Interim report for Arendals Fossekompani ASA

Q1 2018

Key Performance Indicators for the AFK Group’s

Continuing OperationsY

e

MNOK Q1 2018

Q

4

2 Q1 2017* YTD 2018 YTD 2017* #

Total operating revenues 1 163 ## 1 107 1 163 1 107 #

EBITDA 130 ## 137 130 137 #

Adjustment for change in accounting estimates* 8 8

EBITDA after change 130 ## 129 130 129

margin 11 % # 12 % 11 % 12 % #

EBITDA per unit

Parent company 39 ## 18 39 18 #

EFD Induction 16 ## 23 16 23 #

NSSL 36 ## 35 36 35 #

Powel 8 ## 10 8 10 8

Scanmatic AS 8 ## 12 8 12 8

Cogen Energia 22 -7 31 22 31 #

Tekna -1 -8 -4 -1 -4 #

Other 1 -2 4 1 4 #

Eliminations

EBITDA 130 ## 129 130 129 #

Earnings before tax (EBT) 74 ## 75 74 75 #

* Earnings for the quarter have been adjusted for the change in estimates relating to provisions for the production bonuses

that Cogen received from the Spanish authorities in 2017 (see Note 3).

Operating Revenue (MNOK)

EBITDA (MNOK)

Earnings before tax (EBT) (MNOK)

113 108 108119

137

111119 120

130

Q1 Q2 Q3 Q4

86

175

83

31

75 69 60

-18

74

9

Q1 Q2 Q3 Q4

995 964 9661 0891 107 1 087

999

1 2341 163

Q1 Q2 Q3 Q4

2016 2017 2018

Interim report – Q1 2018

Highlights – Q1 2018 (Figures in parentheses refer to the same period the previous year)

Arendals Fossekompani ASA is an industrial investment group holding 10 main investments and a portfolio of fi-nancial investments. In total, the Group employs more than 2,100 employees. The Group operates in several differ-ent industries and is represented in 24 countries through its subsidiaries. The parent company operates three hydro power stations, manages its subsidiaries through long-term and active ownership, develops the businesses and manages financial investments.

Total operating revenues in the first quarter amounted to MNOK 1,163 (MNOK 1,107). Consolidated earnings before tax for the quarter closed at MNOK 74 (MNOK 75). Estimated tax for the quarter totalled MNOK 39 (MNOK 23). Profit on ordinary activities (continuing operations) for the quarter after tax but before non-controlling inter-ests amounted to MNOK 35 (MNOK 51).

The Group performed well in the quarter generating strong revenue growth, with in particular Cogen and the parent company’s energy-producing unit contributing to the positive top-line development. EBITDA for the Group ended the quarter at MNOK 130, compared to MNOK 137 for the same quarter last year. Adjusted for the change in accounting estimates relating to provisions for the production bonuses that Cogen received from the Spanish authorities in 2017 (see Note 3), EBITDA for the Group was in line with the same quarter the previous year. The return on financial investments in the first quarter was 17.3%, corresponding to MNOK 400.9.

Other revenues and costs for the Group in the quarter amounted to MNOK 386 (MNOK 117). The differences are primarily due to changes in the value of financial investments and currency exchange differences. As a result, the Group’s comprehensive income for the quarter came in at MNOK 421 (MNOK 220).

Overall for the Group (continuing operations), revenues and earnings for 2018 are expected to be at the same level as 2017.

Arendals Fossekompani ASA sold all its shares in Glamox AS in December 2017. Figures for Glamox have therefore been removed from the consolidated figures for 2017 and are shown on separate lines in the income statement and balance sheet as Discontinued operations (See Note 5 and Note 25 in the annual report for 2017).

Events after the end of the first quarter

The Board’s proposal to distribute the company’s shares in Kongsberg Gruppen ASA as a dividend for 2017 was approved at the Annual General Meeting held on 26 April. The distribution of this shareholding represents a total dividend for 2017 of MNOK 1,905.

Trond Straume has been appointed CEO of Powel AS. Mr Straume will start his new role on 6 August.

On 2 May, Markedskraft announced the acquisition of the employees and customers of the Finnish company En-ergiameklarit Oy, thereby enhancing its position as a leading actor in the Norwegian wholesale market for elec-tricity.

Interim report – Q1 2018

EFD Induction

NSSL

- Total operating revenues in the first quarter amounted to MNOK 255 (MNOK 277). Consolidated earnings before tax for the quarter closed at MNOK 8 (MNOK 17).

- The first quarter was characterised by a low order backlog at the begin-ning of the year, resulting in a somewhat lower activity level than ex-pected.

- Order intake in the first quarter was strong, with an 8% increase com-pared to the first quarter of last year. The trend was generally positive in all regions and business areas.

- Aftermarket is performing well, with strong growth in Asia in the first quarter.

EFD Induction delivers advanced heat-ing systems based on induction tech-nology for the engineering industry throughout the world. Group activities are concentrated in three activity areas: Induction Heating Machines (IHM), Induction Power Sys-tems (IPS) and Spares and Service (SAS). The main customers are within the au-tomotive industry, pipe production, the electronics industry, cable indus-try and mechanical industry.

– Total operating revenues in the first quarter amounted to MNOK 175 (MNOK 196). Consolidated earnings before tax for the quarter ended at MNOK 22 (MNOK 22). Compared to the same quarter last year, customers switching to IP services resultes in better gross margins for the company.

- The volume of airtime sold to the major European public-sector custom-ers remains low due to a period of reduced operational activity.

- NSSL has merged the newly acquired companies Satlink and Snap TV into a new company named NSSLGlobal Technologies, which is headquartered in Norway. Substantial investments will be made in research and develop-ment in order to develop and provide next-generation products and ser-vices to customers in the public and maritime sectors.

NSSLGlobal is an independent pro-vider of satellite communications and IT support delivering high-quality voice and data services to customers across the globe, regardless of loca-tion or terrain. NSSLGlobal’s activities are divided into three main areas: Air-time, Hardware and Service. The main customers are found within the mari-time segment, military and public sec-tor, large international corporations and the oil and gas industry. The head-quarters are located just outside Lon-don.

Interim report – Q1 2018

Powel

Scanmatic

- Total operating revenues in the first quarter 2018 amounted to MNOK 157 (MNOK 152). Consolidated earnings before tax for the quarter came in at MNOK -3 (MNOK -1), where improved revenues were offset by a somewhat weaker margin compared to the same period in 2017.

- Openlink and Powel has established a collaboration within trading and risk solutions. This was positively received by international actors. Powel is continuing to invest heavily outside the Nordic region, with significant sales processes initiated towards a number of large players.

- Powel is reorganising its business from 1 May with the aim of achieving more streamlined and cost-effective operations.

- Trond Straume (40) has been appointed new CEO of Powel. Mr Straume, currently CTO in the British IT-company Aveva, will start his new role on 6 August.

Powel develops and delivers business-critical IT solutions and services to the energy sector in the Nordic region and Europe, to municipalities in Norway, as well as to the contractor sector in Norway and Sweden.

The company has its headquarters in Trondheim, with offices in several other cities in Norway and subsidiaries in Sweden, Denmark, Switzerland, Po-land and Turkey.

- Total operating revenues in the first quarter amounted to MNOK 144 (MNOK 131). Consolidated earnings before tax for the quarter totalled MNOK 7 (MNOK 12). The increase in revenues compared to the same pe-riod last year is primarily due to high activity level for all companies in the group. Earnings in the quarter were depressed due to cost overruns in some projects.

- All business areas achieved high capacity utilisation in the quarter.

- Scanmatic Elektro achieved high activity level in the period and the com-pany’s order backlog is considered good.

- Order intake for the parent company was good in the quarter, and the company is optimistic that the order backlog will materialise into achiev-ing its sales and earnings targets for the year.

Scanmatic delivers technical infra-structure as well as instrumentation and control systems for industrial and professional customers within De-fence, Transportation, Renewable En-ergy and Offshore. Scanmatic Elektro AS is 51% owned by Scanmatic AS and is an electrical con-tractor mainly active in the field of transportation.

Interim report – Q1 2018

Cogen Energia

Tekna

- Total operating revenues in the first quarter amounted to MNOK 309 (MNOK 253). Consolidated earnings before tax for the quarter closed at MNOK 18 (MNOK 26).

- The volume of steam and power produced increased compared to the same quarter last year due to a doubling of production by the company’s largest customer. However, lower power prices and reduced operating hours at some plants had the opposite effect on revenues for the period.

- During the quarter the company signed a new four-year contract with its customer Lacteas Garcia Baquero, which operates a 9.2 MW plant.

* Earnings for the quarter have been adjusted for the change in accounting estimates relating to provisions for the production bonuses that Cogen received from the Spanish authorities in 2017 (see Note 3).

Cogen operates its own and third-party combined heat and power plants in Spain.

The company uses surplus heat from gas-based electricity generation to produce heat, steam or cooling for in-dustrial partners. The electricity pro-duced is sold on the physical electric-ity market. Public support is given as bonuses per produced MWh. The headquarters are in Madrid.

- Total operating revenues in the first quarter amounted to MNOK 34 (MNOK 28). Consolidated earnings before tax for the quarter were MNOK -5 (MNOK -7).

- Tekna is in the process of launching new products and aims to expand its powder production in Europe in the coming quarter.

- During the quarter, the company completed the expansion of its produc-tion premises in France, and powder production will start here in the second half of 2018.

- To match the increased rate of production, efficiency measures are be-ing implemented at the facility in Sherbrooke.

- Expansion of the facilities for powder production in Canada is planned to be completed during third quarter this year. This will enable Tekna to produce more types of powder and at the same time increase produc-tion of current products.

- Activities have now started at the newly established subsidiary in South Korea.

Tekna manufactures systems and equipment for production of spherical micro and nanoparticles of various metals based on the use of plasma generated by electrical induction.

Tekna also has a subsidiary that uses such systems to produce various metal powders, including those used in additive manufacturing (3D print-ing) for parts to the aerospace and medical industries. The headquarters are in Canada, with subsidiaries in France, China and South Korea.

Interim report – Q1 2018

AFK Parent Company The parent company operates the power stations in the Arendal area and manages the industrial and financial holdings of the Group. The management of AFK is based on active ownership in subsidiaries, managing financial investments and managing real estate investments.

Total operating revenues in the first quarter amounted to MNOK 54 (MNOK 36). Earnings before tax for the quar-ter were MNOK 38 (MNOK 6). The increase in earnings before tax compared to the same period last year is pri-marily due to higher power prices (of MNOK 17) and currency effects (of MNOK 10).

Power generation - Power generation in the quarter amounted to 156 GWh. The average spot

price in price area N0 2 was NOK 36.1 øre/kWh. In the year to date precipi-tation and discharge were 115% and 119%, respectively, of the norm.

- Revenues from power generation in the first quarter amounted to MNOK 54 (MNOK 35), primarily due to higher spot prices in the period. Plant op-erations continued without any significant interruptions.

- The reconstruction of both dams will start once detailed requirements are clarified with the Norwegian Water Resources and Energy Directorate (NVE).

- Kilandsfoss power station has had the terms of its licence revised and a de-tailed plan for the plant has been drawn up and sent to NVE.

Financial portfolio - As per 31 March the total value of the share portfolio was MNOK 2,701,

with the company’s shareholding in Kongsberg Gruppen accounting for MNOK 1,807 and other investments – consisting of Victoria Eiendom, Eien-domsspar and Oslo Børs VPS Holding – amounting to MNOK 894.

- The return on financial investments in the first quarter of 2018 was 17.3%, corresponding to MNOK 401.

Other business - At the beginning of the year, Markedskraft completed its acquisition of the

employees and customers of the Finnish company Energiameklarit. Reve-nues in the quarter were somewhat lower than usual, but the company ex-pects a substantial increase in activity levels going forward.

- During the quarter, Wattsight improved its revenues and earnings after successfully expanding its customer base.

- Arendal Industrier’s proposal for a new rezoning plan and detailed rezon-ing plan to allow the development of Vindholmen wharf for residential and commercial use was approved unanimously by Arendal City Council on 15 February. Further planning is proceeding according to plan, including the transfer of the plot from Arendals Fossekompani to Arendal Industrier.

- On 19 March, Arendal Lufthavn Gullknapp (ALG) received technical/opera-tional approval to operate as a major airport. This allows scheduled airline services using up to 50-seater aircraft to start using the airport. OSM Avia-tion Academy is working to start up an aviation school at Gullknapp from August 2018.

Arendals Fossekompani generates power at two locations in the Aren-dalsvassdrag watercourse. The Bøyle-foss and Flatenfoss power stations pro-duce in excess of 500 GWh annually.

AFK is planning investment upgrades to both plants in the coming years in order to satisfy more stringent statu-tory requirements for power stations with associated dams.

Arendals Fossekompani manages an investment portfolio of financial secu-rities – mainly a limited number of liq-uid listed shares, but also some se-lected less liquid holdings of a financial nature.

Other business covers the following in-terests:

Markedskraft is an independent provider of services to the Nordic and European wholesale market for electricity. Wattsight is a leading player within fun-damental data and market analysis of the European electrical power market. Real Estate. The Group has various real estate investments in the Arendal area. Arendal Industrier represents the largest development project, in which the for-mer Vindholmen wharf is being devel-oped for combined residential and com-mercial use. Arendal Airport Gullknapp is in the Mu-nicipality of Froland. The location is fa-vourably located and offers very good conditions for incoming and outgoing flights.

Interim report – Q1 2018

Shareholders The company has 2,239,810 outstanding shares, and as of 30 March the company owned 50,852 of these. During the first quarter 6,952 shares were traded, amounting to 0.3% of the total number of shares. The share price on 31 December was NOK 3,130 and on 30 March it was NOK 3,940. This represents a return in the quarter of 25.9%.

Risks and uncertainties The Group is exposed to credit risk, market risk and liquidity risk from the use of financial instruments. These matters are described in detail in Note 16 in the annual financial statements for 2017.

Transactions with related parties The company’s related parties comprise subsidiaries, associates and members of the Board of Directors and senior management. Transactions between Group companies and other related parties are based on the principles of market value and arm’s length. Transactions carried out between related parties are detailed in Note 4 to the interim financial statements. None of these transactions is considered to be of material importance for the com-pany’s financial position or earnings.

Outlook Overall for the Group (continuing operations), revenues and earnings for 2018 are expected to be at the same level as 2017.

Power generation Based on current reservoir levels in the Arendalsvassdrag watercourse, the company expects that the power gen-eration for 2018 will be similar to that in a normal year, i.e. approx. 500 GWh.

EFD EFD expects revenues and earnings for 2018 to be at the same level as 2017.

NSSLGlobal NSSL expects increased activity levels, while increased costs are expected to provide earnings in 2018 that are in line with those in 2017.

Scanmatic Scanmatic expects revenues in 2018 to be on a par with 2017. Earnings are expected to be somewhat better.

Powel Powel expects revenues and earnings (adjusted for impairments) in 2018 to be at the same level as 2017.

Cogen Cogen expects that last year’s growth in the number of customer contracts will increase revenues, whilst antici-pated lower power prices suggest weaker earnings in 2018 than in 2017.

Tekna Tekna expects increased revenues and improved earnings in 2018 compared to 2017.

Froland, 24 May 2018

Arendals Fossekompani ASA

The Board of Directors

Consolidated Income Statement2018

Amounts in MNOK Q1 Q4 Q1 Full year

Continuing operations Note

Operating revenues and operating costsSales revenues 1 123 1 216 1 099 4 383Other operating revenues 39 17 8 44Total operating revenues 1 163 1 234 1 107 4 427

Cost of goods 540 591 526 2 116Personnel costs 349 367 317 1 303Other operating costs 144 155 127 520Total operating costs 1 033 1 114 970 3 939

EBITDA 130 120 137 488Depreciation of operating assets 29 34 24 109Amortisation of intangible assets 18 19 19 77Impairment of fixed assets 3 37 37

Operating result 82 30 94 265Finance income and finance costsFinance income 25 81 5 158Finance costs 3,4 32 124 24 231Net financial items -7 -43 -19 -72Share of profit from associates 3 -2 -6 -0 -6Profit before taxes 74 -18 75 186Tax expense 39 28 23 88Net profit from continuing operations 35 -46 51 99

Discontinued operations

Profit/loss from discontinued operations (after tax) 5 2 237 57 2 401Profit on ordinary activities 35 2 190 108 2 500

Attributable toNon-controlling interests 6 22 28 85Equity holders of the parent 29 2 169 80 2 415

Basic/diluted earnings per share (NOK) 13 991 37 1 103

Basic/dil. earngs. per share from cont. ops. (NOK) 13 -31 11 6

Statement of comprehensive incomeOther income and expensesTranslation adjustments foreign currency -20 -3 11 -11Change in hedging reserve 8 -9 -1 -5Change in fair value, fin. assets avail. for sale 400 228 107 285Change in available-for-sale financial assets transferred to profit/loss 5Tax on hedging reserve -2 2 0 1Other income and expenses that may be reclassified

in subsequent periods 386 218 117 275Actuarial gains and losses -3 -3Tax on actuarial gains and losses 1 1Other income and expenses that will not be

reclassified in subsequent periods -2 -2 Other income and exp. from cont. ops. 386 216 117 273

Other income and expenses from discontinued operations -6 2Profit on ordinary activities 35 2 190 108 2 500

Total comprehensive income for the period 421 2 406 220 2 775

Comprehensive income per share (NOK) 190 1 087 87 1 225

Attributable toNon-controlling interests 5 28 28 92Equity holders of the parent 416 2 378 191 2 682

2017

Consolidated Balance Sheet 2018

Amounts in MNOK 31 Mar 31 Mar 31 DecAssets Note

Property, plant and equipment 3,5 1 039 1 025 1 034Intangible assets 3,5 774 804 799Investments in associates 3 19 4 20Other investments 173 157 183Pension funds 27 17 26Deferred tax assets 180 190 197Total non-current assets 2 212 2 197 2 260

Inventories 343 270 290Trade and other receivables 1 205 1 100 1 525Cash and cash equivalents 1 458 541 2 162Financial assets available for sale 3 2 701 2 137 2 301Financial assets held for trading 11Discontinued operations 5 1 796Total current assets 5 717 5 844 6 279

Total assets 7 929 8 042 8 539

Equity and liabilities

Share capital (2,239,810 shares at NOK 100) 224 224 224Other paid-in capital 1 0 1Other funds 2 288 1 815 1 908Retained earnings 2 102 839 2 087Total equity attributable to equity holders of the parent 4 614 2 877 4 220Non-controlling interests 170 513 165Total equity 7 4 785 3 390 4 386

Bond loans 299 298 299Interest and currency swaps related to bond loans 80 72 96Interest-bearing loans and borrowings 1 014 1 454 1 728Employee benefits 40 40 46Provisions 36 4 26Deferred tax liabilities 93 104 89Total non-current liabilities 1 562 1 972 2 285

Interest-bearing loans and borrowings (current portion) 99 42 88Bond loans (current portion) 400Interest and currency swaps related to bond loans 89Bank overdraft facility 49 54 152Trade and other payables 637 531 685Taxes payable 95 70 106Other current liabilities 703 713 836Liabilities from discontinued operations 5 780Total current liabilities 1 583 2 680 1 868

Total equity and liabilities 7 929 8 042 8 539

2017

Cash Flow Statement2018 2017

Amounts in MNOK 01.01–31.03 01.01–31.03Continuing operationsCash flow from operating activitiesOrdinary profit from continuing operations 35 51Adjusted for

Depreciation and impairments, operating assets 29 24Amortisation of intangible assets 18 19Net financial items 7 19Share of profit/loss from associates 2 0Tax expense 39 23

Total 130 137

Change in inventories -60 -0Change in trade and other receivables 308 155Change in trade and other payables -82 5Change in provisions and employee benefits -51 -17

Total 244 280

Taxes paid -38 -16Net cash flow from operating activities A 206 263

Cash flow from investing activitiesInterest received etc. 5 12Dividends received (incl. dividends from operations held for trading) 1

Proceeds from sale of assets available for sale and held for trading 20Proceeds from other investments 1 2Proceeds from the disposal of other shares 2Disposal of shares in subsidiaries 1Purchase of property, plant and equipment and intangible assets -70 -61Purchase of non-controlling interests -11Investments in other shares/interests -1 -1Net cash flow from investing activities B -75 -25

Cash flow from financing activitiesNew long-term debt 22 10Repayment of long-term debt -734 -24Interest paid etc. -14 -21Net change in bank overdraft -102 -111Dividends paid (excl. dividends paid from operations held for trading) -11Net cash flow from financing activities C -828 -157

Net change in cash and cash equivalents A+B+C -697 82

Cash and cash equivalents as at 1 January 2 162 456Currency translation adjustments on cash and cash equivalents -7 3

Cash and cash equivalents as at 31.03 1 458 540

Notes to interim report for Q1 2018Note 1Confirmation of financial frameworkThe interim financial statements have been prepared in accordance with IAS 34 Interim Financial Reporting. The financial statements do not cover all the information required in complete annual financial statements and should be read in conjunction with the consolidated financial statementsfor 2017.

Note 2Key accounting policiesThe accounting policies for 2017 are described in the consolidated financial statements for 2017. The consolidatedfinancial statements have been prepared in accordance with International Financial Reporting Standards (IFRSs) adopted by the European Union and associated interpretations, as well as additional Norwegian disclosure requirements pursuant to the Norwegian Accounting Act and stock exchange regulations and rules, applicable as at 31 December 2017. The same policies were applied in the preparation of the financial statements to 31 March 2018.

The Group now reports in compliance with IFRS 15 Revenue from Contracts with Customers. As expected, the change in accounting policy has had no material effect. The standard has been implemented according to the cumulative effect method.Other new standards that entered into force on 1 January 2018 have had no material impact on the financial statements.

Note 3

EstimatesAreas involving significant use of estimates include the valuation of companies in the share portfolio and measurement of goodwill/excess value in subsidiaries and associates, and of impairment indicators for property, plant and equipment and intangible assets. In the year to date these measurements have not involved any materialtransactions.

Cogen Energia Espana receives production bonuses from the Spanish authorities under their subsidy system for environmentally friendly energy production. Due to uncertainty surrounding accounting estimates relating to provisions for production bonuses, provisions totalling MNOK 31 were initially recognised in the final financial statements for the 2017 financial year. Reported quarterly results in 2017 are therefore not comparable with quarterly results for 2018. To provide a better basis for comparison, quarterly figures in 2017 for Cogen Energia Espana (page 6) andkey performance indicators for AFK (page 2) were adjusted for this effect.

Note 4Transactions with related partiesIn addition to the disclosures made in the company’s annual report for 2017, Note 24, it can be statedthat in 2018 the parent company:

- realised exchange gains of NOK 46,000 in connection with currency hedging within Markedskraft.

Note 5 Discontinued operationsIn December 2017 Arendals Fossekompani sold its 75.16% interest in Glamox. Consequently, the company’s financial figures have been recognised on separate lines in theincome statement and balance sheet as discontinued operations.

The gain on disposal of Glamox amounted to MNOK 2,192 in the consolidated financialstatements and MNOK in the parent company. In addition to this, AFK received an extraordinary dividend from Glamox in Q3 2017 of MNOK 210.

Glamox’s key figures relating to the income statement and balance sheet for 2017 are presented below.

Income Statement 2018

31.mar 31.mar 31.jan

Operating revenues 660 2 436Operating costs 572 2 078Depreciation of PPE 11 43Amortisation of intangible assets 9 34Operating result 68 282Net financial items 1 -8Tax expense -12 65Gain on sale of Glamox 2 192Profit/loss from discontinued operations 57 2 401

Basic earnings per share (NOK) 26 1 097

Balance sheetNon-current assets 365Current assets 1 140Total assets 1 504

Goodwill, excess values re Glamox in the Group 292

Total assets, discontinued operations 1 796

Non-current liabilities 334Current liabilities 445Total liabilities, discontinued operations 780

2017

Note 6Segment reporting as at:

31.mar 2018 2017 2018 2017 2018 2017 2018 2017 2018 2017 2018 2017

Operating revenues 54 36 0 0 255 277 157 152 309 253Operating costs 11 12 4 6 239 254 149 142 287 214Depreciation, amortisation and

impairments 2 2 4 -4 6 5 11 12 4 4Operating result 41 22 -8 -2 10 17 -3 -2 18 35Net financial items -1 -19 -2 -0 -1 1 -1 -1Tax expense 23 11 -2 -5 5 6 0 1 5 5

Profit/loss on ordinary activities 19 11 -7 -16 3 11 -3 -2 13 29Segment assets 294 312 4 172 2 480 907 869 482 519 613 454Segment liabilities 65 46 939 1 931 519 484 333 325 470 347Net interest-bearing liabilities** -76 1 663 94 94 -69 -91 100 150

2018 2017 2018 2017 2018 2017 2018 2017 2018 2017

Operating revenue 175 196 34 28 144 131 34 34 1 163 1 107Operating costs 139 162 35 33 136 118 33 30 1 033 970Depreciation, amortisation and

impairments 14 12 3 2 1 1 3 2 47 43Operating result 22 22 -3 -6 7 12 -2 3 83 94Net financial items -0 -0 -2 -0 -0 -0 -2 1 -8 -19Tax expense 6 5 1 -1 2 3 0 1 39 23

Profit/loss on ordinary activities 16 17 -6 -6 6 9 -4 2 35 51Segment assets 554 509 211 205 246 191 451 416 7 929 6 246Segment liabilities 242 245 198 156 138 98 240 205 3 144 3 872Net interest-bearing liabilities** -87 -97 140 90 -32 -33 -66 -68 3 1 708

* Other business comprises Markedskraft, Wattsight, Arendal Industrier, Bedriftsveien 17, Scanmatic Eiendom, Arendal Lufthavn Gullknapp,

Songe Træsliperi and Norsk Vekst.

** Intra-group liabilities are included in subsidiaries’ net interest-bearing liabilities and are accordingly deducted from financing activities.

***Glamox has been sold. Figures for the company have therefore been removed from segment reporting. See Note 5.

Note 7Equity reconciliation

Share

capital

Other

paid-in

capital

Transl.

diff.

Hedging

reserves

Fair value

reserves

Treasury

shares

Total

other

funds

Retained

earnings Total Min. int.

Total

equity

2017

Balance as at 1 January 224 0 117 -12 1 676 -72 1 709 752 2 685 496 3 181Comprehensive income for the

period -11 11 107 106 85 191 28 220Capital changes from subsid. 1 1 -0 1Dividends to shareholders -11 -11Balance as at 31 March 224 0 106 -2 1 783 -72 1 815 839 2 877 513 3 390

2018

Balance as at 1 January 224 1 13 -1 1 966 -71 1 908 2 087 4 220 165 4 386Comprehensive income for the

period -26 6 400 380 36 416 5 421Purchase non-contr. int. and

chan. in subsidiaries -0 -0 -22 -22 -0 -22Balance as at 31 March 224 1 -13 5 2 366 -71 2 288 2 102 4 614 170 4 785

Glamox***Energy sales Financing activities EFD Powel Cogen

NSSL Tekna Scanmatic Other business* Total***