Fjordkraft Holding ASA and the Fjordkraft Group

Quarterly report - Q2 2021

www.investor.fjordkraft.no

Q2 Highlights

• 24% YoY increase in net revenue and 14% YoY increase in EBIT adj.

• # of deliveries in the Consumer, Business and Nordic segments decreased by 1,959 in the quarter

This is an improvement of 15,292 vs. the development in Q1 2021
In Q3 2021: Acquisition of SkyMobil's customer portfolio of ~38k subscribers.

Key figures Q2

NOK in thousands	Q2 2021	Q2 2020	YTD 2021
Gross revenue	2 578 081	671 380	6 641 032
Net revenue	407 631	330 413	917 212
Net revenue adjusted	388 059	314 023	897 640
EBIT reported	128 138	132 082	309 715
EBIT adjusted	141 105	124 168	356 393
Net income	99 212	102 601	232 856
Basic earnings per share (in NOK)	0,87	0,98	2,04
Diluted earnings per share (in NOK)	0,86	0,97	2,01
EBIT margin	31 %	40 %	33 %
EBIT margin adjusted	36 %	40 %	40 %
Net interest bearing debt (cash)	742 244	-582 645	742 244
Capex excl. M&A	19 263	21 898	33 972
Volume sold (GWh)	4 324	2 798	11 700
# of deliveries ('000) excl. Extended Alliance	1 004	625	1 004

Growth in net revenue and EBIT adj.

In the second quarter of 2021, the average daily system price was 647% higher than in the second quarter of 2020. While 2020 as a whole, including the second quarter, was a year with exceptionally low electricity prices due to the hydrologic balance, Q2 2021 has been affected by an increase in the price of CO2 quotas, coal and gas, in addition to low amounts of generation from wind power. Thus, Q2 2020 represented a very favourable market situation, while the market dynamics in Q2 2021 have been more neutral.

Net revenue increase 24% YoY and EBIT adj. increase 14% YoY, mainly driven by M&A. The number of electricity deliveries decreased by 1,959 in the quarter, which is a signi icant improvement from last quarter's development. On 25th of August, Fjordkraft announced the acquisition of SkyMobil's customer portfolio of about 38 thou-sand subscribers. In addition to the announced platform change within Mobile, this acquisition will contribute positively to the New Growth Initiatives segment.

Figures from the corresponding period the previous year are in brackets, unless otherwise specified.

Consumer

Number of electricity deliveries in the Consumer segment decreased by 11 thousand deliveries in the quarter. At the end of Q2 2021 the segment comprised 726 thousand deliveries, which represents a growth of 182 thousand deliveries YoY. The volume sold in second quarter 2021 was 2,073 GWh, which is a 34% increase from the second quarter 2020, driven by M&A growth.

Adjusted net revenue amounted to 240 NOKm

(230 NOKm), adjusted OPEX amounted to 165 NOKm (137 NOKm) and EBIT adj. amounted to 75 NOKm (92 NOKm). Adjusted EBIT margin in the quarter was 31%, a decrease from 40% in Q2 2020. The decrease in margin is driven by a less favourable elspot market development compared to Q2 2020. The EBIT adj. margin the last twelve months is 32%, which is in line with the segment's long-term guidance of 32-34%.

Business

At the end of second quarter 2021, the Business segment comprised 111 thousand electricity deliveries, which represents a growth of 30 thousand deliveries YoY. The volume sold in second quarter 2021 was 1,569 GWh, an increase of 26% compared to second quarter 2020. The increase is driven by volume growth from M&A.

Adjusted net revenue was 97 NOKm (75 NOKm), adjusted OPEX of 39 NOKm (34 NOKm) and EBIT adj. was 58 NOKm (41 NOKm). Adjusted EBIT margin in the quarter was 59%, which is an increase from the 55% in Q2 2020. The growth is driven by increased volume, mainly from M&A, but also from improved margins. The EBIT adj. margin the last twelve months is 59%, which is above the segment's long-term guidance of 52-54%.

Nordic

Nordic is a new reporting segment, comprising Switch Nordic Green with the brand Nordic Green Energy, operating in Sweden and Finland. At the end of second quarter 2021, the segment comprised 167 thousand deliveries, an increase of 6 thousand in the quarter. Volume sold was 682 GWh in the quarter. Adjusted net revenue amounted to 35 NOKm, OPEX adjusted to 23 NOKm and EBIT adjusted amounted to 12 NOKm.

New Growth Initiatives

At the end of second quarter 2021, the number of mobile subscribers was 134 thousand, a decrease of 1 thousand subscribers in the quarter.

Alliance volume in second quarter 2021 was 1,086 GWh, which is a 26% YoY increase driven by the inclusion of volume from the Innlandskraft transaction, while Extended Alliance deliveries increased by 22 thousand in the quarter.

Adjusted net revenue in the New Growth Initiatives segment amounts to 16 NOKm, a YoY increase of 6 NOKm. The increase in net revenue is driven by Mobile. OPEX adjusted amounted to 20 NOKm (19 NOKm), while EBIT adjusted amounted to -4 NOKm (-9 NOKm).

Financials

Gross revenue amounted to 2,578 NOKm (671 NOKm), an increase of 284%, due to higher elspot prices and volume sold.

Adjusted net revenue amounted to 388 NOKm (314 NOKm), an increase of 24%. The increase is mainly driven by M&A.

Adjusted operating expenses amounted to 247 NOKm (190 NOKm), an increase of 30%, primarily driven by M&A.

Adjusted EBIT amounted to 141 NOKm (124 NOKm), a growth of 14% YoY due to the factors described above.

Net financial income amounted to -5 NOKm (0 NOKm).

Profit for the period amounted to 99 NOKm (103 NOKm) in the quarter due to the factors described above.

Consolidated cash flow

Net cash generated from operating activities was 458 NOKm (411 NOKm). Net cash used in investing activities was -6 NOKm (-23 NOKm). Net cash used in financing activities was NOK -764 NOKm (-330 NOKm).

Financial position

The total capital as of 30.06.2021 was 4,793 NOKm (2,071 NOKm).

Events after the reporting period

On August 25th 2021, Fjordkraft announced the acquisition of Skymobil's mobile customer portfolio. The mobile customers will be included in the Group's New growth initiatives and contribute to increased profitability in this business area.

There are no other significant events after the reporting period that has not been reflected in the consolidated financial statements.

Risks and uncertainties

The demand for electricity, electricity prices, customer churn and competition are the main uncertainties in a short-term perspective. The demand for electricity varies with i.a. weather conditions and temperature. Electricity prices are determined by supply and demand through Nordpool, the marketplace for electricity in the Nordics. Fjordkraft seeks to reduce market risk to a low level and does not take speculative positions in the electricity market. The upcoming certification of Norwegian electricity retailers, "Trygg Strømhandel", is expected to increase transparency and contribute to reduced risk.

Outlook

The Group's growth ambitions are stated in the capital markets day material and are expected to be realised mainly through M&A, supported by a slightly positive organic growth. The Group's financial targets are presented in the quarterly presentation.

Condensed interim financial statements

Report Q2 2021 5 www.investor.fjordkraft.no

Condensed consolidated statement of profit or loss

NOK in thousands	Note	Q1 2021	Q2 2021	Q2 2020	YTD 2021	YTD 2020	Full Year 2020
Continuing operations

Revenue	2,3	4 062 952	2 578 081	671 380	6 641 032	1 981 637	4 214 727
Direct cost of sales	2	(3 553 371)	(2 170 449)	(340 967)	(5 723 820)	(1 169 822)	(2 647 005)
Revenue less direct cost of sales		509 581	407 631	330 413	917 212	811 815	1 567 722
Personnel expenses	2	(111 493)	(79 849)	(54 648)	(191 342)	(133 243)	(328 485)
Other operating expenses	2	(131 246)	(115 934)	(97 758)	(247 180)	(222 352)	(471 938)
Depreciation right-of-use assets		(4 663)	(4 997)	(3 133)	(9 660)	(6 233)	(13 302)
Depreciation and amortisation	2,7	(95 111)	(92 104)	(45 360)	(187 215)	(91 008)	(291 872)
Total operating expenses		(342 514)	(292 883)	(200 899)	(635 397)	(452 835)	(1 105 596)

Impairment and change in provision for onerous contracts	4	9 122	(151 288)	-	(142 166)	-	(268 493)
Other gains and losses, net	4,9	5 388	164 677	2 568	170 066	4 474	331 539
Operating profit		181 577	128 138	132 082	309 715	363 453	525 172

Income/loss from investments in associates
and joint ventures		734	1 188	(198)	1 922	(351)	1 168
Interest income		2 499	4 123	4 067	6 623	10 448	16 814
Interest expense lease liability		(658)	(595)	(410)	(1 253)	(838)	(1 813)
Interest expense	11	(10 219)	(8 775)	(1 052)	(18 994)	(2 710)	(11 982)
Other financial items, net		(12 922)	(1 095)	(2 677)	(14 017)	(2 437)	(15 692)
Net financial income/(cost)		(20 566)	(5 153)	(270)	(25 719)	4 112	(11 505)
Profit/ (loss) before tax		161 011	122 985	131 812	283 996	367 565	513 667
Income tax (expense)/ income	5	(27 368)	(23 772)	(29 211)	(51 140)	(81 294)	(113 604)
Profit/ (loss) for the period		133 643	99 212	102 601	232 856	286 271	400 063
Basic earnings per share (in NOK)*	6	1,17	0,87	0,98	2,04	2,74	3,73
Diluted earnings per share (in NOK)*	6	1,15	0,86	0,97	2,01	2,71	3,69

* Based on a weighted average of 114 284 733 shares outstanding. It is issued 1 504 000 share options to employees.

Condensed consolidated statement of comprehensive income

NOK in thousands	Q1 2021	Q2 2021	Q2 2020	YTD 2021	YTD 2020	Full Year 2020

Profit/ (loss) for the period	133 643	99 212	102 601	232 856	286 271	400 063

Other comprehensive income/ (loss):

Items to be reclassified to profit or loss in subsequent periods:
Currency translation differences	(43 768)	15 917	-	(27 851)	-	(11 201)
Total	(43 768)	15 917	-	(27 851)	-	(11 201)

Items that will not be reclassified to profit or loss:
Actuarial gain/(loss) on pension obligations (net of tax)	25 830	(2 081)	-	23 749	(26 024)	(7 073)
Total	25 830	(2 081)	-	23 749	(26 024)	(7 073)

Total other comprehensive income/ (loss) for the period, net of tax	(17 937)	13 836	-	(4 102)	(26 024)	(18 273)

Total comprehensive income/ (loss) for the period	115 706	113 048	102 601	228 754	260 248	381 790

Condensed consolidated statement of financial position

NOK in thousands	31 March Note 2021		30 June 2021	30 June 2020	31 December 2020
Assets:
Non-current assets
Deferred tax assets		35 143	36 065	-	37 316
Right-of-use assets property, plant and equipment		92 302	91 232	63 430	81 724
Property, plant and equipment		8 819	8 431	6 205	8 409
Goodwill	7	1 424 680	1 429 576	166 696	1 442 849
Intangible assets	7	798 173	764 586	172 466	869 568
Cost to obtain contracts		191 660	214 065	152 559	172 656
Investments in associates and joint ventures		11 902	13 090	9 649	11 168
Other non-current financial assets		62 488	46 822	25 764	63 877
Total non-current assets		2 625 166	2 603 866	596 769	2 687 566
Current assets
Intangible assets		3 443	1 698	1 950	2 880
Inventories		6 248	6 101	801	2 398
Trade receivables	8,11,13	2 279 982	1 416 226	455 853	1 476 927
Derivative financial instruments	9	138 514	438 418	229 834	193 175
Other current assets		111 145	65 172	36 038	167 065
Cash and cash equivalents		561 092	261 282	749 445	599 348
Total current assets		3 100 423	2 188 897	1 473 923	2 441 793
Total assets		5 725 589	4 792 763	2 070 691	5 129 359
Equity and liabilities:
Equity
Share capital		34 285	34 289	31 376	34 285
Share premium		991 614	991 998	127 738	991 614
Retained earnings		1 034 773	748 824	794 929	918 148
Total equity		2 060 672	1 775 112	954 043	1 944 047

Condensed consolidated statement of financial position

NOK in thousands	Note	31 March 2021	30 June 2021	30 June 2020	31 December 2020
Non-current liabilities
Employee benefit obligations	10	79 688	84 713	96 489	110 828
Interest-bearing long term debt	11	789 260	766 694	111 200	812 808
Deferred tax liabilitites		140 118	135 377	15 800	130 499
Lease liability - long term		78 133	73 892	54 111	67 442
Other provisions for liabilities		14 501	16 399	-	14 649
Total non-current liabilites		1 101 701	1 077 075	277 600	1 136 225

Current liabilities
Trade and other payables	13	1 365 123	866 070	160 164	1 029 604
Overdraft facilities	11	472 648	136 801	-	29 400
Current income tax liabilities		35 912	64 206	107 237	129 098
Derivative financial instruments	9	53 722	187 750	214 085	110 616
Social security and other taxes		170 295	84 667	103 669	143 425
Lease liability - short term		17 414	20 654	12 031	17 366
Other current liabilities	12	448 103	580 428	241 862	589 578
Total current liabilities		2 563 216	1 940 576	839 049	2 049 087

Total liabilities		3 664 917	3 017 651	1 116 649	3 185 312
Total equity and liabilities		5 725 589	4 792 763	2 070 691	5 129 359

Steinar Sønsteby

Chairman

Elisabeth M. Norberg Board member

Per Oluf Solbraa Board member

The Board of Fjordkraft Holding ASA, Bergen, 25 August 2021

Tone Wille Board member

Heidi Theresa Ose Board member

Marianne Unhjem-Solbjørg

Board member

Frank Økland

Board member

Live Bertha Haukvik

Rolf Barmen Board member

CEO

Condensed consolidated statement of changes in equity

NOK in thousands	Share capital	Share premium	Treasury shares	Foreign currency translation reserve	Retained earnings	Total
Balance at 1 January 2020	31 349	125 035	-	-	846 833	1 003 216
Profit/(loss) for the period	-	-	-	-	286 271	286 271
Share-based payment	-	-	-	-	1 569	1 569
Other comprehensive income/(loss) for the period, net of tax	-	-	-	-	(26 024)	(26 024)
Total comprehensive income/(loss) for the period	-	-	-	-	261 816	261 816
Share capital increase (note 6)	27	2 703	-	-	-	2 730
Dividends paid (note 6)	-	-	-	-	(313 717)	(313 717)
Transactions with owners	27	2 703	-	-	(313 717)	(310 987)
Balance at 30 June 2020	31 376	127 738	-	-	794 929	954 043
Balance at 1 January 2021	34 285	991 614	-	(11 201)	929 348	1 944 047
Profit/(loss) for the period	-	-	-	-	232 856	232 856
Share-based payment	-	-	-	-	1 909	1 909
Other comprehensive income/(loss) for the period, net of tax	-	-	-	(27 851)	23 749	(4 102)
Total comprehensive income/(loss) for the period	-	-	-	(27 851)	258 513	230 663
Share capital increase (note 6)	5	384	-	-	-	389
Dividends paid (note 6)	-	-	-	-	(399 986)	(399 986)
Transactions with owners	5	384	-	-	(399 986)	(399 598)

Balance at 30 June 2021 34 289 991 998 - (39 052) 787 875 1 775 112

Condensed consolidated statement of cash flows

NOK in thousands	Note	Q1 2021	Q2 2021	Q2 2020	YTD 2021		YTD 2020 Full Year 2020
Operating activities
Profit/ (loss) before tax		161 011	122 985	131 812	283 996	367 565	513 667

Adjustments for
Depreciation	7	61 838	57 569	17 525	119 407	34 782	168 012
Depreciation right-of-use assets		4 663	4 997	3 133	9 660	6 233	13 302
Amortisation of contract assets		33 273	34 534	27 835	67 808	56 226	123 860
Impairment of intangible asset	4,7	9 533	290	-	9 823	-	197 470
Interest income		(2 499)	(4 123)	(4 067)	(6 623)	(10 448)	(16 814)
Interest expense lease liability		658	595	410	1 253	838	1 813
Interest expense		10 219	8 775	1 052	18 994	2 710	11 982
Income/loss from investments in associates and joint ventures
ventures		(734)	(1 188)	198	(1 922)	351	(1 168)

Change in long-term receivables		297	3 441	13 820	3 738	-	(7 686)
Share based payment expense		919	990	802	1 909	1 579	3 252
Change in post-employment liabilities		1 976	2 357	(3 518)	4 333	(936)	(302)
Payments to obtain a contract		(53 206)	(55 866)	(26 245)	(109 072)	(49 550)	(137 280)

Changes in working capital (non-cash effect)
Impairment loss recognised in trade receivables	8	(4 581)	(40 635)	3 505	(45 215)	20 240	19 342
Provision for onerous contracts recognised in other current liabilities	4	(18 655)	150 998	-	132 343	-	71 023
Change in fair value of derivative financial instruments	4,9	(5 388)	(164 677)	(2 568)	(170 066)	(4 474)	(331 539)
Changes in working capital
Inventories		(3 850)	147	(349)	(3 703)	(7)	(1 453)
Trade receivables	8	(813 933)	909 836	408 535	95 903	1 031 373	260 279
Purchase of el-certificates		(84 153)	(2 039)	-	(86 191)	(245 712)	(245 712)
Non-cash effect from cancelling el-certificates		83 978	1 921	(187)	85 898	263 594	263 594
Purchase of guarantees of origination		(4 320)	15	(176)	(4 305)	(1 573)	(4 064)
Non-cash effect from disposal of guarantees of origination		3 949	2 277	3 143	6 226	5 501	7 089
Other current assets		54 117	47 632	77 286	101 749	(17 572)	19 435
Trade and other payables		350 929	(506 545)	(227 876)	(155 616)	(657 979)	61 721
Other current liabilities	12	(72 240)	(112 489)	(15 526)	(184 729)	(362 662)	(351 741)
Cash generated from operations		(286 197)	461 794	408 542	175 597	440 079	638 082
Interest paid		(11 060)	(7 485)	(1 898)	(18 545)	(4 107)	(22 058)
Interest received		2 499	4 123	4 067	6 623	10 448	16 814
Income tax paid	5	(122 145)	-	-	(122 145)	(90 024)	(113 533)
Net cash from operating activities		(416 903)	458 432	410 711	41 530	356 395	519 305

Condensed consolidated statement
of cash flows

NOK in thousands	Note	Q1 2021	Q2 2021	Q2 2020	YTD 2021		YTD 2020 Full Year 2020
Investing activities
Purchase of property, plant and equipment		(1 291)	(312)	-	(1 603)	-	(497)
Purchase of intangible assets	7	(13 418)	(19 131)	(22 724)	(32 550)	(37 803)	(64 767)
Proceeds from sale of intangible assets	7	-	-	-	-	10 000	10 000
Net cash outflow on acquisition of subsidiares		-	-	-	-	-	(1 033 527)
Net cash outflow on acquisition of shares in associates		-	-	-	-	(10 000)	(10 000)
Net (outflow)/proceeds from non-current receivables		1 092	12 225	(74)	13 317	(399)	(16 985)
Net (outflow)/proceeds from other long-term liabilities		829	1 442	-	2 271	-	(194)
Net cash used in investing activities		(12 788)	(5 777)	(22 798)	(18 565)	(38 201)	(1 115 970)
Financing activities
Proceeds from overdraft facilities	11	443 248	(335 847)	-	107 401	-	29 400
Proceeds from revolving credit facility	11	-	-	-	-	-	500 000
Repayment of revolving credit facility	11	-	-	-	-	-	(500 000)
Proceeds from issuance of shares		-	389	389	389	2 731	2 730
Dividends paid		-	(399 986)	(313 717)	(399 986)	(313 717)	(313 717)
Formation expenses		-	-	(10)	-	(10)	(10)
Proceeds from long term debt	11	-	-	-	-	-	937 000
Instalments of long term debt	11	(23 425)	(23 425)	(13 900)	(46 850)	(27 800)	(65 125)
Repayment of long term debt	11	-	-	-	-	-	(152 900)
Payment of lease liability		(4 530)	(4 834)	(2 966)	(9 364)	(5 488)	(12 450)
Net cash used in financing activities		415 293	(763 703)	(330 204)	(348 410)	(344 284)	424 928
Net change in cash and cash equivalents		(14 398)	(311 048)	57 710	(325 446)	(26 091)	(171 738)
Cash and cash equivalents at start of period		599 348	561 092	691 735	599 348	775 536	775 536
Effects of exchange rate changes on cash and cash equivalents		(23 859)	11 239	-	(12 620)	-	(4 450)
Cash and cash equivalents at end of period		561 092	261 282	749 445	261 282	749 445	599 348

Notes to the condensed consolidated financial statements

Note 1	Accounting policies	14
Note 2	Segment information	15
Note 3	Revenue recognition	21
Note 4	Impairment, change in provision for onerous contracts, and other gains and losses	22
Note 5	Income tax	23
Note 6	Earnings per share	23
Note 7	Intangible assets	24
Note 8	Trade receivables	30
Note 9	Derivatives and fair value measurement of financial instruments	31
Note 10	Pension liabilities	35
Note 11	Credit facilities	36
Note 12	Other current liabilities	37
Note 13	Related party transactions	38
Note 14	Events after the reporting period	39

Note 1 Accounting policies

General information

Fjordkraft Holding ASA and its subsidiaries (together 'the Group') is a supplier of electrical power in Norway, Sweden and Finland. The Group's core business is concentrated at purchase, sales and portfolio management of electrical power to households, private and public companies, and municipalities. In 2017, the Group also became a provider of mobile phone services to private customers in Norway.

Fjordkraft Holding ASA is incorporated and domiciled in Norway. The address of its registered office is Folke Bernadottes Vei 38, 5147 Bergen, Norway.

These interim financial statements were approved by the Board of Directors for issue on 25 August 2021.

A review of the interim financial statements has been carried out by the independent auditor of the Group.

Basis of preparation

These interim financial statements have been prepared in accordance with International Accounting Standard 34, "Interim financial reporting". These interim financial statements do not provide the same scope of information as the annual financial statements and should therefore be read in conjunction with the annual financial statements for the year ended 31 December 2020, which have been prepared in accordance with IFRS.

Going concern

The Group has adopted the going concern basis in preparing it's consolidated financial statements. When assessing this assumption, management has assessed all available information about the future. This comprises information about net cash flows from existing customer contracts and other service contracts, debt service and obligations. After making such assessments, management has a reasonable expectation that the Group has adequate resources to continue its operational existence for the foreseeable future.

Accounting policies

The accounting policies applied in preparing these interim financial statements are consistent with those described in the previous annual report for the financial year 2020, except that income tax expense is recognised in each interim period using the expected weighted average annual income tax rate for the full financial year. Taxes on income in the interim periods are accrued using the tax rate that would be applicable to expected total annual profit or loss.

There are not any new or amended accounting standards or interpretations of which application is mandatory for reporting periods commencing 1 January 2021, that have had a material impact on these interim financial statements.

Use of estimates

The preparation of interim financial statements requires management to make judgements, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets and liabilities, income and expense. Actual results may differ from these estimates. In preparing these interim financial statements, the significant judgements made by management in applying the Group's accounting policies and the key sources of estimation uncertainty were the same as those that applied to the consolidated financial statements for the year ended 31 December 2020, except for income taxes and defined benefit obliations.

Income tax expense and deferred income tax liability is calculated by applying a weighted average of tax rates across jurisdictions, while in annual financial statements income tax expense and deferred income tax liability is calculated by applying the tax rate for each individual jurisdiction to measures of income for each jurisdiction.

Present value of defined benefit obligations and the fair value of plan assets are at the end of each interim reporting period estimated by extrapolation of the pension expense in the latest annual actuarial valuation, and an estimate of actuarial gains and losses calculated using updated estimates for sigificant actuarial assumptions. In the annual financial statements however the present value of defined benefit obligations and the fair value of plan assets are estimated based on a complete set of annual actuarial valuations.

Note 2 Segment information

Disaggregation of revenue from contracts with customers

Operating segments are reported in a manner consistent with the internal financial reporting provided to the chief operating decision-maker. The chief operating decision maker, who is responsible for allocating resources and assessing performance of the operating segments, has been identified as the Board of Directors. The Board of Directors examines the Group's performance from a type of services perspective. Segment performance is evaluated based on profit or loss and is measured consistently with profit or loss in the consolidated financial statements.

The Group's reportable segments under IFRS 8 - "Operating Segments" are therefore as follows: -Consumer segment - Sale of electrical power and related services to private consumers in Norway -Business segment - Sale of electrical power and related services to business consumers in Norway -Nordic segment - Sale of electrical power and related services to consumers in Finland and Sweden.

Information reported to the chief operating decision maker for the purposes of resource allocation and assessment of segment performance is focused on the category of customer for each type of activity. No operating segments have been aggregated in arriving at the reportable segments of the Group. The principal categories of customers are direct sales to private consumers, business consumers and alliance partners.

The segment profit measure is adjusted operating profit which is defined as profit before tax earned by each segment without the allocation of non-recurring expenses, depreciation of acquisitions, impairment and change in provision for onerous contracts, other gains and losses, income/ loss from investments in associates and joint ventures, interest income, interest expense, interest expense lease liability, and other financial items, net. This is the measure reported to the chief operating decision maker for the purposes of resource allocation and assessment of segment performance. The accounting policies of the reportable segments are the same as the Group's accounting policies.

All of the Group's revenue is from external parties and is from activities currently carried out in Norway, Sweden and Finland. There are no customers representing more than 10% of revenue.

The tables below is an analysis of the Group's revenue and profit by reportable segment. New growth initiatives comprise of other business activities (sale of mobile service to private customers and power sale, included related services, to Alliance Partners) which are not considered separate operating segments.

Segment information

	Q1 2021
NOK in thousands	Consumer	Business	Nordic	Total reportable segments	New growth initiatives*	Total segments
Revenue
Revenue adjusted	2 191 316	1 302 773	484 668	3 978 757	84 195	4 062 952
Total external segment revenue adjusted	2 191 316	1 302 773	484 668	3 978 757	84 195	4 062 952
Direct cost of sales adjusted	(1 879 117)	(1 164 864)	(444 204)	(3 488 185)	(65 186)	(3 553 371)
Revenue less direct cost of sales adjusted	312 199	137 909	40 464	490 572	19 009	509 581

Expenses
Personnel and other operating expenses adjusted	(162 849)	(41 424)	(16 292)	(220 565)	(24 447)	(245 013)
Depreciation and amortisation adjusted	(39 125)	(6 385)	(2 586)	(48 097)	(1 183)	(49 280)
Total operating expenses adjusted	(201 974)	(47 809)	(18 878)	(268 662)	(25 631)	(294 293)

Operating profit adjusted	110 224	90 100	21 586	221 910	(6 622)	215 288

	Q2 2021
NOK in thousands	Consumer	Business	Nordic	Total reportable segments	New growth initiatives*	Total segments

Revenue
Revenue adjusted	1 307 887	849 929	315 363	2 473 179	86 163	2 559 342
Total external segment revenue adjusted	1 307 887	849 929	315 363	2 473 179	86 163	2 559 342
Direct cost of sales adjusted	(1 068 103)	(753 045)	(280 045)	(2 101 193)	(70 090)	(2 171 283)
Revenue less direct cost of sales adjusted	239 784	96 884	35 318	371 986	16 073	388 059

Expenses
Personnel and other operating expenses adjusted	(126 136)	(32 547)	(18 791)	(177 474)	(18 389)	(195 863)
Depreciation and amortisation adjusted	(38 644)	(6 836)	(4 286)	(49 766)	(1 325)	(51 091)
Total operating expenses adjusted	(164 780)	(39 384)	(23 076)	(227 240)	(19 714)	(246 954)

Operating profit adjusted	75 004	57 500	12 242	144 746	(3 641)	141 105

*Comprise of other business activities (sale of mobile services to private customers and power sale, included related services, to Alliance partners) which are not considered separate operating segments

Segment information

	Q2 2020
NOK in thousands	Consumer	Business	Nordic	Total reportable segments	New growth initiatives*	Total segments
Revenue
Revenue adjusted	323 666	253 299	-	576 965	71 796	648 761
Total external segment revenue adjusted	323 666	253 299	-	576 965	71 796	648 761
Direct cost of sales adjusted	(94 139)	(178 672)	-	(272 811)	(61 927)	(334 738)
Revenue less direct cost of sales adjusted	229 527	74 627	-	304 154	9 869	314 023

Expenses
Personnel and other operating expenses adjusted	(104 430)	(28 696)	-	(133 126)	(16 354)	(149 479)
Depreciation and amortisation adjusted	(32 659)	(5 119)	-	(37 778)	(2 598)	(40 376)
Total operating expenses adjusted	(137 089)	(33 815)	-	(170 904)	(18 952)	(189 856)

Operating profit adjusted	92 438	40 812	-	133 250	(9 083)	124 168

	YTD 2021
NOK in thousands	Consumer	Business	Nordic	Total reportable segments	New growth initiatives*	Total segments
Revenue
Revenue adjusted	3 499 203	2 152 702	800 031	6 451 936	170 358	6 622 294
Total external segment revenue adjusted	3 499 203	2 152 702	800 031	6 451 936	170 358	6 622 294
Direct cost of sales adjusted	(2 947 220)	(1 917 909)	(724 249)	(5 589 378)	(135 276)	(5 724 653)
Revenue less direct cost of sales adjusted	551 983	234 793	75 782	862 558	35 082	897 640
Expenses
Personnel and other operating expenses adjusted	(288 985)	(73 971)	(35 083)	(398 039)	(42 836)	(440 876)
Depreciation and amortisation adjusted	(77 769)	(13 221)	(6 872)	(97 863)	(2 508)	(100 371)
Total operating expenses adjusted	(366 754)	(87 193)	(41 955)	(495 902)	(45 345)	(541 247)

Operating profit adjusted	185 228	147 600	33 828	366 656	(10 263)	356 393

Segment information

	YTD 2020
NOK in thousands	Consumer	Business	Nordic	Total reportable segments	New growth initiatives*	Total segments
Revenue
Revenue adjusted	1 063 656	757 777		- 1 821 433	137 584	1 959 017
Total external segment revenue adjusted	1 063 656	757 777		- 1 821 433	137 584	1 959 017
Direct cost of sales adjusted	(472 380)	(575 031)		- (1 047 411)	(116 181)	(1 163 592)
Revenue less direct cost of sales adjusted	591 276	182 746		- 774 022	21 403	795 425

Expenses
Personnel and other operating expenses adjusted	(244 023)	(72 821)		- (316 844)	(35 825)	(352 668)
Depreciation and amortisation adjusted	(66 119)	(9 778)		- (75 897)	(5 050)	(80 947)
Total operating expenses adjusted	(310 142)	(82 599)		- (392 741)	(40 875)	(433 615)

Operating profit adjusted	281 134	100 147		- 381 281	(19 472)	361 810

	Full year 2020
NOK in thousands	Consumer	Business	Nordic	Total reportable segments	New growth initiatives*	Total segments
Revenue
Revenue adjusted	2 144 219	1 479 533	263 894	3 887 645	295 716	4 183 361
Total external segment revenue adjusted	2 144 219	1 479 533	263 894	3 887 645	295 716	4 183 361
Direct cost of sales adjusted	(1 039 480)	(1 102 666)	(245 954)	(2 388 101)	(251 775)	(2 639 876)
Revenue less direct cost of sales adjusted	1 104 738	376 866	17 940	1 499 544	43 941	1 543 486
Expenses
Personnel and other operating expenses adjusted	(531 316)	(149 062)	(9 256)	(689 634)	(74 378)	(764 012)
Depreciation and amortisation adjusted	(138 226)	(21 557)	(2 932)	(162 715)	(8 481)	(171 196)
Total operating expenses adjusted	(669 542)	(170 619)	(12 188)	(852 349)	(82 859)	(935 208)
Operating profit adjusted	435 196	206 247	5 752	647 194	(38 918)	608 278

Segment information

Reconciliation to statement of profit and loss for the period
NOK in thousands	Q1 2021	Q2 2021	Q2 2020	YTD 2021	YTD 2020	Full year 2020
Revenue adjusted	4 062 952	2 559 342	648 761	6 622 294	1 959 017	4 183 361
Corporate 1)	-	18 739	20 904	18 739	20 904	29 650
Special items 2)	-	-	1 716	-	1 716	1 716
Revenue	4 062 952	2 578 081	671 380	6 641 032	1 981 637	4 214 727
Direct cost of sales adjusted	(3 553 371)	(2 171 283)	(334 738)	(5 724 653)	(1 163 592)	(2 639 876)
Corporate 1)	-	834	(6 230)	834	(6 230)	(7 129)
Direct cost of sales	(3 553 371)	(2 170 449)	(340 967)	(5 723 820)	(1 169 822)	(2 647 005)

Revenue less direct cost of sales adjusted	509 581	388 059	314 023	897 640	795 425	1 543 486
Corporate 1) Special items 2)	- -	19 573 -	14 674 1 716	19 573 -	14 674 1 716	22 521 1 716
Revenue less direct cost of sales	509 581	407 631	330 413	917 212	811 815	1 567 722

Total operating expenses adjusted	(294 293)	(246 954)	(189 856)	(541 247)	(433 615)	(935 208)
Special items 2)	2 354	-	(2 927)	2 354	(2 927)	(42 213)
Depreciation of acquisitions 3) Total operating expenses	(50 575) (342 514)	(45 929) (292 883)	(8 116) (200 899)	(96 504) (635 397)	(16 293) (452 835)	(128 175) (1 105 596)

Impairment and change in provision for onerous contracts	9 122	(151 288)	-	(142 166)	-	(268 493)
Other gains and losses 4)	5 388	164 677	2 568	170 066	4 474	331 539
Operating profit	181 577	128 138	132 082	309 715	363 453	525 172
Income/loss from investments in associates and joint ventures	734	1 188	(198)	1 922	(351)	1 168
Interest income	2 499	4 123	4 067	6 623	10 448	16 814
Interest expense lease liability	(658)	(595)	(410)	(1 253)	(838)	(1 813)
Interest expense	(10 219)	(8 775)	(1 052)	(18 994)	(2 710)	(11 982)
Other financial items, net	(12 922)	(1 095)	(2 677)	(14 017)	(2 437)	(15 692)
Profit/(loss) before tax	161 011	122 985	131 812	283 996	367 565	513 667

1) Corporate consists of estimate deviations previous year and special revenue items. A large proportion of the Group's final settlement of sales and distribution of electricity is made after the Group has finalised its financial statements. At the date of reporting, the Group recognises electricity revenue and the associated cost of sales based on a best estimate approach. Thus, any estimate deviation related to the previous reporting period is recognised in the following reporting period. Management is of the opinion that the underlying operating profit in the reporting period should be adjusted for such estimate deviations related to previous reporting periods.

Note 2 Segment information 2) Special items consists of one-time items as follows:

NOK in thousands	Q1 2021	Q2 2021	Q2 2020	YTD 2021	YTD 2020	Full year 2020
Special items incurred specific to:
- acquisition related costs and implementation costs	(7 485)	-	(2 927)	(7 485)	(2 927)	(21 579)
- income related to compensatory damages	-	-	1 716	-	1 716	1 716
- one off amortisation of customer contracts in acquired companies	-	-	-	-	-	(5 745)
- severance packages and other one off costs in acquired companies	6 451	-	-	6 451	-	(14 889)
- gain from sale of trade receivables previously impaired	3 387	-	-	3 387	-	-
Special items	2 354	-	(1 210)	2 354	(1 210)	(40 497)

3) ) Depreciation of acquisitions consists of depreciation related to customer portfolios and acquisitions of companies accounted for in intangible assets in the consolidated statement of financial position. The Group has decided to report the operating profit of the segments adjusted for depreciation of acquisitions. In order to accommodate this, historically reported figures have been adjusted accordingly:

NOK in thousands	Q1 2021	Q2 2021	Q2 2020	YTD 2021	YTD 2020	Full year 2020
TrønderEnergi Marked acquisition	(2 608)	(2 608)	(5 180)	(5 217)	(10 359)	(20 718)
Oppdal Everk Kraftomsetning acquisition	(572)	(572)	(787)	(1 144)	(1 574)	(3 148)
Vesterålskraft Strøm acquisition	(484)	(484)	(565)	(968)	(1 131)	(2 261)
Innlandskraft acquisition	(35 446)	(31 068)	-	(66 514)	-	(36 254)
Troms Kraft Strøm acquisition	(10 625)	(10 434)	-	(21 059)	-	(7 037)
Troms Kraft Strøm acquisition - Depreciation of fixed price customer contracts	-	-	-	-	-	(52 910)
Other customer acquisitions	(839)	(762)	(1 584)	(1 602)	(3 229)	(5 847)
Depreciation of acquisitions	(50 575)	(45 929)	(8 116)	(96 504)	(16 293)	(128 175)

4) Other gains and losses, net consist of gains and losses on derivative financial instruments associated with the purchase and sale of electricity.

Note 3 Revenue recognition

The following table summarises revenue from contracts with customers:

Revenue
NOK in thousands	Q1 2021	Q2 2021	Q2 2020	YTD 2021	YTD 2020	Full year 2020
Revenue - Consumer segment (1)	2 191 316	1 307 887	323 666	3 499 203	1 063 656	2 144 219
Revenue - Business segment (2)	1 302 773	849 929	253 299	2 152 702	757 777	1 479 533
Revenue - Nordic (3)	484 668	315 363	-	800 031	-	263 894
Revenue - New growth initiatives (4)	84 195	86 163	71 796	170 358	137 584	295 716
Revenue - Corporate	-	18 739	22 620	18 739	22 620	31 366
Total revenue	4 062 952	2 578 081	671 380	6 641 032	1 981 637	4 214 727

Timing of revenue recognition

Over time:

NOK in thousands	Q1 2021	Q2 2021	Q2 2020	YTD 2021	YTD 2020	Full year 2020
Revenue - Consumer segment	2 166 860	1 281 296	312 256	3 448 156	1 040 762	2 090 297
Revenue - Business segment	1 292 110	839 756	246 896	2 131 866	744 676	1 453 829
Revenue - Nordic	484 668	315 363	-	800 031	-	263 894
Revenue - New growth initiatives	83 029	84 791	71 365	167 820	136 737	293 952
Revenue - Corporate	-	18 739	22 620	18 739	22 620	31 366
Total revenue recognised over time	4 026 667	2 539 945	653 136	6 566 611	1 944 795	4 133 338

At a point in time:

NOK in thousands	Q1 2021	Q2 2021	Q2 2020	YTD 2021	YTD 2020	Full year 2020
Revenue - Consumer segment	24 456	26 591	11 410	51 047	22 894	53 921
Revenue - Business segment	10 663	10 173	6 403	20 836	13 101	25 704
Revenue - Nordic	-	-	-	-	-	-
Revenue - New growth initiatives	1 166	1 372	431	2 538	847	1 764
Total revenue recognised at a point in time	36 285	38 136	18 245	74 421	36 843	81 389

Total revenue	4 062 952	2 578 081	671 380	6 641 032	1 981 637	4 214 727

(1) Revenue in the consumer segment comprise sale of electrical power to private consumers in Norway

(2) Revenue in the business segment comprise sale of electrical power to businesses in Norway

(3) Revenue in the nordic segment comprise sale of electrical power and related services to private consumers and businesses in Finland and Sweden

(4) Comprise of other business activities (sale of mobile service to private customers and power sale, included related services, to Alliance partners)

Note 4 Impairment, change in provision for onerous contracts, and other gains and losses.

NOK in thousands	Note	Q1 2021	Q2 2021	Q2 2020	YTD 2021	YTD 2020	Full year 2020

Impairment and provisions for onerous contracts:
Change in provision for onerous contracts*		18 655	(150 998)	-	(132 343)	-	(71 023)
Impairment of intangible assets - Fixed price customer contracts*	7	(9 533)	(290)	-	(9 823)	-	(180 540)
Impairment of intangible assets - Software and development projects	7	-	-	-	-	-	(16 930)
Total impairment and provisions for onerous contracts		9 122	(151 288)	-	(142 166)	-	(268 493)

Other gains and losses
Change in fair value of derivative financial instruments*	9	5 388	164 677	2 568	170 066	4 474	331 539
Total other gains and losses, net		5 388	164 677	2 568	170 066	4 474	331 539

Total		14 510	13 390	2 568	27 900	4 474	63 046

*The change in provision for onerous contracts and impairment of intangible assets in Q2 2021 relates to portfolios of fixed price customer contracts in the Nordic segment.

The majority of these contracts where acquired as part of the business combination when the group acquired Troms Kraft Strøm AS (rebranded to Fjordkraft Nordic AS) and its subsidiary Switch Nordic Green AB (which has end-user operations in Sweden and Finland, through the brand Nordic Green Energy) in 2020, while the remaining are new fixed price contracts entered into with customers in the Nordic segment after the business combination.

The fixed price customer contracts acquired as part of the business combination are recognised as intangible assets (refer note 7), and depreciated systematically over the contract lengths using a pattern that reflect how the acquisition value of the contracts are distributed over the remaining length of the contracts (up to five years) (cost model in IAS 38).

New fixed price customer contracts are not recognised in the balance sheet, unless the contracts are onerous contracts.

As a result of an increase in market prices of electrical power in both Sweden and Finland, indicators of impairment has been identified and impairment charges of NOKt 290 has been recognised in the second quarter. Provisions for onerous contracts has also been increased with NOKt 150 998 and the provision amounts to a total of NOKt 203 366 at 30 June 2021.

The price risk related to fixed price customer contracts are hedged with portfolios of power derivatives, recognised as derivative financial instruments and measured at fair value through profit and loss (the group does not apply hedge accounting).

Of changes in fair value of derivative financial instruments in the second quarter, net unrealised gains of NOKt 155 670 (Q1 2021: losses of NOKt 5 825, 2020: gains of NOKt 314 869) relates to these portfolios of power derivatives, and gains of NOKt 9 007 (Q1 2021: NOKt 11 214, 2020: NOKt 16 670) relates to the groups other portfolios of power derivatives.

The net effect of impairment (negative NOKt 290), increased provisions for onerous fixed price customer contracts (negative NOKt 150 998), and the change in fair value of the corresponding portfolios of hedging contracts, is a net income/gain of NOKt 4 382 in the second quarter of 2021 (Q1 2021: 3 297, 2020: NOKt 8 371). This net effect is mainly caused by imbalance between the portfolios of customer contracts, and the corresponding portfolios of hedging contracts.

Note 5 Income tax

NOK in thousands	Q1 2021	Q2 2021	Q2 2020	YTD 2021	YTD 2020	Full year 2020

Profit before tax	161 011	122 985	131 812	283 996	367 565	513 667
Tax expense	(27 368)	(23 772)	(29 211)	(51 140)	(81 294)	(113 604)
Average tax rate	17,0 %	19,3 %	22,2 %	18,0 %	22,1 %	22,1 %

Tax payable	28 960	28 004	31 077	56 964	85 605	127 032
Adjustments to prior years tax payable	(4 914)	-	-	(4 914)	-	4 734
Change in deferred tax	3 322	(4 232)	(1 867)	(910)	(4 311)	(18 162)
Tax expense recognised in statement of profit or loss	27 368	23 772	29 211	51 140	81 294	113 604

Note 6 Earnings per share

Earnings per share is calculated as profit/ loss allocated to shareholders for the year divided by the weighted average number of outstanding shares.

Basic earnings per share

	Q1 2021	Q2 20210	Q2 2020	YTD 2021	YTD 2020	Full year 2020
Profit/(loss) attributable to equity holders of the company *	133 643	99 212	102 601	232 856	286 271	400 063
Total comprehensive income attributable to equity holders of the company *	115 706	113 048	102 601	228 754	260 248	381 790
Total number of ordinary shares in issue	114 281 800	114 297 800	104 586 216	114 297 800	104 586 216	114 281 800
Weighted average number of ordinary shares in issue	114 281 800	114 287 667	104 578 749	114 284 733	104 555 730	107 200 552
Earnings per share in NOK	1,17	0,87	0,98	2,04	2,74	3,73
Total comprehensive income per share in NOK	1,01	0,99	0,98	2,00	2,49	3,56

Share options	1 520 000	1 504 000	1 150 000	1 504 000	1 150 000	1 190 000
Diluted earnings per share in NOK	1,15	0,86	0,97	2,01	2,71	3,69

Dividend per share in NOK	-	3,50	3,00	3,50	3,00	3,00

*NOK in thousands

The change in share options from March 2021 is due to the vesting in the share option program where a total of 16 000 shares were exercised.

Non-current intangible assets

Note 7 Intangible assets

Q1 2021
NOK in thousands	Software and development projects	Construction in progress	Customer portfolios	Fixed price customer contracts	Other intan gible assets	Total non-cur rent intangible assets, excl. goodwill	Goodwill	Total non current intan gible assets
Accumulated cost 1 January 2021	297 473	9 063	770 256	243 640	147 531	1 467 964	1 442 849	2 910 813
Additions - Purchase	81	12 753	-	-	-	12 834	-	12 834
Additions - Internally generated	123	461	-	-	-	584	-	584
Transferred from construction in progress	2 632	(2 632)	-	-	-	-	-	-
Government grants (SkatteFUNN)	-	-	-	-	-	-	-	-
Disposals	-	-	-	-	-	-	-	-
Currency translation differences	(211)	(10)	(11 355)	(13 038)	(1 895)	(26 509)	(18 169)	(44 678)
Accumulated cost 31 March 2021	300 098	19 635	758 901	230 602	145 636	1 454 872	1 424 680	2 879 552
Acc. depreciation and impairment 1 January 2021	(198 820)	-	(149 408)	(232 787)	(17 383)	(598 398)	-	(598 398)
Depreciation for the period	(10 668)	-	(43 510)	-	(6 997)	(61 175)	-	(61 175)
Impairment for the period*	-	-	-	(9 533)	-	(9 533)	-	(9 533)
Disposals	-	-	-	-	-	-	-	-
Currency translation differences	(29)	-	716	11 719	-	12 406	-	12 406
Acc. depreciation and impairment 31 March	(209 518)	-	(192 201)	(230 602)	(24 380)	(656 701)	-	(656 701)
Carrying amount 31 March 2021	90 581	19 635	566 700	-	121 256	798 173	1 424 680	2 222 853

* Refer note 4 for more information regarding impairment of fixed price customer contracts.

Non-current intangible assets

Q2 2021
NOK in thousands	Software and development projects	Construction in progress	Customer portfolios	Fixed price customer contracts	Other intan gible assets	Total non-cur rent intangible assets, excl. goodwill	Goodwill	Total non current intan gible assets
Accumulated cost 1 April 2021	300 098	19 635	758 901	230 602	145 636	1 454 872	1 424 680	2 879 552
Additions - Purchase	259	18 544	181	-	-	18 984	-	18 984
Additions - Internally generated	609	(461)	-	-	-	148	-	148
Additions from business combinations*	-	-	-	-	-	-	(2 802)	(2 802)
Transferred from construction in progress	18 442	(18 442)	-	-	-	-	-	-
Government grants (SkatteFUNN)	-	-	-	-	-	-	-	-
Disposals	-	-	-	-	-	-	-	-
Currency translation differences	169	4	3 889	4 659	556	9 277	7 698	16 975
Accumulated cost 30 June 2021	319 577	19 280	762 970	-	146 192	1 483 280	1 429 576	2 912 857
Acc. depreciation and impairment 1 April 2021	(209 518)	-	(192 201)	(230 602)	(24 380)	(656 701)	-	(656 701)
Depreciation for the period	(10 922)	-	(43 316)	-	(2 620)	(56 858)	-	(56 858)
Impairment for the period**	-	-	-	(290)	-	(290)	-	(290)
Disposals	-	-	-	-	-	-	-	-
Currency translation differences	20	-	(499)	(4 369)	-	(4 847)	-	(4 847)
Acc. depreciation and impairment 30 June 2021	(220 419)	-	(236 015)	-	(27 001)	(718 696)	-	(718 696)
Carrying amount 30 June 2021	99 158	19 280	526 957	-	119 191	764 586	1 429 576	2 194 163

* The changes to Goodwill included in Additions from business combinations are adjustments to the goodwill recognised when the group acquired Innlandskraft AS in Q3 2020. These changes are mainly caused by adjustments to the final purchase consideration.

** Refer note 4 for more information regarding impairment of fixed price customer contracts.

Non-current intangible assets

Q2 2020
NOK in thousands	Software and development projects	Construction in progress	Customer portfolios	Fixed price customer contracts	Other intan gible assets	Total non-cur rent intangible assets, excl. goodwill	Goodwill	Total non current intan gible assets
Cost price 1 April 2020	218 609	13 929	171 886	-	13 903	418 328	166 696	585 024
Additions - Purchase	-	21 321	825	-	-	22 146	-	22 146
Additions - Internally generated	344	234	-	-	-	578	-	578
Additions from business combinations	-	-	-	-	-	-	-	-
Transferred from construction in progress	16 098	(16 098)	-	-	-	-	-	-
Government grants (SkatteFUNN)	-	-	-	-	-	-	-	-
Disposals	-	-	-	-	-	-	-	-
Cost price 30 June 2020	235 051	19 385	172 712	-	13 903	441 051	166 696	607 747
Acc. depreciation and impairment 1 April 2020	(152 821)	-	(88 632)	-	(10 062)	(251 515)	-	(251 515)
Depreciation for the period	(8 957)	-	(7 291)	-	(826)	(17 074)	-	(17 074)
Impairment for the period	-	-	-	-	-	-	-	-
Disposals	-	-	-	-	-	-	-	-
Acc. depreciation and impairment 30 June 2020	(161 778)	-	(95 923)	-	(10 888)	(268 589)	-	(268 589)
Carrying amount 30 June 2020	73 274	19 385	76 793	-	3 016	172 468	166 696	339 162

Non-current intangible assets

YTD 2021
NOK in thousands	Software and development projects	Construction in progress	Customer portfolios	Fixed price customer contracts	Other intan gible assets	Total non-cur rent intangible assets, excl. goodwill	Goodwill	Total non current intan gible assets
Accumulated cost 1 January 2021	297 473	9 063	770 256	243 640	147 531	1 467 964	1 442 849	2 910 813
Additions - Purchase	340	31 297	181	-	-	31 818	-	31 818
Additions - Internally generated	732	-	-	-	-	732	-	732
Additions from business combinations*	-	-	-	-	-	-	(2 802)	(2 802)
Transferred from construction in progress	21 074	(21 074)	-	-	-	-	-	-
Government grants (SkatteFUNN)	-	-	-	-	-	-	-	-
Disposals	-	-	-	-	-	-	-	-
Currency translation differences	(42)	(6)	(7 466)	(8 379)	(1 339)	(17 232)	(10 471)	(27 703)
Accumulated cost 30 June 2021	319 577	19 280	762 970	235 261	146 192	1 483 280	1 429 576	2 912 858
Acc. depreciation and impairment 1 January 2021	(198 820)	-	(149 408)	(232 787)	(17 383)	(598 398)	-	(598 398)
Depreciation for the period	(21 590)	-	(86 825)	-	(9 618)	(118 033)	-	(118 033)
Impairment for the period**	-	-	-	(9 823)	-	(9 823)	-	(9 823)
Disposals	-	-	-	-	-	-	-	-
Currency translation differences	(9)	-	218	7 350	-	7 558	-	7 558
Acc. depreciation and impairment 30 June 2021	(220 419)	-	(236 015)	(235 261)	(27 001)	(718 696)	-	(718 696)
Carrying amount 30 June 2021	99 158	19 280	526 957	-	119 191	764 586	1 429 576	2 194 163

** Refer note 4 for more information regarding impairment of fixed price customer contracts.

Non-current intangible assets

YTD 2020

NOK in thousands	Software and development projects	Construction in progress	Customer portfolios	Fixed price customer contracts	Other intan gible assets	Total non-cur rent intangible assets, excl. goodwill	Goodwill	Total non current intan gible assets
Accumulated cost 1 January 2020	213 393	15 147	170 805	-	13 903	413 249	166 696	579 945
Additions - Purchase	-	34 560	1 906	-	-	36 467	-	36 467
Additions - Internally generated	798	538	-	-	-	1 336	-	1 336
Additions from business combinations	-	-	-	-	-	-	-	-
Transferred from construction in progress	20 860	(20 860)	-	-	-	-	-	-
Government grants (SkatteFUNN)	-	-	-	-	-	-	-	-
Disposals	-	(10 000)	-	-	-	(10 000)	-	(10 000)
Currency translation differences	-	-	-	-	-	-	-	-
Accumulated cost 30 June 2020	235 051	19 385	172 711	-	13 903	441 051	166 696	607 747
Acc. depreciation and impairment 1 January 2020	(144 240)	-	(81 281)	-	(9 189)	(234 710)	-	(234 710)
Depreciation for the period	(17 538)		(14 642)		(1 699)	(33 879)	-	(33 879)
Impairment for the period*	-					-	-	-
Disposals	-					-	-	-
Currency translation differences	-					-	-	-
Acc. depreciation and impairment 30 June 2020	(161 778)	-	(95 923)	-	(10 888)	(268 589)	-	(268 589)
Carrying amount 30 June 2020	73 274	19 385	76 793	-	3 016	172 468	166 696	339 162

Full Year 2020

Non-current intangible assets

NOK in thousands	Software and development projects	Construction in progress	Customer portfolios	Fixed price customer contracts*	Other intan gible assets	Total non-cur rent intangible assets, excl. goodwill	Goodwill	Total non current intan gible assets
Accumulated cost 1 January 2020	213 393	15 147	170 805	-	13 903	413 249	166 696	579 945
Additions - Purchase	204	61 598	338	-	-	62 139	-	62 139
Additions - Internally generated	2 628	-	-	-	-	2 628	-	2 628
Additions from business combinations	21 760	3 049	601 782	245 664	133 876	1 006 131	1 278 400	2 284 530
Transferred from construction in progress	59 649	(59 649)	-	-	-	-	-	-
Disposals***	(123)	(11 082)	-	-	-	(11 205)	-	(11 205)
Currency translation differences	(37)	-	(2 668)	(2 025)	(248)	(4 978)	(2 246)	(7 224)
Accumulated cost 31 December 2020	297 473	9 063	770 256	243 640	147 531	1 467 964	1 442 849	2 910 813
Acc. depreciation and impairment 1 January 2020	(144 240)	-	(81 281)		(9 189)	(234 710)	-	(234 710)
Depreciation for the year	(37 668)	-	(68 159)	(52 910)	(8 194)	(166 931)	-	(166 931)
Impairment for the year/*	(16 930)	-	-	(180 540)	-	(197 470)	-	(197 470)
Disposals	-	-	-	-	-	-	-	-
Currency translation differences	18	-	31	663	-	712	-	712
Acc. depreciation and impairment 31 December	(198 820)	-	(149 408)	(232 787)	(17 383)	(598 398)	-	(598 398)
Carrying amount 31 December 2020	98 653	9 063	620 851	10 852	130 149	869 568	1 442 849	2 312 418

*Through the acquisition of Troms Kraft Strøm AS in November 2020, a portfolios of fixed price customer contracts were acquired. These fixed price customer contracts are depreciated systematically over the remaining life of these contracts (up to five years) using a pattern that reflects how the acquisition value of the contracts are distributed over these contract periods (cost model in IAS 38). Refer note 4 for more information regarding impairment of fixed price customer contracts.

** As part of the business combination where the group aquired Innlandskraft AS in September 2020, the group acquired Software at total NOKt 21 760. In Q4 2020 the group decided that some of this software will not be of use to the group going forward, thus an impairment of NOKt 16 930 has been recognised.

*** Disposals of NOKt 10 000 relates to sale of asset to the associated company Metzum AS.

Note 8 Trade receivables

Trade receivables

Trade receivables are amounts due from customers for goods sold or services performed in the ordinary course of business. If collection of the amounts is expected in one year or less they are classified as current assets. Trade receivables are generally due for settlement within 30 days. No interest is charged on outstanding trade receivables, unless it is past due date.

The Group always measures the loss allowance for trade receivables at an amount equal to lifetime expected credit loss (ECL). The expected credit losses on trade receivables are estimated using a provision matrix by grouping trade receivables based on reference to past default experience for the group of customers and an analysis of whether the customer is an active customer to whom the Group continues to supply goods and services to or has ceased purchasing good or services from the Group. The customer's current financial position, adjusted for factors that are specific to the customers', general economic conditions of the industry in which the customers operate and an assessment of both the current as well as the forecast direction of conditions at the reporting date, are all factors that are taken into account when measuring ECL.

To account for Covid-19 effects the Group made an additional loss allowance provision of NOKt 10 800 in 2020. After an updated assessment of credit risk due to Covid-19 in the first quarter of 2021, the additional loss allowance provision was reduced to NOKt 5 400 in Q1 2021 and has remained unchanged in the second quarter of 2021. There has been no other changes in the estimation techniques or significant assumptions made during the current and prior reporting periods.

The Group writes off a trade receivable when there is information indicating that the debtor is in severe financial difficulty and there is no realistic prospect of recovery, e.g. when the debtor has been placed under liquidation or has entered into bankruptcy proceedings, or when the trade receivables are over one years past due, whichever occurs earlier. The trade receivables that have been written off are still subject to collection processes.

The following table details the loss allowance provision recognised in trade receivables:

NOK in thousands		31 March 2020 30 June 2021		30 June 2020 Full year 2020
Gross nominal amount	2 379 079	1 474 459	552 178	1 582 007
Loss allowance provision	(99 096)	(58 234)	(96 325)	(105 080)
Trade receivables, net	2 279 982	1 416 225	455 853	1 476 927

The following table shows the movement in lifetime ECL that has been recognised for trade receivables in accordance with the simplified approach set out in IFRS:

NOK in thousands	Q1 2021	Q2 2021	Q2 2020	YTD 2021		YTD 2020 Full year 2020
Loss allowance provision, opening balance	105 080	99 096	92 820	105 080	75 837	75 837
Additions from business combinations	-	-	-	-	-	7 778
Change in loss allowance recognised in profit or loss for the period	(5 677)	(40 999)	3 504	(46 676)	20 488	21 594
Currency translation difference	(307)	137	-	(169)	-	(129)
Loss allowance provision, balance at end of period	99 096	58 234	96 325	58 234	96 325	105 080

The movement in lifetime ECL in the first quarter is mainly due to reduction of the additional loss allowance provision related to Covid-19.

During the second quarter of 2021, changes have been made to the Group's CRM system related to write-offs. An effect of these changes is that overdue receivables previously included in loss allowance provision has been written off. Consequently the changes has lead to a reduction in the loss allowance provision and a corresponding increase in receivables written off. The effect on net impairment expense of these changes was immaterial.

During the period, the following gains/(losses) in relation to impaired receivables were recognised as other operating expenses in profit or loss:

NOK in thousands	Q1 2021	Q2 2021	Q2 2020	YTD 2021		YTD 2020 Full year 2020
Receivables written off	984	49 681	1 052	50 665	2 223	6 998
Movement in provision for impairment	(5 677)	(40 999)	3 256	(46 676)	20 240	21 594
Received payment on previously written off receivables	(3 632)	(2 291)	(809)	(5 922)	(1 868)	(5 878)
Net impairment expense recognised on trade receivables	(8 325)	6 391	3 500	(1 934)	20 595	22 713

Note 9 Derivatives and fair value measurement of financial instruments

Derivatives

All financial electricity derivatives are either financial customer contracts, or purchased for the purpose of hedging physical or financial customer contracts. The Group does not apply hedge-accounting, all financial electricity derivatives are measured at fair value through profit and loss.

The group has the following derivative financial instruments:

NOK in thousands	31 March 2021	30 June 2021	30 June 2020	31 December 2020
Current assets
Electricity Forwards with Statkraft	51 555	309 756	-	66 843
Electricity Options with Statkraft	-	-	-	242
Electricity Forwards with customers	84 173	127 074	220 796	119 654
Electricity Options with customers	2 785	1 588	9 038	6 435
Other derivatives	-	-	-	-
Total current assets - Derivative financial instruments	138 514	438 418	229 834	193 175

Current liabilities
Electricity Futures with Nasdaq OMX	-	-	-	13 755
Electricity Forwards with Statkraft	3 821	465	80 544	18 449
Electricity Options with Statkraft	8 388	1 392	9 791	7 018
Electricity Forwards with customers	39 660	184 392	123 750	70 363
Electricity Options with customers	77	221	-	451
Other derivatives	1 775	1 280	-	581
Total current liabilities - Derivative financial instruments	53 722	187 750	214 085	110 616

Derivatives and fair value measurement of financial instruments

Fair value measurements of financial instruments

This note explains the judgements and estimates made in determining the fair values of the financial instruments that are recognised and measured at fair value in the financial statements. Changes in fair value are recognised through other gains and losses, net in the consolidated statement of profit or loss. To provide an indication about the reliability of the inputs used in determining fair value, the Group has classified its financial instruments into the three levels prescribed under the accounting standards. An explanation of each level follows underneath the table.

Recurring fair value measurements	Level 1	Level 2	Level 3	Total
At 31 March 2021
NOK in thousands
Financial assets
Derivative financial instruments	-	111 960	26 554	138 514
Total financial assets at fair value	-	111 960	26 554	138 514

Financial liabilities

Derivative financial instruments	-	33 209	20 512	53 722
Total financial liabilities at fair value	-	33 209	20 512	53 722

Recurring fair value measurements	Level 1	Level 2	Level 3	Total
At 30 June 2021
NOK in thousands
Financial assets
Derivative financial instruments	-	365 560	72 858	438 418
Total financial assets at fair value	-	365 560	72 858	438 418

Financial liabilities
Derivative financial instruments	-	125 335	62 414	187 750
Total financial liabilities at fair value	-	125 335	62 414	187 750

Recurring fair value measurements	Level 1	Level 2	Level 3	Total
At 30 June 2020
NOK in thousands
Financial assets
Derivative financial instruments	-	154 616	75 219	229 834
Total financial assets at fair value	-	154 616	75 219	229 834

Financial liabilities
Derivative financial instruments	-	143 985	70 100	214 085
Total financial liabilities at fair value	-	143 985	70 100	214 085

Note 9 Derivatives and fair value measurement of financial instruments

Recurring fair value measurements	Level 1	Level 2	Level 3	Total
At 31 December 2020
NOK in thousands
Financial assets
Derivative financial instruments	-	131 045	62 130	193 175
Total financial assets at fair value	-	131 045	62 130	193 175

Financial liabilities
Derivative financial instruments	-	96 045	14 571	110 616
Total financial liabilities at fair value	-	96 045	14 571	110 616

There were no transfers between level 1 and 2 for recurring fair value measurements during the period. The Group's policy is to recognise transfers into and transfers out of fair value hierarchy levels as at the end of the reporting period.

Level 1: The fair value of financial instruments traded in active markets (such as publicly traded derivatives, and trading and available-for-sale securities) is based on quoted market prices at the end of the reporting period. The quoted market price used for financial assets held by the Group is the current bid price. These instruments are included in level 1.

Level 2: The fair value of financial instruments that are not traded in an active market (for example, over-the-counter derivatives) is determined using valuation techniques which maximise the use of observable market data and rely as little as possible on entity-specific estimates. If all significant inputs required to fair value an instrument are observable, the instrument is included in level 2.

Level 3: If one or more of the significant inputs are not based on observable market data, the instrument is included in level 3. This is the case for unlisted equity securities. Changes in assets and liabilities measured at fair value based on level 3 during the year are presented in the tables below.

Valuation techniques used to determine fair values

Specific valuation techniques used to value derivative financial instruments include present value of future cash flows, based on forward prices from Nasdaq OMX Commodities at the balance sheet date. In the case of material long-term contracts, the cash flows are discounted at a discount rate calculated by using interest rates on Government bonds with matching maturities, added a risk premium of 0,2 percentage points. Valuation method is used for forward contracts and option contracts associated with purchase and sale of electricity. Key inputs to the valuation are discount rates, contract- and market prices. Level 3 inputs consists of a) expected power price in price areas Bergen and Kristiansand, and b) expected power price on contracts with maturity more than five years from the reporting date, as the marked for corresponding forward contracts is considered illiquid.

The fair value of cash and cash equivalents, trade receivables, other non-current financial assets and trade and other payables approximate their carrying value.

Derivatives and fair value measurement of financial instruments

Assets and liabilities measured at fair value based on level 3

At 31 March 2021
NOK in thousands	Assets	Liabilities	Total, net
Opening balance 1 January 2021	62 130	14 571	47 559
Additions or derecognitions	-	(2 821)	2 821
Realisations and unrealised changes in value recognised in profit or loss	(35 576)	8 763	(44 339)

Net realised gain (+) / loss (-) recognised in profit and loss Q1 2021 36 041

At 30 June 2021 NOK in thousands Assets Liabilities Total, net Opening balance 1 April 2021 26 554 20 512 6 041 Additions or derecognitions - (1) 1 Realisations and unrealised changes in value recognised in profit or loss 46 304 41 903 4 401 Closing balance 30 June 2021 72 858 62 414 10 443 Net realised gain (+) / loss (-) recognised in profit and loss Q2 2021 5 267

Closing balance 31 March 2021 26 554 20 512 6 041

At 30 June 2020

NOK in thousands	Assets	Liabilities	Total, net
Opening balance 1 April 2020	122 937	117 166	5 771
Additions or derecognitions	(1 777)	(1 577)	200
Realisations and unrealised changes in value recognised in profit or loss	(45 941)	(45 488)	(453)
Closing balance 30 June 2020	75 219	70 100	5 118

Net realised gain (+) / loss (-) recognised in profit and loss Q2 2020 (2 157)

Fair value of other financial instruments

The Group also has financial instruments which are not measured at fair value in the statement of financial position. For the majority of these instruments, the fair values are not materially different to their carrying amounts, since the interest receivable/ payable is either close to current market rates or the instruments are short-term in nature. There has not been identified any significant difference between fair value and carrying amount at 30 June 2021.

At 31 December 2020
NOK in thousands	Assets	Liabilities	Total, net
Opening balance 1 January 2020	28 399	24 220	4 179
Additions or derecognitions	(2 087)	(7 422)	5 335
Realisations and unrealised changes in value recognised in profit or loss	35 818	(2 227)	38 045
Closing balance 31 December 2020	62 130	14 571	47 559

Net realised gain (+) / loss (-) recognised in profit and loss 2020	(9 456)

Sensitivity analysis of factors classified to level 3

NOK in thousands	10 % reduction	10 % increase
Net effect from power prices	(8 128)	8 128

Note 10 Pension liabilities

Amounts recognised in Statement of financial position

NOK in thousands	31 Mar 2021	30 June 2021	30 June 2020	31 Dec 2020
Present value of funded obligations	332 808	335 212	221 153	349 080
Fair value of plan assets	315 506	317 345	196 857	304 808
Deficit for funded plans	17 302	17 866	24 295	44 272
Present value of unfunded obligations	59 628	64 089	71 203	64 164
Total deficit of defined benefit pension plans	76 930	81 955	95 498	108 436
Other employee benefit obligations	2 759	2 759	991	2 392
Employee benefit obligations recognised in Statement of financial position	79 688	84 713	96 489	110 828

Significant actuarial assumptions	31 Mar 2021	30 June 2021	30 June 2020	31 Dec 2020
Discount rate	2,10 %	1,90 %	1,70 %	1,50 %
Salary growth rate	2,00 %	2,00 %	2,00 %	2,00 %
Expected growth in base social security amount (G)	2,00 %	2,00 %	1,80 %	1,75 %
Estimated return on plan assets	2,10 %	1,90 %	1,00 %	1,50 %
Pension growth rate	1,25 %	1,25 %	1,25 %	1,00 %

Note 11 Credit facilities

Long term debt
NOK in thousands	Effective interest rate	31 Mar 2021	30 June 2021	30 June 2020	31 Dec 2020

Term loan	NIBOR 3 months + 1,35 %	-	-	166 800	-
Term loan	NIBOR 3 months + 1,75 %	890 150	866 725	-	913 575
Total		890 150	866 725	166 800	913 575

Credit facilities agreement

In September 2020 Fjordkraft entered into a new facilities agreement with DNB, which includes the following credit facilities; - a NOKt 1 000 000 term loan - the acquisition facility - a NOKt 500 000 revolving credit facility - a NOKt 2 250 000 guarantee facility - a NOKt 1 000 000 overdraft facility

The term loan - NOKt 1 000 000 - The acquisition facility

Fjordkraft may draw upon the term loan facility until 31 October 2021. The termination date of the loan is in September 2023, though Fjordkraft has the option to extend the termination date by two periods of twelve months. Each term loan drawn upon the facility is to be repaid in quarterly repayments of 2,5 % of the original amount of the term loan, with the remainder being repaid in full on the termination date. The reference interest rate is NIBOR.

NOKt 460 000 was drawn upon this facility in September 2020, in order to repay the former term loan, and to partly finance the aquisition of Innlandskraft AS. In November 2020 additional NOKt 477 000 was drawn upon the facility in order to partly finance the aquisition of Troms Kraft Strøm AS. Quarterly instalments of NOKt 23 425 was repaid in December 2020, in March 2021, and in June 2021. At 30 June 2021 the remaining term loan principal balance is NOKt 866 725.

The loan instalments of NOKt 93 700 that are due the next twelve months have been reclassified from interest-bearing long term debt to interest-bearing short term debt, which is included in other current liabilities in the statement of financial position.

The revolving credit facility - NOKt 500 000 - The RCF

The revolving credit facility is available up until one month before the termination date. The termination date is in September 2023, though Fjordkraft has the option to extend the termination date by two periods of twelve months. Any drawings for the purpose of financing permitted acquisitions shall be converted into term loan drawings with the same repayment profile as the acquisition facility, and amounts so converted shall not be available for re-drawing.

The group has not made any drawings and/or repayments on this facility in Q2 2021. At 30 June 2021 the total revolving credit facility of NOKt 500 000 is undrawn.

The guarantee facility - NOKt 2 250 000

The purpose of the guarantee facility is the issuance of guarantees and letters of credit for the general corporate and working capital purpose of the group, hereunder gurantees related to re-invoicing agreements with grid owners, property rental agreements and so on. The termination date of the guarantee facility is in September 2023, though Fjordkraft has the option to extend the termination date by two periods of twelve months.

At 30 June 2021 guarantees of total NOKt 1 758 293 are issued under the guarantee facility.

The overdraft facility - NOKt 1 000 000

The overdraft facility is available one year from the agreement date in September 2020, and it will be renewed for another year unless Fjordkraft requests otherwise. At 30 June 2021 a total of NOKt 136 801 are drawn upon the overdraft facility.

Security

The groups trade receivables has been pledged as security for all credit facilities under the new facilities agreement.

Transactions costs

Transactions costs of NOKt 8 577 related to establishing the new Term loan facility are recognised as part of amortised cost of the Term loan. Transaction costs related to establishing the The RCF, The guarantee facility, and the overdraft facility of a total NOKt 15 980, are amortised on a straight line basis over the period from establishing the facilities to the termination date.

Financial covenant

Under the new credit facility, there is a leverage covenant that applies at all times, and which shall be calculated quarterly based on consolidated numbers. A leverage ratio is to be calculated as total long term interest bearing debt to rolling 12 month EBITDA adjusted. The leverage ratio shall not exceed: - more than 2,5 in respect of more than one quarter-end during any financial year, and

more than 2,0 in respect of the remaining three quarter-ends during any such financial year.

Fjordkraft is in compliance with the covenant at the end of this reporting period.

Note 12 Other current liabilities

NOK in thousands	Note	31 March 2021	30 June 2021	30 June 2020	31 Dec 2020
El-certificate cancellation liabilities		8 138	9 594	39 256	87 514
Accrued power purchase		98 909	96 548	16 271	76 549
Provisions for onerous contracts	4	50 948	203 256	-	78 515
Prepayments from customers		64 382	68 300	87 861	119 631
Installments on long term loan due within 12 months	11	93 700	93 700	55 600	93 700
Payroll liabilities		58 915	51 017	19 101	44 059
Unsettled part of consideration for business combinations		48 812	48 812	-	48 812
Other current liabilities		24 299	9 200	23 773	40 798
Total other current liabilities		448 103	580 428	241 862	589 578

Note 13 Related party transactions

Per 30 June 2021, the Group's related parties include major shareholders, Board of Directors, associated company and key management. The Board of Directors previously included a representative from BKK AS. In the general meeting held in the second quarter of 2021, this board member was not re-elected. BKK AS and subsidiaries were therefore considered to be related parties in the first two quarters of 2021, but not as of 30 June 2021.

The following transactions were carried out with related parties (NOK in thousands):

Income from related parties

Related party	Relation	Purpose of transactions	Q1 2021	Q2 2021	Q2 2020	YTD 2021	YTD 2020	Full year 2020
BKK AS and subsidiaries	Major shareholder	Sale of electrical power	23 443	7 688	5 502	31 131	11 871	21 707

Sale of electrial power in some cases includes reinvoiced grid rent.

Expenses to related parties

Related party	Relation	Purpose of transactions	Q1 2021	Q2 2021	Q2 2020	YTD 2021	YTD 2020	Full year 2020
BKK AS and subsidiaries	Major shareholder	Purchase of electrical power	4 312	2 276	2 988	6 588	5 557	10 573
BKK AS and subsidiaries	Major shareholder	Purchase of other services	6 745	5 980	6 559	12 726	13 097	25 925
Metzum AS	Associated company	Purchase of other services	10 568	8 594	2 987	19 162	6 100	21 191

Other services consists of payroll expenses, IT-expenses, office expenses and customer service.

Purchase of assets

Related party	Relation	Purpose of transactions	Q1 2021	Q2 2021	Q2 2020	YTD 2021	YTD 2020	Full year 2020
BKK AS and subsidiaries	Major shareholder	Purchase of customer portfolio	-	181	374	181	447	539
Metzum AS	Associated company	Research and development	3 402	2 496	6 265	5 898	12 969	20 012

Distributions to related parties

Related party	Relation	Purpose of transactions	Q1 2021	Q2 2021	Q2 2020	YTD 2021	YTD 2020	Full year 2020
BKK AS	Major shareholder	Dividend	-	-	47 799	-	47 799	47 799

Current receivables from related parties

Related party	Relation	Purpose of transactions	30 March 2021	30 June 2021 30 June 2020		31 Dec 2020
BKK AS and subsidiaries	Major shareholder	Sale of electrical power	6 409	-	1 621	2 382

Current liabilities to related parties

Related party	Relation	Purpose of transactions	30 March 2021	30 June 2021 30 June 2020		31 Dec 2020
BKK AS and subsidiaries	Major shareholder	Purchase of other services	-	-	191	824
Metzum AS	Associated company	Research and development	1 342	74	3 813	3 215

Payables to related parties are unsecured and are excpected to be settled in cash.

Note 14 Events after the reporting period

There are no other significant events after the reporting period that has not been reflected in the consolidated financial statements.

Directors responsibilty statement

We confirm that, to the best of our knowledge, the condensed set of financial statements for the first six months of 2021, which have been prepared in accordance with IAS 34 Interim Financial Statements, gives a true and fair view of the Company's consolidated assets, liabilities, financial position and results of operations, To the best of our knowledge, the interim report for the

Per Oluf Solbraa Board member

Elisabeth M. Norberg Board member

Steinar Sønsteby Chairman

first six months of 2021 includes a fair review of important events that have occurred during the period and their impact on the condensed financial statements, the principal risks and uncertainties for the remaining half of 2021, and major related party transactions.

The Board of Fjordkraft Holding ASA, Bergen, 25 August 2021

Tone Wille

Board member

Heidi Theresa Ose Board member

Marianne Unhjem-Solbjørg Board member

Board member

Live Bertha Haukvik

Board member

Rolf Barmen CEO

Frank Økland

Deloitte AS Lars Hilles gate 30 Postboks 6013 Postterminalen NO-5892 Bergen Norway

Tel: +47 55 21 81 00 www.deloitte.no

To the Board of Directors of Fjordkraft Holding ASA

REPORT ON REVIEW OF INTERIM FINANCIAL INFORMATION

Introduction

We have reviewed the accompanying condensed consolidated interim financial statement of Fjordkraft Holding ASA. The condensed consolidated interim financial statement consists of the condensed consolidated statement of financial position as of 30 June 2021, the condensed consolidated statement of profit or loss, the condensed consolidated statement of comprehensive income (loss), the condensed statement of changes in equity and the condensed consolidated statement of cash flows for the six-month period then ended, and a summary of significant accounting policies and other explanatory notes. Management is responsible for the preparation and fair presentation of this interim financial information in accordance with IAS 34 Interim Financial Reporting. Our responsibility is to express a conclusion on this interim financial information based on our review.

Scope of Review

We conducted our review in accordance with International Standard on Review Engagements 2410, Review of Interim Financial Information Performed by the Independent Auditor of the Entity. A review of interim financial information consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing (ISAs), and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

Conclusion

Based on our review, nothing has come to our attention that causes us to believe that the accompanying consolidated interim financial information does not present fairly, in all material respects, the financial position of the entity as at 30 June 2021, and its financial performance and its cash flows for the six-month period then ended in accordance with IAS 34 Interim Financial Reporting.

Bergen, 25 August 2021 Deloitte AS

Helge-Roald Johnsen State Authorised Public Accountant

Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited ("DTTL"), its global network of member firms, and their related entities (collectively, the "Deloitte organization"). DTTL (also referred to as "Deloitte Global") and each of its member firms and related entities are legally separate and independent entities, which cannot obligate or bind each other in respect of third parties. DTTL and each DTTL member firm and related entity is liable only for its own acts and omissions, and not those of each other. DTTL does not provide services to clients. Please see www.deloitte.no to learn more. Registrert i Foretaksregisteret Medlemmer av Den norske Revisorforening Organisasjonsnummer: 980 211 282

Appendix

Report Q2 2021 42 www.investor.fjordkraft.no

The alternative performance measures (abbreviated APM's) that hereby are provided by the Group are a supplement to the financial statements prepared in accordance with IFRS. The APM's are based on the guidelines for APM published by the European Securities and Markets Authority (ESMA) on or after 3rd of July 2016. As indicated in the guidelines an APM is a financial measure of historical or future financial performance, financial position, or cash flows, other than a financial measure defined or specified in the applicable financial reporting framework. The performance measures are commonly used by analysts and investors.

The Group uses the following APM's (in bold). The words written in italics are included in the list of definitions or in the statement of profit or loss.

Cash EBIT is equivalent to Operating free cash flow before tax and change in Net working capital. This APM is used to illustrate the Group's underlying cash generation in the period.

Capex excl. M&A is used to present the capital expenditures excluding mergers and acquisitions to illustrate the Group's organic maintenance capex.

EBIT reported is equivalent to Operating profit and is used to measure performance from operational activities. EBIT reported is an indicator of the company's profitability.

EBIT adjusted

In order to give a better representation of underlying performance, the following adjustments are made to the reported EBIT:

• Estimate deviations from previous years: A large proportion of the Group's final settlement of sales and distribution of electricity is made after the Group has finalised its financial statements. At the date of reporting, the Group recognises electricity revenue and the associated cost of sales, based on a best estimate approach. Thus, any estimate deviation related to the previous reporting period is recognised in the following reporting period
• Other gains and losses, net: Consist of gains and losses on derivative financial instruments associated with the purchase and sale of electricity
• Impairment & change in provision for onerous contracts: Consist of impairment of intangible

assets and changes in provision for onerous contracts related to fixed price customer contracts

• Special items: Items that are not part of the ordinary business, such as acquisition related costs and launch of new services
• Depreciation of acquisitions: Depreciation related to customer portfolios and acquisitions of companies. The Group has decided to report the operating profit of the segments adjusted for depreciation of acquisitions

EBIT reported margin is EBIT divided by Net revenue. This APM is a measure of the profitability and is an indicator of the earnings ability.

EBIT margin adjusted is calculated as EBIT adjusted divided by Net revenue adjusted. This APM is a measure of the profitability and is an indicator of the earnings ability.

EBITDA is defined as operational profit/loss before depreciation and amortisation. This APM is used to measure performance from operating activities.

EBITDA adjusted

In order to give a better representation of underlying performance, the following adjustments are made to EBITDA:

• Estimate deviations from previous years: A large proportion of the Group's final settlement of sales and distribution of electricity is made after the Group has finalised its financial statements. At the date of reporting, the Group recognises electricity revenue and the associated cost of sales based on a best estimate approach. Thus, any estimate deviation related to the previous reporting period is recognised in the following reporting period
• Other gains and losses, net: Consist of gains and losses on derivative financial instruments associated with the purchase and sale of electricity
• Impairment & change in provision for onerous contracts: Consist of impairment of intangible assets and changes in provision for onerous contracts related to fixed price customer contracts
• Special items: items that are not part of the ordinary business, such as acquisition related costs and launch of new services

Alternative performance measures

Gross revenue is equivalent to Revenue as stated in the statement of profit or loss.

Net income is equivalent to Profit/(loss) for the period as stated in the statement of profit or loss.

Net income adjusted for certain cash and non-cash items is used in the dividend calculation, and is defined as the following: [(Adjusted EBIT + net finance)*(1-average tax rate) – amortisation of acquisition debt]."

Net interest-bearing debt (NIBD) shows the net cash position and how much cash would remain if all interest-bearing debt was paid. The calculation is total interest-bearing liabilities deducted cash and cash equivalents.

Net revenue is equivalent to Revenue less direct cost of sales as stated in the statement of profit or loss.

Net revenue adjusted

This APM presents Net revenue adjusted for:

• Estimate deviations from previous years: A large proportion of the Group's final settlement of sales and distribution of electricity is made after the Group has finalised its financial statements. At the date of reporting, the Group recognises electricity revenue and the associated cost of sales based on a best estimate approach. Thus, any estimate deviation related to the previous reporting period is recognised in the following reporting period

• Other special revenue adjustments: which represents non-recurring income which is recognised in the profit or loss for the period

Net working capital (NWC) is used to measure short-term liquidity and the ability to utilise assets in an efficient matter. NWC includes the following items from current assets: Inventories, intangible assets, trade receivables, derivative financial instruments and other current assets (that is, all current assets in the balance sheet except cash and cash equivalents); and the following items from current liabilities; trade payables, current income tax liabilities, derivative financial instruments, social security and other taxes, lease liability - short term, and other current liabilities. First year instalments related to long term debt from acquisition is classified as interest bearing debt.

Non-cash NWC elements and other items is used when analysing the development in NIBD. Non-cash NWC relates to items included in "change in NWC" that are not affecting Net interest-bearing debt while other items include interest, tax, change in long-term receivables, proceeds from non-current receivables, proceeds from other long-term liabilities and adjustments made on EBITDA.

Number of deliveries is used to present the number of electrical meters supplied with electricity. One customer may have one or more electricity deliveries.

OpFCF before tax and change in NWC is Operating free cash flow and change in working capital, and is defined as EBITDA adjusted less Capex excl. M&A and payments to obtain contract assets.

Volume sold is used to present the underlying volume generating income in the period.

Financial statements with APM's

Reported amounts:

NOK in thousands	Q1 2021	Q2 2021	Q2 2020	YTD 2021	YTD 2020	Full year 2020
Operating income	4 062 952	2 578 081	671 380	6 641 032	1 981 637	4 214 727
Cost of sales	(3 553 371)	(2 170 449)	(340 967)	(5 723 820)	(1 169 822)	(2 647 005)
Net revenue	509 581	407 631	330 413	917 212	811 815	1 567 722

Personnel expenses	(111 493)	(79 849)	(54 648)	(191 342)	(133 243)	(328 485)
Other operating expenses	(131 246)	(115 934)	(97 758)	(247 180)	(222 352)	(471 938)
Operating expenses	(242 739)	(195 783)	(152 406)	(438 522)	(355 595)	(800 422)

Impairment & change in provision for onerous contracts	9 122	(151 288)	-	(142 166)	-	(268 493)
Other gains and losses, net	5 388	164 677	2 568	170 066	4 474	331 539
EBITDA	281 352	225 238	180 575	506 590	460 694	830 346

Depreciation & amortisation	(99 774)	(97 101)	(48 493)	(196 875)	(97 241)	(305 174)
EBIT reported (Operating profit)	181 577	128 138	132 082	309 715	363 453	525 172

Net financials	(20 566)	(5 153)	(270)	(25 719)	4 112	(11 505)
Profit/ (loss) before taxes	161 011	122 985	131 812	283 996	367 565	513 667

Taxes	(27 368)	(23 772)	(29 211)	(51 140)	(81 294)	(113 604)
Profit/ (loss) for the period	133 643	99 212	102 601	232 856	286 271	400 063

EBIT reported margin	36%	31%	40%	34%	45%	33%

Adjusted amounts:

NOK in thousands	Q1 2021	Q2 2021	Q2 2020	YTD 2021	YTD 2020	Full year 2020
Net revenue	509 581	407 631	330 413	917 212	811 815	1 567 722
Adjustment: (Positive/ negative estimate deviations previous year)	-	(19 573)	(14 674)	(19 573)	(14 674)	(22 521)
Special items*	-	-	(1 716)	-	(1 716)	(1 716)
Net revenue adjusted	509 581	388 059	314 023	897 640	795 425	1 543 486

EBITDA	281 352	225 238	180 575	506 590	460 694	830 346
Adjustment: (Positive/ negative estimate deviations previous year)	-	(19 573)	(14 674)	(19 573)	(14 674)	(22 521)
Impairment & change in provision for onerous contracts	(9 122)	151 288	-	142 166	-	268 493
Other gains and losses	(5 388)	(164 677)	(2 568)	(170 066)	(4 474)	(331 539)
Special items*	(2 354)	-	1 210	(2 354)	1 210	34 694
EBITDA adjusted (before unallocated and estimate deviations)	264 488	192 276	164 544	456 764	442 757	779 472

EBIT reported (Operating profit)	181 577	128 138	132 082	309 715	363 453	525 172
Adjustment: (Positive/ negative estimate deviations previous year)	-	(19 573)	(14 674)	(19 573)	(14 674)	(22 521)
Impairment & change in provision for onerous contracts	(9 122)	151 288	-	142 166	-	268 493
Other gains and losses	(5 388)	(164 677)	(2 568)	(170 066)	(4 474)	(331 539)
Special items*	(2 354)	-	1 210	(2 354)	1 210	40 497
Part of depreciation related to acquistions	50 575	45 929	8 116	96 504	16 293	128 175
EBIT adjusted (before unallocated and estimate deviations)	215 288	141 105	124 168	356 393	361 810	608 276

EBIT margin adjusted	42%	36%	40%	40%	45%	39%

* Special items consists of the following:

NOK in thousands	Q1 2021	Q2 2021	Q2 2020	YTD 2021	YTD 2020	Full year 2020
- acquisition related costs and implementation costs	(7 485)	-	(2 927)	(7 485)	(2 927)	(21 579)
- income related to compensatory damages	-	-	1 716	-	1 716	1 716
- one off amortisation of customer contracts in acquired companies	-	-	-	-	-	(5 745)
- severance packages and other one off costs in acquired companies	6 451	-	-	6 451	-	(14 889)
- gain from sale of trade receivables previously impaired	3 387	-	-	3 387	-	-
Special items	2 354	-	(1 210)	2 354	(1 210)	(40 497)

Other financial APM's

Net interest bearing debt (cash)

NOK thousands	31 Mar 2021	30 June 2021	30 June 2020	31 Dec 2020
Interest-bearing long term debt	789 260	766 694	111 200	812 808
Transaction costs recognised as part of amortised cost of Interest-bearing long term debt	7 190	6 331	-	7 067
Reclassification of first year instalments long term debt	93 700	93 700	55 600	93 700
Overdraft facilities	472 648	136 801	-	29 400
Cash and cash equivalents	(561 092)	(261 282)	(749 445)	(599 348)
Net interest bearing debt (cash)	801 707	742 244	(582 645)	343 626

Financial position related APM's

NOK thousands	Q1 2021	Q2 2021	Q2 2020	YTD 2021	YTD 2020	Full year 2020
Net working capital	542 463	217 540	(58 971)	217 540	(58 971)	(105 875)
OpFCF before tax and change in NWC	196 573	117 147	116 400	313 720	357 311	577 266
Capex excl. M&A	14 709	19 263	21 898	33 972	35 896	64 926

Non-financial APM's

Deliveries

Numbers in thousands	Q1 2021	Q2 2021	Q2 2020	YTD 2021	YTD 2020	Full year 2020
Electrical deliveries Consumer segment	736	726	544	726	544	755
Electrical deliveries Business segment	109	111	81	111	81	107
Electrical deliveries Nordic segment	161	167	-	167	-	164
Total number of electrical deliveries *	1 006	1 004	625	1 004	625	1 027

Number of mobile subscriptions	135	134	118	134	118	132

* Number of deliveries excl. Extended Alliance deliveries. Number of deliveries incl. Extended Alliance deliveries: 1 085 thousand in Q2 2021.

Volume in GWh	Q1 2021	Q2 2021	Q2 2020	YTD 2021	YTD 2020	Full year 2020
Consumer segment	3 735	2 073	1 549	5 808	3 877	8 144
Business segment	2 635	1 569	1 249	4 204	3 075	6 275
Nordic segment	1 005	682	-	1 687	-	497
Total volume	7 376	4 324	2 798	11 700	6 952	14 916

AI Terminal

Elmera Group ASA

3591_rns_2021-08-26_c7054150-bff7-4e8c-97d3-baae8e853483.pdf

Fjordkraft Holding ASA and the Fjordkraft Group

• # of deliveries in the Consumer, Business and Nordic segments decreased by 1,959 in the quarter

Key figures Q2

Growth in net revenue and EBIT adj.

Consumer

Business

Nordic

New Growth Initiatives

Financials

Consolidated cash flow

Financial position

Events after the reporting period

Risks and uncertainties

Outlook

Condensed interim financial statements

Condensed consolidated statement of profit or loss

Condensed consolidated statement of comprehensive income

Condensed consolidated statement of financial position

Condensed consolidated statement of financial position

Condensed consolidated statement of changes in equity

Condensed consolidated statement of cash flows

Notes to the condensed consolidated financial statements

Note 1 Accounting policies

General information

Basis of preparation

Going concern

Accounting policies

Use of estimates

Note 2 Segment information

Disaggregation of revenue from contracts with customers

Note 3 Revenue recognition

Timing of revenue recognition

Over time:

At a point in time:

Note 4 Impairment, change in provision for onerous contracts, and other gains and losses.

Note 6 Earnings per share

Basic earnings per share

Non-current intangible assets

Note 7 Intangible assets

Non-current intangible assets

Non-current intangible assets

Non-current intangible assets

Note 8 Trade receivables

Trade receivables

Note 9 Derivatives and fair value measurement of financial instruments

Derivatives

Fair value measurements of financial instruments

Financial liabilities

Valuation techniques used to determine fair values

Assets and liabilities measured at fair value based on level 3

Net realised gain (+) / loss (-) recognised in profit and loss Q1 2021 36 041

At 30 June 2020

Fair value of other financial instruments

Sensitivity analysis of factors classified to level 3

Note 10 Pension liabilities

Amounts recognised in Statement of financial position

Note 11 Credit facilities

Credit facilities agreement

The term loan - NOKt 1 000 000 - The acquisition facility

The revolving credit facility - NOKt 500 000 - The RCF

The guarantee facility - NOKt 2 250 000

The overdraft facility - NOKt 1 000 000

Security

Transactions costs

Financial covenant

Note 12 Other current liabilities

Note 13 Related party transactions

Income from related parties

Expenses to related parties

Purchase of assets

Distributions to related parties

Current receivables from related parties

Current liabilities to related parties

Note 14 Events after the reporting period

Directors responsibilty statement

Introduction

Scope of Review