ML 33 Holding AS

Consolidated interim financial statements

Six months ended 30 June 2021

ML 33 Holding AS

INTERIM REPORT 2021

The company and groupML 33 Holding AS was incorporated 08 April 2014 and the company is located in Oslo. 

The businessThe Group's business is to own, manage and lease real estate. The Group's revenue is related to rental income from the Group's investment property in the Oslo area at Fornebu to Equinor ASA. 

The consolidated financial statement for the Group reflects the activity of the twelve month period ended 31 December 2021, on a consolidated basis.

Continued operationsThe annual accounts have been prepared on a going concern basis and the board confirms that the necessary conditions have been met.

Development in results and position

GROUP

Statement of profit or lossRental income rose from NOK 115,5 million in the period ending June 2020 to NOK 116,6 million in the period ending June 2021. The commercial property leases provide fixed revenues over their term. The change in rental income for 2021 is primarily related to changes in the consumer price index (CPI). 

The operating profit before fair value adjustments for the period was NOK 114,0 million (June 2020: NOK 110,4 million) and comprises rental income of NOK 116,6 million (June 2020: NOK 115,5 million) which relates to the lease of investment property to Equinor, as well as operating expenses of NOK 2,6 million (June 2020: NOK 3,1 million). 

Net gain/(loss) from fair value adjustment of investment property, was NOK 0,0, (June 2020. net loss of NOK 125,0) as a consequence of the change in the market value of the investment property in 2021. The marked value of the investment property was NOK 4 206,5 million in 2021. The valuation per 30 June 2021 was obtained from Newsec AS, an independent professional valuation specialist. The valuation is mainly based on the discounted cash flow method, which involves discounting expected future cash flows over a specified period using an estimated discount rate.

Net financial items was an expense of NOK 42,9 million (June 2020: net loss of NOK 135,0 million) and includes a net loss of NOK 36,0 million from fair value adjustment of our non-listed and listed bond, (June 2020: net loss of NOK 66,6 million).The Group values its unlisted and listed bonds (all with fixed interest rates) at fair value in the Group's balance sheet. The fair value of both listed and unlisted bonds with fixed interest rates is determined based on valuation by Arctic Securities AS. 

Loss before tax was NOK 71,1 million (June 2020: net loss of NOK 147,6 million) and an income tax expense of NOK 15,8 million was recognized in the 2021 accounts (June 2020: Net loss of NOK 27,9 million). 

As a result, net loss after tax for the year was NOK 55,3 million (June 2020: net loss of NOK 119,7 million). 

Cash flowNet cash flow from operating activities was NOK 51,0 million (June 2020: NOK 74.7 million). Net cash flow from investment activities was NOK 0,0 in 2021, (June 2020: NOK 0,0). Net cash flow from financing activities was negative at NOK -45,4 million, (June 2020:NOK -49,4) million after a dividend payment of NOK -26,6 million.

Cash and cash equivalents at the end of the period was positive by NOK 78,0 million (June 2020: NOK 76,4 million). 

Financial positionAs at 30 June 2021, the Group's total non-current assets was NOK 4 206,6 million, mainly related to investment property (June 2020: NOK 4 133,4 million). Total current assets were NOK 89,2 million of which cash and cash equivalents were NOK 78,0 million. (June 2020:  NOK 2,1 million, cash and cash equivalents were NOK 76,4 million).

As at 30 June 2021, the Group's non-current liabilities was NOK 3 008,0 million (June 2020: NOK 3 070,6 million), mainly related to the non-current portion of the non-listed bond. 

Total current liabilities was NOK 204,1 million of which NOK 49,8 million relates to the current portion of the listed bond. (June 2020: NOK 167,4 million). 

Total assets were NOK 4 295,7 million (June 2020: NOK 4 211,9 million) and total equity was NOK 1 083,5 million as of 30 June 2021, (June 2020: NOK 973,9 million). The equity ratio was 25,2 %, (June 2020: 23,1 %). 

EmployeesThe company and the Group currently has no employees and the need to take action for gender equality has not been assessed. The Group will however take such actions when necessary. 

Market riskThe Group is exposed to the real estate market risk. The Group applies the fair value option marking the investment property to market every reporting date through the consolidated profit or loss. The marked value of the investment property may therefore have a significant impact on the consolidated profit or loss and the balance sheet. Even though there is no immediate cash flow effect, the Group is monitoring changes in fair value of investment property closely. 

The Group's policy is to fix the rate on its borrowings. As at 30 June 2021, all loans including the non-listed bond with maturity date 18 January 2023 and the listed bond with maturity date 27 December 2022 had fixed rate interest. The bonds are carried at fair value through profit or loss. Changes in market interest rates may significantly affect the fair value of the bonds, with a corresponding impact on financial items in the profit and loss statements. Even though there is no immediate cash flow effect, the Group is monitoring changes in fair value of the bonds closely.

The Bond with ISIN NO0010768492 has been listed on Oslo Stock Exchange from 19 December 2016. In accordance with the bond agreement all shares in the Group has been pledged as collateral.

Liquidity risk The Group's liquidity risk is characterized by a potential risk of not being able to meet obligations to vendors and loan creditors. The ability to service the debt depends on the Group's cash flow from operating activities. The Group regularly monitors cash flow  by setting up cash flow forecasts based on the forecasts of the liquidity reserves, including cash equivalents and borrowing facilities. The forecasts are set by the individual's subsidiaries and is regularly monitored by the Group. 

The liquidity risk is regarded as low as the Group's cash flow is predictable.  The rent contract is fixed until 2027 fully adjusted for changes in the consumer price index (CPI) and with a financially sound and reliable tenant with a acceptable credit rating, limiting the risk of losses from defaults or payment problems. The Group has cash and cash equivalents of NOK 78,0 million per 30 June 2021. 

The Board considers the Company's and Group's liquidity as satisfactory, and it is not deemed necessary to introduce measures to reduce the liquidity risk.

Environmental reportThe Company's and the Group's business does not have an impact on the external environment. No materials containing PCB have been found on properties belonging to the company.

Risk management and internal controlDeviation: None

The Board ensures that the company has good internal control and suitable systems for risk management  appropriate to the scope and the nature of the company's activities, including the company's core values and  ethical and social responsibility guidelines. As a part of the supervision process, the Board makes a semiannual review of the development in the company's most important risk areas and the changes in the established framework for risk management and internal control.

The Group's management focuses on establishing good internal control routines over financial reporting. The company performs its business based on rolling forecasts and financial and operational key performance indicators. 

The Group's finance policy is to safeguard management of the most material financial risks that the company is facing, and this is followed up by the finance department. Accounting issues are analyzed on an on-going basis, and the auditor is consulted when necessary.

The Board of Directors has prepared this annual report for 2021 in accordance with the Bond Rules. The Group is in compliance with the continuing obligations.

Declaration by the board of directorsTo the best of the board’s knowledge, the interim financial statements for the first half of 2021 have beenprepared in accordance with applicable accounting standards, and the information in the financial statementsprovides a true and fair picture of the overall assets, liabilities, financial position and financial results of theGroup at 30 June 2021.

To the best of the board’s knowledge, the directors’ half-year report provides a true and fair overview ofimportant events in the accounting period and their influence on the financial statements for the first half of2021. To the best of the board’s knowledge, the description of the most important risk factors anduncertainties facing the business in the next accounting period and of significant transactions with relatedparties also provide a true and fair overview.

Oslo, 30.08.2021

The board of ML 33 Holding AS

Anthony Donghun Kang Erik O. Jacobsen

Chairman of the board Member of the board

Anders Christopher Garmann Wilhelmsen Kenneth Frode Goovaerts Bern

Member of the board Member of the board

Sophie Kim

Member of the board

ML 33 Holding ASCONSOLIDATED INTERIM STATEMENT OF PROFIT OR LOSS

H1 2021 H1 2020 FY 2020Amounts in NOK thousand Notes Unaudited Unaudited Audited

Rental income 7 116 579 115 495 231 822 Operating expenses (2 589) (3 089) (6 820) Operating profit before fair value adjustments 113 990 112 406 225 002

Net gain/(loss) from fair value adjustment of investment property - (125 000) (50 000) Operating profit 113 990 (12 594) 175 002

Net gain/(loss) from fair value adjustment of interest- bearing liabilities 9 35 977 (66 559) (39 970) Financial income 33 171 239 Financial expenses 9 (78 900) (68 654) (137 319) Net financial items (42 890) (135 043) (177 050)

Profit/(loss) before tax 71 100 (147 637) (2 048)

Income tax expense (15 755) 27 890 224

Profit/(loss) for the period 55 345 (119 747) (1 824)

The accompanying notes are an integral part of the Consolidated Interim Financial Statements

ML 33 Holding ASCONSOLIDATED INTERIM STATEMENT OF COMPREHENSIVE INCOME

H1 2021 H1 2020 FY 2020Amounts in NOK thousand Unaudited Unaudited Audited

Profit/(loss) for the period 55 345 (119 747) (1 824)

Total comprehensive income 55 345 (119 747) (1 824)

The accompanying notes are an integral part of the Consolidated Interim Financial Statements

ML 33 Holding ASCONSOLIDATED INTERIM BALANCE SHEET

H1 2021 H1 2020 FY 2020Amounts in NOK thousand Notes Unaudited Unaudited AuditedNon-current assetsInvestment property 10 4 206 553 4 133 365 4 207 459 Total non-current assets 4 206 553 4 133 365 4 207 459

Current assetsAccounts receivable 5 224 - Receivables from related party 5 924 - 17 Other current receivables 2 138 2 010 Cash and cash equivalents 78 003 76 446 72 368 Total current assets 89 151 78 584 74 395

Total assets 4 295 704 4 211 948 4 281 854

Equity and liabilitiesShare capital 100 100 100 Share premium 820 421 795 421 835 421 Retained earnings 263 023 178 383 219 306 Total equity 1 083 544 973 904 1 054 827

Non-current liabilities 8 3 008 048 3 070 614 2 352 000 Total non-current liabilities 3 008 048 3 070 614 2 352 000

Deferred tax 89 578 46 157 73 823 Bonds 8 - - 692 025 Current liabilities 8 96 592 45 273 108 891 Trade and other payables 3 810 225 288 Public duties payable 14 131 Other current liabilities 75 774 - Total current liabilities 204 111 167 430 875 027

Total equity and liabilities 4 295 704 4 211 948 4 281 854

The accompanying notes are an integral part of the Consolidated Interim Financial Statements

ML 33 Holding ASCONSOLIDATED INTERIM STATEMENT OF CHANGES IN EQUITY

Amounts in NOK thousandShare

capitalShare

PremiumRetained earnings

Total equity

Shareholders’ equity 1 January 2020 100 835 421 307 573 1 143 094

Profit/(loss) for the period (1 823) (1 823) Dividend paid (86 444) (86 444)

Shareholders’ equity December 2020 100 835 421 219 306 1 054 827

Shareholders’ equity 1 January 2021 100 835 421 219 306 1 054 827

Profit/(loss) for the period 55 345 55 345 Other comprehensive income for the period - - Total comprehensive income for the period

Dividend paid (15 000) (11 627) (26 627)

Shareholders’ equity 30 June 2021 100 820 421 263 024 1 083 544

The accompanying notes are an integral part of the Consolidated Interim Financial Statements

ML 33 Holding ASCONSOLIDATED INTERIM STATEMENT OF CASH FLOWS

H1 2021 H1 2020 FY 2020Amounts in NOK thousands Unaudited Unaudited AuditedCash flow from operating activitiesProfit/(loss) before tax 71 100 (147 637) (2 048) Fair value adjustment on investment property - 125 000 50 000 Fair value adjustment of interest- bearing liabilities (35 977) 66 559 39 970 Accrued interest (49 840) (49 840) -

Change in working capital (3 767) 80 654 19 736 Items classified as investment or financing activities 69 501 - 137 190 Net cash flow from operations 51 017 74 736 244 848

Cash flow from investmentsPurchase of investment property, net of cash acquired - - - Net cash flow from investments - - -

Cash flow from financing

Payment of interest (18 755) - (137 190) Repayments of interest-bearing liabilities - - - Paid dividend (26 627) (49 444) (86 444) Net cash flow from financing (45 382) (49 444) (223 634)

Net Change in Cash and Cash Equivalents 5 635 25 292 21 214 Cash and cash equivalents at the beginning of the period 72 368 51 154 51 154 Cash and cash equivalents at the end of period 78 003 76 446 72 368

The accompanying notes are an integral part of the Consolidated Interim Financial Statements

Note 1 General information

Note 2 Basis of preparation

Note 3 Accounting policies

Note 4 Estimates, judgements and assumptions

Note 5 Financial risk factors

Note 6 Related party transactions

Above the dividend paid to ML 33 Invest AS of NOK 15 million, the owner of ML 33 Holding AS, there has not been anymajor related parties transactions during H1 2021.

ML 33 Holding AS

NOTES TO THE CONSOLIDATED INTERIM FINANCIAL STATEMENTS

ML 33 Holding AS, formerly known as Arctic Prosjekt 2 AS (the "Company") and its subsidiaries' (together, the "Group")business is related to rental of properties in the Oslo area. The Company was incorporated 8 April 2014 and is domiciledin Oslo, Norway. The Company has no employees, and limited operating activity.

On 30 June 2016 (the "Acquisition date"), the Company completed the acquisition (the "Acquisition") of Martin Linges vei33 AS Group (the "Seller"), including Martin Linges vei 33 AS, Campus B AS and Campus P2 AS. Following theAcquisition, the Group was formed. On 14 December 2017, Campus B AS and Campus P2 AS were merged with MartinLinges vei 33 AS.

These consolidated interim financial statements were approved at the meeting of the Board of Directors on 30 August2021. These consolidated interim financial statements have not been audited.

A description of main financial risk factors is included in Note 14 in the consolidated financial statements for 2020.

These consolidated interim financial statements for the six months ended 30 June 2021 have been prepared inaccordance with IAS 34, 'Interim financial reporting'. The consolidated interim financial statements should be read inconjunction with the consolidated financial statements for the year ended 31 December 2020, which have been preparedin accordance with IFRS as adopted by the European Union ('IFRS').

The accounting policies applied in the preparation of the consolidated interim financial statements are consistent withthose applied in the preparation of the annual IFRS financial statements for the year ended 31 December 2020.

The preparation of interim financial statements requires Management to make judgments, estimates and assumptionsthat 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 consolidated interim financial statements, the significant judgments made by Management in applyingthe Group's accounting policies and the key sources of estimation uncertainty were the same as those applied to theconsolidated financial statements for the year ended 31 December 2020.

Note 7 Operating segments

Amounts in NOK thousand H1 2021 H1 2020 FY 2020Rental income 116 579 115 495 231 822

Note 8 Interest bearing Liabilities

Non-current liabilities, due > 1 year

Amounts in NOK thousand H1 2021 H1 2020 FY 2020Bond A 2 317 728 2 375 520 2 352 000 Bond B 690 320 695 094 Other interest bearing liabilities - - - Total non-current liabilites 3 008 048 3 070 614 2 352 000

Current liabilities due within one year

Bond A 44 856 44 856 94 696 Bond B 417 417 692 442 Other interest bearing liabilities 51 319 0 13 778 Total current liabilities 96 592 45 273 800 916

Total non-current and current liabilities 3 104 640 3 115 887 3 152 916

Note 9 Net financial items

Amounts in NOK thousand H1 2021 H1 2020 FY 2020

Net gain/(loss) from fair value adjustment of interest- bearing liabilitiesChange in fair value Bond A 34 272 (61 376) (37 856) Change in fair value Bond B 1 705 (5 183) (2 114) Total Net gain/(loss) from fair value adjustment of interest-bearing liabilities 35 977 (66 559) (39 970)

Interest expensesInterest expenses Bond A 49 840 49 840 99 680 Interest expenses Bond B 18 755 18 755 37 510 Other interest expensesTotal interest epxenses 68 595 68 595 137 190

Other financial expenses 10 305 59 129

Total financial expenses 78 900 68 654 137 319

Note 10 Investment Property

Investment property is recorded at fair value with changes in fair value through the consolidated statement of profit or loss.

H1 2021 H1 2020 FY 2020

Opening balance 4 207 458 4 259 270 4 259 270 Acquisition - - - Amortisation of letting fees and tenant adaptions (905) (905) (1 812) Change in fair value from investment properties (125 000) (50 000) Closing balance 4 206 553 4 133 365 4 207 458

Amounts in NOK thousand

The unlisted bond (Bond A) and the listed bond (Bond B) both are recorded at fair value with changes in fair value through the consolidated statement of profit or loss.

The Group's business is to own, manage and lease real estate. The Group's revenue is related to rental income from the Group's investment property in the Oslo area at Fornebu to Equinor ASA.

The Group's performance is reviewed by the chief operating decision makers as one reporting segment.