Aker : Annual Report 2022

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Aker ASA annual report2022
Content
1. This is Aker	3
Highlights 2022	4
Key performance indicators	5
Changes in net asset value	6
2. Letter from the president and CEO	9
3. Shareholder information	13
4. Investment overview	15
Industrial holdings	16
Financial investments	17
Alternative performance measures	18
5. Board of Directors' report	19
6. Annual accounts	33
Aker Group	34
Aker ASA	93
Aker ASA and holding companies	115
7. Board of Directors	128
8. Management	130
9. Corporate Governance Report	131
Financial calendar 2023
Aker reserves the right to revise the dates.
Annual General Meeting:	21 April
Announcement of 1Q 2023:	5 May
Announcement of 2Q 2023:	18 July
Announcement of 3Q 2023:	3 November

This is Aker

Aker is the largest shareholder, directly or indirectly, in 9 companies listed on the Oslo Stock



Exchange, Euronext Expand Oslo or Euronext

Growth Oslo.

This is Aker

Since its establishment in 1841, Aker has been a driving force for the development of internationally focused, knowledge-based industry in Norway.

Aker ASA (Aker) is an industrial investment company that develops businesses and exercises active ownership to create value for its shareholders and society at large. Aker combines industrial expertise with knowledge of the capital markets and financial strength. In its capacity as owner, Aker helps to develop and strengthen its portfolio of Aker companies, working through the boards of the industrial holdings portfolio companies to drive strategy development, operational improvements, financing, restructuring and transactions.

Aker is investing along key global megatrends and the ownership interests are concentrated within the sectors oil and gas, renewable energy and green technologies, industrial software, seafood and marine biotechnology. As part of this, Aker has established active asset management through the operative investment firm Industry Capital Partners (ICP).

In 2022, Aker's investments were divided into two portfolios:

Industrial holdings are strategic assets and are managed with a long-term perspective.

They comprise Aker's ownership interests in Aker BP, Aker Energy, Aker Solutions, Aker Horizons, Aker BioMarine, SalMar Aker Ocean, Cognite and Aize.

Financial investments comprise cash and other assets. The portfolio includes thelisted companies Akastor, AMSC, Philly Shipyard, and Solstad Offshore, in addition to ICP and Aker Property Group.

Size

Aker is the largest shareholder, directly or indirectly, in 9 companies listed on the Oslo Stock Exchange, Euronext Expand Oslo or Euronext Growth Oslo. Aker and companies in which Aker is the largest investor had a total turnover of around NOK 200 billion in 2022, and a workforce of approximately 35 000, including temporary hires. About 22 500 people are employed in Norway.

Net Asset Value (NAV) growth is a key performance indicator for Aker ASA and holding companies. As at 31 December 2022, NAV amounted to NOK 66.9 billion, compared to NOK 69.8 billion one year prior. In addition, a dividend of NOK 2.15 billion was paid in 2022.

Ownership

As of 22 March 2023, Aker has generated an average annual return of 25 per cent, including dividends, since its re-listing on the Oslo Stock Exchange on 8 September 2004. At the beginning of 2023, Aker had 20 167 shareholders. Aker's main shareholder is Kjell Inge Røkke, who owns 68.2 per cent of Aker through his company TRG Holding AS. Through a private company, CEO Øyvind Eriksen owns 0.2 per cent of the B-shares in TRG Holding AS, as well as 219 072 shares in Aker ASA.

4 Aker ASA annual report2022

Highlights 2022

Industrial Holdings Portfolio:

Important Strategic Partnerships

This is Aker | Highlights 2022

Aker BP:

Acquisition of Lundin Energy Completed

During 2022, Aker continued to build on its strategy of strategic partnerships with several important new partnerships announced across the portfolio. Aker Solutions agreed to form a subsea joint venture with SLB and Subsea 7. Cognite formed a joint venture with Saudi Aramco and signed strategic partnerships SLB and Rockwell Automation. Aize signed a continuation if its strategic partnership with Aker BP and Aker Solutions. And Aker Carbon Capture established partnerships with companies including Hoegh LNG, Microsoft and Storegga.

2022 was a transformational year for Aker BP with the completion of its merger with Lundin Energy's oil and gas business in Norway. Through the transaction, Aker BP doubled its production and created a stronger and more financially robust company which is the second largest operator on the Norwegian continental shelf. Aker BP will continue to lead the way with a world class asset base, industry leading low cost and low emissions, profitable growth, and attractive dividend policy.

Aker BP:

Record number of field developments

Aker Solutions:

All-time high Order Backlog

Aker BP and its partners submitting a record number of 11 PDOs (plans for development and operation) in 2022. This represents total investments of more than NOK 200 billion for projects with total recoverable resources of more than 750 million barrels of oil equivalents. Along with other measures to increase efficiency and recovery, Aker BP projects that these development projects could enable its oil and gas production to grow from an average of 309 200 barrels per day in 2022 to more than 500 000 barrels in 2028.

In 2022, Aker Solutions won all-time-high order intake of NOK 88.2 billion, or 2.1-times book-to-bill, bringing the order backlog to a record high NOK 97.3 billion. This means the Company has secured solid visibility for activity-levels for the next several years moving forward. As part of this, Aker Solutions won multiple contracts from Aker BP for the field development projects Yggdrasil, Valhall PWP-Fenris and Skarv Satellites.

Distribution of Aker's NOK 76.1 billion gross asset value as at 31 December 2022

Aker BP (53%)	Aker Solutions (10%)
Cognite (9%)	Other financial investments (8%)
Aker Horizons (8%)	Aker BioMarine (3%)
Listed financial investments (3%)	Cash (2%)
Aker Energy (1%)	Real Estate (1%)
SalMar Aker Ocean (0,9%)	Aize (0%)

This is Aker | Key performance indicators

Key performance indicators

Aker's key performance indicators are net asset value growth and shareholder returns (share price and dividends).

Net asset value (NAV) expresses Aker's underlying financial value and provides the basis for the company's dividend policy (two to four per cent of NAV per year). The NAV is calculated on the basis of the market value of listed shares, most recent transaction value for non-listed assets subject to material transaction with third parties, while book value is used for other assets.

In 2022, an ordinary dividend of NOK 14.50 per share was paid for the 2021 fiscal year. At the Annual General Meeting in April

VEK per share

NOK per share

2022, the board was authorized to disburse an additional dividend in 2022 on the basis of the annual accounts for 2021. In November 2022, an additional dividend of NOK 14.50 per share was paid. In 2023, the board is proposing that an ordinary dividend of NOK 15.00 per share be paid for 2022, and that the AGM authorize the Board to disburse an additional dividend in 2023 based on the 2022 annual accounts.

Dividend per share (see comments above)

NOK per share and per cent of NAV

850 650 450 250 50

2020

Allocated dividend

2021

NAV after allocated dividendShare price

30

25

20

15

10

5

0

2022

2020

Additional dividend (NOK)Allocated dividend (NOK)

2021

Per cent of NAV before dividend

2022

Gross assets per business segment

NOK billion

80

40

60

50

30

20

70

10

0

2020

2020

Industrial holdingsFinancial investments

Gross assets per sector

NOK billion

80

70

60

50

40

30

20

10

0

2021

2022

SoftwareOther financial assets

Cash

Seafood & marine biotec

2021

Renewables and green technology

Maritime assets

Energy Services

Oil and gas related

2022