solutions ASA for the calendar year ended on December 31, 2023. This declaration is based on reports and statements from the chief executive officer, chief financial officer and on the results of the group’s business as well as other essential information provided to the Board to assess the position of the parent company and the group.

To the best of our knowledge:

The 2023 financial statements for the parent company and the group have been prepared in accordance with all applicable accounting standards.
The information provided in the financial statements gives a true and fair portrayal of the parent company’s and the group’s assets, liabilities, financial position and results taken as a whole as of December 31, 2023.
The Board of Directors’ report of the parent company and the group provides a true and fair overview of the development, performance and financial position of the parent company and the group taken as a whole, and the most significant risks and uncertainties facing the parent company and the group.

Fornebu, March 15, 2024

Board of Directors of Aker Solutions ASA

Leif-Arne Langøy
Chairman

Øyvind Eriksen
Deputy Chairman

Kjell Inge Røkke
Director

Birgit Aagaard-Svendsen
Director

Hilde Karlsen
Director

Jan Arve Haugan
Director

Elisabeth Heggelund Tørstad
Director

Lone Fønss Schrøder
Director

Arne Christian Rødby
Director

Stian Pettersen Sagvold
Director

Line Småge Breidablikk
Director

Kjetel Digre
Chief Executive Officer

	Note	2023	2022
Revenue from customer contracts	3, 4	35,882	27,302
Net profit equity accounted investees	3, 28	205	33
Other income	3, 19	175	166
Revenue and other income		36,262	27,500
Materials, goods and services		-20,760	-15,068
Personnel expenses	5	-10,757	-8,733
Other operating expenses	6	-3,578	-3,052
Operating expenses before depreciation, amortization and impairment		-35,096	-26,854
Operating income before depreciation, amortization and impairment		1,166	647
Depreciation and amortization	10, 11, 19	-684	-568
Impairment	10, 11, 12, 19	-60	30
Operating income		422	109
Interest income	7	353	105
Interest expenses	7	-227	-290
Net other financial items	7	-453	26
Income before tax		95	-50
Income tax	9	-110	-92
Net income (loss) from continuing operations		-15	-142
Net income from discontinued operations	30	11,540	1,312
Net income from total operations		11,525	1,170
Net income attributable to:
Equity holders of the parent company		11,637	1,179
Non-controlling interests		-112	-8
Net income		11,525	1,170
Earnings per share from continuing operations in NOK (basic and diluted)	8	0.20	-0.27
Earnings per share from discontinued operations in NOK (basic and diluted)		23.61	2.70
Earnings per share from total operations in NOK (basic and diluted)	8	23.81	2.42

Consolidated statement of comprehensive income

Amounts in NOK million

	Note	2023	2022
Other comprehensive income (loss):
Items that will be reclassified subsequently to profit or loss:
Cash flow hedges, effective portion of changes in fair value	25	25	31
Cash flow hedges, reclassified to income statement	25	-5	-81
Cash flow hedges, deferred tax	9, 25	2	-25
Cash flow hedges, discontinued operations	25	-40	0
Translation differences related to equity accounted investees	26, 28	-231	0
Translation differences related to other foreign operations	329	399
Recycling of translation differences, discontinued operations	30	-1,392	0
Total		-1,305	467
Items that will not be reclassified to profit or loss:
Remeasurements of defined pension obligations	20	-36	-143
Remeasurements of defined pension obligations, deferred tax asset	9	8	31
Change in fair value of equity investments over OCI	26, 28	-6	-78
Total		-34	-190
Other comprehensive income (loss), net of tax		-1,339	278
Total comprehensive income		10,186	1,448
Total comprehensive income (loss) attributable to:
Equity holders of the parent company		10,295	1,455
Non-controlling interests		-109	-7
Total comprehensive income		10,186	1,448
Total comprehensive income (loss) attributable to owners arises from:
Continuing operations		77	135
Discontinued operations		10,109	1,312
Total comprehensive income		10,186	1,448

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81 Balance Sheet

Consolidated statement as of December 31
Amounts in NOK million

Note	2023	2022
Assets
Non-current assets
Property, plant and equipment	10, 12	3,487
Intangible assets including goodwill	11, 12	3,563
Right-of-use assets and investment property	12, 19	1,911
Deferred tax assets	9	491
Lease receivables	19	529
Equity accounted investees	28	6,555
Investments in companies	23, 26, 28	19
Interest-bearing receivables	26	197
Other non-current assets	30	506
Total non-current assets		17,258
Current assets
Current tax assets		75
Inventories	13	44
Trade receivables	3, 14, 26	5,268
Customer contract assets and other receivables	3, 14, 26	2,317
Prepayments		1,214
Derivative financial instruments	25, 26	258
Interest-bearing receivables	15, 19, 26	3,103
Financial investments	15, 26	5,714
Cash and cash equivalents	16, 23	6,003
Total current assets		23,996
Total assets		41,253

Fornebu, March 15, 2024

Amounts in NOK million

Note	2023	2022
Equity and liabilities
Equity
Share capital	17	532
Share premium		3,687
Reserves	17	251
Retained earnings	14,611	3,539
Total equity attributable to the parent		19,082
Non-controlling interests	27	-129
Total equity		18,953
Non-current liabilities
Non-current borrowings	18, 26	0
Non-current lease liabilities	19	2,921
Pension obligations	20	895
Deferred tax liabilities	9	140
Other non-current liabilities		119
Total non-current liabilities		4,074
Current liabilities
Current tax liabilities		62
Current borrowings	18, 26	0
Current lease liabilities	19	619
Provisions	21	3,405
Trade payables	22, 26	2,554
Other payables	22	6,550
Customer contract liabilities	3	4,831
Derivative financial instruments	25, 26	204
Total current liabilities		18,226
Total liabilities		22,300
Total equity and liabilities		41,253

Leif-Arne Langøy
Chairman

Øyvind Eriksen
Deputy Chairman

Kjell Inge Røkke
Director

Birgit Aagaard-Svendsen
Director

Hilde Karlsen
Director

Jan Arve Haugan
Director

Elisabeth Heggelund Tørstad
Director

Lone Fønss Schrøder
Director

Arne Christian Rødby
Director

Stian Pettersen Sagvold
Director

Line Småge Breidablikk
Director

Kjetel Digre
Chief Executive Officer

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82 Cash Flow

Consolidated statement for the year ended December 31
Amounts in NOK million

	Note	2023	2022
Cash flow from operating activities
Net income from continuing operations		-15	-142
Net income from discontinued operations	30	11,540	1,312
Net income from total operations		11,525	1,170
Adjustment for:
Income tax	9	641	545
Net finance cost	7	392	142
Depreciation, amortization and impairment	10, 11, 12, 19	1,361	1,077
Other (profit) loss on disposals and non-cash effects	30	-9,723	9
Net income after adjustments		4,196	2,944
Changes in operating assets and liabilities		2,287	1,793
Cash generated from operating activities		6,483	4,737
Income taxes paid		-267	-219
Net cash from operating activities		6,216	4,518
Cash flow from investing activities
Interest received		395	157
Dividends received	34	13
Acquisition of property, plant and equipment	10	-1,833	-507
Payments for capitalized development	11	-388	-113
Acquisition of subsidiaries, net of cash	27	-13	-169
Sale of subsidiaries, net of cash	30	621	17
Proceeds from sale of property, plant and equipment	12	6
Change in interest-bearing receivables		-95	18
Acquisition of shares and funds	15	-3,000	-7
Cash collection from lease receivables	19	119	110
Net cash used in investing activities		-4,147	-476

Amounts in NOK million

Note	2023	2022
Cash flow from financing activities
Interest paid		-245
Proceeds from borrowings	18	0
Repayment of borrowings	18	-967
Payment of lease liabilities	19	-774
Paid dividends to equity holders of the parent company	8	-489
Paid dividends to minority interests		-8
Net cash from financing activities		-2,483
Net increase (decrease) in cash and bank deposits		-415
Cash and cash equivalents at the beginning of the period		6,170
Effect of exchange rate changes on cash and bank deposits	24	248
Cash and cash equivalents at the end of the period	16	6,003

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83 Equity

Consolidated statement of changes in equity
Amounts in NOK million

	Notes	Share capital	Share premium	Treasury share reserve	Retained earnings	Hedging reserve	Translation reserve	Fair value reserve	Equity attributable to parent	Non-controlling interests	Total equity
Equity as of January 1, 2022		532	3,687	-7	2,428	-58	1,159	93	7,833	28	7,861
Net income		0	0	0	1,179	0	0	0	1,179	-8	1,170
Other comprehensive income		0	0	0	-112	69	397	-78	276	2	278
Total comprehensive income		0	0	0	1,067	69	397	-78	1,455	-7	1,448
Dividends		0	0	0	-97	0	0	0	-97	0	-97
Sale (purchase) of treasury shares		0	0	3	68	0	0	0	71	0	71
Employee share purchase program	5	0	0	0	12	0	0	0	12	0	12
Realization of equity investment		0	0	0	90	0	0	-90	0	0	0
Taxes on equity transactions	9	0	0	0	-7	0	0	0	-7	0	-7
Dividends to non-controlling interests	27	0	0	0	0	0	0	0	0	-11	-11
Change in non-controlling interests from acquisition of shares	27	0	0	0	-22	0	0	0	-22	-15	-37
Other changes to equity		0	0	0	1	0	0	0	1	0	1
Equity as of December 31, 2022		532	3,687	-4	3,539	10	1,556	-76	9,244	-4	9,240
Net income		0	0	0	11,637	0	0	0	11,637	-112	11,525
Other comprehensive income		0	0	0	-28	-11	-1,066	-237	-1,343	3	-1,339
Total comprehensive income		0	0	0	11,609	-11	-1,066	-237	10,295	-109	10,186
Dividends		0	0	0	-489	0	0	0	-489	0	-489
Sale (purchase) of treasury shares	17	0	0	1	54	0	0	0	56	0	56
Employee share purchase program	5	0	0	0	8	0	0	0	8	0	8
Realization of fair value instruments		0	0	0	-78	0	0	78	0	0	0
Taxes on equity transactions	9	0	0	0	-17	0	0	0	-17	0	-17
Dividends to non-controlling interests	27	0	0	0	0	0	0	0	0	-8	-8
Changes in non-controlling interests	27	0	0	0	11	0	0	0	11	-11	0
Other changes to equity		0	0	0	-25	0	0	0	-25	3	-21
Equity as of December 31, 2023		532	3,687	-3	14,611	-1	490	-235	19,082	-129	18,953

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84 Notes to the Consolidated Financial Statements

For the year ended December 31

Note 1 Company Information

Aker Solutions delivers integrated solutions, products and services to the global energy industry. We enable low-carbon oil and gas production and develop renewable solutions to meet future energy needs. By combining innovative digital solutions and predictable project execution we accelerate the transition to sustainable energy production. The company had about 11,500 own employees and was present in 15 countries at the end of 2023. The main office is in Fornebu, Norway and the parent company Aker Solutions ASA is listed on the Oslo Stock Exchange under the ticker AKSO. The consolidated financial statements in this report include the financial performance and position of the company and its subsidiaries collectively referred to as “the group” or “the company” and separately as group companies.

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85 Note 2 Basis of Preparation

Statement of Compliance
The consolidated financial statements have been prepared in accordance with IFRS® Accounting Standards as adopted by the EU, their interpretations adopted by the International Accounting Standards Board (IASB) and the additional requirements of the Norwegian Accounting Act as of December 31, 2023. The consolidated financial statements were approved by the Board of Directors and the chief executive officer (CEO) on March 15, 2024. The consolidated financial statements will be authorized at the Annual General Meeting on April 11, 2024. Until this date the Board of Directors has the authority to amend the financial statements.

Basis of Measurement
The consolidated balance sheet has been prepared on the historical cost basis except for certain financial assets and liabilities as presented in note 26 measured at fair value on each reporting date. The consolidated financial statements are presented in Norwegian Kroner (NOK) and has been rounded to the nearest million (NOK million), therefore the subtotals and totals in some tables may not equal the sum of the amounts shown.

Consolidation
The consolidated financial statements comprise the parent company Aker Solutions ASA and its subsidiaries.# Intra-group balances and transactions, and any unrealized gains and losses or income and expenses arising from intra-group transactions, are eliminated in the consolidated financial statements. Aker Solutions contributed in all material aspects the entire Subsea segment into a new entity formed with SLB on October 2, 2023, and will no longer be a reporting segment. Aker Solutions holds a non-controlling interest of 20 percent in the new entity OneSubsea. For historical figures, Aker Solutions’ subsea business has been restated as discontinued operations. For more information about the transaction and the investment in OneSubsea, see note 28 Investments in Companies and note 30 The Subsea Transaction and Discontinued Operations.

Translation of foreign currency

Assets and liabilities of subsidiaries that have a different functional currency are translated to NOK using the exchange rate on the balance sheet date. Income and expenses are translated using the average exchange rate for the year, calculated on the basis of 12 monthly rates. Foreign exchange differences arising from these translations are recognized in other comprehensive income, and presented as a separate component in equity (translation reserve). The translation differences are reclassified to the income statement upon disposal or liquidation of the related operations. Exchange differences arising from non-current monetary receivable or payable by a foreign operation where settlement is neither planned nor likely in the foreseeable future, forms part of the net investment in that entity and are also recognized in other comprehensive income.

Judgments and Estimates

The preparation of consolidated financial statements in conformity with IFRS requires management to make judgments, estimates and assumptions each reporting period that affect the income statement and balance sheet. The accounting estimates will by definition seldom precisely match actual results. The main areas where judgments and estimates have been made are described in each of the following notes:

Note 9 Income Tax
Note 10 Property, Plant and Equipment
Note 11 Intangible Assets and Goodwill
Note 12 Impairment of Assets
Note 13 Inventories
Note 14 Trade and Other Receivables
Note 19 Leases and Investment Property
Note 20 Pension Obligations
Note 21 Provisions and Contingent Liabilities
Note 29 Business Combinations

The main area where significant judgment has been made is described in:

Note 3 Revenue

Aker Solutions acknowledge that climate change represents an element in the application of methodologies and models used in estimates used in valuations and measurement of certain accounting items. This is further described in note:

Note 12 Impairment of Assets
Note 33 Climate Risk

New or Changed Financial Reporting Principles

Some amendments to standards and interpretations have become effective in 2023. These changes did not have a material impact on the consolidated financial statements. Disclosure of accounting policies have been updated in accordance with amendments in IAS 1. Standards, amendments to standards and interpretations that have been published, but not yet effective are not expected to have a material impact on the consolidated financial statements.

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Note 3 Revenue

The revenue in Aker Solutions consists of large engineering, procurement and construction (EPC) contracts within the renewables and oil and gas energy sector. The company also has engineering contracts and frame agreements for maintenance of various energy installations. The compensation format is both reimbursable and lump sum, and the contracts often include various incentive mechanisms. Project execution is a key component of all deliveries.

Financial Reporting Principles

Customer contracts are assessed using the five-step model. Only approved customer contracts with a firm commitment are basis for revenue recognition. Variation orders are included when they have been approved, either verbally, in writing or implied by customary business practice. The deliveries in the contracts are reviewed to identify distinct performance obligations. For the vast majority of the identified performance obligations, control has been assessed to be transferred to the customer over time as the performance obligation is satisfied. Revenue is recognized over time using a cost based progress method, or as time and materials are delivered to the customer. The cost progress method is commonly used on reimbursable - and lump sum contracts when scope of work is firm. The time and materials method is more commonly used for reimbursable contracts with less firm scope. These methods are used to best reflect the pattern of transfer of control of goods and services to the customer. Variable considerations, such as incentive payments, are included in revenue when they are highly probable. Expected liquidated damages (LDs) are recognized as a reduction of revenue unless it is highly probable LDs will not be incurred. The transaction price of performance obligations is adjusted for significant financing components to reflect the time value of money. Profit is not recognized until the outcome of the performance obligations can be measured reliably, usually at 20 percent progress. The full loss is recognized immediately when identified on loss-making contracts. The loss is determined based on revenue less direct cost (i.e. labor, subcontractor and material cost) and an allocation of overhead that relate directly to the contract or activities required to fulfil the contract. Customer financed assets required to execute the projects are presented gross in the financial statements. Financing of such assets are included in the projects as revenue.

Judgments and Estimates

It can be challenging to estimate the expected revenue and cost in the company's customer contracts, in particular if there are operational challenges. The most significant judgments and estimates in the customer contracts are described below.

Performance Obligations

Significant management judgment is sometimes required in order to identify distinct performance obligations in customer contracts. This includes an analysis of the customer contract to determine if the goods or services are distinct deliveries or input to an overall promise to deliver a combined system of products and services. As most of the contracts represent a single, combined output for the customers, contracts will normally contain one performance obligation.

Variable Consideration

Incentive payments are integral and significant parts of contract revenue on certain reimbursable contracts. They can also be present in lump sum contracts. Incentive payments include key performance indicators, bonuses, target sum mechanisms and productivity measures and can potentially both increase and decrease revenue. Most incentives are estimated using the most likely amount. Revenue from variable consideration is included only when it is highly probable that the revenue will not be reversed. There is a risk that the actual payment of incentives may differ from the estimated amount.

Liquidated Damages (LDs)

LDs are penalties for not achieving defined milestones on time. LDs are common in construction contracts, but can also be present in service contracts. If a project does not meet the defined milestone in a contract, a provision reducing the transaction price is made unless it is highly probable that LD will not be imposed. The estimated LD provision is highly judgmental. The assessment of the LD provision is based on experience from similar LD situations in addition to client relationship, contractual position and status on negotiations.

Total Contract Cost

The estimates of total contract cost can be judgmental and sensitive to changes. The cost estimates can significantly impact revenue recognition for contracts using cost progress, particularly in lump sum construction contracts. The forecasting of total project cost depends on the ability to properly execute the engineering and design phase, availability of skilled resources, manufacturing capacity, productivity and quality factors, performance of subcontractors and sometimes also weather conditions. Experience, systematic use of the project execution model and focus on core competencies reduce, but do not eliminate, the risk that cost estimates may change significantly.

Note 3 continues on next page

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Note 3 Revenue cont.

Different Types of Customer Contracts

The revenue in Aker Solutions arise from various contracts for the engineering, procurement, construction, modification and maintenance within the oil and gas and renewables energy sector.

Renewables and Field Development

Deliveries include foundations for carbon capture, offshore wind and traditional oil and gas installations, topside modules, substructures, floating production units (FPSOs), decommissioning, hook-up services and marine operations. Most contracts last between three to five years. The contracts include a combination of FEED, engineering, procurement, construction and installation (EPCI) of equipment. Each contract is usually assessed as one performance obligation as the deliveries are combined in one output. The contracts may be reimbursable, lump sum, target cost or a combination. The contracts regularly include incentives for achievement of key performance indicators (KPIs) or penalties for late delivery. Payment terms are normally 30-45 days according to predefined milestones or monthly billing.# Note 3 Revenue cont.

Life Cycle Deliveries include electrification, maintenance, modification and hook-up contracts for oil and gas installations. The contracts are mainly reimbursable, but can also include lump sum elements. The majority of the contracts have incentive mechanisms including bonuses, target sum mechanisms, key performance indicators and productivity measures. Each contract or purchase order under a frame agreement (FA) is usually assessed as a separate performance obligation. The contracts usually last from one to five years. Payment terms are normally 30 days after time and materials are delivered.

The following table shows a selection of the largest projects in the segment:

Project	Customer	Award year	Estimated delivery
Hugin A	Aker BP	2022	2026
Valhall PWP	Aker BP	2022	2026
Norfolk Vanguard West	Vattenfall / RWE	2023	2027
Johan Castberg	Equinor	2017	2024
Hugin B	Aker BP	2022	2026
East Anglia 3	ScottishPower	2022	2025
Fenris UI	Aker BP	2022	2026
Rosebank Redeployment Knarr	Equinor	2023	2025
Sunrise Wind	Ørsted & Eversource	2021	2025
Jackdaw WHP	Shell	2022	2024
Norfolk Vanguard East	Vattenfall / RWE	2023	2028

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Note 3 Revenue cont.

The following table shows a selection of the largest projects in the segment:

Project	Customer	Award year	Estimated delivery
Draugen Pfs EPCIC	OKEA	2023	2027
Equinor H (FA)	Equinor	2016	2026
ConocoPhillips M&M (FA)	ConocoPhillips	2016	2026
Valhall PWP tie-in	Aker BP	2023	2028
Skarv Satellites Project	Aker BP	2023	2027
Shell Modification Contract (FA)	Shell	2017	2028
Brunei (FA)	Shell Brunei	2020	2025
Berling tie-in to Åsgard B	Equinor	2023	2028
Troll West, electrification	Equinor	2021	2025

Subsea

The subsea business was disposed October 2, 2023. The segment delivered construction contracts and service contracts. Deliveries in construction contracts included stand-alone subsea equipment or complete subsea systems. The contracts included engineering, procurement and construction (EPC) of subsea production equipment. Each contract was usually assessed as one performance obligation as the deliveries were combined in one output. The service contracts included installation and commissioning as well as maintenance, repair, spare supply and production asset through regional service bases. Each service job under a frame agreement was usually assessed as a separate performance obligation as they represented one separate output.

Revenue by segment

The following tables show the revenue from customer contracts by segment. Revenue by country is shown in note 4 (operating segments).

Amounts in NOK million

	2023	2022
Renewables and Field Development	21,472	14,808
Life Cycle	13,025	12,135
Other	1,384	359
Total revenue from customer contracts	35,882	27,302

Note 3 continues on next page

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Note 3 Revenue cont.

Timing of Revenue

The satisfaction of performance obligations in customer contracts vary from a few months to as long as five years. The order backlog as of December 31, 2023 was NOK 72.7 billion, compared to NOK 72.8 billion the year before. The table below shows the expected timing of future revenue for ongoing and not yet started performance obligations at year-end.

Amounts in NOK billion

	2024	2025	2026	2027 and late	Total backlog
Backlog phasing of ongoing performance obligations	36.3	24.6	8.7	2.7	72.2
Backlog phasing of performance obligations not yet started	0.1	0.1	0.2	0.1	0.4
Total backlog	36.5	24.6	8.8	2.8	72.7

Revenue recognized in 2023 for performance obligations satisfied in prior years was NOK 0 million, compared to NOK 12 million the year before.

Contract Balances

The company has recognized the following assets and liabilities related to contracts with customers:

Amounts in NOK million

	December 31, 2023	December 31, 2022
Trade receivables	5,268	5,857
Customer contract assets	2,113	4,283
Customer contract liabilities	-4,831	-3,134

Customer contract assets relate to consideration for work completed, but not yet invoiced at the reporting date. The contract assets are transferred to trade receivables when the right to payment become unconditional, which usually occurs when invoices are issued to the customers. Customer contract liabilities relate to advances from customer for work not yet performed. The change in contract assets and liabilities relates to the natural progression of the project portfolio, as well as the current project mix. Of the amount of NOK -3,134 million recognized in contract liabilities at the end of prior year, NOK 3,059 million (of which NOK 539 million relates to the disposed subsea business) has been recognized as revenue in 2023. The bad debt provision included in trade receivables at December 31, 2023 was NOK 116 million, compared to NOK 69 million the year before. No impairment has been recognized on customer contract assets.

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Note 3 Revenue cont.

Net Income Equity Accounted Investees

The company has recognized the share of net income from investments accounted as equity accounted investees. As the activities of the investees are closely related to Aker Solutions operating activities, the share of net income is reported as part of revenue and other income.

Amounts in NOK million

	2023	2022
Share of net income OneSubsea	172	0
Share of net income other equity accounted investees	34	33
Profit from equity accounted investees	205	33

Other Income

Other income includes revenue that is not derived from regular customer contracts such as leasing revenue.

Amounts in NOK million

	2023	2022
Revenue from operating leases	19	155
Other	20	7
Total other income	175	166

See note 4 for more information about revenue per segment and per country
See note 14 for more information about trade and other receivables
See note 19 for more information about leasing revenue
See note 22 for more information about trade and other payables
See note 28 for more information about equity accounted investees
See note 30 for more information about the subsea transaction and discontinued operations

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Note 4 Segments

Aker Solutions is a global provider of equipment, systems and services to the renewable and oil and gas energy sector. Aker Solutions has two reporting segments.

Renewables and Field Development

The Renewables and Field Development segment pursues and executes projects within offshore wind power, green onshore as well as the market for traditional oil and gas platforms, onshore facilities, decommissioning and marine operations. The objective of the segment is to add value by improving efficiency and reducing carbon footprint in oil and gas deliveries. Furthermore accelerating the transition to renewables and become a key supplier to renewables and carbon capture solutions by building execution and collaboration through a digital value chain. The Renewables and Field Development reporting segment includes two operating segments in Aker Solutions that are organized separately and provide individual management reporting to the CEO. The following two operating segments are included: (1) New Build and (2) New Energies. The operating segments have been aggregated in the external reporting as they share resources and production capacity, and engineering is often an integrated scope of the customer contracts in both operating segments. The operating segments have similar commercial risks, they operate in the same economic climate and markets, and have similar customers. They also have similar operational characteristics and use the same type of KPI's to monitor the business.

Life Cycle

The Life Cycle segment provides optimized field life solutions driven by decarbonization and environmentally sound offerings both for offshore and onshore facilities. The segment provides a full-range offering of maintenance and modification services including electrification projects, digitally enabled asset integrity services, hook-up and installation services as well as late-life and decommissioning activities. The segment has a global presence across regions with main execution in Norway, UK, Canada, Brazil, Brunei and Angola.

Subsea

The subsea business was disposed October 2, 2023 and is presented as discontinued operations. The segment is therefore not presented for 2023. See note 30 for more information. The Subsea segment provided market-leading intelligent subsea systems, products, services and low-carbon solutions, used in oil and gas production. The segment also provided extensive life-of-field services including installation and commissioning, conditional monitoring, inspection, maintenance, repair, upgrades and spares supply, related to subsea equipment and infrastructure. The segment had a global delivery model with service bases across all main offshore oil and gas basins globally.

Other

The Other segment includes unallocated corporate costs, Aker Solutions Hydropower, Benestad businesses and the group effect of hedges not qualifying for hedge accounting. The Other segment also includes impairments of right-of-use lease assets for certain leases, as certain lease decisions are taken by the corporate center. The number of employees in corporate functions and finance support functions are reported in the Other segment while the related cost is allocated to the segments.

Change in reporting segments

A minor reorganization, affecting segments was carried out April 1, 2023. Historical figures have not been restated as changes are insignificant. Aker Solutions contributed in all material aspects the Subsea segment into a new entity formed with SLB on October 2, 2023 and will no longer be a reporting segment.# Note 4 Segments cont.

Segment Performance 2023

Amounts in NOK million

Notes	Renewables & Field Development	Life Cycle	Subsea	Total operating segments	Other	Intra-group eliminations
Income statement
Revenue from customer contracts	21,866	13,025	34,891	991	0	35,882
Other income	32	7	39	342	0	380
External revenue	21,898	13,032	34,930	1,332	0	36,262
Inter-segment revenue	622	40	662	-131	-531	0
Total revenue	22,520	13,072	35,592	1,201	-531	36,262
Operating income before depreciation, amortization and impairment	973	686	1,659	-492	0	1,166
Depreciation and amortization	-376	-120	-496	-188	0	-684
Impairment	0	0	0	-60	0	-60
Operating income	597	565	1,162	-740	0	422
Assets and Liabilities
Property, plant and equipment	2,995	52	3,047	440	0	3,487
Intangible assets	1,631	1,309	2,940	623	0	3,563
Right-of-use assets	470	79	548	1,363	0	1,911
Current operating assets	4,132	3,306	7,438	1,710	-230	8,918
Operating assets	9,227	4,746	13,973	4,137	-230	17,880
Current operating assets	4,132	3,306	7,438	1,710	-230	8,918
Current operating liabilities	10,167	2,769	12,936	4,697	-230	17,403
Net current operating assets	-6,035	537	-5,498	-2,986	0	-8,484
Cash flow
Cash flow from operating activities	3,832	237	4,069	2,147	0	6,216
Acquisition of property, plant and equipment	-1,482	-39	-1,521	-313	0	-1,833
Capitalized development	-30	0	-30	-359	0	-388
Other key figures
Order intake	22,523	11,781	34,304	1,146	-147	35,303
Order backlog	51,405	20,579	71,984	710	-15	72,680
Own employees	6,121	4,220	10,341	1,132	0	11,473

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Note 4 Segments cont.

Segment Performance 2022

Amounts in NOK million

Notes	Renewables & Field Development	Life Cycle	Subsea	Total operating segments	Other	Intra-group eliminations	Total
Income statement
Revenue from customer contracts	14,808	12,135	0	26,943	359	0	27,302
Other income	14	0	0	14	185	0	198
External revenue	14,822	12,135	0	26,957	544	0	27,500
Inter-segment revenue	35	29	0	64	78	-142	0
Total revenue	14,857	12,164	0	27,020	622	-142	27,500
Operating income before depreciation, amortization and impairment	487	663	0	1,150	-504	0	647
Depreciation and amortization	-298	-105	0	-404	-164	0	-568
Impairment	-3	0	0	-3	34	0	30
Operating income	185	558	0	743	-634	0	109
Assets and Liabilities
Property, plant and equipment	1,424	61	1,837	3,321	275	0	3,596
Intangible assets	1,613	1,311	2,808	5,732	217	0	5,949
Right-of-use assets	378	22	874	1,274	1,449	0	2,723
Current operating assets	3,011	2,975	4,315	10,301	2,656	-358	12,598
Operating assets	6,426	4,369	9,833	20,628	4,597	-358	24,866
Current operating assets	3,011	2,975	4,315	10,301	2,656	-358	12,598
Current operating liabilities	5,923	2,730	4,709	13,361	3,627	-358	16,630
Net current operating assets	-2,912	245	-394	-3,061	-971	0	-4,032
Cash flow
Cash flow from operating activities	2,058	194	0	2,252	2,266	0	4,518
Acquisition of property, plant and equipment	-305	-17	0	-321	-186	0	-507
Capitalized development	-26	0	0	-26	-87	0	-113
Other key figures
Order intake	51,398	16,190	0	67,589	379	-157	67,811
Order backlog	50,790	21,617	0	72,407	285	92	72,784
Own employees	5,484	4,381	0	9,865	1,139	0	11,004

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Note 4 Segments cont.

Reconciliation of Information on Reporting Segments to IFRS Measures

Amounts in NOK million

	2023	2022
Assets
Total operating assets	17,880	24,866
Deferred tax assets	491	584
Lease receivables	529	561
Equity accounted investees	6,555	103
Investments in companies	19	25
Derivative financial instruments	258	406
Current interest-bearing receivables	3,103	146
Financial investments	5,714	0
Non-current interest-bearing receivables	197	201
Other non-current assets	506	26
Cash and cash equivalents	6,003	6,170
Total assets	41,253	33,088
Liabilities
Total operating liabilities	17,403	16,630
Non-current borrowings	0	962
Non-current lease liabilities	2,921	3,679
Pension obligations	895	1,031
Deferred tax liabilities	140	459
Other non-current liabilities	119	36
Current borrowings	0	60
Current lease liabilities	619	734
Derivative financial instruments	204	255
Total liabilities	22,300	23,847

Major Customer

All reporting segments delivered to one major customer which represented 42 percent of total revenue in 2023 (2022: 49 percent). Aker Solutions has long-term contracts with this customer which is a large international oil company.

Geographical Information

External revenue is presented on the basis of geographical location of the selling company. Non- current assets and capital expenditures are based on the geographical location of the company owning the assets.

	Revenue from customer contracts	Non-current operating assets	Capital expenditure
Amounts in NOK million	2023	2022	2023
Norway	31,782	22,923	8,079
USA	1,024	1,243	2
Brazil	73	287	2
UK	472	577	550
Malaysia	286	508	44
Angola	264	270	1
Brunei	874	694	15
Canada	973	692	73
India	80	36	195
Other countries	55	70	2
Total	35,882	27,302	8,962

See note 3 for more information about revenue
See note 30 for more information about the subsea transaction

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Note 5 Personnel Expenses

Personnel Expenses

Amounts in NOK million

	2023	2022
Salaries and wages including holiday allowance	8,544	6,942
Social security contribution	1,188	974
Pension cost	795	655
Other employee benefits	229	162
Personnel expenses	10,757	8,733
Total number of employees as of December 31¹	11,473	11,004
Average number of employees²	11,289	10,897

Total number of employees in 2022 is excluding 4,391 employees related to the disposed subsea business.
Average number of employees in 2022 is excluding 4,025 employees related to the disposed subsea business.

Employee Share Purchase Program

In 2023, 1,413 employees participated in the share purchase programs in Aker Solutions. Employees received a 25 percent reduction of cost price limited to a total of NOK 7,500. Employees could sign up for shares up to a maximum amount of NOK 60,000 and management an additional amount of maximum 20 percent of annual salary. Employees that are still working in the company three years after completion of the program will receive one bonus share for every two shares still held by the employee. Costs related to the bonus shares are expensed over the vesting period. Aker Solutions expensed a total of NOK 12 million in 2023 related to share purchase programs (NOK 8 million in 2022), including NOK 4 million related to compensation of the employees in the Subsea segment. Employees in the Subsea segment have been compensated for matching shares at closing of the subsea transaction. The compensation was a cash payment corresponding to the cash value of the matching shares. Total cost related to the compensation of the subsea employees was NOK 12 million. There were no loans to employees as of December 31, 2023, same as in the previous year.

See note 20 for more information about the pension cost and obligations

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Note 6 Other Operating Expenses

Amounts in NOK million

	2023	2022
Rental of equipment, IT systems and support	1,369	1,350
Operating and maintenance expenses for property	808	666
External consultants including audit fees	526	444
Travel expenses	343	221
Insurance	190	164
Other expenses	343	207
Other operating expenses	3,578	3,052

See note 19 for more information about leasing costs
See note 32 for more information about audit fees

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Note 7 Financial Income and Expenses

Financial Reporting Principles

Interest income and expenses include effects from using the effective interest rate method where fees, interest paid, transaction costs and other premiums are deferred and amortized over the life of the instrument. Interest income from lease receivables and interest expense from lease liabilities are included. Foreign exchange gains and losses arise upon settlement of monetary assets and liabilities that are not hedged. Translation of monetary assets and liabilities denominated in foreign currencies related to operating activities such as trade receivables and payables are included in operating expenses before depreciation, amortization and impairment. However, the currency gains and losses are offset by the effects from hedging derivatives. Translation of monetary assets and liabilities in countries with hyperinflationary or non-convertible currencies are presented as financial items. Translation of assets and liabilities related to general financing of the entity are included as financial income and expenses. Foreign exchange gains and losses also include effects from translating monetary assets and liabilities denominated in foreign currencies at the balance sheet date. The profit or loss on foreign exchange forward contracts include effects from derivatives that do not qualify for hedge accounting, embedded derivatives and the ineffective portion of qualifying hedges.# Financial Income and Expenses
Amounts in NOK million


Interest income from lease receivables	28	27
Other interest income	325	78
Interest income	353	105
Interest expense on lease liability	-155	-159
Interest expense on financial liabilities measured at amortized cost	-32	-127
Interest expense on financial liabilities measured at fair value	-39	-4
Interest expense	-227	-290
Net foreign exchange gain (loss)	-116	17
Profit (loss) on foreign currency forward contracts	33	12
Loss on marketable shares1	-453	0
Other financial income	86	9
Other financial expenses	-3	-13
Net other financial items	-453	26
Net finance cost	-328	-160

1)Loss on shares in SLB received as part of consideration from disposal of the subsea business. See note 15 for more information about financial investments See note 19 for more information about lease receivables and liabilities See note 20 for more information about pension obligations See note 23 for more information about foreign exchange gains and losses See note 25 for more information about derivative financial instruments See note 26 for more information about financial assets and liabilities See note 28 for more information about investments in companies

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Note 8 Earnings per Share and Dividends

Earnings per Share (EPS)


Income from continuing operations attributable to ordinary shares (NOK million)	97	-134
Income from discontinued operations (NOK million)	11,540	1,312
Income from total operations attributable to ordinary shares (NOK million)	11,637	1,179
Weighted average number of issued ordinary shares for the year adjusted for treasury shares	488,829,434	486,899,547
Basic and diluted earnings per share from continuing operations (NOK)	0.20	-0.27
Basic and diluted earnings per share from discontinued operations (NOK)	23.61	2.70
Basic and diluted earnings per share from total operations (NOK)	23.81	2.42

Employees participating in Aker Solutions’ employee share purchase program may, given certain criteria, be awarded one bonus share for every two shares purchased. The bonus shares do not represent a material dilutive effect and have been excluded from the earnings per share figures.

Dividends

Aker Solutions targets to pay annual dividends of 40-60 percent of adjusted net profit over time. Given the company’s solid financial position and positive outlook, the Board has proposed a dividend per share of NOK 2.00 for 2023. The proposed dividend amounts to NOK 979 million based on outstanding shares as of December 31, 2023. Aker Solutions had a liquidity buffer of NOK 9.0 billion as of December 31, 2023 compared to NOK 11.2 billion as of December 31, 2022. In addition, the group had investments in liquid, fixed income securities of NOK 3 billion as of year- end 2023. For the previous year, Aker Solutions distributed dividends to its shareholders of NOK 1.00 per share with a total amount of NOK 489 million.

See note 5 for more information about the employee share purchase program See note 17 for more information about share capital and treasury shares

Note 9 Income Tax

Judgments and Estimates

The group is subject to income taxes in numerous jurisdictions, and judgment may be involved when determining the taxable amounts. Tax authorities in different jurisdictions may challenge calculation of taxes payable from prior periods. Management judgment is required when assessing valuation of unused losses, tax credits and other deferred tax assets. The recoverability is assessed by estimating taxable profits in future years taking into consideration also expected changes in temporary differences. The profits are compared to book value of the tax assets. The estimate of future taxable profits is sensitive to future market development for the projects and services of Aker Solutions. Forecasts are based on firm orders in the backlog and identified prospects in addition to expected service revenue. Changes in the assumptions related to the expected prospects and services can have a significant impact on the forecasted cash flows. Economic conditions may change and lead to a different conclusion regarding recoverability, and such changes may affect future reporting periods.

The Pillar Two legislation, also known as “Global minimum tax” or GloBE has been enacted in Norway and in many of the jurisdictions where Aker Solutions operates. The legislation is effective from January 1, 2024 and Aker Solutions is required to comply. Aker Solutions has prepared an assessment based on Country-by-Country Reporting to the tax authorities and the transitional safe harbor rules. Based on this assessment, a number of jurisdictions with limited activity will pass the “de minimis” test and in most jurisdictions the reported effective tax rate is above 15 percent. In a limited number of jurisdictions where Aker Solutions operates, the conditions under the transitional safe harbor may not apply, but the impact of the new legislation is not expected to be material for the group. IFRS has introduced a requirement in IAS 12 that entities within scope of the Pillar Two legislation shall not recognize or disclose information about deferred tax assets and deferred tax liabilities related to the Pillar Two legislation, which Aker Solutions applies.

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Note 9 Income Tax cont.

Deferred tax assets

The deferred tax assets are recognized only to the extent it is considered probable that future taxable profits will be available to utilize the tax losses and credits. The forecasted future taxable profits are based on firm orders in the backlog and identified prospects in addition to expected service revenue. The forecasted taxable profits reflect organic growth only. Other parameters in the assessment are the predicted long-term investment level by companies in the renewable and oil and gas energy sector, mix of projects and services and level of operating expenses.

Income Tax Expense

Amounts in NOK million


Current income tax
Current year	89	18
Prior year adjustment	10	5
Total current income tax	99	22
Deferred income tax
Origination and reversal of temporary differences	-34	-5
Write down of tax loss carry-forwards and deferred tax assets	35	77
Change in tax rates	0	-1
Adjustment for prior periods	9	-1
Total deferred income tax	11	70
Total income tax	110	92

Recoverability of deferred tax assets has been subject to assessment following market volatility and outlook in the jurisdictions where we operate. As a result, deferred tax assets related to net operating losses have been written down by NOK 35 million in 2023.

Taxes in OCI and Equity

Amounts in NOK million


Cash flow hedges, deferred tax	-2	25
Remeasurement of defined benefit pension plans	-8	-31
Income taxes included in OCI	-10	-6

Effective Tax Rate

The table below reconciles the tax expense as if the Norwegian tax rate of 22 percent was applied.

Amounts in NOK million


		2023		2022
Income before tax from continuing operations	95		-50
Income tax when applying Norwegian tax rate of 22 percent		-11		-11
Tax effects of:
Effect of different tax rates in other jurisdictions		9		2
Non-taxable income		-47		0
Non-deductible expenses		29		10
Effect of withholding tax		44		21
Current tax adjustments related to prior years		10		5
Deferred tax adjustments related to prior years		9		-1
Previously unrecognized tax losses used to reduce payable tax		0		-13
Write down of deferred tax assets		35		77
Impact of change in tax rate		0		-1
Other		0		3
Income tax and effective tax rate		110		92

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Note 9 Income Tax cont.

Deferred Tax Assets and Liabilities

Amounts in NOK million


	Assets		Liabilities		Net
	2023	2022	2023	2022	2023	2022
Property, plant and equipment	10	32	-46	-112	-36	-81
Pensions	190	195	0	0	190	195
Projects under construction	66	16	-1,880	-2,114	-1,814	-2,098
Tax loss carry-forwards	1,591	1,721	0	0	1,591	1,721
Intangible assets	5	6	-16	-208	-11	-202
Provisions	281	180	0	0	281	180
Derivatives	1	1	-41	-33	-40	-32
Tax credits and other	448	634	-259	-191	189	442
Total before offsetting	2,592	2,785	-2,242	-2,660	351	125
Offsetting	-2,101	-2,201	2,101	2,201	0	0
Total	491	584	-140	-459	351	125

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Note 9 Income Tax cont.

Change in Net Recognized Deferred Tax Assets and Liabilities

Amounts in NOK million

	Property, plant and equipment	Pensions	Projects under construction	Tax loss carry- forwards	Intangible assets	Provisions	Derivatives	Tax credits and other	Total
Balance as of January 1, 2022	-82	175	-2,626	2,398	-192	173	23	379	248
Acquisition of subsidiaries	2	4	-13	110	-19	1	0	7	92
Recognized in profit and loss1	8	-18	502	-788	1	-5	-26	24	-302
Prior year-adjustments booked in equity	-6	0	0	5	0	0	0	0	0
Recognized in other comprehensive income (OCI)	0	31	0	0	0	0	-25	0	7
Prepaid withholding tax	0	0	0	0	0	0	0	29	29
Reclassification between categories	0	0	37	-45	7	8	-6	0	1
Currency translation differences	-2	3	1	41	0	3	2	4	52
Balance as of December 31, 2022	-81	195	-2,098	1,721	-202	180	-32	442	125
Disposal of Subsea	41	-1	642	-103	193	-34	28	-143	623
Recognized in profit and loss2	10	-12	-359	-20	2	134	-35	-139	-420
Prior year-adjustments booked in equity	0	0	0	-25	0	0	0	0	-25
Recognized in other comprehensive income (OCI)	0	8	0	0	0	0	2	0	10
Prepaid withholding tax	0	0	0	0	0	0	0	14	14
Reclassification between categories	0	0	0	0	0	0	0	0	0
Currency translation differences	-7	1	2	19	-4	2	-2	15	25
Balance as of December 31, 2023	-36	190	-1,814	1,591	-11	281	-40	189	351

1)Includes NOK 232 million in 2022 related to# Note 9 Income Tax cont.

Tax Loss Carry-Forwards and Unrecognized Deferred Tax Assets (gross amount)

Amounts in NOK million

	Tax losses carry-forwards	Other tax assets	Expiry within 5 years	Expiry 5-20 years	Indefinite expiration	Total	Of which is unrecognized
Norway	0	6,649	6,649	0	6,649	6,649	93
Europe excluding Norway	4	2	469	475	469	6	73
North America	2	830	689	1,522	749	772	0
South America	0	0	293	293	293	0	0
Africa	0	0	0	0	0	0	0
Asia Pacific	24	689	0	713	713	1	0
Total	30	1,521	8,100	9,652	2,224	7,428	311

The majority of the recognized tax losses carry-forward sits in Norway. The balance must be seen together with deferred taxation on construction contracts and make in total a deferred tax liability. As projects are completed and come to taxation, temporary differences associated with construction contracts and tax losses carry-forward will be reduced. See note 21 for more information about tax provisions.

Note 10 Property, Plant and Equipment

Property, plant and equipment mainly relates to the yards within the Renewables and Field Development segment. Historically, the majority of property, plant and equipment related to the disposed subsea business’ manufacturing plants and service bases in Norway, Brazil, Malaysia, the US and the UK. Property, plant and equipment also include furniture and fittings in office buildings.

Financial Reporting Principles

Assets are normally depreciated on a straight-line basis over their expected economic lives as follows:

Machinery and equipment: 3-15 years
Buildings: 4-30 years
Land: No depreciation

Impairment triggers are assessed quarterly and impairment testing is performed when triggers have been identified.

Judgment and Estimates

Judgment is involved when determining the depreciation period and when assessing impairment or reversal of impairment. Impairment is assessed for individual assets and for cash generating units. The impairment testing involves judgmental assumptions about future market development, cash flows, determination of weighted average cost of capital (WACC), growth rate, and other assumptions that may change over time.

Commitments

Aker Solutions has entered into contractual commitments for the acquisition of property, plant and equipment amounting to NOK 871 million as of December 31, 2023, all of which is expected to be paid during 2024. Contractual commitments were NOK 1,552 million per December 31, 2022, of which NOK 231 million related to the disposed subsea business.

Note 10 Property, Plant and Equipment cont.

Property, Plant and Equipment

Amounts in NOK million

	Buildings and sites	Machinery and equipment	Under construction	Total
Historical cost
Balance as of December 31, 2021	2,827	7,488	241	10,556
Additions¹	4	18	567	589
Acquisition of subsidiaries²	34	4	0	38
Reclassification from assets under construction	22	271	-293	0
Disposal and scrapping²	-34	-122	0	-156
Currency translation differences	157	411	15	583
Balance as of December 31, 2022	3,010	8,070	530	11,610
Additions¹	17	25	1,979	2,021
Acquisition of subsidiaries	25	3	0	28
Reclassification from assets under construction	80	238	-318	0
Disposal of subsea operations	-1,140	-5,060	-337	-6,537
Disposal and scrapping	-4	-110	0	-115
Currency translation differences	152	429	26	608
Balance as of December 31, 2023	2,139	3,595	1,879	7,614

Amounts in NOK million

	Buildings and sites	Machinery and equipment	Under construction	Total
Accumulated depreciation and impairment
Balance as of December 31, 2021	-1,211	-6,112	-2	-7,325
Depreciation for the year³	-92	-353	0	-446
Impairment⁴	-3	0	-3	-6
Disposal and scrapping	0	117	0	117
Currency translation differences	-46	-309	0	-355
Balance as of December 31, 2022	-1,351	-6,658	-6	-8,015
Depreciation for the year³	-91	-274	0	-365
Impairment⁴	-93	-55	0	-148
Disposal of subsea operations	437	4,260	0	4,697
Disposal and scrapping	1	92	0	93
Currency translation differences	-55	-335	0	-389
Balance as of December 31, 2023	-1,152	-2,969	-5	-4,126
Book value as of December 31, 2022	1,658	1,412	526	3,596
Book value as of December 31, 2023	987	626	1,874	3,487

1) Includes NOK 270 million unpaid capital expenditure in 2023 (NOK 82 million in 2022). NOK 160 million in capital expenditure in 2023 (NOK 162 million in 2022) related to discontinued operations.

2) Includes NOK 34 million in 2022 related to acquisition of EPE Eigedom which was later partly sold and reclassified to equity accounted investee.

3) Includes NOK 138 million in depreciation in 2023 (NOK 226 million in 2022) related to discontinued operations.

4) Includes NOK 148 million in impairment in 2023 (NOK 3 million in 2022) related to discontinued operations.

See note 12 for more information about impairment testing. See note 19 for more information about right-of-use lease assets.

Note 11 Intangible Assets and Goodwill

Intangible assets mainly relate to capitalized technology development in addition to goodwill. The technology development programs are closely monitored to secure the desired technological achievements in time and at acceptable cost levels. Technology development programs that meet certain criteria are capitalized and amortized over the expected useful lives.

Financial Reporting Principles

Capitalized Development

The technology development at Aker Solutions is graded according to a Technology Readiness Level (TRL) consisting of eight phases. Research and development costs are expensed as incurred until a program has completed the concept phase. Development cost is only capitalized if the product or process is technically and commercially feasible and the business case shows a positive net present value. Capitalized development mainly includes internal labor costs in addition to materials for the development program. Any third-party funding is presented as a reduction of the capitalized amount. The capitalized development is normally amortized over five years on a straight-line basis, but certain programs with a clear differentiating offering and a longer economic benefit may be amortized up to seven years. For development projects in progress, a full impairment test is performed annually or when impairment indicators are identified. Assets are written down to recoverable amount if lower than book value.

Goodwill

Goodwill represents the consideration paid in excess of identifiable assets and liabilities in business combinations. Goodwill has an indefinite useful life and is tested for impairment annually, or when impairment indicators are identified.

Other

Other intangible assets include IT systems and technology development acquired through business combinations.

Judgments and Estimates

The decision to capitalize a development program involves management judgment. There are strict internal rules defining what qualifies for capitalization, and the documentation of the assessment is monitored centrally. Management makes assessment of future market opportunities, ability to successfully achieve the desired technological solution and the time and cost it takes to develop it. These factors may change over time. Judgment is involved when determining the amortization period and when assessing impairment or reversal of impairment. Impairment indicators are assessed for individual development projects, other intangible assets, and for cash generating units including goodwill. Impairment testing is performed when impairment indicators have been identified. In addition, goodwill and capitalized development programs that have not been completed are subject to an annual impairment test. The impairment testing involves judgmental assumptions about future market development, cash flows, determination of weighted average cost of capital (WACC), growth rate, and other assumptions that may change over time.

Note 11 Intangible Assets and Goodwill cont.

Intangible Assets

Amounts in NOK million

	Capitalized development	Goodwill	Other	Total
Historical cost
Balance as of December 31, 2021	3,382	5,385	292	9,058
Additions from internal development¹’²,³	124	0	1	125
Acquisition of subsidiaries	26	196	85	307
Disposal of subsidiaries and assets	-15	0	0	-15
Currency translation differences	82	17	6	106
Balance as of December 31, 2022	3,599	5,598	384	9,581
Additions from internal development¹’²,³	361	0	6	367
Acquisition of subsidiaries	0	13	0	13
Reclassification between categories	7	0	-7	0
Disposal of subsea operations	-2,981	-1,842	-2	-4,825
Disposal of assets	-4	0	-1	-4
Currency translation differences	145	14	16	174
Balance as of December 31, 2023	1,127	3,783	396	5,306

1) Development cost funded by third-party totaled NOK 37 million in 2023 (NOK 55 million in 2022), of which nil related to the disposed subsea business.

2) Includes NOK 5 million of unpaid capital expenditure in 2023 (NOK 12 million in 2022).

3) Includes NOK 47 million in capital expenditure in 2023 (NOK 72 million in 2022) related to discontinued operations.

4) Includes NOK 109 million in amortization in 2023 (NOK 180 million in 2022) related to discontinued operations.

5) Includes NOK 14 million in impairment in 2023 (nil in 2022) related to discontinued operations.# Note 12 Impairment of Assets

The future outlook continues to be positive for Aker Solutions. High activity is expected over the coming years particularly due to the ongoing projects for Aker BP. Aker Solutions has a solid order backlog and continued high tendering- and FEED activity. The company had net impairments of NOK 354 million in 2023, of which NOK 294 million related to discontinued operations.

Impairment Testing Method

Individual Assets

Each property, plant, equipment and right-of-use asset is assessed for impairment triggers every quarter to identify assets that are damaged, no longer in use or will be disposed.

Capitalized development is assessed for impairment triggers every quarter to identify development programs where the technological development or commercial outlook for that specific technology no longer justify the book value. Capitalized development programs that have not been completed are subject to annual impairment testing. The impairment testing of capitalized development includes an update of the future expected cash flows, assessing status on technical achievements and reviewing cost incurred compared to budget in order to identify if any of the capitalized cost should be expensed. The assets are written down to recoverable amount, if lower than book value. Reversal of impairment is assessed quarterly for assets previously impaired.

Assets in a Cash Generating Unit (CGU)

Impairment indicators are assessed quarterly for all assets (including right-of-use assets) that are part of a cash generating unit (CGU). A CGU represents the lowest level of independent revenue generated by the assets. This is usually the lowest level where a separate external market exists for the output from the CGU. Impairment indicators are reviewed for all assets with assessment of market conditions, technological development, change in order backlog, change in discount rate and other elements that may impact the value of the assets in the CGU. Assets are usually tested using the value-in-use approach determined by discounting expected future cash flows. Various sensitivity analysis for change in future cash flows, growth rate and WACC is performed for CGUs with limited headroom in the impairment testing. Impairment losses are recognized for assets in CGUs where the recoverable amount is lower than book value.

Goodwill

The groups of CGUs that include goodwill are tested for impairment annually or when impairment triggers have been identified. The company does not have other assets than goodwill with indefinite useful lives.

Judgments and Estimates

The impairment testing of assets is by nature highly judgmental as it includes estimates such as future market development, cash flows, determination of CGUs and WACC, growth rate used for calculation of terminal value and other assumptions that may change over time. In particular, future cash flows are uncertain as they are impacted by market developments beyond Aker Solutions' control. The oil price impacts for example the investment levels in CapEx and maintenance projects by the oil companies. Carbon taxation impacts the investment levels of carbon capture and offshore wind investments. These external factors in turn impact the markets in which Aker Solutions operates.

Climate related Matters

The energy transition may curtail the expected useful lives of oil and gas related assets thereby accelerating depreciation charges. The group’s assets related to oil and gas are likely to be fully depreciated within the next 10-15 years and projects related to oil and gas will be a part of Aker Solutions’ business activities over this period. Aker Solutions will be engaged in traditional oil and gas projects and will also be engaged in projects relating to decarbonization solutions and services for existing platforms. Therefore, Aker Solutions does not expect any changes to the useful lives of our property, plant, and equipment. Assessment of effect on useful lives is not considered to be a significant accounting judgment or estimate. Aker Solutions note that assessment of useful lives of future capital expenditure may be different, and local climate changes in the future may affect useful lives of certain assets. Under all three climate scenarios (described in note 33) the group expects an increase in the frequency and intensity of extreme weather events. This is not expected to lead to any effects on useful economic life of property, plant and equipment per 2023.

The expected future cash flows used in impairment testing are affected by climate changes as the projects Aker Solutions will be engaged in will change going forward. Aker Solutions has a revenue ambition of 2/3 within renewables and transitional solutions in 2030. As the cash flows used in the impairment testing are based on current backlog together with identified prospects, the ambitions for transforming Aker Solutions towards 2/3 of revenue to be within renewables and transitional solutions have been included in the impairment testing.

Cash Flow Assumptions

When estimating future cash flows, five years of cash flows for the period 2024 to 2028 have been used as basis. The forecasted cash flows are based on firm orders in the backlog and identified prospects in addition to expected service revenue. ROU lease assets are included in the impairment test. Management has defined the growth rate, post-tax discount rate and estimated future cash flows as the most sensitive assessment in the value-in-use calculation. The forecasted cash flows used in the impairment tests reflect organic growth only. Other parameters in the assessment are the predicted long-term oil price per barrel, mix of projects and services, level of operating expenses and capital expenditure for maintenance of the asset portfolio.

Discount and Growth Rate

The WACC used in the impairment testing of goodwill is shown below.

	2023	2022
	Post-tax WACC	Pre-tax WACC
New Build yards	10.8%	15.3%
New Energies	10.9%	13.2%
Life Cycle	11.7%	14.6%
Benestad	10.8%	13.1%
Hydropower	11.1%	13.1%
Engineering	n.a.	n.a.
Subsea	n.a.	n.a.

Estimated future cash flows are discounted to their present value using the weighted average cost of capital (WACC), which is a post-tax discount rate. The WACC is based on a risk-free interest rate, a risk premium and average beta values of peers within each market. A separate WACC has been calculated for each of the CGUs taken into consideration country specific risk premiums and long-term risk free interest rates. A growth rate has been applied to calculate terminal value after the five-year period.

Impairment Testing of Individual Assets and CGUs

The table below summarizes the impairments recognized per group of assets and per segment.

Amounts in NOK million	2023	2022	2023	2022	2023	2022	2023	2022
	Renewables & Field Development	Life Cycle	Other Continuing operations
Impairment of intangible assets	0	3	0	0	5	3	5	6
Impairment of property, plant and equipment	0	0	0	0	0	3	0	3
Impairment of right-of-use assets	0	0	0	0	55	-39	55	-39
Total impairment	0	3	0	0	60	-34	60	-30

The company had impairments of NOK 60 million for its continuing operations in 2023. Impairments in the year related to right-of-use assets with empty areas available for sub-lease and intangible assets where the technology or commercial outlook no longer justified the value. Total net impairments for discontinued operations amounted to NOK 294 (2022: NOK 8 million). In 2022, the group reversed previous impairments of right-of-use assets due to more utilization of leased assets and favorable developments with sub-leases.

Impairment Testing of Goodwill

The groups of CGUs identified when testing goodwill represent the level where synergies are expected and goodwill is monitored. ROU lease assets are included in the impairment testing. The book value of goodwill for the groups of CGUs that include goodwill is shown below. In 2023, Aker Solutions sold its subsea business and derecognized associated goodwill. Aker Solutions subsidiary Benestad AS was part of and tested together with Subsea in 2022, but remains with Aker Solutions. Following a minor reorganization, effective April 1, 2023, previous segment Engineering was merged into New Build and New Energies and goodwill was reallocated to these CGUs based on estimated value of engineers.

Amounts in NOK million	Capitalized development	Goodwill	Other	Total
Accumulated depreciation and impairment
Balance as of December 31, 2021	-2,512	-546	-276	-3,334
Amortization for the year4	-213	0	-11	-224
Impairment5	-6	0	0	-6
Disposal of subsidiaries and assets	15	0	0	15
Currency translation differences	-62	-15	-6	-83
Balance as of December 31, 2022	-2,778	-560	-293	-3,631
Amortization for the year4	-180	0	-15	-195
Impairment5	-19	0	0	-19
Reclassifications between categories	-1	0	1	0
Disposal of subsea operations	2,352	-110	2	2,245
Disposal of assets	3	0	1	3
Currency translation differences	-118	-13	-16	-146
Balance as of December 31, 2023	-741	-683	-319	-1,744

	Book value as of December 31, 2022	Book value as of December 31, 2023
Capitalized development	820	386
Goodwill	5,037	3,100
Other	91	77
Total	5,949	3,563

Research and Development Expenses

The research and development expense was NOK 59 million in 2023 compared to NOK 21 million in 2022. In addition, NOK 28 million related to the disposed subsea business (NOK 39 million in 2022), which is included within discontinued operations. See note 12 for more information about impairment testing.# Note 13 Inventories

Judgments and Estimates
The assessment of obsolete and slow-moving inventory in order to determine inventory write-downs is subject to management judgment. The selling price in the market has to be estimated, and there is a risk that the actual selling price may turn out to be different than the amount estimated by management.

Inventories
Amounts in NOK million | 2023 | 2022
---|---|---
Raw materials and semi-finished goods | 42 | 274
Finished goods | 2 | 1
Total | 44 | 275
Total inventories at cost | 46 | 384
Inventory write-downs to net realizable value | -2 | -109
Total | 44 | 275

Inventory (Net) | |
---|---|---
Opening balance | 275 | 293
Purchase of inventory | 1,757 | 983
Recognized as expenses | -1,683 | -1,041
Write down | -19 | -14
Reversal of write down | 12 | 19
Disposal of subsea operations | -320 | 0
Currency translation differences | 22 | 35
Total | 44 | 275

Note 14 Trade and Other Receivables

Judgments and Estimates
Judgment is involved when determining the impairment losses on receivables and customer contract assets. The impairment is based on individual assessments of each customer and default risk in the industry and the country in which the customer operates in line with the expected credit loss method (ECL). The customers of Aker Solutions are mainly large, international energy companies with low credit risk.

Trade and Other Receivables
Amounts in NOK million | 2023 | 2022
---|---|---
Trade receivables | 4,775 | 5,842
Trade receivables, related parties | 608 | 84
Less bad debt provision | -116 | -69
Trade receivables, net | 5,268 | 5,857
Customer contract assets | 2,113 | 4,283
Other receivables | 204 | 135
Customer contract assets and other receivables | 2,317 | 4,419

Bad Debt Provision
Amounts in NOK million | 2023 | 2022
---|---|---
Balance as of January 1 | -69 | -44
Provisions made during the year | -61 | -40
Provisions reversed during the year | 4 | 10
Provisions used during the year | 5 | 8
Disposal of subsea operations | 10 | 0
Currency translation differences | -4 | -2
Balance as of December 31 | -116 | -69

Aging of Trade Receivables
Amounts in NOK million | 2023 | 2022
---|---|---
Not due | 4,584 | 4,857
Past due 0-30 days | 589 | 832
Past due 31-90 days | 74 | 60
Past due 91 days to one year | 115 | 120
Past due more than one year | 21 | 57
Total | 5,383 | 5,926

The wars in Ukraine and Gaza have generally increased the global credit risk. In Aker Solutions, the credit risk has not changed significantly, as the majority of customers are large, international energy companies.

Note 15 Financial Investments and Interest-bearing Receivables

Financial investments
Amounts in NOK million | 2023 | 2022
---|---|---
Liquid funds | 3,030 | 0
Shares in SLB | 2,684 | 0
Total | 5,714 | 0

Liquid funds
Aker Solutions’ Investment Strategy allows investments in liquid money market funds with low risk and interest period below 6 months and credit duration below 2 years. The rationale is to diversify the risk among debtors and enhance the return from surplus cash, compared to the interest rate in the cash pool. December 31, 2023 Aker Solutions had invested NOK 3,000 million in three different funds. The funds invest in short-term interest-bearing securities in NOK, i.e., certificates and bonds issued by companies with investment grade rating and the public sector. The money market funds cannot invest in securities with fixed interest rates longer than one year. The credit risk is deemed to range from low to very low, depending on the investment strategy of the fund.

Shares in SLB
As part of the consideration from the sale of the subsea business, Aker Solutions received USD 306.5 million from SLB in the form of 5,076,706 shares in SLB. The shares is subject to a lock-up- period of 180 days from closing at October 2, 2023. The shares are measured at fair value through profit and loss. The investment is exposed to currency risk and share price risk. Part of the currency exposure is secured by a USD 225 million put option at strike 10,00 with maturity April 2024. A loss of NOK 126 million for the put option was recognized in 2023 (gain of NOK 14 million in 2022) as part of net foreign exchange gain (loss).

Interest-bearing current receivables
Amounts in NOK million | 2023 | 2022
---|---|---
Vendor note OneSubsea | 912 | 0
Receivable Subsea7 | 1,592 | 0
Working capital funding of OneSubsea | 370 | 0
Lease receivable | 148 | 136
Other interest-bearing receivables | 81 | 10
Total current interest-bearing receivables | 3,103 | 146

Vendor note and receivable from Subsea7
The vendor note and receivable from Subsea7 are hedged with both a call and a put option. A gain of NOK 85 million was recognized in 2023 as part of net foreign exchange gain (loss).

Note 16 Cash and Cash Equivalents

Amounts in NOK million	2023	2022
Cash pool	3,979	4,666
Interest-bearing deposits	2,018	1,499
Non interest-bearing deposits and other	5	4
Total	6,003	6,170

Available Liquidity
Additional undrawn committed non-current bank revolving credit facilities amounted to NOK 3.0 billion, compared to NOK 5.0 billion in the prior period. Together with cash and cash equivalents, this gives a total liquidity buffer of NOK 9.0 billion, compared to NOK 11.2 billion in prior year. In addition to the liquidity buffer, Aker Solutions has invested NOK 3.0 billion in liquid interest funds that are not defined as cash and cash equivalents.

Note 17 Equity

Share Capital
Aker Solutions ASA was founded May 23, 2014, and the share capital was NOK 531,540,456 divided into 492,167,089 shares, each having a nominal value of NOK 1.08 as of December 31, 2023. All issued shares are fully paid. Aker Solutions ASA has one class of shares, ordinary shares, with equal rights for all shares. The holders of ordinary shares are entitled to receive dividends and are entitled to one vote per share at general meetings.

Treasury Shares
The group purchases its own shares to meet obligations under employee share purchase programs and variable pay programs for management. Treasury shares are not included in the weighted average number of ordinary shares. Earnings per share have been calculated based on an average of 488,829,434 shares outstanding December 31, 2023. Consideration for treasury shares sold in 2023 was NOK 56 million.Amounts in NOK million
Number of shares
Treasury shares as of December 31, 2022 | 3,838,897
Sale | -1,369,962
Treasury shares as of December 31, 2023 | 2,468,935

Hedging Reserve
The hedge reserve mainly relates to effects of currency cash flow hedges that are not yet recognized in the income statement. The hedging effects are recognized in the income statement according to the progress of the underlying customer contract.

Translation Reserve
The currency translation reserve includes foreign exchange differences arising from the translation of the subsidiaries into the presentation currency of the consolidated financial statements.

Fair Value Reserve
The fair value reserve includes fair value adjustments of equity securities at fair value through other comprehensive income (FVOCI).

See note 2 for more information about currency translation of subsidiaries
See note 25 for more information about hedging
See note 28 for more information about equity securities in the fair value reserve

Note 18 Borrowings

Revolving Credit Facility

The revolving credit facility agreement of NOK 5,000 million with maturity in March 2023 was refinanced in January 2023 and replaced with a five year NOK 3,000 million revolving credit facility, maturing January 30, 2028. The facility is provided by a syndicate of high-quality international banks. The revolving credit facility was undrawn as of December 31, 2023. The terms and conditions include restrictions which are customary for these kind of facilities, including inter alia negative pledge provisions, financial covenants and restrictions related to acquisitions, disposals and mergers. There are also certain provisions of change of control included in the agreement. There are no restrictions for dividend payments and the facility is unsecured. Interest terms for the revolving credit facility is 3 month NIBOR plus a fixed margin of 1.5 percent. The margin applicable to the facility is determined by leverage ratio. Utilization fee applies based on utilized portion of credit facility. Commitment fee is 35 percent of the margin.

Norwegian Bonds

The group had one bond loan with maturity June 2024 amounting to NOK 1 billion listed on the Oslo Stock Exchange. On February 14, 2023 Aker Solutions offered to buy back all outstanding bonds of the NOK 1 billion senior unsecured floating rate bonds due June 2024 at a price of 102. Tenders of NOK 477 million was accepted and repurchased on February 22, 2023. The remaining outstanding bonds were purchased by exercising a call option for Voluntary early redemption on December 4, 2023, six months prior to original maturity date. The bond loan and the listing of the loan on Oslo Stock Exchange has been cancelled.

Note 18 Borrowings cont.

Bonds and Borrowings

	2022
Amounts in NOK million
Currency
Nominal currency value
Carrying amount
Reference interest rate
Fixed interest margin
Interest coupon
Maturity date (mm/dd/yy)
Interest terms
ISIN NO 0010853286	NOK 914
3.5%
3.0%
6.5%
06/03/24
Floating, 3M+fix margin
Total bonds	915
Revolving credit facility (NOK 5,000 million)	NOK 0
Facilities, Hydropower	NOK 106
Other borrowings	2
Total borrowings	1,023
Current borrowings	60
Non-current borrowings	962
Total borrowings	1,023

Maturity of Bonds and Borrowings

	2022
Amounts in NOK million	Carrying amount	Total cash flow¹	6 months and less	6-12 months	1-2 years	2-5 years
ISIN NO 0010853286	915	1,004	30	30	944	0
Total bonds	915	1,004	30	30	944	0
Revolving credit facility (NOK 5,000 million)²	0	0	0	0	0	0
Facilities, Hydropower	106	121	3	56	4	58
Other borrowings	2	2	0	0	0	0
Total other borrowings	108	123	5	56	4	58
Total borrowings	1,023	1,127	35	86	948	58

¹ The interest costs are calculated using either the last fixing rate known by year end (plus applicable margin) or the contractual fixed rate (when fixed rate debt).
² The cash flow is based on the assumption that the nominal drawn amount will remain constant until the maturity of the revolving credit facility.

Note 18 Borrowings cont.

Movement of Liabilities

	2023	2022
Amounts in NOK million	Bonds	Credit facilities
Balance as of January 1	915	106
Proceeds from loans and borrowings	0	0
Repayment of borrowings	-914	-53
Total changes from financial cash flows	-914	-53
Accrued interest	-4	0
Amortization of borrowing cost	3	0
Acquisition of subsidiaries	0	0
Loan settlement¹	0	-53
Reclassification²	0	0
Currency translation differences	0	0
Balance as of December 31	0	0

¹Loan settlement relates to financial restructuring of Aker Solutions Hydropower AS.
²Received non-interest bearing rent deposit has been reclassified to other payables.

Mortgages

The company has no mortgage liabilities at year-end 2023 (NOK 76 million in 2022).

See note 19 for more information about lease liabilities
See note 24 for more information about capital management
See note 25 for more information about interest rate derivatives
See note 26 for more information about financial assets and liabilities

Note 19 Leases and Investment Property

The company leases a number of office buildings, manufacturing and service sites in addition to some machines and vehicles. Contracts that contain a lease are recognized on the balance sheet as a right-of-use asset and lease liability unless the lease is short-term or low-value. Vacated leased property made available for sublease and property with operational subleases are classified as investment property.

Financial Reporting Principles

The lease liability represents the net present value of the lease payments to be made over the remaining lease period. The discount rate is calculated for each lease based on a model that includes swap-rates, credit risk and country risk. The right-of-use asset is depreciated over the lease term and is subject to impairment testing. Several property leases contain extension options or cancellation clauses. The non-cancellable lease period is basis for the lease commitment. Periods covered by extension or termination options are included when it is reasonably certain that the lease period will be extended. When management has decided to extend the lease period is typically an event that would trigger an updated assessment of the reasonably certain criteria. When a separable part of a leased property has been vacated by Aker Solutions, the right-of-use asset is reclassified as investment property and assessed for impairment. The investment property is measured using the cost model, meaning that the book value and depreciation of the lease term from the ROU asset is the basis for measuring the investment property. When testing the investment property for impairment, the expected future sublease income is discounted to present value and compared to the value of the investment property. The cost model together with impairment assessments is also an estimate of fair value of the right-of-use asset classified as investment property. The company has a number of subleases. Income from operational subleases on investment property is recognized as other income. Subleases covering the major part of the lease term in the head-lease are classified as financial subleases. The portion of the right-of-use asset or investment property subject to financial sublease is derecognized and a sublease receivable is recognized in the balance sheet when the sublease commences.

Judgments and Estimates

Judgment is involved when determining impairment of the investment property. Impairment is assessed for separable parts of leased buildings that have been or will be vacated in the near future. The impairment is sensitive to changes in estimated future expected sublease income and sublease period. Further, judgment is involved when determining whether sublease contracts are financial or operational, as well as when determining lease term for contracts that have extension or termination options. Determination of the discount rate also involves judgment.

Note 19 Leases and Investment Property cont.

Right-of-Use (ROU) Assets

The movement in the right-of-use assets is summarized below.# Note 19 Leases and Investment Property cont.

Lease liabilities and Lease Receivables

The movement in lease liabilities and lease receivables related to subleases are shown in the table below.

	Lease liabilities	Lease receivable (sublease)
Amounts in NOK million
	2023	2022
Movement of lease liabilities and receivables
Balance as of January 1	4,413	4,748
Additions and remeasurement	566	337
Acquisition of subsidiaries	0	68
De-recognition	-50	-77
Disposal of subsea operations	-791	0
Interest expense/sublease interest income	181	195
Lease payments/sublease payments	-956	-889
Currency translation differences	176	31
Balance as of December 31	3,540	4,413
Of which current	619	734
Of which non-current	2,921	3,679
Balance as of December 31	3,540	4,413

The weighted-average discount rate applied to calculate lease liability was 4.7 percent in 2023 (4.3 percent in 2022). The maturity of lease payments and sublease income per December 31 are presented below:

	Lease Payments	Financial sublease income	Operational sublease income
Amounts in NOK million	2023	2022	2023
Maturity within 1 year	765	905	173
Maturity 1-5 years	2,101	2,448	397
Maturity 5-10 years	1,069	1,394	165
Maturity later than 10 years	200	460	34
Total	4,135	5,207	769
Discounting effect	-595	-794	-92
Lease liabilities and lease receivable	3,540	4,413	677

Amounts Recognized in the Income Statement

The following amounts are recognized in the income statement related to leasing:

Amounts in NOK million	2023	2022
Income from operational subleases presented as other income	155	159
Expenses relating to short-term leases presented as operating costs	-552	-631
Expenses relating to low-value leases presented as operating costs	-6	-18
Depreciation of ROU assets	-371	-304
Net impairments of ROU assets	-55	39
Interest on lease receivables presented as financial income	28	27
Interest on lease liabilities presented as financial expense	-155	-159
Gain/(loss) on termination of lease agreements	-2	0
Expense relating to variable lease payments not included in lease liabilities	-4	-3
Total effect on profit/(loss) before tax	-963	-890

Short-term leases include storage and accommodation for expats and workers in addition to rental of tools, machinery, cranes, containers and other equipment used in production. See note 6 for more information about operating expenses for land and buildings See note 12 for more information about impairment testing of right-of-use assets See note 31 for more information about leasing contracts with related parties

Note 20 Pension Obligations

Aker Solutions operates several pension plans around the world. The most common type of plan is the defined contribution plan, where Aker Solutions makes contributions to the employee's individual pension account. Aker Solutions also has a closed defined benefit plan where the impact is gradually reduced.

Pension Plans

Defined Contribution Plans

A defined contribution plan is a type of retirement plan where the employer makes contributions on a regular basis to the employee’s individual pension account. The benefits received by the employee are based on the employer contributions and gains or losses from investing the capital. Contributions to defined contribution pension plans are recognized as an expense in the income statement as incurred.

Defined Benefit Plans

A defined benefit plan is a type of pension plan where the employer promises an annual pension on retirement based on a percentage of the salary upon retirement and the employee's earnings history, years of service and age. The calculation of defined benefit obligations is performed annually by a qualified actuary using the projected unit credit method. The defined benefit obligation is calculated separately for each plan by discounting the estimated amount of future benefit that employees have earned in the current and prior periods and deducting the fair value of any plan assets. The change of the defined benefit obligation as a result of the change of assumptions (actuarial gains and losses) and the return on plan assets are recognized immediately in other comprehensive income. Net interest expense and other expenses related to defined benefit plans are recognized in the income statement. When the benefits of a plan are changed, settled or when a plan is curtailed, the change relating to past service or the gain or loss on curtailment or settlement is recognized immediately in the income statement.

Judgments and Estimates

The present value of the pension obligations depends on a number of factors determined on the basis of actuarial assumptions. These assumptions include financial factors such as the discount rate, expected salary growth, inflation and return on assets as well as demographic factors concerning mortality, employee turnover, disability and early retirement. Assumptions about all these factors are based on the situation at the time the assessment is made. However, it is reasonably certain that such factors will change over long periods for which pension calculations are made. Any changes in these assumptions will affect the calculated pension obligations with immediate recognition in other comprehensive income.

Pension Plans in Norway

The main pension arrangement in Norway is a general pension plan organized by the Norwegian state providing a basic pension entitlement to all taxpayers. The additional pension plans which all Norwegian employers are obliged to provide according to current legislation, represent limited additional pension entitlements. The occupational plans in Aker Solutions in Norway are described below.

Defined Contribution Plans

All employees in Norway are offered participation in a defined contribution plan. The annual contributions, premium and administration cost expensed for the Norwegian plans in 2023 were NOK 377 million, compared to NOK 407 million in 2022, of which NOK 48 million related to the disposed subsea business. The estimated contribution, premium and administration cost expected to be paid in 2024 is NOK 477 million.

Defined Benefit Plans

The defined benefit plans at the Norwegian companies in Aker Solutions are split between funded and unfunded plans. The plans are organized in Aker Pensjonskasse. Aker Solutions companies in Norway closed the defined benefit plans in 2008. Employees who were 58 years or older in 2008 are still members of the closed defined benefit plan. This is a funded plan and represents the funded pension liability reported in the tables below. Aker Solutions also has various unfunded early retirement plans and executive pension plans that are partially closed for new members. The estimated premium cost expected to be paid during 2024 is NOK 85 million. The liability is calculated using a projected unit credit method.

Compensation Plans

All employees in 2008 who had a calculated loss of more than NOK 1,000 per year upon transition to the defined contribution plan were offered compensation. The compensation amount will be adjusted annually in accordance with the adjustment of the employees' pensionable income, and accrued interest according to market interest. If the employee leaves the company voluntarily before the age of 67 years, the accrued compensation amount will be paid out.The compensation plan is an unfunded plan, and is included in the unfunded pension liability reported in the tables below. The liability is equal to the compensation balance.

Tariff Based Pension Agreement (AFP)

Employees in Norway have a tariff based lifelong retirement arrangement (AFP) organized by the main labor unions and the Norwegian state. The pension can be withdrawn from the age of 62. The information required to estimate the pension obligation from this defined benefit plan is not available from the plan administrator. Aker Solutions therefore currently accounts for the plan as if it was a defined contribution plan. The annual contributions expensed in 2023 were NOK 177 million, compared to NOK 136 million in 2022, of which NOK 16 million related to the disposed subsea business. The estimated contribution expected to be paid in 2024 is NOK 156 million.

Pension Plans Outside Norway

Pension plans outside Norway are mainly defined contribution plans. The annual contributions expensed for plans outside Norway in 2023 were NOK 101 million, compared to NOK 140 million in 2022, of which NOK 75 million related to the disposed subsea business. The estimated contributions expected to be paid in 2024 is NOK 98 million to the plans outside Norway.

Total Pension Cost

Amounts in NOK million	2023	2022
Defined benefit plans	77	41
Defined contribution plans	736	766
Total¹	814	807

¹ Includes NOK 147 million in 2022 related to the disposed subsea business.

Note 20 continues on next page

Note 20 Pension Obligations cont.

Movement in Net Defined Benefit Liability

The table below shows the movement from the opening balance to the closing balance for the net defined benefit liability.

Amounts in NOK million	Present value of obligation	Fair value of plan assets	Impact of asset ceiling	Net defined benefit liability
	2023	2022	2023	2022
Balance as of January 1	2,128	2,211	-1,096	-1,241
Current service and administration cost	52	32	8	3
Interest cost (income)	50	28	-32	-23
Included in income statement	102	61	-24	-20
Actuarial loss (gain) arising from financial assumptions	18	24	0	0
Return on plan assets	0	0	19	108
Changes in asset ceiling	0	0	0	0
Actuarial loss (gain) arising from experience adjustments	0	39	0	0
Remeasurements loss (gain) included in OCI	17	63	19	108
Contributions paid into the plan	0	0	-86	-77
Benefits paid by the plan	-215	-230	131	134
Other events due to effect of any business combinations/divestitures/transfers¹	-80	23	0	0
Other	-295	-207	45	57
Balance as of December 31	1,952	2,128	-1,057	-1,096

¹ NOK 80 million in pension obligations related to the disposed subsea business. Aker Solutions is still liable to OneSubsea and the liability is reported as other non-current liabilities.

Note 20 continues on next page

The net liability disclosed above relates to funded and unfunded plans as follows:

Amounts in NOK million	Present value of obligation	Fair value of plan assets	Asset ceiling	Net defined benefit liability
	2023	2022	2023	2022
Net defined benefit liability funded plan	1,057	1,096	-1,057	-1,096
Net defined benefit liability unfunded plans	895	1,031	0	0
Balance as of December 31	1,952	2,128	-1,057	-1,096

Assets in the Defined Benefit Plan

Amounts in NOK million	2023	2022
Bonds	429	501
Income and equity funds	628	595
Total plan assets at fair value	1,057	1,096

The majority of the bond investment is in Norwegian municipalities and is assumed to have a rating equal to AA, but there are few official ratings for these investments. The remaining bond investment is primarily in the Norwegian market within bonds assumed to be of “Investment Grade” quality. The majority of these investments do not, however, have an official rating. The fund investments consist of fixed income funds and equity funds with listed securities where the value is based on quoted prices. The equity securities are invested globally, and the value is based on quoted price at the reporting date without any deduction for estimated future selling cost.

Actuarial Assumptions

The information below relates only to Norwegian plans as these represent the majority of the plans. The following were the principal actuarial assumptions at the reporting date:

	2023	2022
Discount rate	3.10%	3.00%
Asset return	3.10%	3.00%
Salary progression	3.50%	3.50%
Pension indexation funded plans¹	0-4%	0-4 %
Mortality table	K2013	K2013
Remaining life expectancy at age 65 for pensioners, males	22.7	22.7
Remaining life expectancy at age 65 for pensioners, females	26.0	26.0

¹ Pension indexation for unfunded plans is agreed individually (0-4 percent).

The discount rate is based on high-quality corporate bonds (OMF) with maturities consistent with the terms of the obligations. The assumptions used are in line with recommendations from the Norwegian Accounting Standards Board.

Note 20 continues on next page

Sensitivity Analysis

Changes at the reporting date to one of the relevant actuarial assumptions, holding other assumptions constant, would have changed the defined benefit obligation as of December 31 by the amounts shown below.

	2023	2022
Discount rate increase by 1 percent	-94	-102
Discount rate decrease by 1 percent	116	123
Expected rate of salary increase by 1 percent	0	1
Expected rate of salary decrease by 1 percent	0	-1
Expected rate of pension increase by 1 percent	106	116
Expected rate of pension decrease by 1 percent	-90	-97

For Aker Solutions, a one percent increase of discount rate decreases the benefit obligation by only 8 percent. This is because the benefit obligation in Aker Solutions consists mainly of pensioners and employees over 60 years of age, hence limiting the discounting effect.

See note 5 for more information about personnel expenses

Note 21 Provisions and Contingent Liabilities

Financial Reporting Principles

A provision is a liability with uncertain timing and amount. Provisions are recognized when cash outflow is considered probable, the amount can be reliably estimated and the obligation is a result of a past event. All provisions are presented as short-term as they are part of the operating cycle. A contingent liability is a possible obligation that arises from past events that typically depends on a future event outside of the company's control, for example a court decision. A provision is made when it is considered as probable that cash outflow will take place, and the obligation can be measured reliably.

Judgments and Estimates

The provisions are estimated based on a number of assumptions and are highly judgmental in nature. The various provisions with assumptions and estimation uncertainties are discussed in the table to the right.

Provisions

Amounts in NOK million	Warranties	Onerous contracts	Other	Total
Balance as of December 31, 2021	399	79	306	784
Provisions made during the year	177	1,104	181	1,462
Provisions used during the year	-45	-292	-72	-410
Provisions reversed during the year	-83	-60	-8	-151
Acquisition of subsidiaries	9	8	0	17
Reclassifications	0	0	-1	-1
Currency translation differences	7	3	9	19
Balance as of December 31, 2022	464	841	415	1,719
Provisions made during the year	267	983	1,176	2,426
Provisions used during the year	-64	-460	-67	-591
Provisions reversed during the year	-3	-1	-22	-27
Disposal of subsea operations	0	-132	-37	-169
Reclassifications	-12	-4	21	5
Currency translation differences	15	1	27	42
Balance as of December 31, 2023	666	1,227	1,512	3,405

Amounts in NOK million	Warranties	Onerous contracts	Other	Total
Expected timing of payments
Payment within one year	104	456	238	798
Payment after one year	360	384	176	921
Total as of December 31, 2022	464	841	415	1,719
Payment within one year	180	1,068	360	1,609
Payment after one year	486	158	1,152	1,796
Total as of December 31, 2023	666	1,227	1,512	3,405

Note 21 continues on next page

Warranties

The provision for warranties relates to expected re-work for products and services delivered to customers. The warranty period is normally two to five years. The provision is based on the historical average warranty expense for each type of equipment and an assessment of the value of delivered products and services currently in the warranty period. The provision can also be a higher or lower amount following a specific evaluation of the actual circumstances for each contract. The final warranty cost may differ from the estimated warranty provision. Warranty provisions in 2023 includes amounts related to the disposed subsea business that was contributed into OneSubsea. Aker Solutions is responsible for possible warranty claims related to subsea deliveries before the transaction.

Onerous Contracts

The provision includes onerous customer contracts with expected losses upon completion. The provision is mainly driven by legacy renewables projects contracted on lump sum terms in 2021, impacted by increases in commodity prices and supply chain constraints driven by the war in Ukraine, as well as changes in designs and weights.

Other

Other provisions relate to other liabilities with uncertain timing or amount.# Board of Directors’ Report

Sustainability

Performance

Financial Statements

Appendix 127

Note 22 Trade and Other Payables

Amounts in NOK million	2023	2022
Trade creditors	2,489	2,620
Trade creditors, related parties	65	25
Trade payables	2,554	2,645
Accrued operating costs	4,434	6,892
Public duties and taxes	873	956
Other current liabilities	1,243	1,219
Other payables	6,550	9,066
Total	9,104	11,711

Trade creditors did not include reverse factoring as of December 31, 2023, (NOK 99 million in 2022).

Trade creditors include NOK 11 million as of December 31, 2023 (NOK 0 million in 2022) due after one year.

See note 3 for more information about customer contract liabilities

See note 31 for more information about payables to related parties

Appendix 128

Note 23 Financial Risk Management and Exposures

The objective of financial risk management is to manage and control financial risk exposures to increase the predictability of earnings and minimize potential adverse effects on the company’s financial performance.

The energy landscape has evolved significantly during 2022 and 2023, as energy markets were strongly impacted by the war in Ukraine. Aker Solutions uses derivatives to hedge currency risk exposures and aims to apply hedge accounting whenever possible in order to reduce the volatility resulting from the periodic market-to-market revaluation of financial instruments in the income statement. The company is also exposed to interest rate risk, credit risk, liquidity risk and price risk.

Risk Management

Risk management of financial risks is performed in every project and is the responsibility of the project manager. They cooperate with local finance managers and corporate treasury to identify, evaluate and hedge financial risks under policies approved by the Board of Directors. The company has well-established procedures for overall risk management, as well as policies for the use of derivatives and financial investments.

Geopolitical unrest

The tragic war in Ukraine has amplified several trends, including increased commodity prices, broad-based inflation and global supply chain constraints. Also, the war in the Middle East between Israel and Hamas may lead to distress in the financial markets and rising oil prices, particularly if the conflict escalates. The unstable situation generally increase financial risk.

Currency risk: The war in Ukraine and the COVID-19 pandemic increased the volatility in the currency market. Currency variation clauses, escalation mechanisms, contingency buffer included in tender prices, and currency options are used to mitigate contingent currency exposures in tenders.
Credit risk: Operational challenges due to restrictions on mobility, volatile commodity prices and the ongoing transition towards renewable energy has increased credit risk in the energy sector. Due to a predominance of large international energy companies with a relatively low credit risk in its customer base, the exposure for Aker Solutions to this increased credit risk is limited.
Liquidity risk: The current market uncertainty as a result of the wars has increased the liquidity risk. However, solid order backlog and strong cash generation from operations have contributed to a strong balance sheet and visibility.

Currency Risk

Aker Solutions has international operations and is exposed to currency risk on commercial transactions, assets and liabilities when payments and revenues are denominated in a currency other than the functional currency of the respective entity. The company's exposure to currency risk is primarily related to USD, EUR and GBP. Following the disposal of the Subsea segment, the currency exposure to AOA (Angolan Kwanza) and BRL has been significantly reduced. The company's primary translation risk is related to USD, EUR and GBP.

Use of Currency Derivatives

The Aker Solutions' policy requires that all entities identify and mitigate currency exposure in all contracts. Aker Solutions manages the currency risk in the tender period either by including currency clauses in the tender, entering into derivative instruments or including a contingency in the tender price. All entities identify and hedge their exposure with the Corporate treasury department. The Corporate treasury department manages the overall currency exposures based on well established currency risk strategy and procedures.

Note 23 continues on next page

Appendix 129

Note 23 Financial Risk Management and Exposures cont.

Each entity designates all foreign currency hedge contracts with corporate treasury as cash flow hedges or as hedges of separate embedded derivatives. Corporate treasury enters into external foreign exchange contracts separately for revenue and cost exposure. More than 80 percent of the value of the hedging instruments either qualify for hedge accounting or are hedges of separate embedded derivatives. Corporate treasury monitors hedges not qualifying for hedge accounting and non-qualifying hedges are reported in the "other" segment. Currency exposure from long-term investments in foreign currencies is only hedged when specifically instructed by management. Treasury has hedged parts of the currency exposure from future USD denominated proceeds from the OneSubsea formation with financial derivatives

Non-Convertible Currencies

Aker Solutions operates in some jurisdictions where regulations and requirements may limit the convertibility of local currency and restrict free flow of cash. Mitigating actions are taken to minimize the currency exposure. However, Aker Solutions has historically experienced currency exposures in such jurisdictions where no means of hedging has been available. Following the disposal of the subsea operations to OneSubsea, the currency exposure against non-convertible currencies has been reduced.

Exposure to Currency Risk

Corporate treasury is allowed to hold positions within an approved trading mandate. The net exposure as of December 31 is shown in the following table. A bank deposit in a currency different than the functional currency of the entity represent an exposure for the group. A negative amount on bank deposits represent an overdraft for the entities. Estimated forecasted cash flows in the table are calculated based on the entity's hedge transactions through corporate treasury, as these are considered to be the best estimate of future revenue and cost in foreign currencies. The net exposure is closely monitored by corporate treasury and reported on a daily basis to management.

	2023			2022
	USD	EUR	GBP	USD	EUR	GBP
Bank deposits	-1	-49	-173	9	-34	-106
Intercompany and related parties deposits (+) and loan (-)	-51	0	-36	3	-1	-1
Balance sheet exposure	-51	-48	-209	12	-35	-107
Forecasted receipts from customers	26	53	29	224	138	137
Forecasted payments to vendors	-49	-84	-19	-263	-152	-140
Cash flow exposure	-23	-31	10	-39	-14	-3
Forward exchange contracts	75	80	199	27	48	110
Tri-party agreements	0	0	0	0	0	0
Net exposure in currency	1	1	1	0	0	0
Net exposure in NOK	6	7	13	3	-4	3

The currency exposures in USD, EUR and GBP per December 31, 2023 and 2022, were within the trading mandate.

Note 23 continues on next page

Appendix 130

Note 23 Financial Risk Management and Exposures cont.

Sensitivity Analysis - Fair Value of Financial Instruments

The impact on income and equity from a 15 percent strengthening of EUR, USD and GBP against other currencies is shown below. A 15 percent weakening would have had the equal, but opposite effect.## Note 23 Financial Risk Management and Exposures

This sensitivity analysis shows the impact on financial instruments denominated in a foreign currency per December 31 and assumes that all other variables, in particular interest rates, remain constant. The analysis does not include the effect on future transactions (not invoiced as of December 31) or any effect from translation of subsidiaries.

	2023	2022
Amounts in NOK million	Income (loss) before tax	Equity increase (decrease)
USD - 15 percent strengthening	307	317
EUR - 15 percent strengthening	72	115
GBP - 15 percent strengthening	-9	-13

The competitiveness of Aker Solutions is influenced by currency exchange rate fluctuations, choices of locations, suppliers and other strategic decisions. Such effects are not systematically hedged and are not included in the sensitivity analysis.

Sensitivity Analysis - Currency Translation of Subsidiaries

A change in foreign currency rates will also impact the income statement and balance sheet when translating the Aker Solutions companies into the presentation currency which is NOK. The effect of change in the various currencies will impact the consolidated financial statements in the following manner:

	2023
Amounts in NOK million	Revenue increase (decrease)	EBIT increase (decrease)	Profit (loss) before tax	Equity increase (decrease)
USD - 15 percent strengthening	215	-20	-18	394
EUR - 15 percent strengthening	2	0	0	32
GBP - 15 percent strengthening	52	-19	4	273

Interest Rate Risk

The company’s interest exposure mainly arises from the group’s cash position. Currently Aker Solutions has no external debt. In 2023, Corporate Treasury has invested surplus liquidity in time deposits and liquidity funds to distribute risk among counterparties and enhance the return compared to the interest rate in the cash pool. In previous years the company’s interest exposure mainly arose from any external funding in bank and debt capital markets. The company’s risk management strategy is that 30-50 percent of the interest exposure on any borrowings shall be fixed interest rate for the duration of the debt. The company has used interest rate swaps to achieve the desired fixed/floating ratio of the external debt. During 2023 Aker Solutions repaid all drawn debt from external lenders, including the NOK 1 billion senior unsecured floating rate bond loan due June 2024. Interest rate swaps of NOK 500 million related to the repaid bond loan remain open and will mature in June 2024. As the company has no significant interest-bearing operating assets, operating income and operating cash flow are substantially independent of changes in market interest rates.

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Note 23 Financial Risk Management and Exposures cont.

Interest Rates Sensitivity

An increase of 100 basis points in interest rates would have increased (decreased) equity and profit and loss by the amounts shown on the table below. This analysis assumes that all other variables, in particular foreign currency rates, remain constant.

	2023	2022
Amounts in NOK million	Income (loss) before tax	Equity increase (decrease)¹
Interest on cash and cash equivalents	78	0
Interest on borrowings	-5	0
Effect of interest rate swap	-1	0
Cash flow sensitivity (net)	73	0

¹) Not including tax effect on hedge reserve or effects to equity that follow directly from the effects to profit and loss.

A decrease of 100 basis points in interest rates would have had the equal but opposite effect on the amounts, on the basis that all other variables remain constant.

Credit Risk

Credit risk is the risk of financial losses if a customer or counterparty to financial receivables and financial instruments fails to meet contractual obligations.

Investment Instruments and Derivatives

Investment instruments, loans, credit facilities and derivatives are only conducted with approved counterparties and governed by standard agreements (ISDA, Nordic Trustee and LMA documentation). All approved banks are participants in the Aker Solutions loan syndicate and have investment grade ratings. Credit risk related to investment securities and derivatives is therefore considered to be low.

Trade Receivables and Contract Assets

Assessment of credit risk related to customers and subcontractors is an important requirement in the bid phase and throughout the contract period. Such assessments are based on credit ratings, income statement and balance sheet reviews and using credit assessment tools available (e.g. BvD Procurement Catalyst). Revenues are mainly related to large and long-term projects closely followed up in terms of payments in accordance with agreed milestones. Normally, lack of payment is due to disagreements related to project deliveries and is solved together with the customer. Aker Solutions’ major customers are highly rated energy companies where the credit risk is considered to be limited. Risk related to lower rated companies is monitored closely. The maximum exposure to credit risk at the reporting date equals the book value of each category of financial assets. The company does not hold collateral as security.

Measurement of Expected Credit Losses (ECLs)

Impairment is assessed using the expected credit loss (ECL) method for financial assets. The company considers a financial asset to be in default when the borrower is unlikely to pay its credit obligation to the company in full. ECLs are estimated probability-weighted net present value of future expected credit losses. ECLs are discounted at the effective interest rate of the financial asset. Loss allowances for trade receivables, contract assets and lease receivables are always measured at an amount equal to lifetime ECLs. Twelve month ECLs are used for interest-bearing receivables and bank balances for which credit risk has not increased significantly since initial recognition. At each reporting date, the company assesses whether any financial assets are credit-impaired. Evidence that a financial asset is credit-impaired includes when invoices are more than 90 days past due without agreed postponement, knowledge of significant financial difficulty of the customer or debtor or other forward-looking information. The gross carrying amount of a financial asset is written off (either partially or in full) to the extent that there is no realistic prospect of recovery. This is generally the case when the company determines that the debtor does not have assets or sources of income that could generate sufficient cash flows to repay the amounts subject to write-off.

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Note 23 Financial Risk Management and Exposures cont.

Liquidity Risk

Liquidity risk is the risk that the company is unable to meet the obligations associated with its financial liabilities. The company's approach to managing liquidity is to ensure, as far as possible, that it will always have sufficient liquidity reserves to meet its liabilities when due. Prudent liquidity risk management includes maintaining sufficient cash, the availability of funding from an adequate amount of committed credit facilities and the ability to close out market positions. Management monitors rolling weekly and monthly forecasts of the company’s liquidity reserve on the basis of expected cash flow. Due to the dynamic nature of the underlying businesses, corporate treasury maintains flexibility in funding by maintaining availability under committed credit lines in addition to cash and liquid investments.

Financial Liabilities and the Period in which they Mature

2023

Amounts in NOK million	Book value	Total cash flow¹	6 months and less	6-12 months	1-2 years	2-5 years	More than 5 years
Net derivative financial instruments	54	54	-91	139	6	0	0
Trade and other payables	9,104	9,104	9,078	16	1	10	0
Lease liabilities	3,540	4,135	400	365	699	1,402	1,269
Total liabilities	12,698	13,292	9,387	519	706	1,411	1,269

2022

Amounts in NOK million	Book value	Total cash flow¹	6 months and less	6-12 months	1-2 years	2-5 years	More than 5 years
Borrowings	1,023	1,127	35	86	948	58	0
Net derivative financial instruments	150	150	-10	147	15	6	0
Trade and other payables	11,711	11,711	11,686	24	0	0	0
Lease liabilities	4,413	5,207	464	442	758	1,690	1,854
Total liabilities	17,297	18,195	12,175	699	1,722	1,754	1,854

¹) Nominal currency value including interest.

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Note 23 Financial Risk Management and Exposures cont.

Cash Pool Arrangements

The company policy for the purpose of optimizing availability and flexibility of cash within the company is to operate centrally managed cash pooling arrangements. Such arrangements are either organized with a bank as a service provider, or as a part of the operation of corporate treasury. An important condition for the participants (entities) in such cash pooling arrangements is that Aker Solutions as an owner of such pools is financially viable and is able to prove its capability to service its obligations concerning repayment of any net deposits made by entities. The company policy is not applied in countries where local laws prohibit international cash pool arrangements, such as Malaysia and India.

Price Risk

The company is exposed to fluctuations in market prices both in the investment portfolio and in the operating businesses related to individual contracts. The units are exposed to changes in market prices for raw materials, equipment and development in wages. This is managed in the bid process by locking in committed prices from key vendors as basis for offers to customers or through escalation clauses with customers.# Note 24 Capital Management

The objective of Aker Solutions' capital management policy is to optimize the capital structure to ensure sufficient and timely funding over time to finance its activities at the lowest cost, in addition to investing in projects and businesses which will increase the company's return on capital employed over time.

Investment Policy

Aker Solutions’ capital management is based on a rigorous investment selection process which considers not only Aker Solutions’ weighted average cost of capital and strategic orientation, but also external factors such as market expectations and extrinsic risk factors. This selection process is coupled with a centralized approval process for all capital expenditures to be incurred by the group.

Funding Policy

Liquidity Planning

Aker Solutions has a strong focus on liquidity in order to meet its working capital needs short-term and to ensure solvency for its financial obligations long-term. The group’s internal guideline is to have a minimum liquidity reserve of NOK 3 billion, including cash and undrawn committed credit facilities. As per December 31, 2023 the liquidity reserve amounted to NOK 9.0 billion compared to NOK 11.2 billion in the prior year. It was composed of an undrawn committed credit facility, cash in bank accounts and bank deposits. In addition, the group had investments in liquid, fixed income securities of NOK 3 billion as of year-end 2023. The cash position in Aker Solutions is strong and increased steadily in 2023, driven by high activity level in the group with sound cash flows from the projects and initial proceeds from the subsea transaction. Investing surplus liquidity to diversify risk among debtors and enhance return has become an important aspect in the liquidity planning.

Funding of Operations

Aker Solutions’ funding policy states that all operating units will be funded through corporate treasury. This ensures optimal availability and transfer of cash within the group, improved control of the group's capital structure and optimized terms and conditions on funding of the group’s operations. The group policy is not applied in countries where local laws prohibit international cash pool arrangements. Aker Solutions emphasizes financial flexibility and steers its capital structure to ensure a balance between liquidity risk and refinancing risk. In this perspective, any loans and other external borrowings will be renegotiated well in advance of their due date. Aker Solutions aims to have a diversified mix of funding sources to obtain an optimal cost of capital. These funding sources include:

The use of banks based on syndicated credit facilities or bilateral agreements
The issue of debt instruments in the Norwegian debt capital market
The issue of debt instruments in international capital markets

Debt Covenants

During 2023 Aker Solutions repaid all drawn debt from external lenders, including the NOK 1 billion senior unsecured floating rate bond loan due June 2024 and bank loans and facilities related to Hydropower (previously Rainpower) which was acquired in 2022. The group has an undrawn NOK 3 billion Revolving Credit Facility (RCF) with a syndicate of ten banks which contains financial covenants based on gearing and interest cover ratios. All debt covenants are based on IFRS excluding the impact of IFRS 16. At year-end 2023, all ratios were well within the covenants in the RCF.

Aker Solutions has the following debt covenants for the RCF:

The company’s gearing ratio shall not exceed 3.5, calculated from net debt to adjusted EBITDA
The company’s interest cover ratio shall not be less than 3.5, calculated from adjusted EBITDA to net finance cost

Note 24 continues on next page

Gearing and Interest Cover Ratios at December 31

Amounts in NOK million

	2023	2022
Gearing ratios
Non-current interest-bearing borrowings	0	962
Current interest-bearing borrowings	0	60
Gross interest-bearing debt	0	1,023
Cash and cash equivalents	6,003	6,170
Net debt	-6,003	-5,147
EBITDA excl. IFRS 16¹	477	192
Restructuring and other special items as defined in the loan agreement	181	27
Adjusted EBITDA	658	219
Gross interest-bearing debt/adjusted EBITDA	0.0	4.7
Net debt/adjusted EBITDA	-9.1	-23.5
Interest cover
Adjusted EBITDA excl. IFRS 16¹	658	219
Net interest expense as defined in the loan agreement	240	-49
Adjusted EBITDA/Net finance cost	2.7	-4.5

¹ Excluding IFRS 16 means that leasing cost is reported as part of operating cost and included in EBITDA.

See note 18 for more information about borrowings

See note 23 for more information about financial risk management

See note 25 for more information about interest rate derivatives

See note 26 for more information about financial assets and liabilities

See note 30 for more information about proceeds from the subsea transaction

Note 25 Derivative Financial Instruments

Aker Solutions has future cash flows to be settled in foreign currencies, and forward contracts are the most commonly used derivative to hedge such exposures. The risk management policy states that all foreign exchange exposure shall be hedged, of which at least 80 percent shall qualify for hedge accounting or be hedges of separated embedded derivatives.

Aker Solutions’ interest rate exposure mainly arises from its cash position. Aker Solutions has no external debt after exercising a call option in December 2023 for Voluntary Early Redemption of the NOK 1 billion senior unsecured floating rate bonds due June 2024. One interest rate swap related to the bond loan remains open and will mature in June 2024.

Financial Reporting Principles

Cash Flow Hedges of Foreign Currency

Forward contracts are the most commonly used derivative to hedge foreign currency exposure. In addition, currency options are sometimes used to hedge exposures. In case of changes in the expected maturity dates, currencies or amounts of the hedged items corresponding derivatives are routinely adjusted (pre-matured or rolled over), usually by means of currency swaps. The hedged transactions in foreign currency subject to cash flow hedge accounting are highly probable future transactions expected to occur at various dates during the next one to four years, depending on progress of the projects and firm commitments. The derivatives are recognized initially and subsequently at fair value in the balance sheet, and the effective portion of changes in the fair value is recognized in other comprehensive income as a hedge reserve. Aker Solutions designates the full forward foreign exchange contracts to hedge its currency risk and applies a hedge ratio of 1:1. The policy covers critical terms such as currency pair, amount and timing of the forward exchange contracts to align with the hedged item. The existence of an economic relationship between the hedging instrument and hedged item is determined based on matching critical terms of their respective cash flows. In addition, an assessment is made to determine whether the derivative designated in each hedging relationship is expected to be, and has been, effective in offsetting changes in cash flows of the hedged item by the hypothetical derivative method. In these hedge relationships, the main sources of ineffectiveness are:

any sequential change of timing of the hedged item;
change in the total amount of the hedge item; and
significant change in the counterparty's and Aker Solutions' credit risk

Aker Solutions does not designate any net positions in a hedging relationship. Some hedged transactions are not accounted for by applying hedge accounting, primarily because internal hedged transactions are grouped and netted before external hedge transactions are established. Changes in the fair value of derivatives will be reported as financial income or expenses.# Note 25 Derivative Financial Instruments cont.

Remaining derivatives not applying hedge accounting include derivatives used by corporate treasury to hedge the residual exposure of the company as part of its risk mandate. As of December 31, 2023, these hedging instruments include currency forwards, interest swaps and foreign exchange swaps. In addition, Corporate treasury has hedged parts of the currency exposure from USD denominated proceeds from the OneSubsea formation with currency options. Hedge accounting is discontinued with immediate recognition in finance income and expenses in the income statement when the hedge no longer qualifies for hedge accounting, for example upon sale, expiration, termination or when a forecasted transaction is no longer probable. The derivative financial instruments are classified as current assets or liabilities as they are part of the operating cycle.

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Note 25 Derivative Financial Instruments cont.

Foreign Currency as Embedded Derivatives

Embedded derivatives may exist in contracts with a currency other than the currency of the contracting partners. The embedded derivative will under certain circumstances be separated and recognized at fair value in the balance sheet and changes recognized in the income statement. These entries will result in corresponding and opposite effects compared to the hedging instrument. Aker Solutions applies the following separation criteria for embedded derivatives:

The embedded derivative needs to be separated if the agreed payment is in a currency different from any of the major contract parties' own functional currency, or
that the contract currency is not considered to be commonly used for the relevant economic environment defined as the countries involved in the cross-border transaction.

Cash Flow Hedges of Interest Rates

Aker Solutions' interest exposure mainly arises from the cash position of more than NOK 6 billion and additional NOK 3 billion invested in liquid funds as of December 31, 2023. Treasury has invested surplus liquidity in time deposits and liquid funds to distribute the risk among debtors and enhance the return compared to the interest rate in the cash pool. One interest rate swap related to the former bond loan remains open and will mature in June 2024.

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Note 25 Derivative Financial Instruments cont.

Fair Values and Maturity

The following table presents the fair value of the derivatives and a maturity analysis of the derivatives undiscounted cash flows. Given Aker Solutions hedging policy and the assumption that projects are cash neutral, this table also indicates when the cash flows related to project expenses are expected to impact profit and loss. Project revenues are recognized over time according to the progress of the project. This may result in differences between cash flow and revenue recognition.

	2023						2022
Amounts in NOK million	Instruments at fair value¹	6 months or less	6-12 months	1-2 years	2-5 years	Over 5 years	Instruments at fair value¹	6 months or less	6-12 months	1-2 years	2-5 years	Over 5 years
Assets
Cash flow hedging instruments	43	24	8	11	0	0	247	112	93	37	5	0
Fair value adjustments to hedged instruments²	-17	-12	-2	-4	0	0	-109	-53	-38	-15	-3	0
Fair value of currency options³	197	45	152	0	0	0	130	0	130	0	0	0
Embedded derivatives in ordinary commercial contracts	6	5	1	0	0	0	105	83	15	8	8	0
Financial instruments not hedge accounted	23	22	1	0	0	0	21	11	6	3	0	0
Total forward foreign exchange contracts	251	85	160	7	0	0	394	153	207	32	11	0
Cash flow hedges interest rate assets	7	7	0	0	0	0	11	1	0	11	0	0
Total financial instrument assets	258	92	160	7	0	0	406	154	207	43	11	0
Liabilities
Cash flow hedging instruments	-38	-35	-2	-1	0	0	-278	-188	-59	-28	-4	0
Fair value adjustments to hedged instruments	5	3	1	1	0	0	102	79	15	7	1	0
Fair value of currency options³	-18	0	-18	0	0	0	0	0	0	0	0	0
Embedded derivatives in ordinary commercial contracts	-4	-2	-2	0	0	0	-45	-26	-11	-6	-2	0
Financial instruments not hedge accounted	-149	-149	0	0	0	0	-34	-29	-5	-1	0	0
Total forward foreign exchange contracts	-204	-182	-21	-1	0	0	-255	-164	-59	-28	-5	0
Cash flow hedges interest rate liability	0	0	0	0	0	0	0	0	0	0	0	0
Total financial instrument liabilities	-204	-182	-21	-1	0	0	-255	-164	-59	-28	-5	0
Net financial instruments	54	-91	139	6	0	0	150	-10	147	15	6	0

1) Cash flows from matured derivatives are translated to NOK using the exchange rates on the balance sheet date.
2) Fair value of settled derivatives not yet booked in the income statement are recognized in balance sheet and will be reclassified to the income statement over the next years as the projects progress.
3) The proceeds from the subsea transaction represent a significant currency exposure, and Aker Solutions has therefore entered into FX put options contracts to hedge for a part of the exposed proceeds as of December 31, 2023.

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Note 25 Derivative Financial Instruments cont.

Unsettled Hedges

The table below shows the impact from the unsettled cash flow hedges on profit and loss and equity (not adjusted for tax).

	2023			2022
Amounts in NOK million	Fair value of all hedging instruments	Recognized in profit and loss	Deferred in equity (the hedge reserve)	Fair value of all hedging instruments	Recognized in profit and loss	Deferred in equity (the hedge reserve)
Forward exchange contracts (cash flow hedges)	4	11	-7	-32	-33	2
Interest rate swaps	7	1	6	11	1	11
Total	11	12	-1	-20	-33	12

The purpose of the hedging instrument is to secure a situation where the hedged item and the hedging instrument together represent a predetermined value independent of fluctuations of exchange rates. Revenue and expenses on the underlying customer contracts are recognized in the income statement in accordance with progress. Consequently, NOK 11 million (NOK -33 million in 2022) of the value of the forward contracts have already impacted the income statement. The NOK -7 million (NOK 2 million in 2022) that are currently recorded in the hedge reserve, will be reclassified to the income statement over the next years. The value of the interest swaps is attributable to changes in the interest swap curve for Norwegian Kroner during the period from inception of the hedge to the balance sheet date, excluding accrued interest rates of the swaps, tax and deferred settlements related to matured instruments.

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Note 25 Derivative Financial Instruments cont.

Hedge Reserve Movement

The table below shows the movement in the hedge reserve from changes in the cash flow hedges.

	Hedge reserve
Amounts in NOK million
Balance as of January 1, 2022	-58
Forward currency	156
Interest rate swaps	18
Total changes in fair value	175
Forward currency contracts	-79
Interest rate swaps	-2
Total amount reclassified to profit or loss	-81
Tax on movements on reserves during the year	-25
Balance as of December 31, 2022	10
Forward currency contracts	35
Interest rate swaps	-4
Total changes in fair value	31
Forward currency contracts	-4
Interest rate swaps	-1
Total amount reclassified to profit or loss	-5
Tax on movements on reserves during the year	2
Disposal of subsea operations	-40
Balance as of December 31, 2023	-1

Interest Rate Swaps

Aker Solutions does currently not have any external liabilities. One fixed interest rate swap of NOK 500 million will run to maturity. Floating interest rates are tied to inter-bank offered rates (NIBOR for NOK). See note 18 for more information about borrowings See note 26 for more information about financial assets and liabilities

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Note 26 Financial Assets and Liabilities

The fair value hierarchy defines a framework for categorizing financial assets and liabilities based on fair value valuation techniques. Fair value of assets and liabilities in level one is based on quoted prices in an active market, whereas level three fair values are based on assumptions made by the company in the absence of quoted prices.

The Fair Value Hierarchy

The following table shows the carrying amounts and fair values of financial assets and financial liabilities, including their levels in the fair value hierarchy. It does not include fair value information for financial assets and financial liabilities not measured at fair value if the carrying amount is a reasonable approximation of fair value. For financial instruments measured at fair value, the levels in the fair value hierarchy are:

Level 1: Fair values are based on prices quoted in an active market for identical assets or liabilities.
Level 2: Fair values are based on price input other than quoted prices. Such prices are derived from observable market transactions in an active market for identical assets or liabilities. Level 2 includes currency or interest derivatives and interest bonds, typically when the group uses forward prices on foreign exchange rates or interest rates as inputs to valuation models.
Level 3: Fair values are based on unobservable input, mainly based on internal assumptions used in the absence of quoted prices from an active market or other observable price inputs.

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Note 26 Financial Assets and Liabilities cont.# Note 26 Financial Assets and Liabilities cont.

Financial Instruments as of December 31, 2023

Amounts in NOK million

	Hedging instruments at FVOCI	Financial assets at FVTPL	Amortized cost	Equity investments at FVOCI	Other financial liabilities	Total	Level 1	Level 2	Level 3	Total
Other investments	0	0	0	19	0	19	5	0	14	19
Non-current receivables	0	0	1,231	0	0	1,231	0	0	0	0
Trade and other receivables	0	0	5,472	0	0	5,472	0	0	0	0
Forward foreign exchange contracts	50	0	0	0	0	50	0	50	0	50
Fair value of currency options	0	197	0	0	0	197	0	197	0	197
Fair value embedded derivatives	4	0	0	0	0	4	0	4	0	4
Interest rate instruments	7	0	0	0	0	7	0	7	0	7
Current interest-bearing receivables	0	0	3,103	0	0	3,103	0	0	0	0
Financial investments	0	5,714	0	0	0	5,714	5,714	0	0	5,714
Cash and cash equivalents	0	0	6,003	0	0	6,003	0	0	0	0
Financial assets	61	5,911	15,808	19	0	21,799	5,719	258	14	5,991
Trade and other payables³	0	0	0	0	-6,462	-6,462	0	0	0	0
Lease liabilities	0	0	0	0	-3,540	-3,540	0	0	0	0
Forward foreign exchange contracts	-185	0	0	0	0	-185	0	-185	0	-185
Fair value of currency options	0	-18	0	0	0	-18	0	-18	0	-18
Fair value embedded derivatives	-1	0	0	0	0	-1	0	-1	0	-1
Financial liabilities	-186	-18	0	0	-10,002	-10,206	0	-204	0	-204

1) FVTPL is short for fair value through profit and loss. FVOCI is short for fair value through other comprehensive income.
2) Investments in level 1 consist of listed shares with quoted market prices, and investments in level 3 are shares where fair value cannot be measured reliably as the financial instrument is not traded in an active market. The best estimate of fair value is initial purchase price.
3) Trade and other payables that are not financial liabilities at negative NOK 2,642 million in 2023 are not included.

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Note 26 Financial Assets and Liabilities cont.

Financial Instruments as of December 31, 2022

Amounts in NOK million

	Hedging instruments at FVOCI	Financial assets at FVTPL	Amortized cost	Equity investments at FVOCI	Other financial liabilities	Total	Level 1	Level 2	Level 3	Total
Other investments	0	0	0	25	0	25	11	0	14	25
Non-current receivables	0	0	788	0	0	788	0	0	0	0
Trade and other receivables	0	0	5,992	0	0	5,992	0	0	0	0
Forward foreign exchange contracts	159	0	0	0	0	159	0	159	0	159
Fair value of currency options	0	130	0	0	0	130	0	130	0	130
Fair value embedded derivatives	105	0	0	0	0	105	0	105	0	105
Interest rate instruments	11	0	0	0	0	11	0	11	0	11
Current interest-bearing receivables	0	0	146	0	0	146	0	0	0	0
Cash and cash equivalents	0	0	6,170	0	0	6,170	0	0	0	0
Financial assets	276	130	13,096	25	0	13,527	11	406	14	431
Non-current borrowings³	0	0	0	0	-962	-962	-914	0	-48	-962
Current borrowings³	0	0	0	0	-60	-60	0	0	-60	-60
Trade and other payables⁴	0	0	0	0	-5,099	-5,099	0	0	0	0
Lease liabilities	0	0	0	0	-4,413	-4,413	0	0	0	0
Forward foreign exchange contracts	-211	0	0	0	0	-211	0	-211	0	-211
Fair value embedded derivatives	-45	0	0	0	0	-45	0	-45	0	-45
Financial liabilities	-255	0	0	0	-10,535	-10,790	-914	-255	-108	-1,277

1) FVOCI is short for fair value through other comprehensive income.
2) Investments in level 1 consist of listed shares with quoted market prices, and investments in level 3 are shares where fair value cannot be measured reliably as the financial instrument is not traded in an active market. The best estimate of fair value is initial purchase price.
3) Fair value is quoted prices for the bonds noted on the Oslo Stock Exchange.
4) Trade and other payables that are not financial liabilities at negative NOK 6,612 million in 2022 are not included.

See note 14 for more information about trade and other receivables
See note 15 for more information about financial investments
See note 18 for more information about borrowings
See note 22 for more information about trade and other payables
See note 23 for more information about financial risk management
See note 25 for more information about derivatives
See note 28 for more information about other investments

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Note 27 Subsidiaries and NCIs

Aker Solutions has 60 subsidiaries in 25 countries at the reporting date. The number of countries where Aker Solutions had employees was 15. The group holds the majority of the shares in all subsidiaries except three, see description below. If not stated otherwise, ownership equals the percentage of voting shares.

Company	Location	Country	Percent
Aker Solutions Enterprises, LDA	Luanda	Angola	49
C.S.E. Mecânica e Instrumentaçâo Ltda	Curitiba	Brazil	100
Aker Solutions Sdn Bhd	Kuala Belait	Brunei	100
PTAS Aker Solutions Sdn Bhd	Kuala Belait	Brunei	75
Aker Solutions Asset Integrity and Management Canada Inc.	Newfoundland	Canada	100
Aker Solutions Canada Inc	Vancouver	Canada	100
Aker Solutions Marine Contractors Limited	St John's	Canada	100
Aker Engineering & Technology (Beijing) Co., Ltd	Beijing	China	100
Aker Solutions Hydropower Hangzhou Co Ltd	Hangzhou	China	100
Aker Solutions Congo SA	Point-Noire	Congo	70
Aker Solutions Finland Oy	Ulvila	Finland	100
Aker Solutions Ghana Ltd	Accra	Ghana	90
Aker Solutions SAS	Paris	France	100
Aker Solutions Ghana Holding Ltd	Accra	Ghana	100
Aker Solutions Deepwater Ghana Ltd	Accra	Ghana	80
Aker Powergas Pvt Ltd	Mumbai	India	100
Aker Engineering International Sdn Bhd	Kuala Lumpur	Malaysia	100
Aker Engineering Malaysia Sdn Bhd	Kuala Lumpur	Malaysia	100
Aker Solutions APAC Sdn Bhd	Kuala Lumpur	Malaysia	48
Aker Solutions India Sdn Bhd	Kuala Lumpur	Malaysia	100
Aker Solutions Malaysia Sdn Bhd	Kuala Lumpur	Malaysia	100
Aker Solutions BV	Zoetemer	Netherlands	100
AH Åtte AS	Fornebu	Norway	100
Aker Installation FP AS	Fornebu	Norway	100
Aker Insurance Services AS	Fornebu	Norway	100
Aker Solutions AS	Fornebu	Norway	100
Aker Solutions Contracting AS	Fornebu	Norway	100
Aker Solutions Holding AS	Fornebu	Norway	100
Aker Solutions Middle East AS	Fornebu	Norway	100
ASK JV AS	Stavanger	Norway	100
Benestad Solutions AS	Lierskogen	Norway	100
Kværner Resources AS	Fornebu	Norway	100
Norwegian Contractors AS	Lysaker	Norway	100
Aker Solutions Hydropower AS	Tranby	Norway	100
Unitech Power Systems AS	Stavanger	Norway	100
Rainpower Peru S.A.C.	Lima	Peru	100
Aker Solutions Poland Sp. z o.o.	Warsaw	Poland	100
Aker Solutions Gulf Services WLL	Doha	Qatar	49
Aker Solutions Saudi Arabia Co. Ltd.	Al-Khobar	Saudi Arabia	100
Aker Solutions Korea Co. Ltd	Geoje	South Korea	100
K Water AB	Örnsköldsvik	Sweden	100
Rainpower Kristinehamn AB	Kristinehamn	Sweden	100
Aker Solutions Hydropower Switzerland AG	Vaud	Switzerland	100
Aker Solutions Tanzania Ltd	Dar es Salaam	Tanzania	100
Aker Solutions Hydro Enerji Limited Sirketi	Istanbul	Turkey	100
Aker Engineering and Technology Ltd	London	UK	100
Aker Engineering Malaysia Ltd	Leeds	UK	100
Aker Offshore Partner Ltd	Aberdeen	UK	100
Aker Solutions DC Trustees Ltd	London	UK	100
Aker Solutions EAME Limited	Aberdeen	UK	100
Aker Solutions Enterprises International (UK) Limited	London	UK	100
Aker Solutions Holding Limited	Aberdeen	UK	100
Aker Solutions Ltd	Maidenhead	UK	100
International Design Engineering and Services Ltd	Aberdeen	UK	100
Kvaerner Contracting Ltd	London	UK	100
Kvaerner Resources Ltd	London	UK	100
Aker Solutions Inc.	Houston	USA	100
Aker Solutions USA Corporation	Houston	USA	100
Kvaerner Americas Holdings Inc	Canonsburg	USA	100
Kvaerner Renewables US LLC	Canonsburg	USA	100

Company	Location	Country	Percent

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Note 27 Subsidiaries and NCIs cont.

Subsidiaries where Aker Solutions does not have the Majority of Shares

Aker Solutions has less than 50 percent of the shares in three subsidiaries as shown in the table above. Aker Solutions has control over relevant activities through shareholders agreements. The subsidiaries are fully consolidated and the non-controlling interest share of profit and equity is presented in the income statement and in the balance sheet.

The following entities are not legally transferred to OneSubsea due to delayed legal transfer or delayed closing. The subsea business in these entities are not consolidated as Aker Solutions does not have control of operations or rights to cash generations.

Company	Location	Country	Percent
Aker Solutions Congo SA	Point-Noire	Congo	70
Aker Solutions Ghana Ltd	Accra	Ghana	90
Aker Solutions APAC Sdn Bhd	Kuala Lumpur	Malaysia	48
Aker Solutions Malaysia Sdn Bhd	Kuala Lumpur	Malaysia	100
Aker Solutions Inc.	Houston	USA	100

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Note 28 Investments in Companies

Financial Reporting Principles

Joint ventures are those entities where the company has joint control and rights to net assets. Associates are those entities where the company has significant influence, but not control or joint control (usually between twenty and fifty percent of the voting power). Interests in joint ventures and associates are accounted for using the equity method. The investments are initially recognized at cost (including transaction costs) and subsequently increased or decreased to recognize the share of the profit or loss. The profit or loss for the equity-accounted investees is presented as part of total revenue when the operations are closely linked to the current operations of Aker Solutions, otherwise they are presented as financial income.

Other investments are those entities in which the company does not have significant influence. These are usually entities where the company holds less than twenty percent of the voting power. Such investments are designated as equity securities at fair value through other comprehensive income (FVOCI) as they represent long-term strategic investments. When the investments are sold, the accumulated gain or loss in equity is not reclassified to the income statement.# Note 28 Investment in Companies

The company has recognized the following balances for its investment in other companies:


Amounts in NOK million	2023	2022
Joint Ventures and Associates	6,555	103
Other investments over OCI	19	25
Total investment in companies	6,574	128

Joint Ventures and Associates (Equity Accounted Investees)

The company had 13 equity-accounted investments as of December 31, 2023. Ownership percentage equals the percentage of voting shares.

Name of company	Office	Percent	Type
Kiewit-Kvaerner Contractors (KKC)	Newfoundland, Canada	50.0%	Joint venture
KDS JV AS	Fornebu, Norway	50.0%	Joint venture
EPE Eigedom AS	Stord, Norway	50.0%	Joint venture
Eldøyane Holding AS	Stord, Norway	50.0%	Joint venture
Rosebank JV Ltd	Dubai, United Arab Emirates	50.0%	Joint venture
Concrete Structures AS	Fornebu, Norway	50.0%	Associate
Siva Verdal Eiendom AS	Trondheim, Norway	46.0%	Associate
Bemlotek AS	Fornebu, Norway	24.6%	Associate
Kværnhuset Industri-inkubator AS	Egersund, Norway	33.0%	Associate
Windstaller Alliance AS	Fornebu, Norway	33.3%	Associate
OneSubsea LLC	Houston, USA	20.0%	Associate
OneSubsea Processing AS	Sandsli, Norway	20.0%	Associate
OneSubsea Investments UK Ltd	London, UK	20.0%	Associate

Note 28 continues on next page

	OneSubsea	Other	Total	Total
Amounts in NOK million
Equity accounted investees per January 1	0	103	103	58
Acquisition	6,549	0	6,549	24
Share of net income included in other income	172	34	205	33
Other comprehensive income	53	0	53	0
Reclassification from other investments	0	-10	-10	0
Sale	0	-6	-6	0
Dividends received	0	-34	-34	-13
Currency translation differences¹	-306	1	-305	1
Equity accounted investees per December 31	6,468	88	6,555	103
1)NOK -284 million in currency translation difference is included in translation differences related to equity accounted investees in OCI.

Significant associates

Aker Solutions established a new entity with SLB October 2, 2023. The entity is operating in the subsea business and consists of three separate legal entities; OneSubsea LLC, OneSubsea Processing AS and OneSubsea Investments UK Ltd. The legal entities are established in Norway, the UK and the US. These entities are considered material for Aker Solutions. Aker Solutions Inc owns the partnership interests in OneSubsea LLC which is a transparent entity for income tax purposes in the US. The following table summarizes financial information for the entities at a consolidated level. The figures are at the same basis as used in the group financial statements and represents an IFRS conversion of OneSubsea’s consolidated income statement and balance sheet prepared in accordance with US GAAP. The financial information includes allocation of provisional excess values recognized from assets contributed by SLB and Aker Solutions. Aker Solutions expects that the fair value assessment of the acquired assets and liabilities will be concluded during 2024. All amounts are for the consolidated entities at a 100 percent basis.


Amounts in NOK million	2023
Current assets	28,677
Non-current assets	33,386
Current liabilities	26,250
Non-current liabilities	3,474
Net assets	32,339
Aker Solutions' share of equity (20%)	6,468


	4Q 2023
Revenue	10,744
Net income	852
Other comprehensive income	263
Total comprehensive income	1,115

Other Investments

Key information about the other investments are presented in the table below:


Amounts in NOK million	2023	2022
Shares in Aker Horizons ASA	3	10
Shares in Aker Carbon Capture ASA	2	1
Shares in unlisted companies	14	14
Total other investments	19	25

Other investments relate to shares in listed and unlisted companies where ownership is below 20 percent. The ownership in these companies are measured at their market value with changes over OCI as they are long-term strategic investments. The loss recognized in OCI in 2023 was NOK 6 million (loss of NOK 78 million in 2022). Unlisted shares are usually measured at cost less impairment, as this is assumed to be the best estimate of fair value.

See note 3 for more information about other income
See note 7 for more information about financial income and expense
See note 30 for more information about the subsea transaction

Note 29 Business Combinations

Financial Reporting Principles

Business combinations are transactions where Aker Solutions obtains control of one or more businesses. Business combinations are accounted for using the acquisition method when control is transferred to the group. The consideration transferred in the acquisition is generally measured at fair value, as are the identifiable net assets acquired. Any goodwill that arises is tested annually for impairment. Goodwill is allocated to the cash generating unit that is expected to benefit from synergies from the acquisition. In some business combinations goodwill will arise due to the requirement to recognize deferred tax on the difference between the assigned fair values and the related tax bases. This is referred to as technical goodwill. Transactions costs are expensed as incurred, except if related to the issue of debt or equity securities incurred in connection with a business combination.

Judgments and Estimates

Judgment has been applied when assessing the fair value of the acquired assets and liabilities, including weighted average cost of capital, and when determining the amortization period for excess values. Various valuation techniques have been used in the purchase price allocation, including a cost replacement approach for assembled workforce and excess earnings method for customer relationships. Management judgment is also applied when valuing contingent considerations which are based on estimated future profits.

There has not been any significant business combinations in 2023. In March 2023, Aker Solutions acquired 66 percent of the shares in Vitec AS, resulting in an ownership of 100 percent in the company after the transaction. The purchase price was NOK 19.8 million.

Unitech Power Systems

On February 28, 2022, Aker Solutions acquired 100 percent of the shares and voting rights of the Norwegian company Unitech Power Systems. The acquired company is a leading electrical power systems consultancy business. The acquisition will significantly enhance Aker Solutions' capabilities related to high-voltage electrical power systems. By leveraging Unitech Power Systems’ strong expertise and track record with Aker Solutions' existing front end, engineering and project management capabilities, the acquisition will drive growth in markets supported by the energy transition.

Consideration transferred and contingent consideration

NOK 104 million was paid in cash to the selling shareholders at the acquisition date. Aker Solutions has included a liability of NOK 33 million as deferred consideration to be paid in cash in first half year 2024. The total consideration of NOK 137 million represents the fair value at the acquisition date. The liability of NOK 33 million follows a contingent consideration arrangement based on Unitech Power Systems’ EBITDA performance. The range of this element is NOK 24 million to NOK 44 million. Transaction costs related to the acquisition were insignificant.

Measurement of fair value

Customer relationships have been identified as intangible assets assumed in the acquisition. They are valued at NOK 31 million based on a multi-period excess earnings method. NOK 96 million has been allocated to goodwill. Goodwill resulting from the transaction is mainly attributable to value of assembled workforce and expected synergies from Unitech being part of a global company.

Note 29 continues on next page

Hydropower (previous Rainpower)

On May 10, 2022, Aker Solutions acquired 100 percent of the shares and voting rights of the Norwegian company Hydropower from related party Aker Horizons. The company is a leading technology provider to the hydropower industry. The acquisition builds on Aker Solutions’ growth strategy and will further strengthen its offering within renewables. Aker Solutions sees strong industrial synergies in further developing Hydropower into an innovative hydropower technology company to optimize hydropower developments and operations. The company has a subordinated perpetual equity linked loan of NOK 113 million with no installments or scheduled maturity date. As Hydropower has no contractual obligation to repay the loan, the hybrid loan is assessed to not meet the requirements in the definition of a financial liability. The fair value of the hybrid loan is estimated to NOK 12 million and has been classified as non-controlling interests within equity. Revenue and net loss from Hydropower in Aker Solutions’ consolidated income statement were NOK 218 million and NOK 105 million, respectively. If the acquisition had taken place at the beginning of the year, the group’s revenue would have increased by NOK 113 million and net profit would have decreased by NOK 44 million.

Consideration transferred

The purchase price of NOK 100 million was settled in financial instruments, being shares in Aker Carbon Capture. Aker Solutions took over Hydropower’s cash and debt. In addition there is a discretionary element which may bring the purchase price to NOK 150 million. The share purchase agreement does not contain trigger elements for the discretionary element, but future material strengthening of the company’s equity may lead to a payment. Transaction costs related to the acquisition were insignificant.

Transaction with related party

Aker Horizons was based on negotiations between the parties, and management believes that the agreed prices is a fair approximation to arms length prices.# Note 29 Business Combinations cont.

Identifiable assets acquired and liabilities assumed

Amounts in NOK million

	Unitech Power Systems	Hydropower	Frontica Engineering
Intangible assets	34	77	0
Property, plant and equipment	0	4	0
Right-of-use assets	6	62	0
Deferred tax assets	0	90	9
Trade and other receivables	20	131	13
Cash and cash equivalents	13	11	11
Borrowings	0	-100	0
Lease liabilities	-6	-62	0
Pension obligations	0	-4	-18
Deferred tax liabilities	-7	0	0
Other non-current liabilities	0	0	-2
Trade and other payables	-19	-178	-15
Net identifiable assets	41	30	-2

Goodwill arising from the acquisitions has been recognized as follows:

Amounts in NOK million

	Unitech Power Systems	Hydropower	Frontica Engineering
Consideration transferred	104	100	16
Contingent consideration	33	0	0
Total consideration	137	100	16
Non-controlling interests	0	12	0
Fair value of identifiable net asset	41	30	-2
Goodwill	96	82	18

Of the total goodwill of NOK 196 million NOK 9 million related to Hydropower is expected to be deductible for tax purposes. In 2022, Aker Solutions also acquired the 51 percent minority share in Aker Solutions Enterprises Limited and a 50 percent ownership in EPE Eigedom for a total cash consideration of NOK 83 million. Aker Solutions first purchased 100 percent of EPE Eigedom, and later sold 50 percent making the company an equity accounted investee.

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Note 30 The Subsea Transaction and Discontinued Operations

On August 30, 2022 Aker Solutions, SLB and Subsea7 entered into a master formation agreement and agreed to establish a new entity where Aker Solutions and SLB contributed their subsea businesses. The transaction was dependent on approval from regulatory authorities. The subsea business was therefore not classified as held for sale until final approval came from the regulatory authorities in Brazil, on August 4, 2023, leading to the closing of the transaction on October 2, 2023. Aker Solutions and SLB contributed their subsea businesses into the entity with respectively 40 and 60 percent of the values. Aker Solutions thereafter sold 10 percent of their shares to SLB and 10 percent of their shares to Subsea7 as part of the agreement. Following these transactions, the entity is owned by SLB (70 percent), Aker Solutions (20 percent) and Subsea7 (10 percent). There is a lock-up period of three years for the shares in the entity before any of the parties can sell their shares.

Aker Solutions consideration was NOK 7.5 billion (USD 700 million) for the sale of the 20 percent ownership in the entity, which was divided as follows:
* NOK 3.3 billion (USD 306.5 million) in forms of shares in SLB, subject to a lock-up period of 180 days.
* NOK 3.3 billion (USD 306.5 million) in cash from the 10 percent divestment to Subsea7. USD 153.25 million was settled at closing October 2, 2023, while the remaining USD 153.25 million, will be settled with interest at the latest on June 30, 2024.
* NOK 936 million (USD 87.5 million) in proceeds from a vendor note from the entity to be paid, with interest, to Aker Solutions with minimum 50 percent one year from closing and the remaining within two years from closing.

The entity was established to build on the different strengths of the subsea business in the companies, with an ambition of delivering a step change in subsea production economics. Joining the subsea business of SLB and Aker Solutions can help unlock reserves, reduce time to first oil, and lower development costs, by simultaneously delivering on decarbonization objectives. Aker Solutions and SLB have had different strengths within the respective subsea operations, and joining the operations leads to a stronger subsea company, where the operations can gain from synergies.

Aker Solutions contribution into the entity comprises in all material respects the entire Subsea segment including certain support functions. Aker Solutions performed several activities in preparation for the closing of the transaction. The group was reorganized to enable contribution of the subsea operations upon closing of the transaction. The activities included shares and asset transfers between subsea and non-subsea companies to secure appropriate ownership within the group. In addition, the companies established business and agreements related to licenses of IP.

In addition to the preparatory activities described above, Aker Solutions entered into a transitional service agreement (TSA) and a parent service agreement (PSA) with the entity. These agreements were established to secure that the new entity was fully operational from day one after the transaction was closed. The TSA consists of different services that Aker Solutions provides to the new entity, and duration of the services vary between 6 and 18 months. Fees for the services are determined by a cost-plus model defined in the TSA. The PSA is established to ensure that the parties are able to deliver on commitments that are made prior to establishment of the new entity. The agreement includes access to fabrication services from Aker Solutions’ facilities for the entity, engineering services and goods produced by the counterparties. The PSA is structured as frame agreements with a three-year time frame. Specific needs for fabrication, goods or services will be established as defined project related call offs within the frame agreements.

Financial reporting of the transaction

The 20 percent ownership in OneSubsea is presented as an Investment in associates using the equity method as a non-current asset in the balance sheet. Our share of the investee’s net profit or loss is presented as a separate line and included in the group revenue and other income in the Income Statement. The historical results for the subsea business are reported separately under the caption discontinued operations for the current and prior year. The gain on sale of the subsea business is also reported in this line item in 2023. Income and expenses from discontinued operations are excluded from specifications presented in other notes unless otherwise stated.

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Note 30 cont. The Subsea Transaction and Discontinued Operations

Some of the transactions were not legally completed by year end but accounted for as transferred assets in the group accounts. Estimates of future cash settlements for these transactions and the settlement of the closing accounts for the group is NOK 440 million and reported as other non- current assets.

The financial data for discontinued operations are as follows:

Profit (loss)

Amounts in NOK million

	2023	2022
Revenue	14,807	13,917
Depreciation, amortization and impairment	-336	-540
Other expenses	-12,035	-11,629
Operating income	2,435	1,748
Financial income (expense), net	-65	18
Income before tax	2,370	1,765
Income tax expense	-553	-453
Income from discontinued operations	1,817	1,312
Gain on disposal (net of tax)	9,723	0
Net income from discontinued operations	11,540	1,312

Cash flow

Amounts in NOK million

	2023	2022
Net cash provided by operating activities	2,410	1,689
Net cash provided by investing activities	-86	-133
Net cash used in financing activities	-195	-264
Foreign currency effects on cash	27	79
Net cash provided by discontinued operations¹	2,155	1,371

¹Cash flow from discontinued operations does not include net proceeds from the transaction of NOK 621 million.

Net proceeds

Amounts in NOK million

	2023
Consideration received	1,640
Cash in divested subsidiaries	-623
Loans given to OneSubsea	-396
Net proceeds from sale of subsidiaries	621

Gain on disposal

The fair value of the Aker Solutions’ subsea business was in the transaction agreement valued at NOK 13.9 billion (USD 1.3 billion). After the transaction, Aker Solutions deconsolidated the subsea business, and the accounting treatment has been a sale of 100 percent of the subsea business following a purchase of 20 percent of OneSubsea at fair value. Aker Solutions recognized a gain in connection with the sale of the subsea business of NOK 9.7 billion.# Note 31 Related Parties and Key Management Compensation

Financial Reporting Principles

Related party relationships are defined to be entities under joint control or significant influence by Aker Solutions, and companies outside the Aker Solutions group that are under control (either directly or indirectly) or joint control by the owners having significant influence over Aker Solutions. The management and the Board of Aker Solutions are also related parties.

Note 31 Related Parties cont.

	2023	2022
Amounts in NOK million	Aker and TRG companies	Joint ventures and associates
Income statement
Operating revenues	302	1,108
Operating costs	-1,007	-623
Depreciation and impairment of ROU assets	-38	-18
Net financial items	35	0
Balance sheet
Right-of-use (ROU) assets	389	63
Trade receivables	51	556
Non-current interest-bearing receivables	195	0
Current interest-bearing receivables	10	1,410
Other current receivables	0	405
Non-current leasing liabilities	0	-463
Other non-current liabilities	0	-81
Trade payables	-16	-49
Current leasing liabilities	0	-45

1) Subsea not classified as discontinued operations.

Note 31 continues on next page

Note 31 Related Parties cont.

Significant Related Parties Transactions

Aker Solutions has transactions with related parties on a recurring basis as part of normal business. In 2023, Aker Solutions purchased software applications from Aize of NOK 265 million. Aker Solutions also leases industrial properties owned by Kjell Inge Røkke through TRG AS which amounted to NOK 68 million in 2023 (NOK 65 million in 2022). In addition, Aker Solutions supported the group's union representative function with NOK 780,000 in 2023 (NOK 740,000 in 2022).

Compensation to Key Management

The key management personnel of Aker Solutions include the Board of Directors and the executive management team. Refer to further description about management compensation in the Management Remuneration Report available at www.akersolutions.com/corporate-governance.

	2023	2022
Amounts in NOK million
Salaries and wages including holiday allowance	64	74
Social security contributions	10	11
Pension cost	2	2
Termination benefits	0	0
Share-based payments	3	3
Other employee benefits	1	1
Total compensation to key management personnel	79	92

The below table shows the shareholding of Aker Solutions’ Board of Directors and the President and Chief Executive Officer per December 31, 2023.

Name	Role	Shareholding as of December 31, 20231
Kjetel Digre	President and Chief Executive Officer	133,657
Leif-Arne Langøy	Chairman	159,426
Øyvind Eriksen	Deputy Chairman	0
Kjell Inge Røkke	Director	0
Birgit Aagaard-Svendsen	Director	90,000
Lone Fønss Schrøder	Director	0
Elisabeth Tørstad	Director	2,000
Jan Arve Haugan	Director	136,527
Hilde Karlsen	Director, employee elected	32,774
Line Småge Breidablikk	Director, employee elected	1,755
Stian Pettersen Sagvold	Director, employee elected	246
Arne Christian Rødby	Director, employee elected	1,822
Sigurd Sævareid2	Director, employee elected	0
Tommy Angeltveit2	Director, employee elected	0
Total		558,207

1) The number of shares owned covers direct ownership of Aker Solutions ASA for individual and related parties and does not include Øyvind Eriksen's and Kjell Inge Røkke's indirect ownership.
2) Sigurd Sævareid left the board in April 2023 and was replaced by Stian Sagvold. Tommy Angeltveit left the board and was replaced by Arne Rødby in October 2023.

See note 14 for more information about customer contract assets and receivables
See note 19 for more information about leasing contracts
See note 22 for more information about trade and other payables
See note 27 for more information about subsidiaries
See note 28 for more information about joint arrangements and associates

Note 32 Audit Fees

On April 27, 2022, the general meeting of shareholders appointed PwC as Aker Solution's auditor. The table below presents expenses for audit and other services to the auditor, including expenses related to the disposed subsea business.

	Aker Solutions ASA	Subsidiaries	Total
Amounts in NOK million (excl. VAT)	2023	2022	2023
Audit	3.7	3.1	14.5
Other assurance services	1.4	0.1	1.8
Tax services	0.0	0.0	0.1
Other non-audit services	0.0	0.0	2.0
Total	5.1	3.2	18.4

Note 33 Climate Risk

Aker Solutions delivers integrated solutions, products, and services to the global energy industry. We enable low-carbon oil and gas production and develop renewable solutions to meet future energy needs. The oil and gas industry has been identified as high risk by the Task Force on Climate-Related Financial Disclosures (TCFD), and Aker Solutions has conducted a climate-related scenario analysis in order to improve company strategy resilience.

Scenario analysis

Together with an external consulting partner, Aker Solutions has developed three customized climate scenarios tailored to consider our full value chain in oil and gas and renewable energy markets such as offshore wind, hydrogen and carbon capture and storage (CCS). These scenarios were based on publicly available scenarios published by the International Energy Agency and the Intergovernmental Panel on Climate Change and titled Net Zero 2050 (1.5°C), Announced Pledges (1.7-2°C), and Stated Policies (2.4-3°C). The Net Zero scenario describes an orderly transition where ambitious climate polices are implemented immediately and with a high degree of global cooperation and collaboration and low physical risk. The Announced Pledges scenario assumes lower global policy coordination and a disorderly transition with wide variation and the Stated Policies scenario assumes business as usual and severe physical risk.

As a part of the scenario analysis, short term, medium term, and long-term was defined as 2025, 2030, and 2050 respectively. A workshop was held with key personnel in order to assess the climate scenarios with risks and opportunities, including financial materiality and potential impact on our business model and strategy. Aker Solutions re-confirmed two material climate-related risks and two climate-related opportunities as a result of the scenario analysis:

Risk 1: Declining investment in upstream oil and gas in core markets
Risk 2: Attraction and retention of talent
Opportunity 1: Increase competitiveness in oil and gas through decarbonization solutions and services
Opportunity 2: Revenue diversification into markets supported by the energy transition

Environmental objectives

Aker Solutions has an ambition that projects within renewable and transitional energy solutions will represent two thirds of total revenue by 2030. Furthermore, the company has an emissions reduction target of 50 percent of own emissions by 20301. The goal is to be net zero by 2050.

1) Scope 1 and 2 emissions with 2023 as a baseline. Due to significant changes in the company operations in 2023, we are setting a new baseline for emissions accounting.# Details of the new 2023 baseline can be found in the Climate Change Adaptation and Mitigation chapter of this report.

Effects on Aker Solutions’ Financial Statements
In the net zero 2050 scenario, demand for oil and gas falls to levels that do not necessitate new oil and gas field developments beyond those already approved. However, investment in existing fields remains. In all three scenarios, the demand for North Sea oil and gas supply decreases. Following the climate-related scenario analysis and workshop, both risks and opportunities related to the energy transition are identified. The different scenarios and risks that are assessed are not considered to entail significant changes in the market or regulatory environment in which Aker Solutions operates in the short or medium term. There are no significant changes in plans for assets following emission or revenue transition targets. Aker Solutions have currently not identified any risk factors related to climate-change that will lead to material reductions in recoverable amounts of assets. There has not been identified any material impacts on judgments and estimates in the 2023 financial report. Aker Solutions has considered the impact of climate change on going concern and capital expenditure commitments. While there are no identified immediate or short-term impacts from climate change, Aker Solutions is aware of the ever-changing risks and opportunities related to climate change. We will regularly assess these risks against judgments and estimates made in preparation of the group’s financial statements.

Renewable Energy Certificates
Aker Solutions purchases energy attribute certificates (EACs) to reduce scope 2 emissions. The purchase is based on estimated energy consumption. In 2023, a total of 125.300 megawatt hours was purchased for our Norwegian locations. The cost is included in the yard rate at our locations and reflected as operating expenses in the income statement.

See note 2 for more information about accounting judgments and estimates
See note 12 for more information about impairment

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Parent Company Financial Statements
Aker Solutions ASA
December 31, 2023

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Main Tables

Income Statement

Amounts in NOK million	Note	2023	2022
Operating revenues	2	41	33
Operating expenses	2	-87	-80
Operating loss		-46	-47
Income from subsidiaries	5	9,600	0
Net financial items	3	-376	-31
Income (loss) before tax		9,178	-79
Income tax	4	84	-28
Net income (loss)		9,262	-107
Net income (loss) for the period distributed as follows:
Proposed dividends	9	979	488
Other equity		8,283	-595
Net income (loss)		9,262	-107

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Balance Sheet Statement as of December 31

	Note	2023	2022
Assets
Deferred tax asset	4	412	322
Investments in group companies	5	16,357	16,357
Non-current interest-bearing receivables from group companies	6	39	532
Other non- current assets	17	0	0
Other non-current interest-bearing receivables	10	10	10
Total non-current assets		16,835	17,221
Current interest-bearing receivables from group companies	6	10	0
Non interest-bearing receivables from group companies	6	9,644	32
Financial instruments	7	304	456
Financial investments	8	3,030	0
Other current receivables		135	0
Cash and cash equivalents	6	4,997	4,916
Total current assets		18,121	5,404
Total assets		34,956	22,625

Fornebu, March 15, 2024
Board of Directors of Aker Solutions ASA

Amounts in NOK million	Note	2023	2022
Equity and liabilities
Issued capital		532	532
Other equity	9, 10	14,804	6,469
Total equity		15,336	7,001
Non-current borrowings	11	0	909
Total non-current liabilities		0	909
Current borrowings	11	0	5
Current borrowings from group companies	6	18,303	13,780
Non interest-bearing liabilities from group companies	6	15	22
Financial instruments	7	249	322
Provisions for dividend	9	979	488
Other current liabilities		74	97
Total current liabilities		19,620	14,715
Total liabilities		19,620	15,624
Total equity and liabilities		34,956	22,625

Leif-Arne Langøy
Chairman

Øyvind Eriksen
Deputy Chairman

Kjell Inge Røkke
Director

Birgit Aagaard-Svendsen
Director

Hilde Karlsen
Director

Jan Arve Haugan
Director

Elisabeth Heggelund Tørstad
Director

Lone Fønss Schrøder
Director

Arne Christian Rødby
Director

Stian Pettersen Sagvold
Director

Line Småge Breidablikk
Director

Kjetel Digre
Director
Chief Executive Officer

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Cash Flow Statement for the year ended December 31

Amounts in NOK million	2023	2022
Earnings (loss) before tax	9,178	-79
Income tax payable	-6	0
Profit (loss) on foreign currency forward contracts	135	-134
Changes in other operating assets and liabilities	-103	-60
Net cash from operating activities	9,204	-273
Investment in liquid funds	-3,030	0
Net cash used in investing activities	-3,030	0
Changes in borrowings to group companies	-9,600	0
Changes in borrowings from group companies	4,994	3,308
Changes in outstanding bonds	-914	-1,414
Changes in borrowings external	-135	0
Shares issued to employees through share purchase program	54	68
Repurchase of treasury shares	1	3
Cash flow hedge	-4	12
Payment dividend	-489	0
Net cash from financing activities	-6,092	1,977
Net increase (decrease) in cash and cash equivalents	82	1,704
Cash and cash equivalents at the beginning of the period	4,916	3,214
Cash and cash equivalents at the end of the period¹	4,997	4,916

1) Unused credit facilities amounted to NOK 3,000 million as of December 31, 2023 (NOK 5,000 million as of December 31, 2022). The cash flow statement has been prepared using the indirect method.

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Notes to the Parent Company Financial Statements

For the year ended December 31

Note 1 Company Information

Aker Solutions ASA is the parent company and owner of Aker Solutions Holding AS. Aker Solutions ASA is domiciled in Norway and listed on the Oslo Stock Exchange. The financial statements of the parent company are prepared in accordance with Norwegian legislation and Norwegian Generally Accepted Accounting Principles.

Note 2 Operating Revenue and Expenses

Revenue
Operating revenue consists of NOK 41 million in income from Parent Company Guarantees (PCG), compared to NOK 33 million in the previous year. The PCGs are invoiced annually over the lifetime of the guarantee.

Expenses
There are no employees in Aker Solutions ASA and hence no personnel expenses. Executive management and corporate staff are employed by other Aker Solutions companies. Costs for their services as well as other parent company costs are recharged proportionally to Aker Solutions ASA and presented as operating expenses.

For further description about management compensation to the Board of Directors and the executive management team, refer to the Management Remuneration Report available at www.akersolutions.com/corporate-governance.

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The below table shows the shareholding og Aker Solution’s Board of Directors and the President and Chief Executive Officer per December 31, 2023.

Name	Role	Shareholding as of December 31, 2023¹
Kjetel Digre	President and Chief Executive Officer	133,657
Leif-Arne Langøy	Chairman	159,426
Øyvind Eriksen	Deputy Chairman	0
Kjell Inge Røkke	Director	0
Birgit Aagaard-Svendsen	Director	90,000
Lone Fønss Schrøder	Director	0
Elisabeth Tørstad	Director	2,000
Jan Arve Haugan	Director	136,527
Hilde Karlsen	Director, employee elected	32,774
Line Småge Breidablikk	Director, employee elected	1,755
Stian Pettersen Sagvold	Director, employee elected	246
Arne Christian Rødby	Director, employee elected	1,822
Sigurd Sævareid²	Director, employee elected	0
Tommy Angeltveit²	Director, employee elected	0
Total		558,207

Audit fees
On April 27, 2022, the general meeting of shareholders appointed PwC as Aker Solutions' auditor. The table below presents expenses for audit and other services to the auditor.

Amounts in NOK million	2023	2022
Audit KPMG	0.0	1.7
Audit PwC	3.7	1.3
Other assurance	1.4	0.2
Total	5.1	3.2

See note 12 for more information about guarantees

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Note 3 Financial Income and Expenses

Financial Reporting Principles
Foreign Currency Transactions in foreign currencies are translated at the exchange rate at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies at the balance sheet date are translated to NOK at the exchange rate on the closing date.

Foreign currency derivatives
Subsidiaries have entered into internal financial derivative contracts with the parent company to hedge their currency exposure.# Note 4 Tax

Financial Reporting Principles

Tax expenses in the income statement comprise current tax and changes in deferred tax. Deferred tax is calculated as 22 percent of temporary differences between accounting and tax values as well as any tax losses carried forward at the year-end. Net deferred tax assets are recognized only to the extent that it is probable they will be utilized against future taxable profits.

Deferred Tax Asset and Tax Expenses

Amounts in NOK million	2023	2022
Calculation of taxable income
Earnings (loss) before tax	9,178	-79
Permanent differences	-9,634	48
Change in timing differences	124	-99
Taxable income	-332	-129
Positive (and negative) temporary differences
Unrealized gain on forward exchange contracts	-133	-8
Currency options	179	130
Interest rate swaps	6	11
Impairment on internal receivables	0	0
Tax loss carried forward	-1,926	-1,594
Basis for deferred tax	-1,874	-1,461
Deferred tax in income statement	414	324
Deferred tax in equity	-1	-2
Deferred tax asset	412	322

The company has a temporary difference per December 31, 2023 related to the limitation of the deductibility of interest of NOK 389 million (NOK 389 million in 2022) which is not recognized in the balance sheet. The deferred tax asset is recognized only to the extent it is considered probable that future taxable profits will be available to utilize the tax losses and credits. The forecasted future taxable profits in Aker Solutions ASA mainly consist of expected taxable group contributions from the subsidiaries.

Amounts in NOK million	2023	2022
Income tax benefit
Origination and reversal of temporary differences	90	-22
Withholding tax	-5	-6
Total tax income	84	-28

Effective Tax Rate

Amounts in NOK million	2023	2022
Income tax	22 percent	-2,019
Tax on permanent differences	2,109	-39
Withholding tax	-5	-6
Total tax income	-84	-28

Note 5 Investments in Group Companies

Financial Reporting Principles

Investments in subsidiaries are measured at cost. The investments are written down to fair value when the impairment is not considered to be temporary. Impairment losses are reversed if the basis for the impairment is no longer present. Dividends and other distributions from subsidiaries are recognized in the same year as they are recognized in the financial statement of the provider. If the distributed dividend in the subsidiary exceeds accumulated profits in the ownership period, the payment is treated as a reduction of the carrying value of the investment.

Investment in Group Companies

Amounts in NOK million	Registered office	Share capital	Number of shares held	Percentage owner-/ voting share	Book value
Aker Solutions Holding AS	Fornebu, Norway	3,600	30	100%	16,357
Total investments in group companies					16,357

In 2023, Aker Solutions ASA received non- taxable group contribution from Aker Solutions Holding AS of NOK 9,600 million.

Note 6 Receivables and Borrowings from Group Companies

Financial Reporting Principles

Assets and liabilities are presented as current when they are due within one year or if they are part of the operating cycle. Other assets and liabilities are classified as non-current. Current assets are valued at the lowest of cost and fair value. Current liabilities are valued at nominal value at the time of recognition. Non-current receivables are measured at cost less impairment losses that are not considered to be temporary. Non-current liabilities are initially valued at transaction value less attributable transaction cost. Subsequent to initial recognition, interest-bearing non-current borrowings are measured at amortized cost with any difference between cost and redemption value being recognized in the income statement over the period of the borrowing on an effective interest basis. Trade and other receivables are recognized at the original invoiced amount less allowances for expected losses. Provisions for expected losses is considered on an individual basis. All current receivables and borrowings are due within one year.

Aker Solutions ASA has a centralized cash concentration arrangement (cash pools) with DNB where balances are consolidated and netted across legal entities and countries. The participants in the cash pools are jointly and severally liable and it is therefore important that Aker Solutions as a group is financially viable. In addition cash management arrangements are set up with local banks in Malaysia, Brazil and India where cash concentration is prohibited. The activities in Brazil was transferred to OneSubsea October 2, 2023 and the remaining activities in Brazil are limited to Life Cycle (C.S.E. Mecânica e Instrumentacão Ltda. The cash pools and cash management arrangements cover a majority of the group's geographical footprint and ensure control of and access to the majority of the group's cash. Participation in the cash pool is vested in the group policy and decided by each company's board of directors and confirmed by a statement of participation. The cash pool systems were showing a net balance of NOK 3,978 million per December 31, 2023 (NOK 4,666 million per December 31, 2022). This amount is reported in Aker Solutions ASA's accounts as short-term borrowings from group companies and as cash in the cash pool system. Aker Solutions ASA is the group’s central treasury function and enters into borrowings and deposit agreements with group companies. Deposits and borrowings are agreed at market terms and in accordance with transfer pricing principles and are dependent on the group companies’ credit quality, country risk and the duration of the borrowings.

Receivables and Borrowings with Group Companies

Amounts in NOK million	2023	2022
Group companies interest-bearing deposits in the cash pool system	12,989	13,128
Aker Solutions ASAs net borrowings in the cash pool system	-9,010	-8,462
Cash in cash pool system	3,978	4,666
Current interest-bearing receivables from group companies	10	0
Non-current interest-bearing receivables from group companies	39	532
Current interest-bearing borrowings from group companies	-18,303	-13,780
Net interest-bearing borrowings from group companies	-18,253	-13,248
Current non interest-bearing receivables from group companies	9,644	32
Current non interest-bearing borrowings from group companies	994	510
Net non interest-bearing receivables from group companies	10,638	543
Total net borrowings from group companies	-3,637	-8,040

Note 7 Financial Risk Management and Financial Instruments

Currency Risk

As of December 31, 2023, Aker Solutions ASA has outstanding foreign exchange contracts with other entities in the group with a gross total value of approximately NOK 2.7 billion (NOK 11.2 billion in 2022). Large contracts are hedged back-to-back with external banks, while minor contracts are hedged based on internal matching principles. Contracts hedged back to back with external banks represent more than 80 percent of the total group exposure. Aker Solutions ASA does not apply hedge accounting to any of the currency derivatives. All financial assets and liabilities related to foreign exchange contracts are revalued at fair value in respect to exchange rate movements each period. The treasury function within Aker Solutions ASA also has a mandate to hold limited positions in the currency and interest markets. The mandate has limits that are strictly defined and is operated under a strict stop-loss regime. In addition to the general mandate, Treasury has hedged parts of the currency exposure from USD denominated proceeds from the OneSubsea formation with financial derivatives. All open positions are continuously monitored on a mark to market basis. The fair value of foreign exchange forward contracts and options is presented in the table below.

| | 2023 | | 2022 |
|---|---|---|---|---|
| | Amounts in NOK million | | Amounts in NOK million |
| | Assets | Liabilities | Assets | Liabilities |
| Forward exchange contracts with group companies | 44 | -50 | 178 | -183 |
| Forward exchange contracts with external counterparts | 56 | -182 | 137 | -139 |
| Currency options contract with external counterparts | 197 | -18 | 130 | 0 |
| Total | 297 | -249 | 445 | -322 |

All instruments are booked at fair value as per December 31.# Note 8 Financial Investments

Currency risk

Aker Solutions’s investment strategy allows investments in liquid money market funds with low risk and interest period below 6 months and credit duration below 2 years. The rationale is to diversify the risk among debtors and enhance the return from surplus cash, compared to the interest rate in the cash pool.

December 31, 2023

Aker Solution has invested NOK 3,000 million in three different funds. The funds invest in short-term interest-bearing securities in NOK, i.e., certificates and bonds issued by companies with investment grade rating and the public sector. The money market funds cannot invest in securities with fixed interest rates longer than one year. The credit risk is deemed to range from low to very low, depending on the investment strategy of the fund.

Amounts in NOK million	2023	2022
Liquid funds	3,030	0
Total	3,030	0

Menu Board of Directors’ Report Sustainability Performance Financial Statements Appendix 169

Note 9 Shareholders' Equity

Financial Reporting Principles

Repurchase of share capital is recognized at cost as a reduction in equity and is classified as treasury shares. No gain or loss is recognized in the income statement on the purchase or sale of the company's own shares.

Shareholders' Equity

Amounts in NOK million	Share capital	Share Premium	Treasury Shares	Hedging reserve	Retained earnings	Total Equity
Total Equity as of December 31, 2022	532	3,687	-4	8	2,778	7,001
Repurchase of treasury shares	0	0	0	0	0	0
Shares issued to employees through share purchase program	0	0	1	0	54	55
Earnings for the period	0	0	0	0	9,262	9,262
Proposed dividends	0	0	0	0	-979	-979
Cash flow hedge¹	0	0	0	-3	0	-3
Equity as of December 31, 2023	532	3,687	-3	5	11,115	15,336

¹The value of interest swap agreements changing interest from floating to fixed is recognized directly in equity and will be released to income together with the corresponding interest expenses.

Share Capital

Aker Solutions ASA was founded May 23, 2014, and has a nominal share capital of NOK 531,540,456 with a total number of outstanding shares of 492,167,089 at par value NOK 1.08 per share as of December 31, 2023. All issued shares are fully paid. Aker Solutions ASA has one class of shares, ordinary shares, with equal rights for all shares. The holders of ordinary shares are entitled to receive dividends and are entitled to one vote per share at general meetings.

Treasury Shares

The group purchases its own shares to meet obligations under employee share purchase programs. Treasury shares are not included in the weighted average number of ordinary shares. Earnings per share have been calculated based on an average of 488,829,434 shares outstanding December 31, 2023. Consideration for treasury shares sold in 2023 was NOK 56 million.

Amounts in NOK million	Number of shares
Treasury shares as of December 31, 2022	3,838,897
Sale	-1,369,962
Treasury shares as of December 31, 2023	2,468,935

See note 3 and 7 for more information about the hedging reserve for interest rate swap agreements

Menu Board of Directors’ Report Sustainability Performance Financial Statements Appendix 170

Note 10 Shareholders

Shareholders with more than 1 percent shareholding per December 31 are listed below.

2023

Company	Numbers of shares held	Ownership
Aker Holding AS	193,950,894	39.41%
Nærings- og fiskeridepartementet	30,092,943	6.11%
Folketrygdfondet	27,877,176	5.66%
State Street Bank and Trust Comp	8,472,339	1.72%
The Bank of New York Mellon NOM	6,486,092	1.32%
JPMorgan Chase Bank, N.A NOM	5,622,520	1.14%
The Bank of New York Mellon SA/NV	5,457,985	1.11%
J.P Morgan Securities PLC NOM	5,411,361	1.10%
J.P Morgan SE NOM	5,253,786	1.05%

2022

Company	Numbers of shares held	Ownership
Aker Holding AS	193,950,894	39.41%
Nærings- og fiskeridepartementet	30,092,943	6.11%
Folketrygdfondet	23,266,445	4.73%
J.P Morgan SE NOM	8,580,145	1.74%
State Street Bank and Trust Comp NOM	8,402,142	1.71%
The Bank of New York Mellon SA/NV NOM	7,535,442	1.53%
UBS Europe SE	6,176,696	1.26%
JPMorgan Chase Bank, N.A., London NOM	5,211,790	1.06%

Note 11 Borrowings

Financial Reporting Principles

Interest-bearing borrowings are recognized initially at fair value less transaction costs. Subsequent to initial recognition, interest-bearing borrowings are stated at amortized cost with any difference between cost and redemption value being recognized in the income statement over the period of the borrowings on an effective interest basis.

Revolving Credit Facility

The revolving credit facility agreement of NOK 5,000 million with maturity in March 2023 has been refinanced in January 2023, and replaced with a five year NOK 3,000 million revolving credit facility, maturing January 30, 2028. The facility is provided by a syndicate of high-quality international banks. The revolving credit facility was undrawn as of December 31, 2023. The terms and conditions include restrictions which are customary for these kind of facilities, including inter alia negative pledge provisions, financial covenants and restrictions related to acquisitions, disposals and mergers. There are also certain provisions of change of control included in the agreement. There are no restrictions for dividend payments, and the facility is unsecured. Interest terms for the RCF is 3 month NIBOR plus a fixed margin of 1.5 percent. The margin applicable to the facility is determined by leverage ratio. Utilization fee applies based on utilized portion of credit facility. Commitment fee is 35 percent of the margin.

Norwegian Bonds

The group had one bond loan with maturity June 2024 amounting to NOK 1,000 million listed on the Oslo Stock Exchange. On February 14, 2023 Aker Solutions offered to but back all outstanding bonds of the NOK 1,000 million senior unsecured floating rate bonds due June 2024 at a price of NOK 102,00. Tenders of NOK 477 million was accepted and repurchased on February 22, 2023. The remaining outstanding bonds were purchased by exercising a call option for Voluntary early redemption on December 4, 2023, 6 months prior to original maturity date. The bond loan and the listing of the loan on Oslo Stock Exchange has been cancelled.

Note 11 continues on next page

Menu Board of Directors’ Report Sustainability Performance Financial Statements Appendix 171

Note 11 Borrowings cont.

Bonds and borrowings

During 2023 Aker Solutions repaid all drawn debt from external lenders.

2022	Currency	Nominal currency value	Carrying amount (NOK)	Reference interest rate	Fixed interest margin	Interest coupon	Maturity date (mm/dd/yy)	Interest terms	ISIN
Total bonds	NOK	914	915	3.5%	3.0%	6.5%	03/06/24	Floating, 3M+fix margin	NO 0010853286
Total bonds			915
Revolving credit facility (NOK 5,000 million)	NOK	0	0	3.0%	1.1%	4.1%	03/19/23	NIBOR + Margin
Total credit facility			0
Total borrowings			915
Current borrowings			5
Non-current borrowings			909
Total			915

Menu Board of Directors’ Report Sustainability Performance Financial Statements Appendix 172

Note 11 Borrowings cont.

2022	Amounts in NOK million	Carrying amount	Total cash flow¹	6 months and less	6-12 months
ISIN NO 0010853286	915	1,004	30	30	944
Total	915	1,004	30	30	944
Revolving credit facility (NOK 5,000 million)²	0	0	0	0	0
Total borrowings	915	1,004	30	30	944

¹ The interest costs are calculated using either the last fixing rate known by year-end (plus applicable margin) or the contractual fixed rate (when fixed rate debt).
² The cash flow is based on the assumption that the nominal drawn amount will remain constant until the maturity of the revolving credit facility.

Menu Board of Directors’ Report Sustainability Performance Financial Statements Appendix 173# Menu

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Sustainability Performance

Financial Statements

Appendix

Note 12 Guarantees

	2023	2022
Parent company guarantees to group companies	129,859	95,628
Counter guarantees for bank/surety bonds	7,094	8,214
Total guarantee liabilities	136,953	103,842

Parent company guarantees are issued on behalf of subsidiaries in contractual obligations towards customers. The amounts disclosed above represent the total contractual value of the customer contracts and include guarantees issued on behalf of Related Parties. Bank guarantees and surety bonds are issued on behalf of Aker Solutions subsidiaries, and counter indemnified by Aker Solutions ASA. See note 2 for more information about revenue from guarantees.

Note 13 Related Parties

Transactions with subsidiaries and related parties are described in the following notes:

Operating Revenue and Expenses (Note 2)
Financial items (Note 3)
Investments (Note 5)
Cash pool (Note 6)
Receivables and borrowings (Note 6)
Foreign exchange contracts (Note 7)
Guarantees (Note 12)

Transactions with related parties are based on negotiations between the parties, and management believes that the agreed prices are a fair approximation to arm's length terms.

Independent Auditor’s Report

Alternative Performance Measures

Aker Solutions discloses alternative performance measures in addition to those normally required by IFRS as such performance measures are frequently used by securities analysts, investors and other interested parties. Alternative performance measures are meant to provide an enhanced insight into the operations, financing and future prospects of the company.

Profit Measures

EBITDA and EBIT terms are presented as they are used by financial analysts and investors. Special items are excluded from EBITDA and EBIT as alternative measures to provide enhanced insight into the financial development of the business operations and to improve comparability between different periods. EBITDA is short for earnings before interest, taxes, depreciation and amortization. EBITDA corresponds to the “operating income before depreciation, amortization and impairment” in the consolidated income statement in the annual report. EBIT is short for earnings before interest and taxes. EBIT corresponds to “operating income” in the consolidated income statement in the annual report. Margins such as EBITDA margin and EBIT margin are used to compare relative profit between periods. EBITDA margin and EBIT margin are calculated as EBITDA and EBIT divided by revenue. Special items may not be indicative of the recurring operating results or cash flows of the company. Profit measures excluding special items are presented as alternative measures to improve comparability of the underlying business performance between periods.

Profit Measures continues on next page

Profit Measures cont.

	Renewables & Field Development	Life Cycle	Other	Aker Solutions
	2023	2022	2023	2022
Amounts in NOK million
Revenue	22,097	14,838	13,072	12,164
Net profit equity accounted investees	29	19	0	0
Non-qualifying hedges	0	0	0	0
Sum of special items excluded from revenue	0	0	0	0
Revenue ex. special items	22,126	14,857	13,072	12,164
EBITDA	973	487	686	663
Restructuring cost	5	1	0	0
Non-qualifying hedges	0	0	0	0
Other special items	1	0	0	0
Sum of special items excluded from EBITDA	6	1	0	0
EBITDA ex. special items	979	488	686	663
EBITDA margin	4.4%	3.3%	5.2%	5.5%
EBITDA margin ex. special items	4.4%	3.3%	5.2%	5.5%
EBIT	597	185	565	558
Sum of special items excluded from EBITDA	6	1	0	0
Impairments	0	3	0	0
Sum of special items excluded from EBIT	6	4	0	0
EBIT ex. special items	603	189	565	558
EBIT margin	2.7%	1.2%	4.3%	4.6%
EBIT margin ex. special items	2.7%	1.3%	4.3%	4.6%

Profit Measures continues on next page

Profit Measures cont.

	Aker Solutions
Amounts in NOK million	2023
Net income (loss) from continuing operations	-15
Net income from discontinued operations	11,540
Net income from total operations	11,525
Sum of special items excluded from EBIT	189
Financial items¹	455
Non-qualifying hedges	-34
Tax effects on special items	-125
Net income continuing operations ex. special items	469
Gain from disposal of discontinued operations	-9,723
Other special items on discontinued operations	142
Net income discontinued operations ex. special items	1,959
Net income total operations ex. special items	2,428
Net income to non-controlling interests	112
Net income continuing operations ex. special items and non-controlling interests	581
Average number of shares (in '000)	488,829
Earnings per share from continuing operations²	0.20
Earnings per share from discontinued operations²	23.61
Earnings per share from total operations²	23.81
Earnings per share from continuing operations ex. special items³	1.19
Earnings per share from discontinued operations ex. special items³	4.01
Earnings per share from total operations ex. special items³	5.20

¹ Financial items related to currency derivatives and shares in SLB.
² Earnings per share is calculated using Net income, adjusted for non-controlling interests, divided by average number of shares.
³ Earnings per share ex. special items is calculated using Net income ex. special items, adjusted for non-controlling interests, divided by average number of shares.

Order Intake Measures

Order intake, order backlog and book-to-bill ratios are presented as alternative performance measures, as they are indicators of the company’s revenues and operations in the future. Order intake includes new agreed customer contracts in the period in addition to expansion of existing contracts. For construction contracts, the order intake includes the value of agreed contracts and options, and value of agreed change orders and options. It does not include potential options and change orders. For service contracts, the order intake is based on estimated customer revenue in periods that are firm in the contracts. Order backlog represents the estimated value of remaining work on agreed customer contracts. The order backlog does not include parts of service agreements, which is short-cycled or book-and-turn in nature. The order backlog does also not include potential growth or value of options in existing contracts. Book-to-bill ratio is calculated as order intake divided by revenue from customer contracts in the period. A book-to-bill ratio higher than 1 means that the company has secured more contracts in the period than what has been executed in the same period.

	Renewables & Field Development	Life Cycle	Other/eliminations	Aker Solutions
	2023	2022	2023	2022
Amounts in NOK million
Order intake	22,523	51,398	11,781	16,190
Revenue from customer contracts	22,095	14,843	13,065	12,164
Book-to-bill	1.0x	3.5x	0.9x	1.3x

Financing Measures

Alternative financing and equity measures are presented as they are indicators of the company’s ability to obtain financing and service its debts. Liquidity buffer (liquidity reserve) is a measure of available cash and is calculated by adding together the cash and cash equivalents and the unused credit facility.

	2023	2022
Amounts in NOK million
Cash and cash equivalents	6,003	6,170
Credit facility (unused)	3,000	5,000
Liquidity buffer/reserve	9,003	11,170

Net current operating assets (NCOA) or working capital is a measure of the current capital necessary to maintain operations. Working capital includes trade receivables, trade payables, accruals, provisions and current tax assets and liabilities.

	2023	2022
Amounts in NOK million
Current tax assets	75	67
Inventory	44	275
Customer contract assets and other receivables	2,317	4,419
Trade receivables	5,268	5,857
Prepayments	1,214	1,981
Current tax liabilities	-62	-65
Provisions	-3,405	-1,719
Trade payables	-2,554	-2,645
Other payables	-6,550	-9,066
Customer contract liabilities	-4,831	-3,134
Net current operating assets (NCOA)	-8,484	-4,032

Net interest- bearing debt is a measure that shows the overall debt situation. Net interest bearing debt is calculated by netting the value of a company's liabilities and debts with its cash and cash equivalents.

	2023	2022
Amounts in NOK million
Non-current borrowings	0	962
Current borrowings	0	60
Cash and cash equivalents	-6,003	-6,170
Net interest-bearing debt	-6,003	-5,147

Equity ratio is a financial ratio indicating the relative proportion of equity used to finance a company's assets and is a measure of the level of leverage used by a company.# Aker Solutions

About this Report

The initiatives highlighted in this report include those that have an impact on our employees, customers, investors and societies where we are present. The company’s commitment to human and labor rights is covered by the Global Framework Agreement between Aker ASA and the Norwegian and international trade unions Fellesforbundet, IndustriALL Global Union, NITO and Tekna. Aker Solutions reports and communicates on sustainability according to the Global Reporting Initiative (GRI), Carbon Disclosure Project (CDP), the Task Force on Climate Related Financial Disclosures (TCFD) and the company’s strategy supports the UN Sustainable Development Goals (SDGs). We also follow the Euronext guidance on ESG reporting of May 2022.

GRI Standards

Aker Solutions has reported in accordance with the GRI Standards (GRI 1: Foundation 2021 and GRI 11:Oil and gas Sector) for the period January 1, 2023 through December, 31, 2023. Our GRI Index for the 2023 report is available in the appendix of this report.

Report Boundaries

The report boundary is, in general, drawn around companies under the operational control of Aker Solutions ASA. However, we also provide information on some aspects where we have the potential to influence but do not have direct control.

Norwegian Accounting Act

The report addresses the legal requirements for company reporting as specified in section 3-3c of the Norwegian Accounting Act (“Regnskapsloven”) for reporting on corporate social responsibility.

NCGB

Aker Solutions adheres to the Norwegian Code of Practice for Corporate Governance issued by the Norwegian Corporate Governance Policy Board (NCGB). The objective of the Code of Practice that companies listed on regulated markets in Norway will practice corporate governance that provides division of roles between shareholders, the board of directors and executive management more comprehensively than is required by legislation.

Appendix: Sustainability Metrics Subject to Audit for 2023

Aker Solutions has engaged PwC to perform a limited assurance engagement on the company’s GRI compliance, as well as selected sustainability metrics. A table of the sustainability metrics covered by the assurance engagement is shown below. PwC’s audit report is included on the following pages.

Material Topic	Sustainability Metric	Criteria (GRI / Other)	Location
Climate Change Adaptation	Scope 1, Scope 2 and total value chain GHG emissions (Scope 3) and emissions intensity	The Greenhouse Gas Protocol Corporate Accounting and Reporting Standard, applied as described in the methodology statement published at https://www.akersolutions.com/sustainability/reporting-frameworks-and-assessments/ For 2023, Aker Solutions GHG reporting does not include the Subsea segment as it is not within the operational control per year end.	2023 Annual Report: Appendix
Climate Change Mitigation	Share of revenue related to renewable and transitional energy solutions	Aker Solutions' Metric: Renewables and transitional energy solutions mainly includes projects with solutions and technologies for offshore wind, hydropower, aquaculture, carbon capture and storage (CCS), hydrogen, electrification of offshore and onshore facilities, decommissioning and recycling. Subsea excluded for 2023.	2023 Annual Report: GRI Index
Energy	Energy consumption and intensity	GRI 302-1, GRI 302-2, GRI 302-3 For 2023, Aker Solutions energy reporting does not include the Subsea segment as it is not within the operational control per year end.	2023 Annual Report: Appendix
	Energy consumption from non-renewable and renewable sources	GRI 302-1, GRI 302-2 For 2023, Aker Solutions energy reporting does not include the Subsea segment as it is not within the operational control per year end.	2023 Annual Report: Appendix
Waste	Non-hazardous and hazardous waste	GRI 306 For 2023, Aker Solutions waste reporting does not include the Subsea segment as it is not within the operational control per year end.	2023 Annual Report: Appendix
Health and Safety, own workforce	Number of Fatalities	GRI 403-9	2023 Annual Report: Health, Safety and Well-being section
	TRIF: Total Recordable Injury Frequency Includes fatalities, lost time injuries (serious - and other lost time injuries), restricted work injuries and medical treatment injuries per million worked hours. TRI does not include first aid treatment cases. This indicator equals the GRI standard’s injury rate (IR) in GRI 403-9. Recordable injuries occurring prior to closing of subsea transaction includes any relevant injuries from subsea employees/operations.
	Sick Leave (%)	Aker Solutions' Metric Total monthly sickness hours/Planned monthly work hours, 12 month average percent is reported. Own employees only. Sick leave occurring prior to closing of subsea transaction includes sick leave from subsea employees.
Working Conditions and Other Work-related Rights, own workforce	Pulse Check Results: Average Response Rate, Employee Engagement and Organizational Effectiveness	Aker Solutions' Metric Employee Pulse Check Survey, conducted twice in 2023. Survey is comprised of 10 short statements: five address employee motivation and engagement and five address collaboration and organizational conditions. Reported figure is average of both pulse check surveys. Neither survey in 2023 included subsea employees.	2023 Annual Report: Human Capital section
	Country by Country reporting: Number of employees, Revenue, Investments in assets, Paid taxes by country, Operating cost, Salaries and employee benefits, Financial cost	GRI 201-1 Subsea excluded for 2023.	2023 Annual Report: Appendix
	Key staff figures: Total staff, Age groups own employees, part-time own employees, employees by region, both own and contract, gender distribution, recruitment and turnover figures, parental leave own regular employees	GRI 2-7, GRI 401-1, GRI 401-3 Data reported is as of 12/31/2023. Subsea employees are not included.
Equal Treatment and Opportunities, own workforce	Gender and age distribution of highest governance body	GRI 405-1 Data reported is as of 12/31/2023. Subsea employees are not included.	2023 Annual Report: Human Capital section
	Gender distribution of office based and non-office based employees
	Gender Pay Gap (reporting for Norway)	GRI 405-2 Data reported is as of 12/31/2023. Only employees who have worked a full year are included. Subsea employees are not included.
Management of relationships with suppliers	Proportion of spending on local suppliers	GRI 204-1 Supply chain data from 2023 includes subsea suppliers up until closing of subsea transaction. Spend data is based on accounting date.	2023 Annual Report: GRI Index
	Proportion and number of new suppliers that were screened using environmental and social criteria	GRI 308-1, GRI 308-2, GRI 414-1, GRI 414-2 Supply chain data from 2023 includes new suppliers specific to subsea operations up until closing of subsea transaction.
Corruption and Bribery	Number of personnel completed annual code of conduct training, e-learning "Introduction to business integrity" and classroom course in Business Ethics	GRI 205-2 Subsea employees are not included.	2023 Annual Report: Appendix
	Number of whistleblower reports, and reports per 100 employees	GRI 2-25, GRI 2-26	2023 Annual Report: Corruption and Bribery section
Cybersecurity	Number of phishing campaigns, and failure rate	Aker Solutions' Metric Failure rate is number of recipients in the simulation that were compromised out of the total number of recipients in the specific simulation. Annual average rate reported. Campaigns launched prior to closing of subsea transaction included subsea employees.	2023 Annual Report: Security, Cybersecurity and Data Protection section

Global Reporting Initiative (GRI) Index

Aker Solutions has reported in accordance with the GRI Standards (GRI 1: Foundation 2021 and GRI 11: Oil and Gas Sector) for the period January 1, 2023 through December 31, 2023. We have sought to report fully on all possible dimensions of the disclosures, but where this is not possible, we have reported as comprehensively as possible, based on the data systems we have. For a complete description of the individual disclosures, please see GRI’s website (www.globalreporting.org). The table refers to where information about each disclosure is presented in our: 2023 Annual Report; 2023 Remuneration Report; 2023 Corporate Governance Report; or company website.

GRI 2: General Disclosures 2021

2-1 Organizational details: 2023 Annual Report, Notes to the Consolidated Financial Statements: Note 1 (Company Information), Note 27 (Subsidiaries and NCIs), Notes to the Parent Company Financial Statements: Note 9 (Shareholders' Equity) , Note 10 (Shareholders)
2-2 Entities included in the organization’s sustainability reporting: 2023 Annual Report, Notes to the Consolidated Financial Statements: Note 27 (Subsidiaries and NCIs), Note 30 (Subsea Transaction and Discontinued Operations). Consolidation practice is described further in each material topic section of this report.
2-3 Reporting period, frequency and contact point: Aker Solutions follows an annual reporting cycle, January 1 - December 31, for both its sustainability reporting and financial reporting. The 2023 report is for the calendar year 2023 and published March 20, 2024.## 2 Restatements of information

2023 Annual Report, Appendix: Parental Leave

Own regular Employees

Figures for "Employed 12 months after leave ended" have been restated from 2022 reporting based on a change in the formula used to calculate the percentage. The formula used in the report for 2022 and 2023 is number employees employed after 12 months divided by number employees returned from parental leave.

2-5 External assurance

Aker Solutions does not have a policy regarding external assurance for sustainability reporting. The company’s sustainability policy states that Aker Solutions shall publish an annual sustainability report and adhere to the required and recommended ESG reporting frameworks and disclosures, including the GRI reporting standard, the annual CDP reporting process and report on climate risk in line with the TCFD recommendations. Pursuing external assurance for the sustainability metrics included in the 2023 Annual Report was discussed and agreed by the company’s Audit Committee at the time of approval of the 2022 Sustainability Report. The Sr. Manager, ESG Reporting has overseen the process of external assurance for the sustainability reporting. The 2023 report has been reviewed and approved by the Audit Committee and Board of Directors. For 2023, Aker Solutions' GRI reporting and selected sustainability metrics have been subject to a limited assurance audit engagement by PwC. More information can be found in the appendix of the 2023 Annual Report. Aker Solutions has contracted PwC to serve as financial auditor and provide limited assurance on 2023 sustainability reporting.

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2-6 Activities, value chain and other business relationships

2023 Annual Report, Notes to the Consolidated Financial Statements: Note 3 (Revenue), Note 4 (Segments), Note 28 (Investments in Companies), Note 30 (Subsea Transaction and Discontinued Operations)

Aker Solutions' supply chain management team works with over 10,000 direct and indirect suppliers worldwide. Our materials costs have a significant impact on our business performance. Beyond materials, we also source IT services, travel, and temporary staff as part of our indirect procurement. Leveraging our international presence, we establish strong relationships with local suppliers and subcontractors. Their expertise enables us to navigate complex industrial landscapes and remote locations effectively. Our supply chain management encompasses project and yard procurement, subcontracting, sourcing, category management, supplier quality, surveillance, material planning, inventory management, and logistics.https://www.akersolutions.com/suppliers

2-7 Employees

Appendix: Key Staff Figures

The decrease in own employees during the reporting period is due to the subsea transaction.

2-8 Workers who are not employees

Appendix: Key Staff Figures

The increase in contract staff from 32% in 2022 to 41% in 2023 is related to an increase in project-related work from several clients and is not of permanent nature and also due to the reduction in own workforce as a result of the subsea transaction. The typical background of contract staff is engineering, professional background (mechanical, NDT certificate, etc.) and a small portion of other backgrounds (planning, procurement and finance).

2-9 Governance structure and composition

2023 Corporate Governance Report
2023 Remuneration Report
www.akersolutions.com/who-we-are/board-of-directors/

2-10 Nomination and selection of the highest governance body

2023 Corporate Governance Report
2023 Remuneration Report

2-11 Chair of the highest governance body

The chair of the highest governance body is not a senior executive in Aker Solutions.

2-12 Role of the highest governance body in overseeing the management of impacts

Aker Solutions’ Board of Directors, the highest governance body, is responsible for overseeing and safeguarding management of our sustainability work. Sustainability is a standard topic on the agenda for the quarterly Audit Committee meetings where material impacts, policies, reporting and other key topics are discussed and reported. This report is discussed, reviewed and approved by the Board and Audit Committee in the first quarter of the year.

2-13 Delegation of responsibility for managing impacts

2023 Annual Report, Corporate Governance, Sustainability Governance

2-14 Role of the highest governance body in sustainability reporting

The annual report, including ESG reporting sections is discussed, reviewed and approved by the Board and Audit Committee in the first quarter of the year.

2-15 Conflicts of interest

2023 Corporate Governance Report

2-16 Communication of critical concerns

2023 Corporate Governance Report
2023 Annual Report, Human Rights, Corruption and Bribery

2-17 Collective knowledge of the highest governance body

E-learnings and other educational opportunities on Human Rights and other ESG-related topics were offered to employee-elected members of Aker Solutions' Board of Directors in 2023.

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2-18 Evaluation of the performance of the highest governance body

2023 Corporate Governance Report
2023 Remuneration Report
2023 Annual Report, Notes to the Consolidated Financial Statements: Note 31 (Related Parties and Key Management Compensation)

The Board of Directors performs annual evaluations of its work and competencies.

2-19 Remuneration policies

2023 Remuneration Report
www.akersolutions.com/boardofdirectors
https://www.akersolutions.com/globalassets/investors/agm/2021/executive-remuneration-policy.pdf

2-20 Process to determine remuneration

2023 Remuneration Report
2023 Corporate Governance Report

Executive Remuneration Policy for Aker Solutions: https://www.akersolutions.com/globalassets/investors/agm/2021/executive-remuneration-policy.pdf
Minutes from Annual General Meeting on April 14, 2021 where Executive Remuneration Policy (agenda item #7) for Aker Solutions was approved, with voting results: https://www.akersolutions.com/globalassets/investors/agm/2021/minutes-from-annual-general-meeting-2021.pdf

2-21 Annual total compensation ratio

The organization's highest paid individual is the CEO.

Metric	Value
Total compensation ratio (CEO vs. employee median)	11.0
Ratio of change in total compensation (CEO vs. employee median)	0.7
Ratio of change in fixed compensation (CEO vs. employee median)	1.0

The comparisons are done using the reported total compensation for the CEO and the total compensation for all employees (ex. CEO) in Norway. Additional information on CEO remuneration can be found in the 2023 Remuneration Report.

2-22 Statement on sustainable development strategy

2023 Annual Report, CEO Introduction

2-23 Policy commitments

Aker Solutions’ Management System is governed by 12 policies that are anchored at the highest level in the organization. Policies are communicated to employees, partners and stakeholders through our website, external agreements where applicable and internally on our enterprise management system. https:// www.akersolutions.com/policies

Since 2008, Aker Solutions has been a signatory to the UN Global Compact and is committed to its 10 principles. We respect and adhere to the precautionary principle (Principle 7).

2-24 Embedding policy commitments

2023 Annual Report, Corruption and Bribery

2-25 Processes to remediate negative impacts

2023 Annual Report, Corruption and Bribery, Human Rights

2-26 Mechanisms for seeking advice and raising concerns

2023 Annual Report, Corruption and Bribery, Human Rights, Human Capital

2-27 Compliance with laws and regulations

There were no significant instances of non-compliance with laws and regulations that resulted in fines or sanctions during the reporting period. Aker Solutions defines a significant instance as resulting in a legal conviction or monetary fine.

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2-28 Membership associations

2023 Annual Report, Stakeholder Engagement

Aker Solutions has formal participation and memberships in many industry and membership associations and advocacy and non-governmental organizations. We participate in governance bodies and advisory committees where relevant. A sample of organizations across the industry, environment and social spectrum is below:

We are also active members of local and regional industry, safety, community and ESG organizations in the countries where we do business.

2-29 Approach to stakeholder engagement

2023 Annual Report, Materiality Determination
Appendix: Stakeholder Engagement Table
Materiality Assessment Report: https://www.akersolutions.com/sustainability/reporting-frameworks-and-assessments/

2-30 Collective bargaining agreements

In 2023, 55% of Aker Solutions' own employees were covered by collective bargaining agreements. The company’s commitment to human and labor rights is covered by the Global Framework Agreement between Aker ASA and the Norwegian and international trade unions Fellesforbundet, IndustriALL Global Union, NITO and Tekna and our own Human Rights Policy. Aker Solutions is committed to follow the Norwegian Labor Disputes Act (Arbeidstvistloven) in regards to regulations surrounding collective bargaining agreements, and to use these agreement as the standard for all other employees.# Menu Board of Directors’ Report Sustainability Performance Financial Statements Appendix 190

Material topics

Disclosure Location GRI Sector Standard Ref. No.

GRI 3: Material Topics 2021

3-1 Process to determine material topics
2023 Annual Report, Materiality Determination
Materiality Assessment Report: https://www.akersolutions.com/sustainability/reporting-frameworks-and-assessments/
3-2 List of material topics
2023 Annual Report, Materiality Determination
The 22 topics for 2023 cover the same 13 topics as 2022, but are more detailed in name.
2023: Climate Change Adaptation; Climate Change Mitigation; Energy; Pollution of Water; Impacts on the state of species; Resource inflows including use; Resource outflows related to products and services; Waste; Own workers: Equal treatment and opportunities for all, Health and safety, Other work-related rights, Working conditions; Workers in the value chain: Equal treatment and opportunities for all, Other work-related rights, Working conditions; Communities economic, social and cultural rights; Corporate culture; Protection of whistleblowers; Political engagement; Management of relationships with suppliers including payment practices; Corruption and bribery; Cybersecurity.
2022: Climate Impacts and GHG Emissions; Enabling the Energy Transition; Energy Management; Waste and Spills Management; Biodiversity; Health, Safety and Well-being; Human Rights; Human Capital; Diversity and Equal Opportunity; Responsible Supply Chain; Anti-corruption and Bribery; Data Privacy and Security; Emergency Preparedness.

Climate Change Mitigation, Climate Change Adaptation

GRI 3: Material Topics 2021

3-3 Management of material topics
2023 Annual Report, Climate Change Adaptation and Mitigation
At the end of 2023, renewables and transitional energy solutions represented 19 percent of Aker Solutions' revenue.
Materiality Assessment Report: https://www.akersolutions.com/sustainability/reporting-frameworks-and-assessments/

11.1.1
11.2.1
11.14.1

GRI 305: Emissions 2016

305-1 Direct (Scope 1) GHG emissions
2023 Annual Report, Climate Change Adaptation and Mitigation
2023 Annual Report Appendix: Environmental Figures
GHG Emissions Methodology Statement: https://www.akersolutions.com/sustainability/reporting-frameworks-and-assessments/
305-2 Energy indirect (Scope 2) GHG emissions
2023 Annual Report, Climate Change Adaptation and Mitigation
2023 Annual Report Appendix: Environmental Figures
GHG Emissions Methodology Statement: https://www.akersolutions.com/sustainability/reporting-frameworks-and-assessments/
305-3 Other indirect (Scope 3) GHG emissions
2023 Annual Report, Climate Change Adaptation and Mitigation
2023 Annual Report Appendix: Environmental Figures
GHG Emissions Methodology Statement: https://www.akersolutions.com/sustainability/reporting-frameworks-and-assessments/

11.1.5
11.1.6
11.1.7

Menu Board of Directors’ Report Sustainability Performance Financial Statements Appendix 191

305-4 GHG emissions intensity
2023 Annual Report, Climate Change Adaptation and Mitigation
2023 Annual Report Appendix: Environmental Figures
GHG Emissions Methodology Statement: https://www.akersolutions.com/sustainability/reporting-frameworks-and-assessments/
305-5 Reduction of GHG emissions
2023 Annual Report, Climate Change Adaptation and Mitigation
2023 Annual Report Appendix: Environmental Figures
GHG Emissions Methodology Statement: https://www.akersolutions.com/sustainability/reporting-frameworks-and-assessments/

11.1.8
11.2.3

GRI 201: Economic Performance 2016

201-1 Direct economic value generated and distributed
2023 Annual Report, Notes to the Consolidated Financial Statements: Income Statement, Note 4 (Segments), Note 6 (Other Operating Expenses), Note 5 (Personnel Expenses), Note 7 (Finance Income and Expenses), Note 17 (Equity).
Appendix, Country by Country Report
We do not report on payments to governments by country (except for tax included in the Country by Country reporting) or on community investments. Paid taxes include income taxes, withholding taxes and other corporate taxes, but does not include value added taxes (VAT) and other indirect taxes. In addition to corporate taxes, Aker Solutions’ activities contribute directly and indirectly to government tax revenues in many countries where we operate. In Norway, as (Nw: Arbeidsgiveravgift) payment was NOK 1,193 million and in addition, the total amount withheld and paid an example, the national insurance contribution to the tax authorities on behalf of our employees was NOK 2,368 million. In UK the national insurance contribution payment was NOK 194 million and the total amount withheld and paid to HMRC on behalf of the employees was NOK 134 million.
201-2 Financial implications and other risks and opportunities due to climate change
2023 Annual Report, Notes to the Consolidated Financial Statements: Note 33 (Climate Risk)
Climate-related Risk (TCFD) Report: https://www.akersolutions.com/sustainability/reporting-frameworks-and-assessments/

11.14.2
11.2.2

Energy

GRI 3: Material Topics 2021

3-3 Management of material topics
2023 Annual Report, Energy
Materiality Assessment Report: https://www.akersolutions.com/sustainability/reporting-frameworks-and-assessments/

11.1.1

GRI 302: Energy 2016

302-1 Energy consumption within the organization
2023 Annual Report, Energy
2023 Annual Report Appendix: Environmental Figures
Aker Solutions does not sell energy. District heating and cooling is reported separately from electricity consumption.
GHG Emissions Methodology Statement: https://www.akersolutions.com/sustainability/reporting-frameworks-and-assessments/
302-2 Energy consumption outside of the organization
Aker Solutions does not have data on energy consumption outside the organization.
302-3 Energy intensity
2023 Annual Report, Climate Change Adaptation and Mitigation
2023 Annual Report, Energy
2023 Annual Report Appendix: Environmental Figures
302-4 Reduction of energy consumption
2023 Annual Report, Energy
2023 Annual Report Appendix: Environmental Figures

11.1.2
11.1.3
11.1.4

Menu Board of Directors’ Report Sustainability Performance Financial Statements Appendix 192

Resource Inflows Including Use, Resource Outflows Related to Products and Services, Waste, Pollution of Water

GRI 3: Material Topics 2021

3-3 Management of material topics
2023 Annual Report, Resource Use and Circular Economy
Materiality Assessment Report: https://www.akersolutions.com/sustainability/reporting-frameworks-and-assessments/

11.5.1

GRI 306: Waste 2020

306-1 Waste generation and significant waste-related impacts
2023 Annual Report, Resource Use and Circular Economy
Materiality Assessment Report: https://www.akersolutions.com/sustainability/reporting-frameworks-and-assessments/
306-2 Management of significant waste-related impacts
2023 Annual Report, Resource Use and Circular Economy
2023 Annual Report Appendix: Environmental Figures
306-3 Waste generated
2023 Annual Report, Resource Use and Circular Economy
2023 Annual Report Appendix: Environmental Figures
306-4 Waste diverted from disposal
2023 Annual Report Appendix: Environmental Figures
306-5 Waste directed to disposal
2023 Annual Report Appendix: Environmental Figures

11.5.2
11.5.3
11.5.4
11.5.5
11.5.6

GRI 306: Effluents and Waste 2016

306-3 Significant Spills
2023 Annual Report, Resource Use and Circular Economy
2023 Annual Report Appendix: Environmental Figures

11.8.2

Impacts on State of Species

GRI 3: Material Topics 2021

3-3 Management of material topics
2023 Annual Report, Nature and Biodiversity
Aker Solutions does not currently have any processes to track the company's impact on biodiversity. A screening of biodiversity and overall impact to nature will be conducted in 2024 and will provide improved reporting on this topic in the future.
Materiality Assessment Report: https://www.akersolutions.com/sustainability/reporting-frameworks-and-assessments/

11.4.1

GRI 304: Biodiversity 2016

304-1 Operational sites owned, leased, managed in, or adjacent to, protected areas and areas of high biodiversity value outside protected areas
2023 Annual Report, Nature and Biodiversity
Aker Solutions facility in Verdal, Norway located at Hamnevegen 7, NO-7652. Near Verdalselvas outlet, Ørin Nord, Verdal municipality, Norway. No subsurface or underground land owned, leased or managed by the organization is in the high biodiversity value area. Aker Solutions' current facility and operations (office space, manufacturing area and storage area) are adjacent to a protected high biodiversity value area. Future plans to expand Aker Solutions' footprint in the area exclude the high biodiversity value area. However, this is subject to the final outcome of the nature impacts study commissioned by the local council (land owner). There are ongoing discussions with relevant stakeholders. Aker Solutions owns 600,000m2 of land as current operations, adjacent to the high biodiversity area. The area is an intertidal areas, flooded at high tide. The area is a protected status area: the Ørin Nature Reserve, owned by the Verdal municipality. Established in 1993, the reserve is part of the Trondheims-fjord wetland system and has Ramsar status due to its importance as a rest area for migratory wetland birds. The area is therefore considered to be of international conservation value.# 11.4.2 Significant impacts of activities, products and services on biodiversity
2023 Annual Report, Nature and Biodiversity

11.4.3 Habitats protected or restored

Predefined disclosure not relevant for Aker Solutions

11.4.4 IUCN Red List species and national conservation list species with habitats in areas affected by operations

2023 Annual Report, Nature and Biodiversity

Aker Solutions facility in Verdal is adjacent to a high biodiversity value area, the Ørin Nature Reserve. The municipality of Verdal, Norway engaged a third party to conduct a study on wildlife in the Ørin Nord and adjacent areas. A total of 254 bird species have been recorded in the area, of which 72 species (28 %) are on the national red list of threatened and vulnerable species. Numbers by level of extinction risk: CR: 7; EN: 12; VU: 29; NT: 24

11.4.5 Own Workforce: Healthy and Safety; Corporate Culture

GRI 3: Material Topics 2021
3-3 Management of material topics
2023 Annual Report, Health, Safety and Well-being
Materiality Assessment Report: https://www.akersolutions.com/sustainability/reporting-frameworks-and-assessments/
https://www.akersolutions.com/sustainability/safeguarding-people-and-assets/

11.9.1 GRI 403: Occupational Health and Safety 2018

403-1 Occupational health and safety management system
2023 Annual Report, Health, Safety and Well-being

11.9.2 403-2 Hazard identification, risk assessment, and incident investigation

2023 Annual Report, Health, Safety and Well-being

11.9.3 403-3 Occupational health services

2023 Annual Report, Health, Safety and Well-being

11.9.4 403-4 Worker participation, consultation, and communication on occupational health and safety

2023 Annual Report, Health, Safety and Well-being

11.9.5 403-5 Worker training on occupational health and safety

2023 Annual Report, Health, Safety and Well-being

11.9.6 403-6 Promotion of worker health

2023 Annual Report, Health, Safety and Well-being
https://www.akersolutions.com/sustainability/safeguarding-people-and-assets/

11.9.7 403-7 Prevention and mitigation of occupational health and safety impacts directly linked by business relationships

2023 Annual Report, Health, Safety and Well-being

11.9.8 403-8 Workers covered by an occupational health and safety management system

Aker Solutions' HSSE Management System covers all workers on our sites, no exclusions.

11.9.9 403-9 Work-related injuries

2023 Annual Report Appendix: Injuries by Type and Region
https://www.akersolutions.com/sustainability/safeguarding-people-and-assets/

11.9.10 403-10 Work-related ill health

2023 Annual Report, Health, Safety and Well-being
Hours included in sick leave calculation are from own employees only.
https://www.akersolutions.com/sustainability/safeguarding-people-and-assets/

Own Workforce: Equal Treatment and Opportunities for All, Working Conditions, Other Work-related Rights

GRI 3: Material Topics 2021
3-3 Management of material topics
2023 Annual Report, Human Capital
Materiality Assessment Report: https://www.akersolutions.com/sustainability/reporting-frameworks-and-assessments/

11.10.1 11.11.1 GRI 401: Employment 2016

401-1 New employee hires and employee turnover
2023 Annual Report Appendix: Key Staff Figures

11.10.2 401-2 Benefits provided to full-time employees that are not provided to temporary or part-time employees

Benefits which are standard for full-time employees of the organization but are not provided to temporary or part- time employees, by significant locations of operation include, as a minimum: life insurance, health care, disability and invalidity coverage, parental leave (follows local legislation), retirement provision, offer of buying stock ownership, others including discounts of services, etc. Temporary or part-time employees have, by Norwegian law, a right to minimum benefits but less extensive than full-time employees. For this purpose, significant locations of operation are locations with more than 250 permanent employees and 1/3 of hired in, with a normal distribution of diversity (e.g. nationality, gender and background)
2023 Remuneration Report, Remuneration of the Executive Management Team

11.10.3 401-3 Parental Leave

2023 Annual Report Appendix: Key Staff Figures
Partial reporting on Norway, UK, Malaysia, India, Angola, Brazil and Brunei. For the remaining countries where Aker Solutions has employees, data is unavailable because: There was no parental leave recorded during the reporting period (leave taken in 2022 and reported for 2023) possibly because these locations have few employees, or Privacy laws don’t allow leave to be recorded, or Leave requirements are classified differently under country regulation

11.10.4 11.11.3 GRI 402: Labor/ Management Relations 2016

402-1 Minimum notice periods regarding operational changes
Regarding organizational changes that will affect employees, Aker Solutions follows the legal requirements for national legislation on the minimum requirements of notification period in the countries where there are operations. The legislation varies, but for most countries this is 12 weeks, though it can be as few as 4 weeks in some countries. The notice period and provisions for consultation and negotiation are specified in collective agreements in Norway. There are employee representatives on the Board of Directors and at a local level that have engagement in and dialogue on these topics. An EWC (European Works Council) and Global Work Council (India, Malaysia, Brazil, USA, Angola) is established for information and consultation between employee representatives and the company's top management.

11.10.5 GRI 404: Training and Education 2016

404-1 Average hours of training per year per employee
Partial reporting. Average hours training per employee is 5.9 hours in 2023. Hours included are from regular and temporary internal employees active at one point in 2023, including subsea employees up to 07.10.2023. The data includes all learning hours from course completions, both instructor-led and e-learning, as well as completions from Coursera that are registered in Aker Solutions internal learning portal. This data does not include project-related training / training paid for by clients. Aker Solutions does not have data by gender or employee category.

11.10.6 11.11.4 GRI 404: Training and Education 2016

404-2 Programs for upgrading employee skills and transition assistance programs
2023 Annual Report, Human Capital
Aker Solutions has severance pay programs in all countries where the company has employees. Additional transitional assistance programs, such as job placement services and retraining programs exist in various countries, based on legal and/or union-mandated requirements and local job market evaluation and needs. This is in line with our global policy.

11.10.7 404-3 Percentage of employees receiving regular performance and career development reviews

98.87% (25.99% female, 70.07% male, 3.94% of unknown gender) of permanent office employees in Norway are registered with performance reviews either in process or completed in People Portal, Aker Solutions' performance management system. Subsea employees are excluded from this data. The deadline for performance reviews in People Portal is later in 2024, so not all employees and managers have completed the process at this point. There is an ongoing pilot program among non-office personnel in the Topside segment and at the Verdal yard to find a solution for this employee group to be part of the structured performance review process.

GRI 202: Market Presence 2016

202-2 Proportion of senior management hired from the local community
Predefined disclosure not relevant for Aker Solutions

11.11.2 11.14.3 GRI 405: Diversity and Equal Opportunity 2016

405-1 Diversity of governance bodies and employees
2023 Annual Report, Human Capital
2023 Annual Report Appendix: Key Staff Figures

Aker Solutions' 2023 Board of Directors:
| Category | Percentage | Count |
|---|---|---|
| Male | 55% | 6 |
| Female | 45% | 5 |
| Age: 30-50 | 27% | 3 |
| Age: 50+ | 73% | 8 |

Aker Solutions does not, unless required or necessary for compliance with local laws and regulations, gather sensitive data on employees or members of governance bodies, including many indicators of diversity such as ancestry and ethnic origin, creed, disability, or inclusion in vulnerable groups. https://www.akersolutions.com/who-we-are/board-of-directors/

11.11.5 405-2 Ratio of basic salary and remuneration of women to men

Partial reporting for UK and Norway only. Global data is not in a format that is easily accessible or comparable from country to country. We expect to include information on gender pay gap from additional countries in future reporting. In the UK, we report publicly and to the government on the gender pay gap. The 2023 report will be published in March 2024. The 2022 report can be found here: https://www.akersolutions.com/globalassets/cr/downloads/uk-gender-pay-gap-report-2022.pdf Information for the Norwegian Pay Gap can be found in the 2023 Annual Report, Human Capital section.

11.11.6 GRI 406: Non- discrimination 2016

406-1 Incidents of discrimination and corrective actions taken
2023 Annual Report, Corruption and Bribery
These cases are followed up in the whistleblower channel and by People and Transformation function as individual personnel cases but are not reported in a system. Follow up and actions taken in these cases are in line with company policy. Information unavailable / incomplete: Reporting of number of cases and number of these which are within discrimination is unavailable in current report system. Compliance and Integrity team together with People and Transformation function are reviewing adding/making a functionality for this reporting in to current reporting system.# Menu
Board of Directors’ Report
Sustainability Performance
Financial Statements
Appendix
196

Workers in the Value Chain: Working Conditions, Equal Treatment and Opportunities for All, Other Work-related Rights

GRI 3: Material Topics 2021

3-3 Management of material topics

2023 Annual Report, Human Rights Materiality Assessment Report: https://www.akersolutions.com/sustainability/reporting-frameworks-and-assessments/

GRI 409: Forced or Compulsory Labor 2016

409-1 Operations and suppliers at significant risk for incidents of forced or compulsory labor

2023 Annual Report, Human Rights

Management of Relationships with Suppliers

GRI 3: Material Topics 2021

3-3 Management of material topics

2023 Annual Report, Responsible Supply Chain Materiality Assessment Report: https://www.akersolutions.com/sustainability/reporting-frameworks-and-assessments/

GRI 204: Procurement Practices 2016

204-1 Proportion of spending on local suppliers

Angola: 88%; Australia: 86%; Brazil: 58%; Brunei: 99%; China: 97%; Congo: 44%; Cyprus: 18%; Ghana: 99%; India: 100%; Malaysia: 32%; Nigeria: 100%; Norway: 77%; Sweden: 98%; UK: 74%; USA: 53%
"Local suppliers" do not have trans-national payments. Includes countries with spending on suppliers in 2023, including spending related to the Subsea segment up until closing of subsea transaction.

GRI 308: Supplier Environmental Assessment 2016

308-1 New suppliers that were screened using environmental criteria

100% (555)
Suppliers, when onboarded, are requested to perform a self assessment through a questionnaire, where as minimum Supplier needs to address HSSE management, Environment and Sustainability Goals. Supplier shall provide some documentation during this assessment.

308-2 Negative environmental impacts in the supply chain and actions taken

2023 Annual Report, Responsible Supply Chain
In 2023, 555 new suppliers were assessed for environmental impacts as part of the onboarding process. Due to the nature of Aker Solutions’ business, steel remained a key commodity purchased in 2023. Throughout 2023, we continued our work within the internal steel forum to refine our strategy related to low emission steel. Concurrently, we continued to assess the maturity and capability of steel mills to reduce scope 1 and 2 emissions. We focused on fostering stronger relationships with steel mills to enhance the availability of low emissions steel to our projects and proactively engaged with our bulk metal suppliers to obtain the available Environmental Product Declarations (EPDs) for the products delivered in 2023.

GRI 414: Supplier Social Assessment 2016

414-1 New suppliers that were screened using social criteria

100% (555)
Suppliers, when onboarded, are requested to perform a self assessment through a questionnaire, where as minimum Supplier needs to address HSSE management, Environment and Sustainability Goals and Human Rights and Anti-Corruption. Supplier shall provide some documentation during this assessment.

414-2 Negative social impacts in the supply chain and actions taken

2023 Annual Report, Responsible Supply Chain
In 2023, 555 new suppliers were assessed for social impacts as part of the onboarding process. In addition to that, as described in our internal procedures, at Aker Solutions supplier/subcontractor selection is carried out seeking alignment with our clients and partners selection and as part of the process, we adopt a standardized risk-based approach to evaluate and follow up suppliers and subcontractors during project execution. The selection of suppliers/subcontractors is evaluated against predetermined criteria with suppliers requested to submit documents including their HSSE performance and then a risk assessment is performed. After contract award, the project follow up is based on the risk assessment and detailed in a Supplier HSSE Management Follow-Up plan. This plan will define the level of reporting, meetings, audits, verifications and any other actions as appropriate to the level of risk of the supplier/subcontractor.

Corruption and Bribery

GRI 3: Material Topics 2021

3-3 Management of material topics

2023 Annual Report, Corruption and Bribery Materiality Assessment Report: https://www.akersolutions.com/sustainability/reporting-frameworks-and-assessments/

GRI 205: Anti-corruption 2016

205-1 Operations assessed for risks related to corruption

2023 Annual Report, Corruption and Bribery
Data not available for percent of operations assessed in 2023. Corruption risk is included in overall compliance risk assessment and is included in the global ERM process. We have compliance risk assessments for business segments which include corruption risk among other risks. The annual Corruption Perceptions Index map from Transparency International is included in the Corruption and Bribery section and shows the 15 countries where Aker Solutions has operations along with the CPI score for each of these countries. This can be used as an indicator of which countries may have the most risk.

205-2 Communication and training about anti-corruption policies and procedures

2023 Annual Report, Corruption and Bribery, 2023 Annual Report, Human Rights
S2023 Annual Report Appendix: Business Ethics Training Overview
All 11 members (100%) of Board of Directors have had anticorruption policies and procedures communicated to them. Members of the Board of Directors are from Norway (9) and Denmark (2). Except for the 4 employee-elected members (all in Norway) of the Board who would have received Aker Solutions annual Code of Conduct e-learning, we have not completed Aker Solutions-specific training on anti-corruption for the Board of Directors in 2023. It can be assumed that some of the members of our Board have received this training from other organizations where they participate.
https://www.akersolutions.com/sustainability/driving-a-responsible-and-sustainable-supplier-base/

205-3 Confirmed incidents of corruption and actions taken

2023 Annual Report, Corruption and Bribery
Total number and nature of confirmed incidents of corruption: none in 2023.
Total number of confirmed incidents in which employees were dismissed or disciplined for corruption: none in 2023
Total number of confirmed incidents when contracts with business partners were terminated or not renewed due to violations related to corruption: none in 2023

Additional sector disclosures

Describe the approach to contract transparency, including:
* whether contracts and licenses are made publicly and, if so, where they are published;
* if contracts or licenses are not publicly available, the reason for this and actions taken to make them public in the future.
Aker Solutions complies with applicable legislation and rules for companies listed on the Oslo Stock Exchange and the Oslo Børs Code of Practice for IR of July 1, 2019.
https://www.akersolutions.com/investors/corporate-governance/investor-relations-policy/

List the organization’s beneficial owners and explain how the organization identifies the beneficial owners of business partners, including joint ventures and suppliers.

2023 Annual Report, Notes to the Consolidated Financial Statements: Note 31 (Related Parties and Key Management Compensation)

Cybersecurity

GRI 3: Material Topics 2021

3-3 Management of material topics

2023 Annual Report, Security, Cybersecurity and Data Protection Materiality Assessment Report: https://www.akersolutions.com/sustainability/reporting-frameworks-and-assessments/

GRI 418: Customer Privacy 2016

418-1 Substantiated complaints concerning breaches of customer privacy and losses of customer data

2023 Annual Report, Security, Cybersecurity and Data Protection

Protection of Whistleblowers

GRI 3: Material Topics 2021

3-3 Management of material topics

2023 Annual Report, Human Rights, Corruption and Bribery Materiality Assessment Report: https://www.akersolutions.com/sustainability/reporting-frameworks-and-assessments/

Political Engagement

GRI 3: Material Topics 2021

3-3 Management of material topics

2023 Annual Report, Stakeholder Engagement Materiality Assessment Report: https://www.akersolutions.com/sustainability/reporting-frameworks-and-assessments/

GRI 415: Public Policy 2016

415-1 Political contributions

Aker Solutions did not, directly or indirectly, make any financial or in-kind political contributions in 2023.

Communities' Economic, Social and Cultural Rights

GRI 3: Material Topics 2021

3-3 Management of material topics

2023 Annual Report, Stakeholder Engagement Materiality Assessment Report: https://www.akersolutions.com/sustainability/reporting-frameworks-and-assessments/

GRI 203: Indirect Economic Impacts 2016

203-1 Infrastructure investments and services supported

Predefined disclosure from Oil and Gas Sector Standard that is not relevant for Aker Solutions

203-2 Significant indirect economic impacts

Predefined disclosure from Oil and Gas Sector Standard that is not relevant for Aker Solutions

GRI 413: Local Communities 2016

413-1 Operations with local community engagement, impact assessments, and development programs

Predefined disclosure from Oil and Gas Sector Standard that is not relevant for Aker Solutions

413-2 Operations with significant actual and potential negative impacts on local communities

Predefined disclosure from Oil and Gas Sector Standard that is not relevant for Aker Solutions

Topics in the applicable GRI Sector Standards (GRI 11: Oil and Gas Sector) determined as not material

TOPIC	EXPLANATION
Water and Effluents	At Aker Solutions, we recognize the importance of responsible## Sustainability Performance

Air Emissions

At Aker Solutions, we recognize the importance of responsible management of emissions to air. However, after conducting a review of our operations and potential impacts, we have determined that this topic is not a material concern for our business operations and sustainability performance. Aker Solutions is not an operator in the oil and gas sector. We do not engage in activities such as production, processing, refining or other oil and gas operation-related activities that can release substantial pollutants to air. Therefore, the potential for impact within this area is not substantial for Aker Solutions. We will continue to monitor and assess the air emissions-related risks and opportunities of our operations and will reevaluate the materiality of this topic in the future.

Closure and Rehabilitation

At Aker Solutions, we understand the importance of responsible closure and rehabilitation of our assets and facilities. However, after conducting a review of our operations and potential impacts, we have determined that this topic is not a material concern for our business operations and sustainability performance because we do not currently have plans to close sites. We will continue to monitor and assess the closure and rehabilitation risks and opportunities of our operations and will reevaluate the materiality of this topic in the future.

We are reporting on GRI 402 Labor and Management Relations and GRI 404 Training and Education as part of our material topic, Human Capital.

Freedom of Association and Collective Bargaining

At Aker Solutions, we understand the importance of freedom of association and collective bargaining as fundamental human rights and rights at work. However, after conducting a review of our operations and potential impacts, we have determined that this topic is not a material concern for our business operations and sustainability performance. Over 70% of our employees are already covered by CBAs. Because of this, the potential impact of this topic is not substantial to Aker Solutions. We are committed to ensuring that our employees are treated with respect, dignity, and fairness, and we have implemented policies and procedures to support the protection of these rights. We comply with all relevant laws and regulations regarding freedom of association and collective bargaining, and we have a process in place for employees to raise any concerns about these rights. We will continue to monitor and assess the risks and opportunities related to freedom of association and collective bargaining, and we will re-evaluate the materiality of this topic in the future.

Land and Resource Rights

At Aker Solutions, we understand the importance of ensuring fair and equitable use of land and natural resources. However, after conducting a review of our operations and potential impacts, we have determined that this topic is not a material concern for our business operations and sustainability performance because we have no significant impacts on land and resources rights from our operations. We will continue to monitor and assess the risks and opportunities related to land and resource rights and we will re-evaluate the materiality of this topic in the future.

Rights of Indigenous Peoples

At Aker Solutions, we have the utmost respect for the rights of indigenous peoples. However, after conducting a review of our operations and potential impacts, we have determined that this topic is not a material concern for our business operations and sustainability performance. We do not operate in areas with significant populations of indigenous peoples and therefore do not anticipate any significant impacts on their rights. We will continue to monitor and assess the risks and opportunities related to the rights of indigenous peoples and we will re-evaluate the materiality of this topic in the future.

Conflict and Security

At Aker Solutions, we recognize the potential impact of our activities on conflict and security in the communities and regions where we operate. However, after conducting a review of our operations and potential impacts, we have determined that this topic is not a material concern for our business operations and sustainability performance. While we recognize the importance of addressing potential issues related to conflict and security, we believe that our current practices and approach effectively mitigate any potential risks or impacts in this area. We will continue to monitor and assess the risks and opportunities related to conflict and security and we will re-evaluate the materiality of this topic in the future.

Anti-competitive Behavior

At Aker Solutions, we are committed to conducting our business ethically and in compliance with all laws and regulations. While we recognize that anti-competitive behavior is a concern in the oil and gas sector, it is not a material issue for our business because we operate in a highly competitive global market that we do not dominate, with high barriers to entry and large, well-integrated players. We are also not an operator dominating a market in this sector. We will continue to monitor and assess the risks and opportunities related to anti-competitive behavior and we will re-evaluate the materiality of this topic in the future.

Payments to Governments

At Aker Solutions, we are committed to conducting our business in a transparent and lawful manner. However, after conducting a review of our operations and potential impacts, we have determined that this topic is not a material concern for our business operations and sustainability performance because the potential impacts are minimal. Our payments to governments are in line with all applicable laws and regulations and we have robust internal controls in place to ensure compliance. We will continue to monitor and assess the risks and opportunities related to payments to governments and we will re-evaluate the materiality of this topic in the future.

We are reporting on GRI 201 Economic Performance as part of our material topic, Enabling the Energy Transition.

Appendix: Injuries by Type and Country

Injuries by Type
Arm/Elbow
Wound Injury	1
Sprain/Strain/Dislocation	2
Unspecified - Other	2
Leg/Hip/Knee/Ankle
Wound Injury	4
Heat injury/Burn	1
Fracture	3
Unspecified - Other	2
Eye
Wound Injury	2
Fracture	1
Finger
Wound Injury	8
Chest/Torso/Abdomen
Soft tissue injury (squeeze/crush)	10
Wound Injury	1
Fracture	3
Unspecified - Other	1
Foot/Toe
Fracture	2
Exposure
Soft tissue injury (squeeze/crush)	2
Chemical splash		2
Head/Face
Wound Injury	8
Unspecified - Other	1
Back/Neck/Shoulder
Wound Injury	1
Wrist/Hand
Foreign Body	3

Aker Solutions uses the following industry standard definition for injury reporting and injury frequency reporting:

Lost Time Injury (LTI): A lost time injury is any work-related injury, other than a fatal injury, which results in a person being unfit for work on any day after the day of occurrence of the occupational injury. ‘Any day’ includes rest days, weekend days, leave days, public holidays or days after ceasing employment.
Lost Time Injury Frequency (LTIF): Number of lost time injuries per million worked hours.
Total Recordable Injuries (TRI): Includes fatalities, lost time injuries (serious - and other lost time injuries), restricted work injuries and medical treatment injuries. TRI does not include first aid treatment cases.
Total Recordable Injury Frequency (TRIF): Number of fatalities, lost time Injuries (serious – and other lost time injuries), restricted work injuries and medical treatment injuries per million worked hours. This indicator equals the GRI standard’s injury rate (IR).

Aker Solutions does not track the gender of injured persons, as this might come in conflict with GDPR regulations when in smaller departments. Aker Solutions keeps track of information whether the injured person is an employee, hired in, contractor etc. in our reporting system, but in reporting we include all categories in the same LTIF and TRIF. We follow IOGP industry standards for reporting boundaries. 2023 actuals for SIF, LTIF, and TRIF are based on man hours of 49,527,383. 2023 total recordable injuries = 64 (includes 10 lost time injuries)

Appendix: Key Staff Figures 2023

	2023 Own Employees
	Office		Non-Office		Under 30		30-50		Over 50		Total	Own Contract		Total Staff
	Female	Male	Female	Male	Female	Male	Female	Male	Female	Male	Female	Male
Total Staff	2,451	9,022	2,221	6,151	229	2,872	399	1,440	1,313	4,299	727	3,231	11,473	10,193	21,666
Angola	5	28	5	26	0	2	0	1	5	27	0	0	33	33	66
Brazil	21	258	12	32	9	226	2	27	16	132	3	99	279	0	279
Brunei	107	229	92	90	15	139	27	39	73	159	7	31	336	0	336
Canada	101	225	97	193	4	32	17	29	68	149	16	47	326	62	388
China	7	11	6	11	0	0	0	0	5	6	1	5	18	0	18
Finland	7	14	7	14	0	1	0	2	9	4	5	21	21	0	21
France	1	4	1	4	0	0	0	0	0	0	0	0	5	0	5
India	200	913	200	913	0	0	57	205	126	602	17	105	1,113	14	1,127
Malaysia	73	139	73	139	0	1	15	9	49	110	9	21	212	54	266
Norway	1,796	6,842	1,596	4,376	200	2,466	268	1,081	882	2,910	637	2,814	8,638	7,464	16,102
Saudi Arabia	0	2	0	2	0	0	0	0	0	1	0	1	2	0	2
Sweden	3	7	3	7	0	0	0	0	2	2	1	5	10	0	10
UK	123	324	122	318	1	6	12	49	84	189	27	86	447	321	768
USA	7	26	7	26	0	0	0	0	1	3	5	12	33	33	66
13 Employees not on SAP are included in gender information but age is not available. (2023: 52 employees - 1 China, 5 France, 46 Norway).
14 Employee numbers are reported on head count and at the end of the reporting period, December 31, 2023.
15 Subsea employees are not included in 2023 Key Staff Figures.
16 In 2023, there was a small (approx. 10) number of people per location registered as non-guaranteed hours employees. These are summer interns and are registered this way to avoid problems with time accounting if they take a holiday during their internship.
17 Contract staff is reported as full time equivalent (FTE). As of end of the reporting period there were 7,981 FTE. The head count is 13,246 of which 491 were female, 9,474 were male and 3,281 were unreported gender. Gender is not a mandatory field for external hires, so not reported for all.

Appendix: Key Staff Figures 2022
18,19	2022	Own Employees	Office	Non-Office	Under 30	30-50	Over 50	Female	Male	Female	Male	Female	Male	Total Own	Contract
Angola		18	133	17	68	1	65	2	15	14	111	2	7	151	77
Australia		0	7	0	5	0	2	0	0	0	6	0	1	7	0
Brazil		428	1,639	321	657	107	982	199	281	215	1,131	14	227	2,067	0
Brunei		102	222	87	88	15	134	26	47	69	145	7	30	324	0
Canada		87	193	82	162	5	31	14	17	60	139	13	37	280	76
China		12	17	11	14	1	3	1	0	10	12	1	5	29	0
Congo		3	30	3	30	0	0	0	1	3	25	0	4	33	0
Cyprus		1	2	1	2	0	0	0	0	1	1	0	1	3	0
Finland		8	10	8	10	0	0	1	0	2	8	5	2	18	0
Ghana		0	10	0	5	0	5	0	2	0	8	0	0	10	0
India		317	1,431	317	1,430	0	1	84	315	212	1,031	21	85	1,748	27
Italy		3	7	3	7	0	0	0	0	3	6	0	1	10	0
Malaysia		160	360	160	273	0	87	42	35	109	298	9	27	520	289
Nigeria		0	1	0	1	0	0	0	0	0	1	0	0	1	0
Norway		1,830	7,128	1,642	4,542	188	2,586	256	1,026	947	3,203	627	2,899	8,999	6,400
Russia		0	0	0	0	0	0	0	0	0	0	0	0	0	8
Saudi Arabia		0	2	0	2	0	0	0	0	0	1	0	1	2	0
Sweden		6	31	6	31	0	0	2	6	3	15	1	10	37	0
UK		216	669	215	535	1	134	24	71	156	422	36	176	885	363
USA		51	219	49	139	2	80	24	71	156	422	36	176	270	29
Total #		3,242	12,111	2,922	8,001	320	4,110	675	1,887	1,960	6,985	772	3,689	15,394	7,269
Total %		21%	79%	27%	73%	7%	93%	4%	12%	13%	45%	5%	24%	68%	32%

18 Employees not on SAP are not included in gender and age information (2022: 41 employees, all in Norway).
19 Employee numbers are reported on head count and at the end of the reporting period, December 31, 2022.
20 Contract staff is reported as full time equivalent (FTE). As of end of the reporting period there were 7,269 FTE. The head count is 10,426 of which 425 were female, 7,068 were male and 2,933 were unreported gender. Gender is not a mandatory field for external hires, so not reported for all.

Appendix: Key Staff Figures 2021

21,22
| 2021 | Own Employees | Office | Non-Office | Under 30 | 30-50 | Over 50 | Female | Male | Female | Male | Female | Male | Total Own | Contract | Total Staff |
| :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- |
| Angola | 18 | 124 | 17 | 58 | 1 | 66 | 1 | 20 | 17 | 98 | 0 | 6 | 142 | 128 | 270 |
| Australia| 0 | 8 | 0 | 6 | 0 | 2 | 0 | 0 | 0 | 6 | 0 | 2 | 8 | 3 | 11 |
| Brazil | 344 | 3,213 | 280 | 795 | 64 | 2,418 | 145 | 531 | 189 | 2,348 | 10 | 334 | 3,557 | 0 | 3,557 |
| Brunei | 103 | 217 | 86 | 83 | 17 | 134 | 32 | 45 | 63 | 142 | 8 | 30 | 320 | 0 | 320 |
| Canada | 70 | 153 | 63 | 108 | 7 | 45 | 12 | 9 | 48 | 121 | 10 | 23 | 230 | 68 | 298 |
| China | 6 | 13 | 6 | 3 | 0 | 10 | 2 | 0 | 4 | 11 | 0 | 2 | 21 | 0 | 21 |
| Congo | 3 | 25 | 3 | 25 | 0 | 0 | 0 | 1 | 3 | 21 | 0 | 3 | 28 | 0 | 28 |
| Cyprus | 1 | 2 | 1 | 2 | 0 | 0 | 0 | 0 | 1 | 1 | 0 | 1 | 3 | 0 | 3 |
| Ghana | 0 | 6 | 0 | 5 | 0 | 1 | 0 | 1 | 0 | 5 | 0 | 0 | 6 | 0 | 6 |
| Finland | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 16 | 16 |
| India | 254 | 1,019 | 254 | 1,017 | 0 | 2 | 56 | 150 | 180 | 788 | 18 | 81 | 1,273 | 123 | 1,396 |
| Italy | 3 | 6 | 3 | 6 | 0 | 0 | 0 | 0 | 3 | 6 | 0 | 0 | 9 | 0 | 9 |
| Malaysia | 110 | 307 | 110 | 221 | 0 | 86 | 8 | 17 | 95 | 269 | 7 | 21 | 417 | 504 | 921 |
| Nigeria | 0 | 1 | 0 | 1 | 0 | 0 | 0 | 0 | 0 | 1 | 0 | 0 | 1 | 1 | 2 |
| Norway | 1,565 | 6,400 | 1,393 | 3,991 | 172 | 2,409 | 181 | 776 | 827 | 2,992 | 557 | 2,632 | 7,970 | 3,866 | 11,836 |
| Russia | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 17 | 18 |
| Saudi Arabia | 0 | 2 | 0 | 2 | 0 | 0 | 0 | 0 | 0 | 1 | 0 | 1 | 2 | 0 | 2 |
| Sweden | 1 | 11 | 1 | 11 | 0 | 0 | 1 | 1 | 0 | 10 | 0 | 0 | 12 | 0 | 12 |
| UK | 170 | 582 | 168 | 410 | 2 | 172 | 10 | 40 | 134 | 392 | 26 | 150 | 752 | 252 | 1,004 |
| USA | 44 | 184 | 43 | 115 | 1 | 69 | 4 | 20 | 28 | 114 | 12 | 50 | 228 | 19 | 247 |
| Total # | 2,692 | 12,273 | 2,428 | 6,859 | 264 | 5,414 | 452 | 1,611 | 1,592 | 7,326 | 648 | 3,336 | 15,012 | 4,965 | 19,977 |
| Total % | 17.9% | 81.8% | 26.1% | 73.9% | 4.6% | 95.4% | 3.0% | 10.7% | 10.6% | 48.8% | 4.3% | 22.2% | 75.1% | 24.9% | |

21 Employees not on SAP are not included in gender and age information (2021: 47 employees - 7 Canada, 2 China, 16 Finland, 5 Norway, 17 Russia).
22 Employee numbers are reported on head count and at the end of the reporting period, December 31, 2021.
23 Contract staff is reported as full time equivalent (FTE). As of end of the reporting period there were 4,965 FTE. The head count is 8,858 of which 497 were female, 6,909 were male and 1,452 were unreported gender. Gender is not a mandatory field for external hires, so not reported for all.

Appendix: Part-time Own Employees

Part-time Own Employees	2023	2022	2021
	Female	Male	Total
Canada	6	0	6
Norway	71	72	143
UK	15	2	17
Total	92	74	166
% Total	55.4%	44.6%

Appendix: Parental Leave Own Regular Employees

24,25
| Employees taking parental leave in 2022 employed in 2023 | Employees taking parental leave in 2021 employed in 2022 | Employees taking parental leave in 2020 employed in 2021 |
| :------------------------------------------------------- | :------------------------------------------------------- | :------------------------------------------------------- |
| Female | Male | Total | Female | Male | Total | Female | Male | Total |
| Norway | | | | | | | | |
| Entitled to parental leave | 1755 | 6882 | 8637 | 1569 | 6413 | 7982 | | |
| Employees taking parental leave | 11 | 60 | 71 | 82 | 226 | 308 | 87 | 309 | 396 |
| Returned from parental leave | 11 | 60 | 71 | 76 | 212 | 288 | | |
| Return to work rate after parental leave | 100.0% | 100.0% | 100.0% | 92.7% | 93.8% | 93.5% | | |
| Employed after 12 months | 10 | 56 | 66 | 69 | 198 | 267 | | |
| Employed 12 months after leave ended | 90.9% | 93.3% | 93.0% | 90.8% | 93.4% | 92.7% | 86.2% | 85.1% | 85.4% |
| UK | | | | | | | | |
| Entitled to parental leave | 216 | 668 | 884 | 170 | 582 | 752 | | |
| Employees taking parental leave | 14 | 23 | 37 | 15 | 26 | 41 | 28 | 23 | 51 |
| Returned from parental leave | 13 | 23 | 36 | 12 | 26 | 38 | | |
| Return to work rate after parental leave | 92.9% | 100.0% | 97.3% | 80.0% | 100.0% | 92.7% | | |
| Employed after 12 months | 10 | 19 | 29 | 11 | 21 | 32 | | |
| Employed 12 months after leave ended | 76.9% | 82.6% | 80.6% | 91.7% | 80.8% | 84.2% | 71.4% | 60.9% | 66.7% |
| Malaysia | | | | | | | | |
| Entitled to parental leave | 154 | 358 | 512 | 107 | 310 | 417 | | |
| Employees taking parental leave | 8 | 18 | 26 | 9 | 15 | 24 | 10 | 18 | 28 |
| Returned from parental leave | 8 | 18 | 26 | 8 | 15 | 23 | | |
| Return to work rate after parental leave | 100.0% | 100.0% | 100.0% | 88.9% | 100.0% | 95.8% | | |
| Employed after 12 months | 8 | 18 | 26 | 8 | 15 | 23 | | |
| Employed 12 months after leave ended | 100.0% | 100.0% | 100.0% | 100.0% | 100.0% | 100.0% | 60.0% | 77.8% | 71.4% |
| India | | | | | | | | |
| 26 | | | | | | | | |
| Entitled to parental leave | 289 | 1340 | 1629 | 254 | 1019 | 1273 | 8 | 43 | 51 |
| Employees taking parental leave | 17 | 66 | 83 | 15 | 59 | 74 | | |
| Returned from parental leave | 17 | 66 | 83 | 15 | 56 | 71 | | |
| Return to work rate after parental leave | 100.0% | 100.0% | 100.0% | 100.0% | 94.9% | 95.9% | | |
| Employed after 12 months | 12 | 55 | 67 | 13 | 54 | 67 | | |
| Employed 12 months after leave ended | 70.6% | 83.3% | 80.7% | 86.7% | 96.4% | 94.4% | 100.0% | 95.3% | 96.1% |

24 Employee numbers are reported on head count and at end of the reporting period, December 31 for each year. “Employed 12 months after leave ended” is the percentage of employees employed at Aker Solutions who returned from parental leave and were still employed 12 months after parental leave ended. For 2023 data, 2022 headcount information is used. For 2022 data, 2021 headcount information is used.
25 This report includes data on employees who took parental leave in 2022. This includes subsea employees, even those who have since left the company because of the subsea transaction. This is because, if they were to be employed 12 months after the start of their parental leave (which commenced from ex. October 1, 2022), we would not be able to ascertain this until after October 1, 2023.
26 Office employees only.

Employees taking parental leave in 2022 employed in 2023	Employees taking parental leave in 2021 employed in 2022	Employees taking parental leave in 2020 employed in 2021
Female	Male	Total
Angola
Entitled to parental leave	18	132
Employees taking parental leave	2	2
Returned from parental leave	2	2
Return to work rate after parental leave	100.0%	100.0%
Employed after 12 months	1	2
Employed 12 months after leave ended	50.0%	100.0%
Brazil
27
Entitled to parental leave	302	1018
Employees taking parental leave	5	14
Returned from parental leave	5	14
Return to work rate after parental leave	100.0%	100.0%
Employed after 12 months	4	14
Employed 12 months after leave ended	80.0%	100.0%
Brunei
Entitled to parental leave	101	222
Employees taking parental leave	10	4
Returned from parental leave	10	4
Return to work rate after parental leave	100.0%	100.0%
Employed after 12 months	9	4
Employed 12 months after leave ended	90.0%	100.0%
Canada
Entitled to parental leave	83	174
Employees taking parental leave	1	1
Returned from parental leave	1	1
Return to work rate after parental leave	100.0%	100.0%
Employed after 12 months	1	1
Employed 12 months after leave ended	100.0%	100.0%

27 Brazil CSE employees excluded from data as they do not have timesheet input on Aker Solutions’ payroll. Interns excluded.# Appendix: Recruitment and Turnover Figures

	2023		2022		2021
	#	%	#	%	#	%
Total Recruited	30		1,659		3,891
Own employees - office	1,265	76.3%	2,854	73.3%	1,405	49.5%
Own employees - non-office	394	23.7%	1,037	26.7%	1,436	50.5%
<30 years old	460	27.7%	1,315	33.8%	849	29.9%
30-50 years old	989	59.6%	2,132	54.8%	1,744	61.4%
>50 years old	210	12.7%	443	11.4%	248	8.7%
Female	423	25.5%	963	24.8%	496	17.5%
Male	1,236	74.5%	2,927	75.2%	2,345	82.5%
Angola	8	0.5%	25	0.6%	17	0.6%
Brazil	43	2.6%	795	20.4%	1,652	58.1%
Brunei	31	1.9%	43	1.1%	38	1.3%
Canada	64	3.9%	114	2.9%	62	2.2%
China	0	0.0%	20	0.5%	5	0.2%
Congo	0	0.0%	5	0.1%	9	0.3%
Finland	4	0.2%	0	0.0%	0	0.0%
Ghana	0	0.0%	4	0.1%	0	0.0%
India	263	15.9%	590	15.2%	179	6.3%
Malaysia	32	1.9%	166	4.3%	13	0.5%
Norway	1,084	65.3%	1,710	43.9%	638	22.5%
Russia	0	0.0%	14	0.4%	0	0.0%
Saudi Arabia	0	0.0%	0	0.0%	0	0.0%
Sweden	2	0.1%	9	0.2%	6	0.2%
UK	111	6.7%	301	7.7%	192	6.8%
USA	17	1.0%	95	2.4%	30	1.1%

	2023		2022		2021
	#	%	#	%	#	%
Total Turnover	31		738		1,082
Own employees - office	109	14.8%	299	27.6%	582	66.1%
Own employees - non-office	629	85.2%	783	72.4%	298	33.9%
<30 years old	152	20.6%	189	17.5%	149	16.9%
30-50 years old	521	70.6%	789	72.9%	647	73.5%
>50 years old	65	8.8%	104	9.6%	84	9.5%
Female	170	23.0%	248	22.9%	196	22.3%
Male	568	77.0%	834	77.1%	684	77.7%
Angola	2	0.3%	5	0.5%	2	0.2%
Australia	0	0.0%	1	0.1%	2	0.2%
Brazil	12	1.6%	318	29.4%	307	34.9%
Brunei	16	2.2%	21	1.9%	15	1.7%
Canada	18	2.4%	21	1.9%	7	0.8%
China	1	0.1%	0	0.0%	2	0.2%
Finland	1	0.1%	0	0.0%	0	0.0%
India	215	29.1%	162	15.0%	77	8.8%
Malaysia	19	2.6%	38	3.5%	30	3.4%
Nigeria	0	0.0%	0	0.0%	1	0.1%
Norway	386	52.3%	398	36.8%	374	42.5%
Saudi Arabia	0	0.0%	0	0.0%	0	0.0%
Sweden	1	0.1%	0	0.0%	0	0.0%
UK	64	8.7%	88	8.1%	45	5.1%
USA	3	0.4%	30	2.8%	18	2.0%

28 Subsea employees are not included in 2023 recruitment and turnover figures.
29 Employee numbers are reported on head count and at the end of the reporting period, December 31, for each year.
30 Regular and temporary employed on our payroll (judicially employed).
31 Regular employed.

Appendix: Environmental Figures

	Unit	2023	2022	2021
Total carbon dioxide equivalent emissions	Metric tons CO2e	13,692	8,525	10,003
Scope 1 Carbon dioxide equivalent emissions	Metric tons CO2e
Scope 2 Carbon dioxide equivalent emissions (market-based residual after EACS purchase)	Metric tons CO2e	5,683	13,007	21,029
Total value chain GHG emissions (scope 3)	Metric tons CO2e	579,832	2,730,809	933,145
Value chain GHG emissions (scope 3) - Category 1 - Purchased goods and services	Metric tons CO2e	347,507	1,670,190	880,930
Value chain GHG emissions (scope 3) - Category 2 - Capital goods	Metric tons CO2e	56,817	47,033	13
Value chain GHG emissions (scope 3) - Category 3 - Fuel and energy related activities	Metric tons CO2e	7,368	9,876	0
Value chain GHG emissions (scope 3) - Category 4 - Upstream transportation	Metric tons CO2e	9,495	17,978	5,144
Value chain GHG emissions (scope 3) - Category 5 - Waste generation in operations	Metric tons CO2e	1,898	1,691	1,221
Value chain GHG emissions (scope 3) - Category 6 - Business travel	Metric tons CO2e	8,927	8,505	3,181
Value chain GHG emissions (scope 3) - Category 7 - Employee commuting	Metric tons CO2e	4,503	14,683	40,753
Value chain GHG emissions (scope 3) - Category 9 - Downstream transportation	Metric tons CO2e	8,766	14,719	0
Value chain GHG emissions (scope 3) - Category 11 - Use of sold products	Metric tons CO2e	127,847	945,777	1,903
Value chain GHG emissions (scope 3) - Category 12 - End-of-life treatment of sold products	Metric tons CO2e	636	357	0
Value chain GHG emissions (scope 3) - Category 15 - Investments	Metric tons CO2e	6,068	0	0
Total Scope 1, Scope 2 and Scope 3 emissions (market-based residual after EACs purchase)	Metric tons CO2e	599,207	2,752,341	964,177
Scope 2 carbon dioxide equivalent emissions (location-based)	Metric tons CO2e	4,051	10,674	10,831
Total Scope 1, Scope 2 and Scope 3 emissions (location-based)	Metric tons CO2e	597,575	2,750,008	953,979
Out of scopes biogenic carbon dioxide equivalent emissions	Metric tons CO2e	107	305	0
Total Energy and Carbon Intensity per man-hours worked
Energy intensity	MWh per million worked hours	3,396	3,610	3,798
Scope 1 and 2 emission intensity (location-based)	tCO2e per million worked hours	358	411	496
Scope 1 and 2 emission intensity (market-based)	tCO2e per million worked hours	391	461	731
Total Energy Consumption
Energy consumption	MWh	168,216	168,719	159,429
Heating and cooling	MWh	5,106	0	0
Renewable energy	MWh	97,144	106,630	0
Non-renewable energy	MWh	71,072	62,090	0

32 2023 environmental data excludes data from the Subsea segment.
33 2021 emissions numbers are assured by LRQA, AA1000AS v3.
34 Aker Solutions reports in accordance with GHG protocol.
35 Excludes emissions purchased from renewable sources via EACs.
36 Energy intensity calculation includes energy consumption from all energy sources from within the organization.

Appendix: Environmental Figures cont.

	Unit	2023	2022	2021
Renewable fuel consumption
Biodiesel blend	m³	3	4	0
Biofuel	m³	41	129	127
Renewable electricity consumption	MWh	91,630	105,396	68,683
Non-renewable fuel consumption
Diesel	m³	1,798	869	1,886
Gasoline	m³	27	53	60
Marine Fuel Oil	m³	1,005	845	72
Natural Gas	m³	2,222,978	1,400,073	1,281,511
Acetylene	m³	18,899	14,971	11,070
Propane	m³	183,871	78,453	355,198
Non-renewable electricity consumption	MWh	10,338	24,938	44,911
Refrigerants	kg	49	9	0

	Unit	2023	2022	2021
Non-hazardous waste and waste handling
Total non-hazardous waste	metric tons	19,795	13,964	21,503
Recycled waste excluding hazardous waste	metric tons	13,051	7,499	14,248
Reuse	metric tons	190	628	184
Composting	metric tons	177	103	80
Landfill, excluding hazardous waste	metric tons	2,508	3,118	3,942
Incineration without energy recovery	metric tons	0	0	10
Incineration with energy recovery	metric tons	3,820	2,607	2,759
Others/not selected	metric tons	48	9	280
Recycling factor, excluding hazardous waste	%	65.9%	53.7%	66.3%
Hazardous waste and waste handling
Total hazardous waste	metric tons	1,323	908	1,097
Hazardous waste treatment handled by waste company	metric tons	14	244	261
Recycling	metric tons	62	86	618
Reuse	metric tons	0	2	1
Incineration without energy recovery	metric tons	0	1	5
Incineration with energy recovery	metric tons	1,134	534	48
Landfill	metric tons	30	0	0
Others/not selected	metric tons	83	40	164
Spills above reportable limit	#	0	0	0

37 All information is from facility providers and waste handling companies. All waste is handled by a third party.
38 Wastewater is not included in any calculations, hazardous or non hazardous waste.
39 For 2021, hazardous waste was included in the recycled waste fraction.
40 Not part of recycled waste.

Energy data is harvested locally either via meter readings at the sites or via invoicing of purchased electricity and fuels. Each location submits their environmental data monthly for the premises and activities controlled by Aker Solutions. Aker Solutions does not sell energy. District heating and cooling is reported separately from electricity consumption and is included as renewable energy. All calculations are done automatically in our Synergi Life reporting tool for scope 1, 2, and 3 (category 3) and the Position Green Platform for other scope 3 data, including the conversion factor between units. All information on waste disposal methods is derived either from the site itself or from the waste handling companies. For 2023, Aker Solutions’ environmental data does not include the Subsea segment as it is not within the company’s operational control at year end. Instead, emissions data from the new equity accounted investee OneSubsea is reported in Scope 3, category 15, and adjusted for the ownership share of the company (20 percent). The emissions data for 2023 will be established as the new baseline for Aker Solutions in all reported scopes of 1, 2 and 3.

◼ Scope 1 emissions include all the direct GHG emissions (converted to CO2e) from the fuel combustion in sources that are owned or controlled by the company.
◼ Scope 2 (location-based) emissions include all the indirect GHG emissions (converted to CO2e) from the purchased electricity using location specific emission factors.
◼ Scope 2 (market-based) emissions include all the indirect GHG emissions (converted to CO2e) from the purchased electricity using market-based emission factors where available, and location-based emissions in cases that there are no available market-based emission factors.
◼ Scope 2 (market-based) emissions include all the indirect GHG emissions from the purchased electricity using market-based emission factors where available, location- based emissions in cases where there are no available market-based emission factors and take into consideration the purchase of Energy Attribute Certificates (EACs).
◼ Scope 3 emissions include all GHG emissions for the value chain converted to CO2e.
◼ The outside scopes emissions include the direct CO2 impact of burning biofuels. The non-CO2 impact is accounted in scope 1.
◼ Scope 3, category 1 data was impacted by the change of emissions methodology in two ways: 1) the removal of irrelevant financial data related to hired-in salaries and travel, and 2) the introduction of emissions factors in 2023 that had a higher geographical representation. The data was also impacted by the removal of Subsea data to categories 1, 2 and 4.
◼ Background on historical data: The reported scope 3 emissions in the 2021 Sustainability Report included only category 6 - business travel, therefore the amount in 2021 report was 3,181 metric tons CO2e.# Appendix: Business Ethics Training Overview

Course Type	Duration	Total number of company personnel trained end 2023	Total number of company personnel trained end 2022	Total number of company personnel trained end 2021
E-learning: Introduction to business integrity	15 minutes	6,254	3,395	1,200
Classroom Course in Business Ethics	2 hours	781	1,063	Suspended due to COVID-19 pandemic
E-learning: Annual Code of Conduct training	43 15 minutes	8,708	11,089	7,800
E-learning: Introduction to Personal Data Protection at Aker Solutions	45 15 minutes	3,569	NA	NA

2023 Annual Code of Conduct E-learning, Completion by Country

Country	Completed #	Completed %	Not Completed #	Not Completed %	Total #
Angola	27	81.8%	6	18.2%	33
Brazil	31	11.1%	248	88.9%	279
Brunei	295	87.8%	41	12.2%	336
Canada	303	92.9%	23	7.1%	326
China	18	100.0%	0	0.0%	18
Finland	21	100.0%	0	0.0%	21
India	1,107	99.5%	6	0.5%	1,113
Malaysia	205	96.7%	7	3.3%	212
Norway	6,235	72.2%	2,403	27.8%	8,638
Saudi Arabia	2	100.0%	0	0.0%	2
Sweden	8	80.0%	2	0.0%	10
UK	430	96.2%	17	20.0%	447
USA	26	78.8%	7	21.2%	33
Aker Solutions Total	8,708	75.9%	2,760	24.1%	11,468

41 The numbers have been rounded to the nearest 100.
42 Topics: Attitudes and policies, anti-corruption, conflict of interest, confidential information, human and labor rights, gifts and hospitality, country risk and reporting concerns (whistleblowing).
43 Topics in 2023 including key themes from our Code of Conduct: Understanding and living our Code of Conduct, speaking up and reporting concerns, acting with integrity including anti-corruption, conflict of interest, gifts and hospitality, confidentiality, human and labor rights, data privacy. Employee target group for the Code of Conduct as mandatory course: office permanent and temporary employees (subsea employees not included in 2023 roll out therefore the numbers 2022 and 2023 are not directly comparable).
44 In total, 11,462 members of the full workforce (own employees, sub-contractors and hired-ins) completed the Code of Conduct certification e-learning as of December 31, 2023.
45 New Course “Introduction to Personal Data Protection at Aker Solutions” launched in 2023 as mandatory for new joiners.
46 Total of 11,468 not including 5 employees in France. Aker Solutions own employees for 2023 was 11,473.

Appendix: Stakeholder Engagement Table

| Stakeholder Group | Type of Engagement and Aker Solutions’ Content / Response | Frequency of Engagement | Key Topics and Concerns Discussed (Topics Not Listed in Order of Priority) 49 Investments in assets includes additions to property, plant and equipment as well as technology development and other intangible assets during the year. Includes subsea business of NOK 209 million until closing of the subsea transaction.
50 Paid taxes include income taxes, withholding taxes and other corporate taxes, but does not include value added taxes (VAT) and other indirect taxes. In addition to corporate taxes, Aker Solutions’ activities contribute directly and indirectly to government tax revenues in many countries where we operate. In Norway, as an example, the national insurance contribution (Norwegian: Arbeidsgiveravgift) payment was NOK 1,193 million and in addition, the total amount withheld and paid to the tax authorities on behalf of our employees was NOK 2,368 million. In the UK the national insurance contribution payment was NOK 194 million and the total amount withheld and paid to HMRC on behalf of the employees was NOK 134 million.
51 Figures per country for operating expenses include internal and external expenses and are based on location of the Aker Solutions company that has recognized the revenue. Intercompany sales are subtracted in the line “eliminations” to present external Aker Solutions expenses as in the income statement.
52 Other includes: France, Australia, Cyprus, South-Korea, Netherlands, Sweden, Ghana, Nigeria, Saudi Arabia and UAE - addition for taxes paid: Italy, Dem.Rep. Congo, Egypt and Singapore.

Board of Directors

Leif-Arne Langøy

CHAIRMAN

Leif-Arne Langøy (born 1956) has gained senior executive experience from several companies, including as President and CEO of Aker Yards and Aker ASA. Langøy has extensive experience as the chairman of non-executive boards from a number of different industrial companies. He is currently deputy chairman of both The Resource Group TRG AS and TRG Holding AS. Langøy also holds several positions associated with Molde FK, including chairman of the board for Molde Fotball AS. From 2011 to 2020 he was chairman of the board for DNV GL Group AS. Langøy holds an MSc in economics from the Norwegian School of Economics in Bergen, Norway. As of December 31, 2023, he holds 159,426 shares in the company through a privately owned company and has no share options. Langøy is a Norwegian citizen. He has been elected for the period 2023-2025.

Øyvind Eriksen

DEPUTY CHAIRMAN

Øyvind Eriksen (born 1964) is President and CEO of Aker ASA, which is the main shareholder of Aker Solutions. Eriksen holds a law degree from the University of Oslo. He is a former Partner, Director, and Chairman of the law firm BA-HR. Eriksen currently chairs the boards of several of the Aker Group’s main industrial and financial business. In addition, he is on the board of a number of non-profit organizations, including the Norwegian Cancer Society and the Accenture Global Energy Board. While Eriksen holds no shares or share options in Aker Solutions directly, he has an ownership interest by holding 219,072 shares in Aker ASA and 100,00 B-shares in TRG Holding AS through Erøy AS, a privately owner company. Eriksen is a Norwegian citizen. He has been elected for the period 2023-2025.

Kjell Inge Røkke

DIRECTOR

Kjell Inge Røkke (born 1958) has been a driving force in the development of Aker since the 1990s. Røkke launched his business career with the purchase of a 69-foot trawler in the United States in 1982, and gradually built a leading worldwide fisheries business. In 1996, the Røkke-controlled company, RGI, purchased enough Aker shares to become Aker’s largest shareholder, and later merged RGI with Aker. Røkke is a chairman of the board in Aker ASA, The Resource Group TRG AS and TRG Holding AS. He is also a board member of several companies in which Aker ASA holds a significant ownership stake, including Aker BP, Aker BioMarine ASA, Aker Property Group AS, Aker Energy AS, Aker Horizons AS, Aize Holding AS, Cognite AS, Seetee Topco AS and REV Ocean AS. While Røkke holds no shares or stock options directly in Aker Solutions, he has an indirect ownership interest in the company through his investment company The Resource Group TRG AS and subsidiaries, which holds approximately 68 percent of the shares in Aker ASA, Aker Solutions’ main owner. Røkke is a Norwegian citizen. He has been elected for the period 2023-2025.

Birgit Aagaard-Svendsen

DIRECTOR

Birgit Aagaard-Svendsen (born 1956) has more than 35 years of international business experience including several years within the shipping and offshore industries. She served as Chief Financial Officer of J. Lauritzen shipping company for 18 years and has been the chairperson of the Danish committee on corporate governance. She has a Bachelor of Science in engineering from the Technical University of Denmark and a Graduate Diploma in Business Administration from the Copenhagen Business School. Aagaard-Svendsen is a board professional with extensive board experience. Her current directorship include the boards of DNV GL, Prosafe and KommuneKredit (Denmark), for all of which she serves as the chairperson of the audit committee. As of December 31, 2023, she holds 90,000 shares in the company and has no share options. Aagaard-Svendsen is a Danish citizen. She has been elected for the period 2023-2025. Aagaard-Svendsen is an independent board member.

Lone Fønss Schrøder

DIRECTOR

Lone Fønss Schrøder (1960) is a senior executive and advisor. Fønss Schrøder is currently vice- chair of Akastor ASA, Aker Horizons and Volvo Cars AB , and a director of Geely Sweden Holdings AB and chair of their audit committees. She is director of Ingka Holding B.V. (Ikea Group) and Ikano Bank. Fønss Schrøder has more than 30 years of international senior executive experience in the A.P. Møller-Maersk group and as CEO for Wallenius Lines AB, Star Air and Concordium. She is an experienced director with former board positions in companies like Vattenfall, Dong Transmission, CSL Group, Inc., Yara et al. Fønss Schrøder holds a Master of Law (LL.M.) from the University of Copenhagen, and a Science degree in Economics and Business Administration from Copenhagen Business School. She holds no shares in the company and has no share options. Fønss Schrøder is a Danish citizen. She has been elected for the period 2022-2024 Fønss Schrøder is an independent board member.

Elisabeth Tørstad

DIRECTOR

Elisabeth Tørstad (born 1965) is CEO of Asplan Viak AS since March 2019. Prior to this she has more than 15 years of experience from leadership positions in DNV, where she also was part of the Executive Board and Council in DNV from 2010 to 2019. Tørstad holds a cand.scient. degree in structural physics from the University of Oslo, and also degrees in civil engineering from Oslo Ingeniørhøgskole and business administration from the Norwegian School of Management (BI). She has served on several boards and committees, including in Hexagon Composites, SINTEF and DitigalNorway. Tørstad is currently member of the board of trustees of Underwriters Laboratories Inc. As of December 31, 2023, she holds 2,000 shares in Aker Solutions ASA and has no stock options. Tørstad is a Norwegian citizen. She has been elected for the period 2022-2024. Tørstad is an independent board member.

Jan Arve Haugan

DIRECTOR

Jan Arve Haugan (born 1957) started his professional career in the Norwegian construction company F. Selmer (now Skanska) and worked as project consultant in Terra Mar Project Management before he joined the Norwegian industrial conglomerate Norsk Hydro as a chief engineer in 1991. He served in several leading positions in Hydro’s oil and gas projects and operations as well as in Hydro’s aluminum business. Haugan was President and CEO of Kvaerner ASA from 2011 to 2018, when he stepped down to assume the role as CEO of Aker Energy AS. Haugan holds an MSc in construction management from the University of Colorado at Boulder, USA. As of December 31, 2023, Haugan and related parties hold 136,527 shares in the company and have no share options. Haugan is a Norwegian citizen. He has been elected for the period 2022-2024. Haugan is an independent board member.

Hilde Karlsen

DIRECTOR

Hilde Karlsen (born 1967) was elected by the employees of Aker Solutions to the board of directors in March 2011. She is a group union representative for Aker Solutions on a full- time basis and has been employed by Aker Solutions since 1992. Karlsen has held various positions at Aker Solutions and is now a specialist engineer in the projects center. She was the employees’ representative of the Kværner Oil and Gas Board from 1993-2003. Karlsen has a Bachelor of Science in mechanical engineering from Norway’s Narvik University College. As of December 31, 2023, Karlsen and related parties hold 32,774 shares in the company and have no share options. Karlsen is a Norwegian citizen. She has been elected for the period 2021-2023.

Arne Christian Rødby

DIRECTOR

Arne Christian Rødby (born 1973) was elected to the board of directors by the employees of Aker Solutions, and he is the trade unions' full-time Group representative. He started his employment with Aker Solutions in 1990 and has held board positions in Aker Subsea and Aker Solutions, as well as with non-profit organizations. Rødby is a Norwegian citizen and Reserve officer of the Norwegian Armed Forces. As of December 31, 2023, Rødby holds 1,822 shares in Aker Solutions. He has been elected for the period 2023-2025.

Line Småge Breidablikk

DIRECTOR

Line Småge Breidablikk (born 1985) was elected by the employees of Aker Solutions to the board of directors in April 2021. She has been employed by Aker Solutions and Kvaerner since 2012. Breidablikk has worked in various projects and is currently a discipline lead.Since 2013, she has worked part-time as a union representative, holding various positions, and currently serves as the chief union representative. Breidablikk holds an MSc in marine technology from the Norwegian University of Science and Technology (NTNU) in Trondheim, Norway. As of December 31, 2023, she holds 1,755 shares in Aker Solutions ASA and has no share options. Breidablikk is a Norwegian citizen. She has been elected for the period 2021-2023.

Stian Pettersen Sagvold
DIRECTOR

Stian Pettersen Sagvold (born 1984) holds a scaffolder’s certification and has been an employee of Aker Solutions at Verdal since 2012. Sagvold has been a fulltime employee representative since 2017 at Aker Solutions Verdal. He is also Chair of the Federation of Trade Unions (Fellesforbundet) Section 108 and a director of the board of the Norwegian United Federation of Trade Unions. As of December 31, 2023, Sagvold holds 246 shares in Aker Solutions ASA and has no share options. Sagvold is a Norwegian citizen. He has been elected for the period 2023-2025.

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Board of Directors’ Report
Sustainability Performance
Financial Statements
Appendix
218
Contact
Aker Solutions ASA
Oksenøyveien 8, 1366 Lysaker, Norway
NO-1325 Lysaker
Norway
Telephone: +47 67 51 30 00
www.akersolutions.com

Copyright in all published material including photographs, drawings and images in this publication remains vested in Aker Solutions and third party contributors to this publication as appropriate. Accordingly, neither the whole nor any part of this publication can be reproduced in any form without express prior permission. Articles and opinions appearing in this publication do not necessarily represent the views of Aker Solutions. While all steps have been taken to ensure the accuracy of the published contents, Aker Solutions does not accept any responsibility for any errors or resulting loss or damage whatsoever caused and readers have the responsibility to thoroughly check these aspects for themselves. Enquiries about reproduction of content from this publication should be directed to Aker Solutions.

AI assistant

Aker Solutions — Annual Report 2023

Aker Solutions - 2023 Annual Report

Content

Overview

Who is Aker Solutions

Attitudes

Organization

Subsea Transaction

Global Presence

Menu

Market Outlook and Strategy

Energy Consulting business growing almost 50 percent in 2023.

Technology & Innovation

Menu

Long-term Targets and Strategy Execution

ESG/Sustainability

Sustainability Performance

Climate Action Plan: Roadmap to Net Zero

Financial Statements

Financial Overview

Financial Performance

Consolidated Financial Results

External Reporting Segments

Segment Key Figures

Assets, Equity and Liability

Cash Flow

Parent Company Financial Statements

Dividend Policy

Appendix

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17 Risk Factors

Cybercrime Risk

Market Risk

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18

Operational Risk

Compliance and Integrity Risks

Sustainability Performance

Climate-related Risks

Pandemics

Financial Risks

Risk Management

Human Rights

The Norwegian Transparency Act and the UK Modern Slavery Transparency Statement

Approach

1. Governance and Commitment

Policies and Procedures

Commitments

2. Activities to Identify Negative Human Rights Impacts

Risk Assessment

Integrity Due Diligence

3. Activities to Prevent and Mitigate Negative Human Rights Impacts

Cascading the Requirements in the Supply Chain

Contractual Clauses

Inspections, Reviews and Audits

Reporting of Concerns, Whistleblowing and Grievance Mechanisms

Internal Investigations

Awareness sessions and Capacity Building with Suppliers

Training, Communication and Awareness building

Remediation

Remediation and Collaboration with Business Partners

Internal and External Reporting

Priorities for Human Rights Program Going Forward

Sustainability Performance

Topics covered in the Human Rights chapter:

Topics covered in the Stakeholder Engagement chapter:

Topics covered in the Environment chapter:

Topics covered in the Social chapter:

Topics covered in the Governance chapter:

Materiality Determination

Sustainability Performance

UN Sustainable Development Goals: Our Commitment

Stakeholder Engagement

Key Memberships and Associations

Reporting Frameworks

Environment

Climate Change Adaptation and Mitigation

Approach

Sustainability Performance

Aker Solutions Annual Report 2023