Aker

Earnings Release • Feb 17, 2023

Fourth Quarter and Preliminary Annual Results 2022

17 February 2023

4Q 2022 | Key Highlights

• ^◼ Net Asset Value: decreased 3.1% in the quarter to NOK 66.9 billion. The per-share NAV amounted to NOK 900. The NAV return was minus 1%, dividend adjusted, in 2022
• ^◼ Return: The Aker share price increased 4.0% in the quarter, dividend adjusted, to NOK 719.50 vs. OSEBX up 7.8% and the Brent price up 0.5%. The share price decreased 9.3%, dividend adjusted, in 2022 vs. OSEBX down 1.0%, S&P 500 down 19.4%, and Brent up 8.8%
• ^◼ Liquidity reserve: NOK 6.4 billion, with cash and liquid fund investments of NOK 1.3 billion
• ◼ Aker
  • ^◼ Total dividends paid in 2022 of NOK 29.0 per share for 2021. The Board proposes NOK 15.0 per share for 2022 to be paid in the first half of 2023 as well as authorization to pay additional dividend in the second half 2023
  • ^◼ Invested NOK 155 million for 25.3% ownership in the post-smolt salmon producer Gaia Salmon
  • ^◼ Successfully issued two new senior unsecured green bonds of NOK 500 million each, with a tenure of 7 years and 10 years respectively
• ^◼ Aker BP
  • ^◼ Submitted 10 PDOs with total investments estimated at more than USD 19 billion, for projects with total recoverable resources of 730 million net barrels of oil equivalents
  • ^◼ Production from Johan Sverdrup Phase 2 started in December
• ^◼ Aker Solutions
  • ^◼ Won all-time-high high order intake of NOK 59 billion in the quarter, bringing the total order backlog to a record high NOK 97 billion, securing solid visibility for the next several years
• ◼ Cognite
  • ^◼ Formed a strategic partnership with Rockwell Automation, the world's largest company dedicated to industrial automation and digital transformation

4Q 2022 | Net Asset Value down 3.1% to NOK 66.9 billion

Net Asset Value change in 4Q 2022

Net Asset Value change in 2022 (NOK billion)

4Q 2022 | NAV per share NOK 900, value adjusted equity 88%

Net asset value (NAV) composition (NOK billion)

4Q 2022 | Aker ASA – Portfolio composition

Portfolio composition, per 4Q 2022 (NOK billion)

					Listed investments Unlisted investments
Industrial Holdings			Financial Investments
	Aker BP	21.2%	40.7	1.3	Cash
	Aker Solutions	39.4%	7.3	2.5	Listed financial investments
	Aker Horizons	67.3%	6.0	1.0	Real Estate Investments2)
	Aker BioMarine	77.8%	2.6	6.4	Other financial investments2)
	1) Cognite	50.6%	6.7
	2) Aker Energy	50.8%	1.0
	SalMar Aker Ocean	2) 15.0%	0.7
	Aize 2)	73.0%	0.0
Gross asset value (GAV)			64.9	11.2
Net asset value (NAV)				66.9

Gross asset value (GAV) composition 4Q 2022 (3Q 2022)

1) Value reflecting the transaction value following Series B investment by TCV, and confirmed in the Aker BP/Saudi Aramco transaction February 2, 2022

2) Reflected at book value

4Q 2022 | Listed Industrial Holdings – Key Highlights

• Impairments in the quarter amounted to USD 636 million, of which USD 499 million was related to Wisting 4Q return

  • Submitted 10 Plans for Development and Operation (PDOs) for projects with recoverable resources of 730 mmboe in total. The company's share of the investments is estimated to USD 19 billion. The average break-even oil price for these developments is estimated to USD 35-40 per barrel
  • Disbursed dividends of USD 332 million in November, equivalent to USD 0.525 per share. For Aker ASA this represented NOK 730 million in dividend received from Aker BP in the quarter

• In South Africa, Mainstream and its Ikamva Consortium signed project agreements for six solar plants, with a combined capacity of 450 MW

• In Chile, more than 1 GW was connected to the grid as Mainstream reached a significant milestone in the delivery of its 1.4 GW Andes Renovables platform
• In Scotland, Mainstream signed the 1.8 GW ScotWind seabed lease agreement, with Crown Estate Scotland, for the development of a floating offshore wind farm
  • In the Philippines, Mainstream signed a JV with Aboitiz Power Corporation, one of the Philippines' leading providers of renewable energy, to initially deliver the 90 MW Libmanan onshore wind farm
  • In the UK, Aker Carbon Capture was elected by Viridor as partner on a pre-FEED study for the major Runcorn CCS project, which will be one of the first large scale carbon capture projects at an energy-from-waste facility in the world

10%

53%

-1.0%

December

• Delivered revenues of NOK 12.5 billion in the quarter, with an adjusted EBITDA of NOK 999 million or a margin of 8%
• Won all-time-high order intake of NOK 59.3 billion, bringing the order backlog to a record high NOK 97.3 billion, securing solid visibility for the next several years
• Secured multiple contracts from Aker BP totaling around NOK 50 billion for the field development projects Yggdrasil, Valhall PWP-Fenris and Skarv Satellites, all to be executed in the well-proven Aker BP alliance models 4Q return -1.9%
  • Signed a letter of intent with Okea for the substantial Draugen Electrification project
  • Won a five-year frame agreement from Petrobras to provide subsea production systems and lifecycle services offshore Brazil
  • Won a contract to provide the subsea production system for Wintershall DEA's Dvalin North development on NCS
  • Signed extensions on existing MMO frame agreements with Equinor and Aker BP

3%

4Q return -15.2%

• Reported revenues of USD 79 million in the fourth quarter and an adjusted EBITDA of USD 21 million
  • Offshore production volumes in 2022 improved from previous years with total krill meal volumes at 52.0 MT, which was 19% above the 43.8 MT produced in 2021
• Initiated an improvement program with the aim to streamline operations, improve margins and cut cost, to increase robustness for future growth. The implementation started early 2023
  • Submitted an application to conduct research in Norway within salmon farming and aquafeed in partnership with LetSea and Nofima, with the goal to increase the share of krill used in fish feed formulations

Doughnut charts represent share of Aker's Gross Asset Value (GAV) in percent Return in the quarter includes dividend received

4Q 2022 | Non-listed Industrial Holdings – Key Highlights

Industrial software and digitalization portfolio E&P company in Ghana

• Reported NOK 264 million in revenues in the quarter, a 51% increase compared to the same period last year
• Formed a strategic partnership with Rockwell Automation, the world's largest company dedicated to industrial automation and digital transformation
• Secured several new customers across industrial verticals and geographies, including multi-year agreements with Celanese and B.Braun, two new flagship manufacturing segment customers
• Secured a new long-term agreement to further accelerate digitalization across Equinor

• Landed a significant SaaS agreement with a new Japanese manufacturing customer

• Reported NOK 102 million in revenues in the quarter, compared to NOK 114 million last year

• The 2022 full-year revenue increased by 7% from the previous year to NOK 378 million
• Signed a 1-year SaaS agreement with a global oil major for 7 assets across the UK and West Africa in the quarter
• Signed a continuation of the strategic partnership agreement between Aker BP, Aker Solutions and Aize, securing development funding towards Aize's core product Aize Digital Workspace moving forward

• Aker Energy has completed FEED and prepared a revised Plan of Development ("POD") for the Deepwater Tano/Cape Three Points block
• POD submission has been delayed due to the uncertainties and risks caused by the war in Ukraine and Lukoil Overseas Ghana Tano Ltd.'s 38 percent interest in the license, as well as supply chain disruptions and inflation. The current POD deadline has been extended to April 2023
• The company is considering strategic alternatives in response to the challenges, which is expected to be clarified by the new POD deadline

Seafood

• Maintenance and upgrade of Ocean Farm 1 is progressing according to plan at Aker Solutions' yard in Verdal, with next production cycle planned to start in second quarter 2023
• In conjunction with Aker's direct investment in Gaia Salmon, SAO signed a non-binding agreement with Gaia Salmon for the delivery of post-smolt for offshore salmon farming
• Submitted a public hearing response to the Norwegian authorities regarding the proposed resource rent tax
• Working towards FID on a new semi-offshore unit "Ocean Farm 2" and working on design of the "Smart Fish Farm" offshore unit, where both projects have been delayed due to the proposed resource rent tax in Norway

Financial Investments

Total Financial Investments as share of Gross asset value

per 31.12.2022

Cash

Listed financial investments

• Real estate
• Other financial investments

Financial Investments 4Q 2022 | Cash

Cash as share of Gross asset value per 31.12.2022

▪ Total liquidity reserve of NOK 6.4 billion, including undrawn credit facilities

Cash down 1.2 billion in the quarter to 1.3 billion (NOK)

+1,000 million	issuance of new unsecured green bonds
+752 million	cash dividend received
+309 million	settlement of AMSC TRS-agreement
-1,581 million	debt repayment
-1,077 million	dividend payment
-316 million	loans and investments in portfolio companies
-194 million	operating expenses and net interest

Financial Investments 4Q 2022 | Listed financial investments

Listed financial investments as share of Gross asset value

per 31.12.2022

Developments in the quarter

• Value increase of investments in Solstad Offshore and Akastor of NOK 347 million and NOK 58 million
• Value decrease of investment in Philly Shipyard of NOK 10 million
• Value increase for AMSC equity investment of NOK 193 million
• Dividend income from AMSC of NOK 43 million (shares and TRS)
• The AMSC TRS rolled forward in November with cash release of NOK 309 million

Aker's listed financial investments

NOK million	2Q 22	3Q 22	4Q 22
Akastor	838	869	927
Philly Shipyard	389	339	329
AMSC (excl. TRS)	474	405	598
Solstad Offshore	571	331	678
Total value	2 272	1 943	2 532
AMSC TRS*	175	72	(44)
*) Included in interest-free liabilities if negative and other financial investments if positive

Financial Investments 4Q 2022 | Real estate and Other financial investments

Real estate and Other as share of Gross asset value per 31.12.2022

Developments in the quarter

• Investment in Gaia Salmon Holding of NOK 155 million
• Value decrease of investment in Abelee of NOK 170 million
• Interest-bearing receivables include a NOK 2 billion loanand a NOK 1.2 billion convertible loan to Aker Horizons

Aker's real estate and other financial investments

NOK million	2Q 22	3Q 22	4Q 22
Real estate	958	973	973
Interest-bearing receivables	4 064	4 169	4 172
Other equity investments	1 182	1 427	1 389
Fixed and other interest-free assets	1 002	908	883
Total value	7 206	7 479	7 417

Financial Statements

Aker ASA and holding companies

4Q 2022 | Balance sheet at 31.12.2022

(after dividend allocation of NOK 15.0 per share)

Main changes in the quarter

• Cash holdings decreased to NOK 1.3 billion
• Book value of investments decreased by NOK 430 million
  • Mainly driven by negative value adjustment in Aker BioMarine of NOK 463 million, Aker Horizons of NOK 411 million and Abelee of NOK 170 million, partly offset by positive value adjustment of NOK 347 million in Solstad Offshore and investment in Gaia Salmon of NOK 155 million
• Fair value adjustment decreased by NOK 1.2 billion to NOK 42.1 billion
  • Mainly driven by negative value adjustment in Aker BP of NOK 1.1 billion and Aker Solutions of NOK 144 million, offset by positive value adjustment in AMSC of NOK 116 million

Total Assets Total Equity and Liabilities

	Book value	Value-adjusted
Equity (MNOK)	23 685	65 746
Equity ratio	70%	86%
Equity per share	NOK 319	NOK 885

Aker ASA and holding companies 4Q 2022 | Interest-bearing items as of 31.12.2022

Interest-bearing items per 31.12.2022 Net interest-bearing debt of NOK 3.2 billion 6 7 5 8 9 1.3 NOK billion 5.8 9.0

Interest-bearing debt

Full details on interest-bearing items and loans: www.akerasa.com/en/investors/treasury

0

1

2

4.5

3

4

Debt maturity profile

per 31.12.2022

Short-term debt S-2 Senior unsecured debt BBB-

Aker ASA and holding companies 4Q 2022 | Income statement

Income statement

NOK million	4Q 2021	3Q 2022	4Q 2022	Year 2021	Year 2022
Operating revenues	4 072	-	-	4 072	-
Operating expenses	(141)	(82)	(85)	(369)	(370)
EBITDA	3 931	(82)	(85)	3 703	(370)
Depreciation and impairment	(8)	(8)	(8)	(31)	(32)
Value change	915	(1 507)	(711)	6 858	(4 114)
Net other financial items	528	508	926	1 903	2 602
Profit before tax	5 365	(1 088)	121	12 433	(1 913)

Disclaimer

• This Document includes and is based, inter alia, on forward-looking information and statements that are subject to risks and uncertainties that could cause actual results to differ. These statements and this Document are based on current expectations, estimates and projections about global economic conditions, the economic conditions of the regions and industries that are major markets for Aker ASA and Aker ASA's (including subsidiaries and affiliates) lines of business. These expectations, estimates and projections are generally identifiable by statements containing words such as "expects", "believes", "estimates" or similar expressions. Important factors that could cause actual results to differ materially from those expectations include, among others, economic and market conditions in the geographic areas and industries that are or will be major markets for Aker's businesses, oil prices, market acceptance of new products and services, changes in governmental regulations, interest rates, fluctuations in currency exchange rates and such other factors as may be discussed from time to time in the Document. Although Aker ASA believes that its expectations and the Document are based upon reasonable assumptions, it can give no assurance that those expectations will be achieved or that the actual results will be as set out in the Document. Aker ASA is making no representation or warranty, expressed or implied, as to the accuracy, reliability or completeness of the Document, and neither Aker ASA nor any of its directors, officers or employees will have any liability to you or any other persons resulting from your use.
• The Aker group consists of many legally independent entities, constituting their own separate identities. Aker is used as the common brand or trademark for most of this entities. In this document we may sometimes use "Aker", "Group, "we" or "us" when we refer to Aker companies in general or where no useful purpose is served by identifying any particular Aker company.