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NRC Group Remuneration Information 2023

Apr 13, 2023

3693_rns_2023-04-13_73a1da39-e194-4d90-bf3f-204c33174b7a.pdf

Remuneration Information

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Remuneration Report 2022

Introduction

Under section 6-16 b of the Public Limited Liability Companies Act, the Board of NRC Group ASA ("NRC Group" or the "Company") is required to draw up an annual report that provides a complete overview of remuneration disbursed and remuneration due to executive personnel covered by the guidelines defined in section 6-16 a.

This remuneration report (the "Report") has been prepared in compliance with the Norwegian Public Limited Liability Companies Act and related regulations.

Information on the work of the Remuneration Committee of NRC Group in 2022 is set out in the Corporate Governance Report, which is available on page 49 in the annual report 2022.

The Report will be presented for an advisory vote at the Annual General Meeting on 4 May 2023 and is disclosed, once adopted, at the Company's website, www.nrcgroup.com.

PURPOSE

The objective of the Report is to ensure transparency in NRC Group's remuneration policy and the actual remuneration of the executive personnel, and to ensure that the remuneration system is in accordance with NRC Group's results and goals. The definition of executive personnel in this report includes the chief executive officer, the chief financial officer, any other member of the executive management team, and any member of the Board of Directors of the Company.

The combination of fixed and variable compensation arrangements including the senior executive share option scheme has ensured NRC Group's competitiveness as an employer in all of the geographies and domains it operates, enabling us to retain, develop and recruit skilled senior executives with relevant experience and competence. These compensation arrangements have been important for successfully implementing the Group's business strategy, our long-term interests, and to develop our sustainable business practices.

COMPLIANCE WITH THE GUIDELINES

The remuneration guidelines (the "Guidelines") have been fully implemented in 2021. The remuneration to the executive personnel for 2022 is in accordance with the Guidelines; no deviations have been made from the approved principles.

The Board of Directors has for 2022 resolved a discretionary bonus to certain executive personnel which is further described below.

No remuneration has been reclaimed.

The Guidelines and the auditor's assurance report regarding whether the Company has complied with the Guidelines are available on the Company's website, www.nrcgroup.com.

REMUNERATION IN FOREIGN CURRENCY

Remuneration to senior executives is paid or accrued in the currency of the respective subsidiary that owns the employment relationship. In this Report, amounts are presented in Norwegian kroner (NOK), which is both the functional and presentation currency of the parent company. Remuneration in other currencies received during the financial year is translated into NOK using the average exchange rate for the year. Accrued remuneration at the end of the reporting period is translated at the exchange rate in effect on the balance sheet date. Members of the Board receive their fees from the parent company NRC Group ASA in NOK.

Key developments 2022

Overall company development in 2022

(Amounts in NOK million) 2022 2021
Revenue 7,030 5,957
EBITDA 333 302
EBIT** -240 42
EBITA* 151 139
EBITA* (%) 2.1% 2.3 %
Order intake 6,959 7,581
Order backlog 7,795 7,801
Cash flow from operating activities 235 358
Cash and cash equivalents 472 626
Net interest-bearing debt 950 891
Equity ratio 45% 47%
Employees 1,960 1,893

For more information about the general performance of the Company during the financial year, please see the CEO's letter on page 6 and the Board of Directors' report on page 67 in the annual report 2022.

* Before other income and expenses (M&A expenses)

** 2022 includes impairment expense of NOK 352 million

Remuneration of the Board of Directors

The Directors' fees shall be decided by the General Meeting. This decision will be based on the Nomination Committee's recommendation.

Table 1A sets out the total remuneration paid to each board member during 2022.

Table 1A - Remuneration paid to the Board of Directors in the reported financial year
Name,
position
Period Financial
year
1
Fixed
remuneration
- Fees
2
Variable
remuneration
3
Total
remuneration
4
Proportion
of fixed
and variable
remuneration
Rolf Jansson, Chair
of the BoD
2022 640 000 0 640 000 100 % 0 %
Nov 2018 - 2021 425 000 0 425 000 100 % 0 %
Mats Williamson,
Board member
2022 375 000 0 375 000 100 % 0 %
Jul 2018 - 2021 350 000 0 350 000 100 % 0 %
Tove Elisabeth
Pettersen,
Board member
May 2020 - 2022 375 000 0 375 000 100 % 0 %
2021 350 000 0 350 000 100 % 0 %
Eva Nygren, Nov 2018 - 2022 325 000 0 325 000 100 % 0 %
Board member 2021 325 000 0 325 000 100 % 0 %
Outi Henriksson, 2022 350 000 0 350 000 100 % 0 %
Board member May 2021 - 2021 75 000 0 75 000 100 % 0 %
Heikki Allonen, 2022 350 000 0 350 000 100 % 0 %
Board member May 2021 - 2021 75 000 0 75 000 100 % 0 %
Karin Bing 2022 75 000 0 75 000 100 % 0 %
Orgland,
Board Member
May 2022 - 2021 0 0 0 N/A N/A

The estimated remuneration for 2022 is based on the general assembly approved remuneration for 2021 which amounts to NOK 600,000 for the chair and NOK 300,000 for the members. Additional remuneration for the audit committee is NOK 75,000 for the chair and 50,000 for members, for the remuneration committee NOK 40,000 for the chair and 25,000 for members and for the project committee NOK 75,000 for the chair and 50,000 for the members. The estimated remuneration for 2022 is unchanged from the remuneration for 2021. The board members have not received variable remuneration in 2022. No other benefits were

granted or awarded or due, but not yet materialised, during the reported financial year.

NRC Group ASA may have agreements with Board members for consultancy services related to certain internal projects such as acquisitions and management recruitment. The agreements are based on hourly rates and are carried out on arm's length terms. Currently, there exists one agreement with Mats Williamson. Total expense amounted to NOK 239,617 for 2022 (2021: NOK 470,350) based on hourly rates of SEK 1,500.

Remuneration of the management

The Guidelines enable the Company to offer senior executives a total competitive remuneration. Under the Guidelines, the remuneration shall be on market terms, competitive, and reflect the performance and responsibilities of individual senior executives. The remuneration may consist of fixed cash salary, variable cash salary, pension benefits, participation in the share option incentive programme, and the employee share programme.

The fixed cash salary shall be the main element in the overall remuneration and shall take into account the scope and responsibility associated with the position, as well as the skills, experience, and performance of each senior executive.

The performance measures for the senior executives' variable remuneration have been selected to deliver the Company's business strategy and to encourage behaviour that is in the long-term interest of the Company. In the selection of performance measures, the strategic objectives, sustainability, and long-term interest have been taken into account. None of the senior executives receives remuneration from other enterprises in the NRC Group than the entity they are employed in.

Table 1B and 1C set out total remuneration to NRC Group's CEO and other senior executives during 2022. Table 1B contains each individual director's total remuneration excluding accrued bonus expenses to be paid in 2023, split out by component. Furthermore, the table presents the relative proportion of fixed and variable remuneration. In addition to the directors who have performed their mandate during the reported financial year, information regarding former directors, to the extent remuneration was awarded or due during the reported financial year, is provided.

Explanatory notes regarding Table 1B

Base Salary Fixed base salary paid or due to senior executives, in exchange for professional
services to serve their mandate in respect to the reported financial year.
Fringe benefits Value of any benefits and perquisites awarded or due to the senior executive in
respect to the reported financial year. For the current financial year, the main fringe
benefits are related to car allowances, telephone, medical and other minor benefits
'in natura'.
One-year variable Total value of annual bonus paid in cash to the senior executive as a result of the
fulfilment of the predetermined performance criteria, where the time span does not
exceed one year.
Multi-year variable Total value of annual bonus due to the senior executive as a result of the fulfilment
of the predetermined performance criteria, where the time span exceeds one year.
For all senior executives, reported values solely concern share option expenses
which are allocated over the service period assumed in the option programme.
For more information regarding share-based payments, see note 7 in the annual
report 2022.
Extraordinary items Any other non-recurring remuneration, whether in cash or in other form, such
as sign-on fees, retention bonus, redundancy payments and indemnity for non
competition or severance payments.
Pension expense Senior executives are covered by the defined contribution pension plans in Norway,
Sweden, and Finland, respectively. Pension expenses are the contributions that
took place under the reported financial year to finance a fund for future pension
pay-out for the senior executive. For more information regarding pensions, see note
18 in the annual report 2022.
Notice period Period of time between the receipt of the letter of dismissal and the end of the last
working day. Additionally, presented information includes any non-compete periods
subsequent to the ordinary notice period, during which the senior executives will
receive the basic salary and other remuneration and participate in the Group
pension plan.
Accrued variable remuneration Bonus expenses that were granted or awarded, but not yet materialised, during the
reported financial year.
Table 1B - Remuneration of senior executives for the reported financial year
Name,
position
Period Financial
year
1
Fixed remuneration
2 Variable remuneration 4
Pension
5
Total
6
Proportion of fixed
7
Remuneration
8
Notice
Base salary Fringe benefits One-year
variable
Multi-year
variable
items expense remuneration and variable
remuneration
by component period
Henning Olsen, CEO 2 May 2019 - 2022 4 215 000 26 000 1 664 000 299 000 0 186 000 6 390 000 69 % 31 % NRC Group ASA 18 months
2021 4 070 000 8 000 180 000 227 000 0 185 000 4 670 000 91 % 9 %
Ole Anton Gulsvik, CFO 1 Mar 2022 - 2022 2 375 000 25 000 0 208 000 500 000 153 000 3 261 000 78 % 22 % NRC Group ASA 12 months
2021 0 0 0 0 0 0 0 N/A N/A
Dag Fladby, CFO
31 Jan 2022
1 Mar 2016 - 2022 265 000 16 775 624 800 0 0 15 988 922 563 32 % 68 % NRC Group ASA 12 months
2021 2 225 000 188 000 125 000 25 000 0 187 000 2 750 000 95 % 5 %
Arild Moe, EVP & MD NRC Group
Norway
9 Nov 2020 - 2022 2 675 000 12 000 359 000 180 000 0 111 611 3 337 611 84 % 16 % NRC Norge AS 12 months
2021 2 550 000 7 000 0 65 000 0 69 000 2 691 000 98 % 2 %
Harri Lukkarinen, EVP & MD NRC 7 Jan 2019 - 2022 2 867 000 16 000 1 792 806 204 000 0 347 000 5 226 806 62 % 38 % NRC Holding 12 months
Group Finland 2021 2 770 000 0 888 000 143 000 0 262 000 4 063 000 75 % 25 % Finland Oy
Robert Röder, EVP & MD NRC 1 Sep 2019 -
10 Jan 2023
2022 2 999 000 38 000 191 000 0 0 874 000 4 102 000 95 % 5 % Nordic Railway 10 months
Group Sweden 2021 3 107 000 91 000 31 000 78 000 769 000 865 000 4 941 000 82 % 18 % Construction
Sweden AB
Lene Engebretsen, EVP & Head of 1 May 2020 - 2022 1 537 000 9 000 319 000 100 000 0 185 000 2 150 000 81 % 19 % NRC Group ASA 9 months
communications 2021 1 420 000 8 000 45 000 76 000 0 186 000 1 735 000 93 % 7 %
Jussi Mattsson, EVP & Head of
Strategy and Business Developm.
1 Feb 2021 - 2022 1 399 000 56 000 764 000 100 000 0 161 000 2 480 000 65 % 35 % NRC Group
Finland Oy
6 months
2021 1 423 000 2 000 0 76 000 0 102 000 1 603 000 95 % 5 %
Marianne Ulland Kellmer, EVP & 1 aug 2022 - 2022 625 000 5 000 0 3 000 0 76 575 709 575 100 % 0 % NRC Group ASA 3 months
Head of HR 2021 0 0 0 0 0 0 0 N/A N/A
Ina Pettersen, EVP & Head of HR 1 Apr 2021 - 2022 904 000 5 000 330 000 0 0 107 543 1 346 543 75 % 25 % NRC Group ASA 9 months
31 Jul 2022 2021 1 163 000 6 000 0 76 000 0 186 000 1 431 000 95 % 5 %

In addition to paid bonuses as shown in table 1B, senior executives are awarded cash bonuses to be paid in 2023. The accrued variable cash bonus is based on financial results and the achievement of certain qualitative goals, including key performance indicators both for the Group's overall performance as well as local segment and individual performance. The bonuses have been evaluated and approved by the Board of Directors for the CEO and by the Remuneration Committee for other senior executives. The Board believes that a performance-based bonus agreement for executive personnel had a motivational effect and therefore is beneficial for the Group and its shareholders in order to reach the financial results and the overall performance of the Group.

Table 1C – Accrued short-term bonus remuneration in the reported financial year
Name, position Performance criterion Relative
weigth
Measured
performance
Actual
award
Awarded in
% of base
salary
Henning Olsen, CEO Financial targets Group 80 % 0 % 0
Strategic targets Group 20 % 67 % 331 200 8 %
Ole Anton Gulsvik, CFO Financial targets Group 80 % 0 % 0
Strategic targets Group 20 % 80 % 228 000 20 %
Discretionary targets Group* NA NA 250 000
Arild Moe, EVP & MD NRC
Group Norway
Financial targets Group 20 % 0 % 0
Strategic targets Group 5 % 26 % 34 100 41 %
Financial targets Country 75 % 54 % 1 060 000
Harri Lukkarinen, EVP & Financial targets Group 20 % 0 % 0
MD NRC Group Finland Strategic targets Group 5 % 27 % 37 000 28 %
Financial targets Country 75 % 37 % 768 600
Lene Engebretsen, EVP & Financial targets Group 80 % 0 % 0
Head of communications Strategic targets Group 20 % 100 % 94 200 18 %
Discretionary targets Group* NA NA 175 000
Jussi Mattsson, EVP & Financial targets Group 40 % 0 % 0
Head of Strategy and
Business Developm.
Strategic targets Group 10 % 22 % 34 600 23 %
Financial targets Country 50 % 37 % 286 700
Marianne Ulland Kellmer, Financial targets Group 80 % 0 % 0
EVP & Head of HR Strategic targets Group 20 % 42 % 37 500 14 %
Discretionary targets Group* NA NA 50 000

*The Board of Directors decided to award a discretionary bonus to recognize the performance of certain employees in the Group management, which serve the Company's long-term interest.

Share-based long-term incentive remuneration

Since 2016, the annual general meeting has resolved each year that options may be awarded to the senior executives. Options may be granted based on achievements of specific financial goals and some other criteria determined by the Board of Directors.

Senior executives are awarded share options based on financial and non-financial achievements, granted by the board upon their approval of the annual accounts. The weighted average fair value of options granted in 2022 was NOK 6,68 each. The share option expense is allocated over the service period assumed in the option program. For further information see note 7 in the Annual accounts. Table 2 includes the key elements and events throughout the reported financial year regarding the different share-based remuneration plans per senior executive.

Explanatory notes regarding Table 2

Specification of plan Specification of each share option plan in a way that allows identification of those plans.
Performance period Period of time during which the performance goals must be met in order to determine
the degree of vesting with respect to the share option.
Grant date The date share options are given to the recipient.
Vesting period The date the directors can exercise the options according to the terms of the share
option plan.
Expiration date Point of time the senior executive must decide whether to exercise or let the share option
expire.
Strike price Strike prices of the shares that each respective issuance of share options entitle to in
consistency with the terms of the applicable plan.
Opening balance Number of share options or shares held at the beginning of the reported financial year.
Share options awarded Number of shares that have been awarded on the grant date under each applicable
share option plan during the reported financial year.
Vested share options Number of share options that have been vested in the vesting period (as presented in
column 4) during the reported financial year.
Exercised share options Number of share options used during the reported financial year to purchase NRC's
common stock at the strike price of the share as presented in column 6, regardless of
the stock's price at the time the senior executive exercises the option.
Cancelled share option Number of share options cancelled due to the share option's terms and agreements no
longer being valid.
Share options subject to a
performance condition
Number of share options still subject to a performance condition.
Exercisable share options Number of share options that have been awarded on a grant date as presented in
column 3 during the reported or previous financial years and which are vested at the
end of the reported financial year.
Table 2 - Granted options to senior executives for the reported financial year
Information regarding the current financial year
Main terms for the option plan Opening
balance
During the year Closing
balance
Name, position 1
Specification
of plan
2
Performance
period
3
Grant date
4
Vesting
period
5
Expiration
date
6
Strike price of
the share in
NOK
7
Share options
awarded at
the beginning
of the year
8
Share options
awarded
9
Vested share
options
10
Exercised
share options
11
Canceled
share options
12
Share options
subject to a
performance
condition
13
Exercisable
Share options
Agreement 2019 36 months 17.03.2020 1/3 per year 17.03.2023 37,00 10 000 0 3 333 0 0 10 000 10 000
Henning Olsen, CEO Agreement 2020 36 months 15.03.2021 1/3 per year 15.03.2024 27,87 20 000 0 6 667 0 0 20 000 13 333
Agreement 2021 36 months 16.03.2022 1/3 per year 16.03.2025 17,70 0 105 000 35 000 0 0 105 000 35 000
Ole Anton Gulsvik, CFO Agreement 2021 36 months 16.03.2022 1/3 per year 16.03.2025 20,04 0 75 000 25 000 0 0 75 000 25 000
Agreement 2019 36 months 17.03.2020 1/3 per year 17.03.2023 37,00 7 500 0 2 500 0 0 7 500 7 500
Harri Lukkarinen, EVP & MD NRC Group
Finland
Agreement 2020 36 months 15.03.2021 1/3 per year 15.03.2024 27,87 42 000 0 14 000 0 0 42 000 28 000
Agreement 2021 36 months 16.03.2022 1/3 per year 16.03.2025 17,70 0 66 000 22 000 0 0 66 000 22 000
Agreement 2019 36 months 17.03.2020 1/3 per year 17.03.2023 37,00 3 125 0 1 042 0 3 125 0 0
Robert Röder, EVP & MD NRC Group Sweden Agreement 2020 36 months 15.03.2021 1/3 per year 15.03.2024 27,87 15 000 0 5 000 0 15 000 0 0
Agreement 2021 36 months 16.03.2022 1/3 per year 16.03.2025 17,70 0 36 000 12 000 0 36 000 0 0
Lene Engebretsen, EVP & Head of Agreement 2020 36 months 15.03.2021 1/3 per year 15.03.2024 27,87 6 000 0 2 000 0 0 6 000 4 000
communications Agreement 2021 36 months 16.03.2022 1/3 per year 16.03.2025 17,70 0 35 000 11 667 0 0 35 000 11 667
Ina Pettersen, EVP & Head of HR Agreement 2021 36 months 16.03.2022 1/3 per year 16.03.2025 17,70 0 35 000 11 667 0 35 000 0 0
Arild Ingar Moe, EVP & MD NRC Group
Norway
Agreement 2021 36 months 16.03.2022 1/3 per year 16.03.2025 17,70 0 57 000 19 000 0 0 57 000 19 000
Jussi Mattsson, EVP & Head of strategy and
business development
Agreement 2021 36 months 16.03.2022 1/3 per year 16.03.2025 17,70 0 35 000 11 667 0 0 35 000 11 667
103 625 444 000 182 543 0 89 125 458 500 187 167

Comparative information on the change of remuneration and company performance

A summary of the development in the executive remuneration, the Company's performance, and average remuneration on a full-time equivalent basis of employees of the company other than senior executives, over the five most recent financial years is shown in the table 3 below.

Senior executives' remuneration and directors' fees presented in table 3 concern all senior executives who performed their mandate under the reported financial year. The amounts to be compared are the total amounts of remuneration presented in column 3 in table 1A and column 5 in table 1B respectively.

For calculating the annual change of remuneration for a senior executive whose mandate began or ended during the reported financial year, the respective remuneration has not been annualised. Necessary information on the employment period can be retrieved from tables 1A and 1B.

When calculating the average remuneration on a full-time equivalent basis of employees of the company other than senior executives, NRC Group included employees of the entire group of companies. Average remuneration is calculated by dividing consolidated salary and pension expenses which are reduced with the total remuneration paid to the senior executives, by the full time equivalent of the Group's employees other than the full time equivalent for the Group's senior executives.

Table 3 – Comparative information on the change of remuneration and
company performance over the last five reporting financial years
Annual change 2018 vs
2017
2019 vs
2018
2020 vs
2019
2021 vs
2020
2022 vs
2021
2022
Directors' remuneration
Henning Olsen, CEO 3 763 000 427 000 480 000 1 720 000 6 390 000
Ole Anton Gulsvik, CFO 3 261 000 3 261 000
Dag Fladby, CFO -82 000 576 000 -720 000 -112 000 -1 827 437 922 563
Arild Moe, EVP & MD NRC Group
Norway
380 000 2 311 000 646 611 3 337 611
Harri Lukkarinen, EVP & MD NRC
Group Finland
4 486 000 -1 076 000 653 000 1 163 806 5 226 806
Robert Röder, EVP & MD NRC Group
Sweden
1 226 000 2 718 000 997 000 -839 000 4 102 000
Lene Engebretsen,
EVP & Head of communications
1 372 000 363 000 415 000 2 150 000
Jussi Mattsson, EVP & Head of
Strategy and Business Development
1 603 000 877 000 2 480 000
Marianne Ulland Kellmer,
EVP & Head of HR
709 575 709 575
Ina Pettersen, EVP & Head of HR 1 431 000 -84 457 1 346 543
Total remuneration
Executive personnel
309 000 17 818 000 -6 207 000 1 014 000 6 042 098 29 926 098
FTE Executive personnel 0 2 1 1 8 8
Rolf Jansson, Chair of the BoD 175 000 175 000 75 000 215 000 640 000
Mats Williamson, Board member 63 000 300 000 -13 000 0 25 000 375 000
Tove Elisabeth Pettersen,
Board member
75 000 275 000 25 000 375 000
Eva Nygren, Board member 175 000 125 000 25 000 0 325 000
Outi Henriksson, Board member 75 000 275 000 350 000
Heikki Allonen, Board member 75 000 275 000 350 000
Karin Bing Orgland, Board Member 75 000 75 000
Total remuneration
Board of Directors -1 203 000 1 344 000 173 000 -25 000 -200 000 2 490 000
Company performance
Net profit for the year -
NRC Group
-156 000 000 -72 000 000 11 000 000 34 000 000 -337 000 000 -364 000 000
Average remuneration on a full-time equivalent basis of employees
Based on FTE -
Employees of the Group
17 000 -182 000 182 000 14 000 35 000 739 000

The Board of Directors of NRC Group ASA

Lysaker, 29 March 2023

Rolf Jansson Chairman of the Board Outi Henriksson Board member

Mats Williamson Board member

Heikki Allonen Board member

Eva Nygren Board member Karin Bing Orgland Board member

Tove Elisabeth Pettersen Board member

Henning Olsen CEO NRC Group ASA

Statsautoriserte revisorer Ernst & Young AS

Dronning Eufemias gate 6a, 0191 Oslo Postboks 1156 Sentrum, 0107 Oslo

Foretaksregisteret: NO 976 389 387 MVA Tlf: +47 24 00 24 00

www.ey.no Medlemmer av Den norske Revisorforening

INDEPENDENT AUDITOR'S ASSURANCE REPORT ON REPORT ON SALARY AND OTHER REMUNERATION TO DIRECTORS

To the General Meeting of NRC Group ASA

Opinion

We have performed an assurance engagement to obtain reasonable assurance that NRC Group ASA's report on salary and other remuneration to directors (the remuneration report) for the financial year ended 31. December 2022 has been prepared in accordance with section 6-16 b of the Norwegian Public Limited Liability Companies Act and the accompanying regulation.

In our opinion, the remuneration report has been prepared, in all material respects, in accordance with section 6-16 b of the Norwegian Public Limited Liability Companies Act and the accompanying regulation.

Board of directors' responsibilities

The board of directors is responsible for the preparation of the remuneration report and that it contains the information required in section 6-16 b of the Norwegian Public Limited Liability Companies Act and the accompanying regulation and for such internal control as the board of directors determines is necessary for the preparation of a remuneration report that is free from material misstatements, whether due to fraud or error.

Our independence and quality control

We are independent of the company as required by laws and regulations and the International Ethics Standards Board for Accountants' Code of International Ethics for Professional Accountants (including International Independence Standards) (IESBA Code), and we have fulfilled our other ethical responsibilities in accordance with these requirements. Our firm applies International Standard on Quality Management 1 (ISQM 1) and International Standard on Engagement Quality Reviews (ISQM 2) and accordingly maintains a comprehensive system of quality control including documented policies and procedures regarding compliance with ethical requirements, professional standards and applicable legal and regulatory requirements.

Auditor's responsibilities

Our responsibility is to express an opinion on whether the remuneration report contains the information required in section 6-16 b of the Norwegian Public Limited Liability Companies Act and the accompanying regulation and that the information in the remuneration report is free from material misstatements. We conducted our work in accordance with the International Standard for Assurance Engagements (ISAE) 3000 – "Assurance engagements other than audits or reviews of historical financial information".

We obtained an understanding of the remuneration policy approved by the general meeting. Our procedures included obtaining an understanding of the internal control relevant to the preparation of the remuneration report in order to design procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the company's internal control. Further we

performed procedures to ensure completeness and accuracy of the information provided in the remuneration report, including whether it contains the information required by the law and accompanying regulation. We believe that the evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Oslo, 29 March 2023 ERNST & YOUNG AS

The auditor's assurance report is signed electronically

Tommy Romskaug State Authorised Public Accountant (Norway)