Aker Solutions — Interim / Quarterly Report 2022

Jul 14, 2022

Solving global energy challenges for future generations.

Powerthechange

Who We Are

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.

Content

Key Figures	3
Key Developments	6
Declaration by the Board of Directors and CEO	15
Figures and Notes	16
Alternative Performance Measures	36

		1H 2022	1H 2021	2021
ORDERS AND RESULTS
Order backlog	NOK mill	52,722	45,786	49,168
Order intake	NOK mill	20,686	21,676	40,466
Revenue	NOK mill	18,926	13,490	29,473
EBITDA	NOK mill	1,251	817	1,842
EBITDA margin	Percent	6.6	6.1	6.2
EBITDA ex. special items	NOK mill	1,274	820	1,871
EBITDA margin ex. special items	Percent	6.7	6.1	6.4
EBIT	NOK mill	700	279	693
EBIT margin	Percent	3.7	2.1	2.4
EBIT ex. special items	NOK mill	735	294	775
EBIT margin ex. special items	Percent	3.9	2.2	2.6
Net income	NOK mill	451	86	249
CASH FLOW Cash flow from operating activities	NOK mill	1,556	741	2,799
BALANCE SHEET Net interest-bearing debt	NOK mill	-3,072	-837	-2,200
Equity ratio	Percent	28.4	29.7	27.2
Liquidity reserve	NOK mill	10,026	8,459	9,560
SHARE
Share price	NOK	26.8	16.0	23.4
Basic earnings per share (NOK)	NOK	0.88	0.18	0.52
Basic earnings per share (NOK) ex. special items	NOK	0.85	0.21	0.65
EMPLOYEES
Total employees	Own employees	14,331	14,789	15,012
HSSE
Lost time incident frequency	Per million worked hours	0.21	0.35	0.34
Total recordable incident frequency	Per million worked hours	1.15	1.51	1.31
Sick leave rate1	Percentage of total working hours	3.45	3.10	3.17

20,686 ORDER INTAKE NOK million 18,926 REVENUE NOK million 1,251 EBITDA NOK million 6.6 EBITDA MARGIN Percent 700 EBIT NOK million 3.7 EBIT MARGIN Percent

1) Sick leave rate for 2022 is per May 31

Key figures

Revenue

Amounts in NOK billion

EBITDA and EBITDA

Amounts in NOK billion and percent

Order intake and backlog

Amounts in NOK billion

Segment Key Figures

Renewables and Field Development

Amounts in NOK billion and percent

EBITDA and EBITDA margin

Order intake and backlog

Electrification, Maintenance and Modifications

Amounts in NOK billion and percent

Revenue

EBITDA and EBITDA margin

EBITDA (NOK billion) EBITDA margin (percent)

Order intake and backlog

Subsea

Amounts in NOK billion and percent

EBITDA and EBITDA margin

Order intake and backlog

Key Developments

Financial Performance

Aker Solutions presents its consolidated financial statements in accordance with the International Financial Reporting Standards (IFRS) as approved by the European Union.

Consolidated Financial Results

Aker Solutions' revenue increased to NOK 18.9 billion in the first half of 2022 from NOK 13.5 billion in the prior year. Earnings before interest and other financial items, taxes, depreciation and amortization (EBITDA) increased to NOK 1,251 million (6.6 percent) in the first half compared to NOK 817 million (6.1 percent) the year before. EBITDA excluding special items was NOK 1,274 million, compared to NOK 820 million a year earlier. This corresponded to an EBITDA margin excluding special items of 6.7 percent compared to 6.1 percent the year before. The positive development in EBITDA in the first half of 2022 compared to the year before, was mainly driven by solid performance in the Subsea segment as well as improvement in the Electrification, Maintenance and Modifications segment.

Interest income was NOK 62 million in the first half of 2022, compared to NOK 182 million in the previous year when the company had a positive impact of NOK 147 million from an arbitration ruling. Interest expenses were NOK 186 million compared to NOK 195 million the year before. Income before tax increased to NOK 701 million from NOK 243 million the year before. The effective P&L tax rate for the period was 35.7 percent compared to 64.6 percent in the previous year.

Net income after tax in the first half of 2022 was NOK 451 million compared with NOK 86 million the previous year.

Earnings per share were NOK 0.88 versus NOK 0.18 in the same period in 2021. Excluding special items, the earnings per share for the first half of 2022 were NOK 0.85 versus NOK 0.21 the previous year.

Renewables and Field Development Financial Results

The Renewables and Field Development segment designs and delivers renewable energy solutions for offshore wind, hydrogen and carbon capture, utilization and storage (CCUS), as well as engineering consulting services and fabrication of oil and gas platforms, onshore facilities, marine operations and decommissioning.

Revenue in the Renewables and Field Development segment was NOK 6.8 billion in the first half of 2022, compared to NOK 5.4 billion the year before. The EBITDA margin was 2.6 percent, compared to 6.3 percent a year earlier. The strong margin in the same period last year was positively impacted by NOK 125 million related to an arbitration settlement. The first half of 2022 was impacted by a loss provision on a renewables project in the second quarter 2022. It was solid performance in field development projects in the period. Several projects in the portfolio were still in earlier phases of execution during the first half of 2022, without margin recognition in the period.

Order intake in the first half of 2022 was NOK 7.6 billion, compared NOK 3.9 billion in the prior year. This represented a book-to-bill of 1.1 times. The order backlog increased by 72 percent to NOK 15.1 billion at the end of the period, from NOK 8.8 billion a year earlier.

Electrification, Maintenance and Modifications Financial Results

The Electrification, Maintenance and Modifications segment (EMM) 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 solutions including electrification.

Revenue in the EMM segment was NOK 5.6 billion in the first half of 2022, compared to NOK 4.2 billion the year before. The EBITDA margin was 5.8 percent, compared to 4.7 percent a year earlier.

Order intake in the first half of 2022 was NOK 8.3 billion, compared to NOK 6.3 billion in the prior year. This represented a book-to-bill of 1.5 times. The order backlog increased to NOK 20.6 billion at the end of the period, from NOK 18.8 billion a year earlier.

Subsea Financial Results

The Subsea segment supplies a broad spectrum of market leading intelligent subsea products, systems and solutions globally, as well as subsea lifecycle services.

Revenue in the Subsea segment was NOK 6.4 billion in the first half of 2022, compared to NOK 4.0 billion the year before. The EBITDA margin was 15.0 percent, compared to 10.0 percent a year earlier, driven by solid performance on ongoing projects supported by a robust project portfolio with a high portion of standardized equipment.

Order intake in the first half of 2022 was NOK 4.8 billion, compared to NOK 11.6 billion in the prior year. This represented a book-to-bill of 0.8 times. The order backlog decreased to NOK 16.7 billion at the end of the period, from NOK 18.4 billion a year earlier.

Segment Key Figures

		Renewables & Field Development		Electrification, Maintenance & Modifications				Subsea
NOK million	1H 2022	1H 2021	2021	1H 2022	1H 2021	2021	1H 2022	1H 2021	2021
Revenue	6,753	5,406	10,625	5,650	4,223	9,197	6,368	3,953	9,712
EBITDA	177	342	535	329	198	402	954	395	1,244
EBITDA margin	2.6%	6.3%	5.0%	5.8%	4.7%	4.4%	15.0%	10.0%	12.8%
EBITDA ex. special items	178	343	540	329	202	420	954	396	1,244
EBITDA margin ex. special items	2.6%	6.3%	5.1%	5.8%	4.8%	4.6%	15.0%	10.0%	12.8%
EBIT	31	221	317	277	138	273	659	96	627
EBIT margin	0.5%	4.1%	3.0%	4.9%	3.3%	3.0%	10.3%	2.4%	6.5%
EBIT ex. special items	35	222	285	277	142	291	659	94	630
EBIT margin ex. special items	0.5%	4.1%	2.7%	4.9%	3.4%	3.2%	10.4%	2.4%	6.5%
NCOA (or working capital)	-539	-507	-795	140	412	-111	-1,274	643	-275
Order Intake	7,583	3,861	14,028	8,317	6,270	9,882	4,780	11,618	16,837
Order Backlog	15,139	8,818	14,058	20,626	18,769	17,553	16,705	18,365	17,826
Employees	4,962	4,550	4,553	4,435	6,200	6,085	3,927	3,428	3,607

Assets, Equity and Liabilities

Non-current assets totalled NOK 13.9 billion at the end of first half 2022, compared with NOK 13.6 billion 12 months earlier. Goodwill and other intangible assets were NOK 6.1 billion at half year 2022, which is slightly up from one year before. The company had a net cash position of NOK 3.1 billion per June 2022, compared with net cash position of NOK 0.8 billion in June 2021. The net cash consists of current and non-current borrowings and cash and cash equivalents. The debt at the end of June 2022 mainly consisted of bond loans in the Norwegian market. The company ended the half year 2022 with a total liquidity buffer of NOK 10.0 billion consisting of cash and bank deposits of NOK 5.0 billion as well as committed long-term revolving bank credit facilities of NOK 5.0 billion. The liquidity buffer as of June 30, 2021 was NOK 8.5 billion.

The book value of equity, including non-controlling interests, was NOK 8.8 billion at the end of the first half year 2022, compared to NOK 7.9 billion one year earlier. The company's equity ratio was 28.4 percent, down from 29.7 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 1,556 million per June 30, 2022 compared with NOK 741 million a year earlier. Net current operating assets were negative NOK 2.3 billion at the end of the first half year 2022 versus negative NOK 0.4 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 from investing activities was NOK 190 million per June 30, 2022, compared with net inflow of NOK 140 million one year before. Investments in technology development and IT were NOK 55 million, compared with NOK 62 million a year earlier. Net cash outflow related to financing activities was NOK 1,125 million at the end of first half 2022, compared to NOK 603 million per June 30, 2021.

Key Operational Developments

In the period, Aker Solutions has experienced high activity across segments. In March, following extensive upgrades over the last years, the Njord A drilling and production platform was delivered to Equinor. The company has carried out significant modifications and refurbishment of the platform to extend its lifetime for another 20 years of production. Activity is increasing on the Johan Castberg project, after the hull of the FPSO arrived at Stord in April. Since then, several of the prefabricated modules including the lower part of the turret have been installed.

All the subsea templates for the Breidablikk project were installed successfully according to plan in the period. Another important milestone was also reached on the subsea part of Johan Castberg, when the second batch of five standardized subsea trees was completed in Brazil and subsequently arrived to Norway. The large Jansz subsea gas compression project has started fabrication in Egersund, while the delivery of subsea structures for projects for ConocoPhillips and Equinor is progressing according to plan.

Activity is also increasing within the decommissioning business, with arrival of the Gyda platform as well as two platforms from the Valhall field. The target is to recycle 98 percent of the steel and materials. For the carbon storage project Northern Lights, the assembly of the first subsea tree for CO2 injection started in Brazil and the construction of the subsea template is progressing well at the Egersund yard. Within renewables, first steel was cut for the large Sunrise Wind project in the period. For the world's largest floating wind project, Hywind Tampen, the construction of the 11 floating foundations have been completed and delivered from Aker Solutions yards, ready for the installation of the wind turbines.

To further drive Aker Solutions' transition journey, three acquisitions were completed in the period. The renewables portfolio was strengthened through the acquisition of Rainpower, a leading hydropower technology company. The company develops and produces turbines for hydroelectric power generation, control systems and associated equipment for customers worldwide. The company also completed the acquisition of Unitech Power Systems, a leading electrical power systems consultancy. The acquisition is part of Aker Solutions' strategy to further enhance and grow its engineering consultancy business. The company also acquired Frontica Engineering, a Norwegian engineering company serving the oil and gas markets as well as customers within renewable energy.

Recruitment is a key part of the growth strategy and transition journey and during the first half of 2022, the company has recruited around 1,000 new skilled employees globally. This means the company is on track with its target of hiring 2,000 new colleagues in 2022.

ESG/Sustainability

The company has set ambitious targets. Within 2025, renewables and energy transition projects will count for 1/3 of the total revenues. In 2030, this will count 2/3 of total revenues. In addition, the company will reduce its own emissions by 50 percent for Scope 1 and 2 by 2030. By 2050, the objective is net zero emissions.

Aker Solutions is a signatory to the UN Global Compact and is committed to its 10 principles. Aker Solutions supports the UN Sustainable Development Goals and has prioritized seven goals. Additional information on Aker Solutions' sustainability and human rights initiatives is available on the company's website www.akersolutions.com/sustainability

During the first half of 2022, Aker Solutions rolled out a Human Rights policy and e-learning program. In addition, the Climate Action Plan was launched. This is a roadmap for how the company will reduce its emissions, engage its supply chain and provide solutions to reduce emissions for customers and projects. The new plan addresses these issues through four key features: 1) Reduce emissions: Eliminate Scope 1 hotspots and lower our Scope 2 through renewable energy consumption; 2) Unite the supply chain: Establish a resilient supply chain to bring down Scope 3 emissions; 3) Strengthen low-carbon solutions: Build a trusted, industry leading low-carbon solutions system; and 4) Integrate our data systems: Climate action powered by data-driven insight.

Organization

During the first half of 2022, there was one change to the executive management team; Linda Litlekalsøy Aase resigned as executive vice president (EVP) of the Electrification, Maintenance and Modifications segment (EMM), to pursue another opportunity outside Aker Solutions. Paal Eikeseth was recruited internally and took up the position as EVP of the EMM segment. Eikeseth is a Norwegian citizen and has for the last years held various senior management positions in Aker Solutions. He previously worked several years in PwC. Eikeseth holds a cand.merc. and master's degree from the Norwegian School of Economics and Business administration (NHH).

Health, Safety, Security and Environment

In 2022, COVID-19 vaccination-levels have increased significantly in countries where Aker Solutions operate, and societies have re-opened. Since March 2022, Aker Solutions has terminated all restrictions related to COVID-19, including restrictions related to international travel. We are now guided by advice given by the authorities. There is no longer any reporting of infection among employees except for severe cases that require hospitalization or lead to death. So far this year, we have not registered such serious cases.

In the time ahead, there will be small and large waves of infection. It is considered unlikely that strict measures will be implemented again by the Government in most countries we operate. If so, it is because a brand new and virulent virus appears. COVID-19 is unlikely to become a threat like before and the situation is perceived as stable.

The integration of HSSE data and HSSE Management systems from Kvaerner and Aker Solutions has continued throughout the first half of 2022 and is close to being completed.

Aker Solutions is committed to a goal of zero harm to people, assets and the environment. The cornerstone of this objective is a strong, structured and companywide HSSE system, setting clear standards for HSSE management and leadership. Regular audits aim to identify, isolate and help address potential shortcomings. Aker Solutions is focused on continuous improvement and learning throughout the organization and the HSSE system is a key enabler in the quest for ever more stringent standards. At Aker Solutions, the HSSE culture is founded on the principle that HSSE is the personal responsibility of every employee.

The company investigates all incidents at a level appropriate to the actual or potential outcome in order to learn and improve. The company had 19 recordable injuries in the first half of 2022. This is a reduction compared to 25 in the same period last year. Most of the cases were related to movement, construction and manual handling aspects resulting in cuts, pinches, strains or foreign objects in the eye. The total recordable injury frequency (TRIF) has reduced to 1.15 in the first half of 2022 compared to 1.51 in the same period last year.

During the first six months of 2022, 3 serious incidents occurred in operations. This is a reduction compared to 8 in the same period last year. The serious incident frequency (SIF) has reduced to 0.21 compared to 0.35 in June last year. Dropped objects continues to be the one of the contributing events. These incidents have been investigated thoroughly and have led to organizational, systemic and behavioral lessons being learned across our operation.

Both frequencies are 12-month rolling and per million worked hours, which means the number of incidents in the second half of 2021 affects the frequency number of the first half of 2022. The numbers include subcontractors under our direct management.

Sick leave is still higher than target and was 3.45 percent for the period January 1 to May 31, mainly due to COVID-19.

To strengthen the culture further and improve the company's HSSE performance we are continuing to roll out our HSSE Leadership development program. Implementation of Control of Work Process in the Subsea and Topsides and Facilities segments is ongoing, using a new digital tool that was

developed in 4Q 2021. The Aker Solutions Control of Work process fully integrates the Safe Working Essentials initiative that has been developed by Step Change in Safety in the UK, of which Aker Solutions is a member.

Aker Solutions has continued to work on the collaboration agreement with Equinor, Aibel and Rosenberg Worley with the goal of learning, collaboration and establishing a 2025 goal that will improve the industry's HSSE performance. We have rolled out two quarterly HSSE Mindset Modules on Major Accident Management and Prevent Personal Injuries as part of this collaboration program. In the second half of the year, the focus will be on Safe work at height/Prevent falling objects and on Health and Working Environment.

On a regular basis, the company communicates to its global workforce HSSE information to drive personal zero targets and risk awareness. The company continuously works to identify, analyze and mitigate intentional security threats to personnel and assets. The company did not experience any serious security incidents in the first half of 2022.

Aker Solutions also measures and monitors the company's climate objection of achieving 50 percent of CO2 emission by 2030 and being net zero by 2050. In 2022, the company set a global target of 4,676 tCO2 absolute (12 months rolling average). As of end June, the key performance indicator was at 3,013 tCO2 absolute (12 months rolling average). The performance is on a positive trend towards the 2022 targets.

HSE Performance Indicators*

Sick leave % Total recordable incidents per million worked hours

Serious Incident Frequency

* Starting from 2018, Aker Solutions has begun to use the serious incident frequency (SIF) to focus on the occurrence of high-risk incidents. These are incidents where the actual or potential consequence is high or extreme.

Outlook

The energy landscape has evolved significantly during the first half of 2022, as energy markets were strongly impacted by the tragic war in the Ukraine. This has amplified several trends, including increased commodity prices, broad-based inflation, and global supply chain constraints. Despite these macro challenges, the market outlook for Aker Solutions remains positive, and the outlook for project sanctioning for the rest of 2022, as well as into 2023, is positive in the company's main markets.

Energy prices have increased significantly since the start of the year. The oil price (Brent) increased by about 40 percent until June 30, while the natural gas price in Europe (TTF) has increased by about 90 percent, and it is projected that energy prices will remain elevated through the rest of 2022. Following several years of underinvestment in oil and gas, the industry is responding to this high commodity price environment with accelerated short-cycle investments in the near-term, while the elevation of energy security as a priority will drive further capacity expansion and support additional long-cycle development projects, exploration activity, and brownfield rejuvenation programs.

Government incentives are also driving increased project sanctioning. This is particularly true for the Norwegian Continental Shelf (NCS), where Aker Solutions has a strong position. The temporary changes to the petroleum tax on the NCS is expected lead to record levels of projects being sanctioned in 2022, as well as into 2023. This portfolio of upcoming projects is expected to lead to predicable, high activity levels for the company over the next several years towards 2028.

In the market for renewables, the momentum continues to accelerate, supported by growing national ambitions in several countries and regions. Even so, renewables is currently a young and developing industry with some first-ofa-kind projects. Aker Solutions experiences that the current frameworks the industry operates under are not sustainable for the longer term. The company sees a clear need for change in the way authorities, operators and suppliers work together. To secure the future of the industry, authorities have a key role to play in order to develop a sustainable framework to increase predictability and improve risk-reward balance in the industry. There is also a clear need for more long-term thinking, to enable industrialization of the renewables industry, with a strong focus on standardization. This means Aker Solutions is re-focusing its strategy within Renewables. Going forward, the company will focus on customers who see the value of working in long-term partnerships, with aligned incentives and sustainable risk-reward balance, in order to achieve the best outcomes for all parties.

Tendering activity during the first half of 2022 has been very high, and Aker Solutions is currently bidding for contracts totalling about NOK 105 billion, with a good balance between segments and regions. Looking ahead, despite a dynamic environment, Aker Solutions sees increased market activity especially in the oil and gas segment boosted by the tax incentives in Norway to support the supplier industry.

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 pandemics, market risk, supply chain risks, 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, and further detailed information on inherent risks and uncertainties are provided in the annual report 2021.

In February 2022, Russia invaded Ukraine and the international response has been to drastically expand sanctions against Russia. One of the effects of this has been increased uncertainty for the global business environment in general, and for business in Russia in particular. Management has been handling this event and its development proactively, including sanctions and indirect impacts, and are taking actions to mitigate its effect on supply chain and other associated risks. The safety and security of employees is always a primary focus for Aker Solutions.

Pandemics

During 2020 and 2021, the global COVID-19 pandemic caused global disruption, with negative consequences for human health, global economy and for business enterprises in general, including Aker Solutions. It is difficult to predict the duration and full-scale consequences of pandemics. Although vaccination-levels have increased significantly in countries where Aker Solutions operate and societies have re-opened, future developments are difficult to predict. The company continues to cooperate closely with authorities, customers

and partners to monitor and mitigate the situation. However, as the restrictions are dynamic and evolving, it is difficult to estimate potential effects on the operations in 2022. A new negative development of the COVID-19 situation or other pandemics globally or in key countries or regions may have serious impact for Aker Solutions and for the energy industry at large. Pandemics and other natural disasters could also occur in the future and may impact Aker Solutions, please see Annual Report 2021 for further details and information.

Market Risks

The market outlook has improved during the first half of 2022, including increased oil and gas prices, and the market outlook remains positive overall. However, on the macro level there has been a dynamic environment, amplified by the war in Ukraine. Some of the principal factors that contribute to market risk are outlined below:

• n Instability in the world economy as a result of virus pandemics or risks related to civil or political unrest including war, including impacts such as supply chain disruptions.
• n Volatile oil and gas market, changes in supply, demand and storage having an adverse impact on energy prices which is likely to impact activity levels significantly.
• n Uncertainty regarding future contract awards and their impact on future earnings and profitability.

• n Increased volatility and uncertainty in current geopolitical and market situation may affect the speed and direction 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

• n Local content requirements, legislative restrictions and/or prohibitions on oil and gas activities in countries of existing or planned operations

• n Liabilities under environmental laws or regulations
• n These factors may influence oil price and oil companies' exploration, development, energy transition, production, investment, modification and maintenance activity.
• n Please see Annual Report 2021 for further details and information on market risks.

Climate Related Risks

Aker Solutions maps climate-related risks in accordance with the recommendations of the Financial Stability Board's Task Force on Climate-related Financial Disclosures (TCFD). The recommended disclosures and our responses can be found in the independent Climate Risk Review. The report summarizes climate-related risks (physical, regulatory/liability, technology, market and reputational) and opportunities for Aker Solutions and includes key findings, gaps and recommendations. These risks and potential impacts are covered in other chapters in this report and in more detail within the company's Annual Sustainability Reports.

Operational Risks

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:

• n The loss of business from a significant customer, the failure to deliver a significant project as agreed, or alterations to the order backlog.
• n The ability to compete effectively and maintain market positions and sales volumes.
• n The ability to successfully commercialize new technology, including within digitalization.
• n Partnerships, joint ventures and other types of cooperation that expose the company to risks and uncertainties outside its control.
• n Non-delivery and/or disputes with key supplier(s).

• n Delays or quality issues impacting project delivery or performance.

• n Cyber crime and cyber security issues leading to system downtime or significant loss of intellectual property.

• n Supply chain disruptions and prices of raw materials, longer lead times, capacity of fabrication years, logistics.
• n Labour markets and resources required to execute projects.
• n Please see Annual Report 2021 for further details and information on operational risks.

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 22 in the annual report 2021, and capital management is described in note 23. The main financial risks include currency risk, liquidity risk, interest rate risk, credit risk and price risk. Please see Annual Report 2021 for further details and information on financial risks.

Aker Solutions' financial position is solid. As at the second quarter of 2022, the company has a net cash position of NOK 3.1 billion. Net interest-bearing debt to EBITDA is robust at minus 1.8 times, well below the leverage covenants at 3.5 times. The liquidity reserve is healthy at NOK 10.0 billion, consisting of NOK 5.0 billion of cash and cash equivalents and NOK 5.0 billion of undrawn revolving credit facility. This represents a solid financial position and the liquidity risk is currently deemed to be low.

Aker Solutions is committed to an active policy of risk management. The company will take mitigating actions to increase flexibility in its operations, for instance by seeking to drive down costs, build a sustainable global workforce, and investing to develop as a leading supplier to sustainable energy solutions such as floating offshore wind, carbon capture and storage and low-carbon technologies. This is underpinned by a strong focus on industrialization standardization and continuous improvements. Please see Annual Report 2021 for further details and information on risk factors.

Fornebu, July 13, 2022

The Board of Directors and CEO of Aker Solutions ASA

Declaration by the Board of Directors and Chief Executive Officer

The Board and chief executive officer have today considered and approved the half-year results and financial statements for the Aker Solutions group for the period ended on June 30, 2022.

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 group.

To the best of our knowledge:

• n The half-year 2022 financial statements for the group have been prepared in accordance with IAS 34 Interim Financial Reporting.
• n The information provided in the financial statements gives a true and fair portrayal of the group's assets, liabilities, financial position and results taken as a whole as of June 30, 2022.
• n The Board of Directors report of the group provides a true and fair overview of the development, performance and financial position of the group taken as a whole, and the most significant risks and uncertainties facing the group.

Fornebu, July 13, 2022 Board of Directors of Aker Solutions ASA

Chairman Deputy Chairman Director Director

Tommy Angeltveit Rune Rafdal Line Småge Breidablikk Kjetel Digre

Hilde Karlsen Jan Arve Haugan Elisabeth Heggelund Tørstad Lone Fønss Schrøder Director Director Director Director

Leif-Arne Langøy Øyvind Eriksen Kjell Inge Røkke Birgit Aagaard-Svendsen

Director Director Director Chief Executive Officer

Figures and Notes

Aker Solutions Group

The half-year 2022 consolidated financial statements of Aker Solutions have been prepared in accordance with IAS 34 Interim Financial Reporting and should be read in conjunction with the 2021 Annual Report available at www.akersolutions.com. The financial statements include the combined financial performance and position of the merged companies Aker Solutions and Kværner based on the book-value method from the earliest period presented. The half-year financial statements are unaudited.

Consolidated Financial Statements

Income Statement	17
Other Comprehensive Income (OCI)	18
Balance Sheet	19
Cash Flow	20
Equity	21

Notes

Note 1 Company Information	22
Note 2 Basis of Preparation	22
Note 3 Revenue	23
Note 4 Operating Segments	24
Note 5 Finance Income and Expense	26
Note 6 Property, Plant and Equipment	27
Note 7 Intangible Assets and Goodwill	27
Note 8 Impairment of Assets	28
Note 9 Equity	29
Note 10 Borrowings	29
Note 11 Leases and Investment Property	30
Note 12 Provisions	31
Note 13 Related Parties	32
Note 14 Investment in Companies	33
Note 15 Business Combinations	34
Note 16 Subsequent events	35

Alternative Performance Measures 36

The subtotals and totals in some of the tables may not equal the sum of the amounts shown due to rounding.

Income Statement

Consolidated income statement

Amounts in NOK million	Note	1H 2022	1H 2021	2021
Revenue from customer contracts	3, 4	18,829	13,353	29,195
Other income	3, 11	97	138	278
Revenue and other income		18,926	13,490	29,473
Operating expenses		-17,675	-12,673	-27,631
Operating income before depreciation, amortization and impairment		1,251	817	1,842
Depreciation and amortization	6, 7	-539	-526	-1,097
Impairment	8	-11	-13	-52
Operating income		700	279	693
Interest income	5	62	182	242
Interest expenses	5	-186	-195	-383
Net other financial items	5	125	-22	-32
Income before tax		701	243	520
Income tax		-250	-157	-271
Net income		451	86	249
Net income attributable to:
Equity holders of the parent company		433	87	254
Non-controlling interests		18	-1	-5
Net income		451	86	249
Earnings per share in NOK (basic and diluted)	9	0.88	0.18	0.52

Other Comprehensive Income (OCI)

Consolidated statement of other comprehensive income

Amounts in NOK million	1H 2022	1H 2021	2021
Net income	451	86	249
Other Comprehensive income
Items that are or may be reclassified subsequently to profit or loss:
Cash flow hedges, effective portion of changes in fair value	129	-8	-153
Cash flow hedges, reclassified to income statement	-29	52	143
Cash flow hedges, deferred tax	-23	-13	11
Translation differences - foreign operations	519	4	-19
Total	596	35	-18
Items that will not be reclassified to profit or loss:
Remeasurements of defined pension obligations	0	0	-51
Remeasurements of defined pension obligations, deferred tax asset	0	0	11
Change in fair value of equity investments over OCI	-76	-18	-53
Total	-76	-18	-94
Other comprehensive income (loss), net of tax	520	16	-111
Total comprehensive income	970	103	138
Total comprehensive income (loss) attributable to:
Equity holders of the parent company	947	104	142
Non-controlling interests	23	-1	-4
Total comprehensive income	970	103	138

Balance Sheet

Consolidated statement balance sheet

Amounts in NOK million	Note	June 30, 2022	June 30, 2021	December 31, 2021
Assets
Non-current assets
Property, plant and equipment	6	3,424	3,397	3,231
Intangible assets including goodwill	7	6,101	5,768	5,724
Right-of-use assets and investment property	11	2,824	2,837	2,803
Deferred tax assets		671	500	581
Lease receivables	11	572	551	634
Investments in companies	14	94	296	262
Interest-bearing receivables		212	202	206
Other non-current assets		28	5	22
Total non-current assets		13,927	13,556	13,463
Current assets
Current tax assets		79	76	69
Inventories		229	280	293
Trade receivables		4,782	3,762	4,677
Customer contract assets and other receivables		4,648	3,632	3,713
Prepayments		1,652	1,507	1,774
Derivative financial instruments		502	290	175
Interest-bearing receivables		150	173	143
Cash and cash equivalents		5,026	3,459	4,560
Total current assets		17,068	13,179	15,405
Total assets		30,995	26,735	28,868

Amounts in NOK million	Note	June 30, 2022	June 30, 2021	December 31, 2021
Equity and liabilities
Equity
Share capital		532	532	532
Share premium		3,687	3,687	3,687
Reserves		1,612	1,278	1,186
Retained earnings		2,896	2,407	2,428
Total equity attributable to the parent	9	8,727	7,903	7,833
Non-controlling interests	9	64	37	28
Total equity		8,791	7,940	7,861
Non-current liabilities
Non-current borrowings	10	958	2,498	925
Non-current lease liabilities	11	3,942	4,183	4,056
Pension obligations		982	1,025	1,010
Deferred tax liabilities		517	336	333
Other non-current liabilities		25	2	4
Total non-current liabilities		6,423	8,043	6,327
Current liabilities
Current tax liabilities		55	59	69
Current borrowings	10	996	125	1,434
Current lease liabilities	11	707	649	692
Provisions	12	1,519	720	784
Trade payables		2,360	1,338	1,429
Other payables		7,790	6,206	7,372
Customer contract liabilities		1,974	1,332	2,656
Derivative financial instruments		380	323	242
Total current liabilities		15,781	10,752	14,679
Total liabilities		22,204	18,795	21,007
Total equity and liabilities		30,995	26,735	28,868

Cash Flow

Consolidated statement of cash flow

Amounts in NOK million	Note	1H 2022	1H 2021	2021
Cash flow from operating activities
Net income		451	86	249
Adjustment for:
Income tax		250	157	271
Net financial cost		48	33	173
(Profit) loss on foreign currency forward contracts		-48	3	0
Depreciation, amortization and impairment	6, 7, 8	551	539	1,149
Other (profit) loss on disposals and non-cash effects		121	-26	11
Net income after adjustments		1,372	791	1,853
Changes in operating assets and liabilities		307	89	1,252
Cash generated from operating activities		1,679	880	3,105
Income taxes paid		-123	-139	-306
Net cash from operating activities		1,556	741	2,799
Cash flow from investing activities
Interest received		51	176	220
Dividends received		1	4	7
Acquisition of property, plant and equipment	6	-124	-52	-218
Payments for capitalized development	7	-55	-62	-144
Acquisition of subsidiaries, net of cash	15	-118	0	0
Sale of subsidiaries, net of cash		0	0	-2
Proceeds from sale of property, plant and equipment		4	4	6
Change in interest-bearing receivables		-9	5	11
Sale of shares and funds		0	1	1
Cash collection from lease receivables	11	60	63	125
Net cash used in investing activities		-190	140	6

Amounts in NOK million	Note	1H 2022	1H 2021	2021
Cash flow from financing activities
Interest paid		-174	-172	-340
Proceeds from borrowings	10	0	30	0
Repayment of borrowings	10	-513	-118	-352
Payment of lease liabilities	11	-340	-321	-680
Acquisition of non-controlling interests		0	0	-31
Paid dividend		-97	0	-3
Other financing activities		0	-22	-18
Net cash from financing activities		-1,125	-603	-1,424
Net increase (decrease) in cash and cash equivalents		241	279	1,381
Cash and cash equivalents at the beginning of the period		4,560	3,171	3,171
Effect of exchange rate changes on cash and cash equivalents		225	9	8
Cash and cash equivalents at the end of the period		5,026	3,459	4,560

Equity Consolidated statement of changes in equity

Amounts in NOK million	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, 2021	532	3,687	0	2,386	-59	1,178	146	7,870	38	7,908
Net income	0	0	0	87	0	0	0	87	-1	86
Other comprehensive income	0	0	0	0	31	4	-18	16	0	16
Total comprehensive income	0	0	0	87	31	4	-18	104	-1	103
Sale (purchase) of treasury shares	0	0	-4	-61	0	0	0	-65	0	-65
Employee share purchase program	0	0	1	9	0	0	0	10	0	10
Other changes to equity	0	0	0	-15	0	0	0	-15	0	-15
Equity as of June 30, 2021	532	3,687	-4	2,407	-29	1,182	128	7,903	37	7,940
Equity as of December 31, 2021	532	3,687	-7	2,428	-58	1,159	93	7,833	28	7,861
Net income	0	0	0	433	0	0	0	433	18	451
Other comprehensive income	0	0	0	0	77	514	-76	515	5	520
Total comprehensive income	0	0	0	433	77	514	-76	947	23	970
Sale (purchase) of treasury shares	0	0	2	36	0	0	0	38	0	38
Employee share purchase program	0	0	0	5	0	0	0	5	0	5
Realization of equity investments	0	0	0	90	0	0	-90	0	0	0
Paid dividends	0	0	0	-97	0	0	0	-97	0	-97
Acquisition of subsidiaries with NCI	0	0	0	0	0	0	0	0	12	12
Other changes to equity	0	0	0	1	0	0	0	1	0	1
Equity as of June 30, 2022	532	3,687	-5	2,896	18	1,672	-73	8,727	64	8,791

Notes

Note 1 Company Information

Aker Solutions is a global provider of products, systems and services to the oil and gas and renewable industry. The company had about 14,300 own employees and was present in about 20 countries as of June 30, 2022. 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.

Note 2 Basis of Preparation

Statement of Compliance

Aker Solutions' half-year financial statements have been prepared in accordance with IAS 34 Interim Financial Reporting. The accounting principles used in the half-year financial statements are consistent with those used in the 2021 Annual Report. As the half-year financial statements do not include all the information and disclosures required in the annual report, they should be read in conjunction with the 2021 Annual Report available at www.akersolutions.com. The halfyear financial statements are unaudited, except the annual 2021 figures that have been derived from the audited annual financial statement.

Judgments and Estimates

The preparation of the half-year 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. In preparing these half-year financial statements, significant judgments made by management in applying the group's accounting policies and the key sources of uncertainty in the estimates were consistent with those described in the 2021 Annual Report available on www.akersolutions.com.

Note 3 Revenue

The following tables show the revenue from customer contracts by type and per country. Revenue figures include only external revenues. Revenue per country is based on location of the selling company.

Amounts in NOK million	1H 2022	1H 2021	2021
Renewables and Field Development	6,735	5,303	10,508
Electrification, Maintenance and Modifications	5,636	4,114	8,998
Subsea construction contracts	5,077	2,819	7,346
Subsea service contracts	1,274	1,111	2,321
Other	107	6	22
Total revenue from customer contracts (IFRS 15)	18,829	13,353	29,195
Operating lease revenue and other income	97	138	278
Total revenue	18,926	13,490	29,473

Amounts in NOK million	1H 2022	1H 2021	2021
Norway	15,111	10,241	23,069
USA	991	579	948
Brazil	641	410	1,029
UK	431	484	1,005
Malaysia	428	533	925
Brunei	330	351	664
Angola	353	261	555
Canada	330	226	475
Congo	56	61	104
India	43	103	196
Australia	44	56	125
Russia	8	0	4
Other countries	63	48	95
Total revenue from customer contracts	18,829	13,353	29,195
Other income (than customer contracts)	97	138	278
Total revenue	18,926	13,490	29,473

Note 4 Operating Segments

Aker Solutions is a global provider of equipment, systems and services to oil and gas and renewable energy industries. The company has three reporting segments.

Renewables and Field Development

The Renewables and Field Development segment serves the renewable business and pursues and executes projects within offshore wind, carbon capture as well as the market for traditional oil and gas platforms, engineering consulting services, onshore facilities, decommissioning and marine operations.

Electrification, Maintenance and Modifications

The Electrification, Maintenance and Modification segment provides solutions for the electrification of oil and gas infrastructures as well as onshore facilities, maintenance and modification services including asset integrity management for offshore facilities and services for offshore topsides, late-life and decommissioning activities.

Subsea

The Subsea segment provides market-leading intelligent subsea systems, products, services and low-carbon solutions used in oil & gas production. The segment provides design, engineering, procurement, manufacturing, fabrication, installation and life-of-field services for subsea systems and field infrastructure. The segment also provides extensive life-of-field services.

Other

The Other segment includes the acquired Rainpower business, unallocated corporate costs, leasing of property shared across segments and the effect of hedges not qualifying for hedge accounting.

Accounting principles

The accounting principles of the operating segments are generally the same as described in the annual report. As noted in the annual report, the operating segments apply hedge accounting independently of whether the hedge qualifies for hedge accounting or not in accordance with IFRS. When contract revenues and contract costs are denominated in a foreign currency, the subsidiary hedges the exposure against corporate treasury. A correction for the non-qualifying hedges and elimination of internal transactions are made in the consolidated financial statements. This means that the group's segment report reflects both internal and external hedges before any adjustment for non-qualifying hedges and before internal transactions are eliminated in the Other segment.

Segment Performance

Amounts in NOK million	1H 2022	1H 2021	2021
INCOME STATEMENT
Revenue
Renewables and Field Development	6,753	5,406	10,625
Electrification, Maintenance and Modifications	5,650	4,223	9,197
Subsea	6,368	3,953	9,712
Total operating segments	18,771	13,582	29,534
Other	203	53	204
Eliminations	-48	-145	-265
Total	18,926	13,490	29,473
Operating income before depreciation, amortization and impairment (EBITDA)
Renewables and Field Development	177	342	535
Electrification, Maintenance and Modifications	329	198	402
Subsea	954	395	1,244
Total operating segments	1,460	935	2,181
Other	-209	-117	-340
Total	1,251	817	1,842
Operating income (EBIT)
Renewables and Field Development	31	221	317
Electrification, Maintenance and Modifications	277	138	273
Subsea	659	96	627
Total operating segments	967	455	1,217
Other	-267	-176	-524
Total	700	279	693

Amounts in NOK million	1H 2022	1H 2021	December 31, 2021
BALANCE SHEET
Net current operating assets (NCOA)
Renewables and Field Development	-539	-507	-795
Electrification, Maintenance and Modifications	140	412	-111
Subsea	-1,274	643	-275
Total operating segments	-1,673	548	-1,181
Other	-635	-946	-602
Total	-2,307	-398	-1,784

Refer to alternative performance measure for further information on NCOA.

Note 5 Finance Income and Expense

Amounts in NOK million	1H 2022	1H 2021	2021
Interest income from lease receivables	14	15	35
Other interest income	48	166	208
Interest income	62	182	242
Interest expense on lease liability	-99	-103	-204
Interest expense on financial liabilities measured at amortized cost	-78	-86	-169
Interest expense on financial liabilities measured at fair value	-10	-5	-10
Interest expense	-186	-195	-383
Net foreign exchange gain (loss)	84	-3	30
Profit (loss) on foreign currency forward contracts	46	-17	-11
Other finance income	3	11	14
Other financial expenses	-9	-13	-65
Net other finance items	125	-22	-32
Net finance cost	1	-35	-173

Note 6 Property, Plant and Equipment

Amounts in NOK million	Buildings and sites	Machinery and equipment	Under construction	Total
Balance as of December 31, 2021	1,616	1,375	239	3,231
Additions	1	3	120	124
Reclassifications from assets under construction	12	62	-74	0
Depreciation	-42	-180	0	-223
Impairment	-2	0	0	-2
Acquisitions through business combinations	34	4	0	38
Disposals and scrapping	0	-3	0	-3
Currency translation differences	132	107	20	259
Balance as of June 30, 2022	1,751	1,368	306	3,424

Note 7 Intangible Assets and Goodwill

Amounts in NOK million	Capitalized development	Goodwill	Other	Total
Balance as of December 31, 2021	869	4,840	16	5,724
Additions from internal development	55	0	0	55
Amortization	-105	0	-3	-109
Impairment	-3	0	0	-3
Acquisitions through business combinations	35	284	84	404
Currency translation differences	26	4	0	29
Balance as of June 30, 2022	876	5,127	97	6,101

Refer to note 15 for more information about acquisitions.

Note 8 Impairment of Assets

The energy landscape has evolved significantly during the first half of 2022, as energy markets were strongly impacted by the tragic war in the Ukraine. This has amplified several trends, including increased commodity prices, broad-based inflation, and global supply chain constraints. Despite these macro challenges, the market outlook for Aker Solutions remains positive. Aker Solutions has completed the assessment of impairment indicators and performed impairment tests for those assets and cash generating units (CGUs) where impairment indicators have been identified. In first-half 2022, net impairment of individual assets of NOK 11 million was recognized. In 2021, Aker Solutions recognized net impairment losses of NOK 52 million, of which NOK 13 million was recognized in firsthalf of the year.

The table below summarizes the impairments identified in the individual asset and CGU testing:

		Renewables & Field Development			Electrification, Maintenance & Modifications			Subsea			Other			Total
Amounts in NOK million	1H 2022	1H 2021	2021	1H 2022	1H 2021	2021	1H 2022	1H 2021	2021	1H 2022	1H 2021	2021	1H 2022	1H 2021	2021
Impairment of intangible assets	3	0	20	0	0	0	0	3	3	0	9	9	3	11	32
Impairment of property, plant and equipment	0	0	-9	0	0	0	0	0	1	2	0	37	2	0	29
Impairment of right-of-use assets	0	0	-49	0	0	1	0	-5	-2	6	7	41	6	2	-9
Total impairment	3	0	-37	0	0	1	0	-3	2	8	15	87	11	13	52

Note 9 Equity

Aker Solutions ASA was founded May 23, 2014. After the merger with Kværner ASA on November 10, 2020 the new share capital was NOK 531,540,456 divided into 492,167,089 shares, each having a nominal value of NOK 1.08 as of June 30, 2022. All issued shares are fully paid.

Aker Solutions ASA holds 4,711,707 treasury shares as of June 30, 2022. The group purchases its own shares (treasury 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 489,041,759 shares outstanding June 30, 2022.

The General Meeting on April 7, 2022 approved distribution of a dividend of NOK 0.20 per share which was proposed by the Board of Directors. The dividend was paid April 21, 2022.

Note 10 Borrowings

Interest bearing borrowings are recognized initially at fair value less transaction costs and subsequent at amortized cost.

Amounts in NOK million	Maturity	June 30, 2022	June 30, 2021	December 31, 2021
Bond - ISIN NO 0010814213	July 2022	912	1,505	1,404
Bond - ISIN NO 0010853286	June 2024	943	995	931
Brazilian Development Bank EXIM and capex loans	Within one year	8	109	23
Brazilian Development Bank EXIM and capex loans	More than one year	0	14	4
Revolving Credit Facility (NOK 5,000 million)1	March 2023	-4	-10	-6
Other loans and amortization effects		94	9	3
Total borrowings		1,954	2,622	2,359
Current borrowings		996	125	1,434
Non-current borrowings		958	2,498	925
Total borrowings		1,954	2,622	2,359

1) The carrying amount includes fees for establishing the credit facility which is deferred according to the amortized cost method

Borrowings are measured at amortized cost, and interest rate variations will not affect the valuation as they are held to maturity. The bonds were issued in the Norwegian bond market. The fair value of the bonds were NOK 1,850 million per June 30, 2022, compared to carrying amount of NOK 1,855 million. The fair value of the bonds were NOK 2,419 million per June 30, 2021, compared to carrying amount of NOK 2,499 million. Aker Solutions has re-purchased NOK 564 million of the bond maturing in 2022 whereof NOK 460 million in the first half of 2022.

As of June 30, 2022 Aker Solutions is in compliance with financial covenants in all loan agreements.

Note 11 Leases and Investment Property

The company leases a number of office buildings in addition to manufacturing and service sites. The company also leases machines and vehicles. All contracts that contain a lease are recognized on the balance sheet as a right-of-use asset and lease liability, except short-term and low-value leases. The right-of-use asset is depreciated over the lease term and is subject to impairment testing. Subleases covering the major part of the lease term in the head-lease are classified as finance subleases.

In June 2022, Aker Solutions signed a long-term lease agreement with owner and real estate developer Hinna Park Utvikling for modern and energy-efficient offices in Stavanger. The new office complex will be located near the leaning tower in Jåttåvågen. The lease has a duration of 10 years from July 1, 2025, or earlier if the parties agree on that. Aker Solutions has an option to extend the lease term for four periods of five years, in total 20 years. Annual lease cost is NOK 35 million in current prices, plus common costs.

The movement in the right-of-use assets and lease liabilities during the period is summarized below.

	Land and	Investment	Machinery, vehicles and		Lease	Lease receivable
Amounts in NOK million	building	property	other	Total	liabilities	(sublease)
Balance as of December 31, 2021	2,130	658	16	2,803	4,748	767
Additions and remeasurement	167	0	1	168	168	0
De-recognition	-43	0	0	-43	-74	-25
Depreciation expense	-183	-22	-3	-208	n/a	n/a
Impairments	18	-24	0	-6	n/a	n/a
Interest expense/sublease interest income	n/a	n/a	n/a	n/a	99	14
Lease payments/sublease payments	n/a	n/a	n/a	n/a	-439	-70
Additions through business combinations	64	0	1	64	64	0
Currency translation differences	34	11	0	46	83	17
Balance as of June 30, 2022	2,186	623	15	2,824	4,649	703

Note 12 Provisions

Amounts in NOK million	Warranties	Onerous contracts	Other	Total
Balance as of December 31, 2021	399	79	306	784
Change in the period	60	439	204	704
Currency translation	13	5	13	31
Balance as of June 30, 2022	472	523	523	1,519

Refer to note 3 for more information about revenue and other income.

Related Party Transactions Included in Income statement

Amounts in NOK million	1H 2022	1H 2021	2021
Operating revenues	185	135	373
Operating costs	-222	-239	-657
Depreciation and impairment of ROU assets	-26	-22	3
Net financial items	5	-10	13

Related Party Transactions Included in Balance Sheet

Amounts in NOK million	June 30, 2022	June 30, 2021	December 31, 2021
Right-of-use (ROU) assets	568	530	593
Trade receivables	77	139	76
Non-current interest-bearing receivables	209	198	202
Current interest-bearing receivables	19	50	10
Non-current borrowings	0	-6	0
Non-current leasing liabilities	-652	-666	-678
Trade payables	-129	-20	0
Current interest-bearing loans	0	-1	0
Current leasing liabilities	-52	-41	-50

Note 13 Related Parties

Aker Solutions is an associate of Aker ASA, and entities controlled by Aker ASA and entities which Kjell Inge Røkke and his close family controls through The Resource Group TRG AS are considered related parties to Aker Solutions. Related party relationships also include entities under joint control or significant influence by Aker Solutions. Related parties are in a position to enter into transactions with the company that would potentially not be undertaken between unrelated parties. All transactions in the Aker Solutions group with related parties have been based on arm's length terms.

Aker Solutions has several transactions with related parties on a recurring basis as part of normal business and leases property from related parties. The following tables present a summary of transactions included in the income statement and balances between Aker Solutions group and its related parties.

In second quarter Aker Solutions acquired Rainpower from Aker Horizons.

Refer to note 15 for more information about the acquisition of Rainpower.

Note 14 Investment in Companies

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 voting power). Interests in associates and joint ventures are accounted for using the equity method.

Other investments relate to shares in listed and unlisted companies where ownership is below 20 percent. The ownership in the listed companies are measured at their market value with changes over OCI as they are long-term strategic investments. The result recognized in OCI for first-half 2022 was a loss of NOK 76 million (loss of NOK 18 million in first-half 2021) and a loss of NOK 53 million for full year 2021. In May, 2022, Aker Solutions acquired Rainpower from related party Aker Horizons. The transaction was settled in shares in Aker Carbon Capture worth NOK 100 million at the date of the transaction. The gain on the Aker Carbon Capture shares of NOK 90 million has been transferred to retained earnings. Unlisted shares are usually measured at cost less impairment, as this is assumed to be the best estimate of fair value.

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

Amounts in NOK million	June 30, 2022	June 30, 2021	December 31, 2021
Joint Ventures and Associates	67	58	58
Other investments	28	239	203
Total investment in companies	94	296	262

Note 15 Business Combinations

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.

NOK 104 million cash was paid to the selling shareholders at the acquisition date. Aker Solutions has included a liability of NOK 22 million as deferred consideration to be paid in cash in first half year 2024. The total consideration of NOK 126 million represents the fair value at the acquisition date. Transaction costs related to the acquisition were insignificant.

In addition to the total consideration there is a contingent consideration arrangement based on future EBITDA performance of Unitech. The range of this element is NOK nil to NOK 20 million. Updated forecasts are used to estimate a potential contingent consideration

The purchase price allocation shows excess values of NOK 85 million to goodwill, NOK 31 million to customer relationships and NOK 3 million to other intangible assets. Goodwill resulting from the transaction is mainly attributable to value of assembled workforce and expected synergies from Unitech being part of a global company.

Rainpower

On May 10, 2022, Aker Solutions acquired 100 percent of the shares and voting rights of the Norwegian company Rainpower. 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 Rainpower 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 instalments or scheduled maturity date. As Rainpower 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 in the purchase price allocation and has been classified as non-controlling interests within equity.

The purchase price of NOK 100 million was settled in financial instruments, being shares in Aker Carbon Capture. Aker Solutions took over Rainpower's cash and debt. In additional there is a discretionary element which may bring the purchase price to NOK 150 million. Transaction costs related to the acquisition were insignificant.

A preliminary purchase price allocation shows excess values of NOK 181 million to goodwill and NOK 50 million to customer relationships. Goodwill resulting from the transaction is mainly attributable to value of assembled workforce and expected synergies from Rainpower being part of a larger organization with extensive project execution experience.

Frontica Engineering

On June 30, 2022, Aker Solutions acquired 100 percent of the shares and voting rights of the Norwegian company Frontica Engineering. The engineering company is serving the offshore energy sector in the domestic and international markets and has a multidisciplinary staff of around 50 individuals. NOK 18 million was paid in cash for the company. A preliminary purchase price allocation shows excess values of NOK 18 million to goodwill.

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 or 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 the periods.

Profit Measures continues on next page

Profit Measures cont.

	Renewables & Field Development				Electrification, Maintenance & Modifications			Subsea			Other			Aker Solutions
Amounts in NOK million	2Q 2022	2Q 2021	1H 2022	1H 2021	2Q 2022	2Q 2021	1H 2022	1H 2021	2Q 2022	2Q 2021	1H 2022	1H 2021	2Q 2022	2Q 2021	1H 2022	1H 2021	2Q 2022	2Q 2021	1H 2022	1H 2021
Revenue	3,958	2,655	6,753	5,406	3,160	2,360	5,650	4,223	3,386	2,046	6,368	3,953	132	-42	155	-91	10,635	7,020	18,926	13,490
Non-qualifying hedges	0	0	0	0	0	0	0	0	0	0	0	0	-54	-1	-44	-3	-54	-1	-44	-3
(Gain) loss on sale of PPE	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0
Sum of special items excluded from revenue	0	0	0	0	0	0	0	0	0	0	0	0	-54	-1	-44	-3	-54	-1	-44	-3
Revenue ex. special items	3,958	2,655	6,753	5,406	3,160	2,360	5,650	4,223	3,386	2,046	6,368	3,953	78	-43	111	-95	10,581	7,018	18,882	13,487
EBITDA	76	94	177	342	189	124	329	198	525	224	954	395	-137	-53	-209	-117	653	388	1,251	817
(Gain) loss sale of PPE	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0
Restructuring cost	0	1	1	1	0	2	0	4	0	0	1	1	0	0	0	0	0	3	1	6
Non-qualifying hedges	0	0	0	0	0	0	0	0	0	0	0	0	32	-2	14	-9	32	-2	14	-9
Other special items	0	0	0	0	0	0	0	0	0	0	0	0	6	3	8	5	6	3	8	5
Sum of special items excluded from EBITDA	0	1	1	1	0	2	0	4	0	0	1	1	38	1	22	-4	38	4	23	2
EBITDA ex. special items	76	95	178	343	189	126	329	202	525	224	954	396	-99	-53	-187	-121	691	392	1,274	820
EBITDA margin	1.9%	3.5%	2.6%	6.3%	6.0%	5.2%	5.8%	4.7%	15.5%	10.9%	15.0%	10.0%					6.1%	5.5%	6.6%	6.1%
EBITDA margin ex. special items	1.9%	3.6%	2.6%	6.3%	6.0%	5.3%	5.8%	4.8%	15.5%	11.0%	15.0%	10.0%					6.5%	5.6%	6.7%	6.1%
EBIT	0	28	31	221	163	94	277	138	377	69	659	96	-171	-81	-267	-176	369	110	700	279
Sum of special items excluded from EBITDA	0	1	1	1	0	2	0	4	0	0	1	1	38	1	22	-4	38	4	23	2
Impairments	3	0	3	0	0	0	0	0	0	3	0	-3	8	9	8	15	11	11	11	13
Sum of special items excluded from EBIT	3	1	4	1	0	2	0	4	0	3	1	-2	46	9	30	12	49	16	35	15
EBIT ex. special items	3	29	35	222	163	96	277	142	377	72	659	94	-125	-71	-236	-164	418	126	735	294
EBIT margin	0.0%	1.0%	0.5%	4.1%	5.1%	4.0%	4.9%	3.3%	11.1%	3.4%	10.3%	2.4%					3.5%	1.6%	3.7%	2.1%
EBIT margin ex. special items	0.1%	1.1%	0.5%	4.1%	5.1%	4.1%	4.9%	3.4%	11.1%	3.5%	10.4%	2.4%					4.0%	1.8%	3.9%	2.2%

Profit Measures continues on next page

Profit Measures cont.

		Aker Solutions
Amounts in NOK million	2Q 2022	2Q 2021	1H 2022	1H 2021
Net income	276	60	451	86
Sum of special items excluded from EBIT	49	16	35	15
Non-qualifying hedges	-83	-7	-48	3
Tax effects on special items	-11	-2	-6	-4
Net income ex. special items	231	66	431	100
Net income to non-controlling interests	-7	1	-18	1
Net income ex. non-controlling interests	224	67	413	101
Average number of shares (in '000)	489,042	491,472	489,042	491,472
Earnings per share1	0.55	0.12	0.88	0.18
Earnings per share ex. special items2	0.47	0.14	0.85	0.21

1) Earnings per share is calculated using Net income, adjusted for non-controlling interests, divided by average number of shares

2) 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 growth in 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 the Services segment, 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 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.

	2Q 2022			1H 2022		2Q 2021			1H 2021
Amounts in NOK million	Order intake	Revenue from customer contracts	Book-to-bill	Order intake	Revenue from customer contracts	Book-to-bill	Order intake	Revenue from customer contracts	Book-to-bill	Order intake	Revenue from customer contracts	Book-to-bill
Renewables & Field Development	6,040	3,958	1.5x	7,583	6,752	1.1x	1,231	2,568	0.5x	3,861	5,318	0.7x
Electrification, Maintenance & Modifications	3,858	3,160	1.2x	8,317	5,650	1.5x	2,202	2,360	0.9x	6,270	4,223	1.5x
Subsea	3,686	3,384	1.1x	4,780	6,365	0.8x	8,829	2,045	4.3x	11,618	3,947	2.9x
Other/eliminations	64	88		7	62		-29	-59		-72	-136
Aker Solutions	13,647	10,590	1.3x	20,686	18,829	1.1x	12,232	6,914	1.8x	21,676	13,353	1.6x

Financing Measures

Liquidity buffer

Alternative financing and equity measures are presented as they are indicators of the company's ability to obtain financing and service its debts.

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.

(liquidity reserve)	cash equivalents and the unused credit facility.
Amounts in NOK million		June 30, 2022	June 30, 2021

is a measure of available cash and is calculated by adding together the cash and

Liquidity buffer/reserve	10,026	8,459
Credit facility (unused)	5,000	5,000
Cash and cash equivalents	5,026	3,459

Amounts in NOK million	June 30, 2022	June 30, 2021
Current tax assets	79	76
Inventory	229	280
Customer contract assets and other receivables	4,648	3,632
Trade receivables	4,782	3,762
Prepayments	1,652	1,507
Current tax liabilities	-55	-59
Provisions	-1,519	-720
Trade payables	-2,360	-1,338
Other payables	-7,790	-6,206
Customer contract liabilities	-1,974	-1,332
Net current operating assets (NCOA)	-2,307	-398

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.

Amounts in NOK million	June 30, 2022	June 30, 2021
Equity	8,791	7,940
Total assets	30,995	26,735
Equity ratio	28.4%	29.7%

Net interest-bearing debt to EBITDA (leverage ratio)

Net interest-bearing debt to EBITDA (leverage ratio) is a key financial measure that is used to assess the borrowing capacity of a company. The ratio shows how many years it would take for a company to pay back its debt if net debt and EBITDA are held constant. The ratio is one of the debt covenants of the company.

The ratio is calculated as net interest-bearing debt (total principal debt outstanding less unrestricted cash) divided by EBITDA. If a company has more cash than debt, the ratio can be negative. The leverage ratio for Aker Solutions does not include the effects of IFRS 16 Leasing, as the debt covenants are based on frozen GAAP.

Further, the EBITDA is calculated based on the last four quarter period and it excludes certain special items as defined in the loan agreements, such as restructuring of offices (onerous leases) and other restructuring costs.

Amounts in NOK million	June 30, 2022	June 30, 2021
Non-current borrowings	958	2,498
Current borrowings	996	125
Cash and cash equivalents	-5,026	-3,459
Net interest-bearing debt	-3,072	-837
Trailing four quarters:
EBITDA	2,275	1,977
IFRS 16 effects excl. onerous lease cost	574	510
EBITDA excl. IFRS 16 effects and onerous lease cost	1,701	1,467
Restructuring cost	0	249
Non-qualifying hedges	20	-14
Gain on non-cash dividend distribution and sale of PPE	16	-853
Net operating cost, divested businesses	0	23
Adjusted EBITDA	1,738	872
Net interest-bearing debt to EBITDA (leverage ratio)	-1.8	-1.0

COPYRIGHT AND LEGAL NOTICE

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.