Aega : Interim report Q3 2022

Aega ASA

Q3 REPORT 2022

CONTENTS / ABOUT AEGA / QUARTERLY REPORT / FINANCIAL STATEMENTS

Contents
About Aega.......................................................................................................................................................................................	3
Quarterly report ..............................................................................................................................................................................	4
Highlights of the quarter ..........................................................................................................................................................	4
Subsequent events....................................................................................................................................................................	4
Letter from the CEO...................................................................................................................................................................	5
Profit and loss.............................................................................................................................................................................	9
Balance sheet ...........................................................................................................................................................................	10
Cash flow ...................................................................................................................................................................................	11
Change in equity ......................................................................................................................................................................	12
Notes ..........................................................................................................................................................................................	13

Aega ASA Q3 report 2022

2

CONTENTS / ABOUT AEGA / QUARTERLY REPORT / FINANCIAL STATEMENTS

About Aega

Aega ASA is an energy company listed on Euronext Expand in Oslo. Aega's main focus is the solar power market. We acquire and operate smaller existing Italian solar power plants. In addition to being an industrial energy producer we also consider investments in the solar and renewable energy sector.

The company's head offices are in Oslo (NO) and Trento (IT).

Aega ASA Q3 report 2022

3

CONTENTS / ABOUT AEGA / QUARTERLY REPORT / FINANCIAL STATEMENTS

Quarterly report

Highlights of the quarter

• Aega had nine operating solar parks at the end of the quarter. Total production in Q3 was 2 606 089 kwh.
• Closed for the acquisition of two solar parks in Italy with a total capacity of 2MW. The solar parks have a capacity of 1MW each and are located at Sardinia and Sicily. The production from these parks will be reflected in our Q4 report and forward.
• Raised NOKm 5.0 in equity through private placement.
• Issued convertible loan of NOKm 10.0.

Subsequent events

• In October the Italian government followed France, Spain and others and imposed a decree that imposes a time limited price cap on solar energy produced under the Feed in Tariff regime. The decree is time limited and came into retroactive force from February 1, 2022 and ends June 30, 2023. The effects are reflected in this report.

Figure 1: Power Generation (kWh)

										2 666 874 2 606 089
						2 015 613 1 931 313		1 596 466
			785 928		1 040 596			950 458
		493 513
187 086	269 252		420 140
Q4'19	Q1'20	Q2'20	Q3'20	Q4'20	Q1'21	Q2'21	Q3'21	Q4'21	Q1'22	Q2'22	Q3'22

Aega ASA Q3 report 2022

4

CONTENTS / ABOUT AEGA / QUARTERLY REPORT / FINANCIAL STATEMENTS

Letter from the CEO

Dear shareholders,

In the third quarter of 2022 Aega delivered revenues of EURt 755 (Q3 2021: EURt 659). EBITDA was positive at EURt 219 (Q3 2021: EURt 173).

As we now exit Q3 2022 we have 9 operating solar parks and Aega has never had more production capacity than today. Our product - renewable energy - is in demand and our contribution to deliver clean energy to the Italian and European market is therefore higher than ever.

When production capacity increases so do our revenues. Aega delivers positive EBITDA and cash flow, and the underlying operations are well run. Our focus the next quarters will be to develop our business, navigate through the somewhat challenging energy market we are in, and to run our operation as efficient as possible. It is not likely that we will purchase any new solar parks before year end 2022 as our focus will be the before mentioned.

During the quarter we have focused on finalizing the acquisitions of the two last solar parks (Terrasol and Solar) and get the financing necessary to do so. We successfully raised 5mNOK in new equity and issued a 10mNOK convertible loan to the same investor. Production from these two new parks will be reflected in the Q4 report and onwards.

European energy situation

In my last letter I pointed to the uncertainty related to how European politicians would react to the very inflated energy prices seen in Europe. In October the Italian government followed France, Spain and others and imposed a decree that de Facto caps Energy prices for solar energy producing assets under Feed in Tariff regime. The

Aega ASA Q3 report 2022

decree is time limited and came into retroactive force from February 1, 2022, ending June 30,

2023. For Aega this means that our main source of revenue - the Feed in Tariff - will remain unchanged, while our sale of electricity is capped at a price of on average 61 Euro/MW (0,061 Euro per kwh sold) for this period. Resulting in somewhat lower revenues than we could have had, however higher than base case in our business models at time of acquisitions for all our assets. These effects are taken into consideration in the reported numbers.

Economies of scale

The last quarters we have started to see the effect of economies of scale, and we have been eager to continue to grow further into improved profitability. To realize this goal, we raised equity and issued a convertible loan in Q3 that gave us the opportunities to purchase the last two solar parks.

Pipeline

Through Q3 we have continued to develop our pipeline and focused on cultivating relations with potential sellers even though we do not plan to

5