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Interim Report Q2 2026arendalsfossekompani.no 21 August 2026 Energising companies, communities and technology for generations
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2Dots on map reflect local presenceof portfolio companies 2 Main investments6 (1 listed)Employees2,175Listed on the Oslo Stock Exchange1913Countries24 Head officeArendal, Norway •Long term industrial investment company•Invest in B2B, energy and/or technology•Sustainable value creation•Active ownership 21 August 2026 Arendals Fossekompani
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Ownership36%Head officeOslo, Norway Software solutions for the energy transition Additive manufacturing materials and plasma systemsOwnership72%Head officeSherbrooke, CanadaMarket cap (30.06)894 MNOKListed onOslo Stock Exchange Ownership80%Head officeLondon, UK Cyber secure satellite communication services anywhere Industrial induction heating solutionsOwnership98%Head officeSkien, Norway Ownership100%Head officeFroland, Norway 500 GWh hydropower production providing steady cash flowOwnership100%Head officeArendal, Norway Portfolio of property investmentsand development projects Diversified portfolio within energy and technologyOur portfolio 3321 August 2026 Other investments
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-120% -40%-30%-20%-10%0%10%20%30%70%80% EBIT LTM(Adj. Cash EBITDA for Volue) An attractive and diversified portfolio Bubble size indicates revenue last twelve months. Volue Group shows EBITDA margin 1. Volue adjusted cash EBITDA margin reflecting pro-forma financials adjusted for non-recurring items and capitalised R&D for Volue Group2. ENRX EBIT margin reflects Heat business. Charge business adjusted out The Start-upsVenture-like. Focus on maximising risk adjusted returnThe Growth-focusedPE-like. Focused on scaling (organic and inorganic), industrialisation and improving cost efficiencyThe MatureCash and dividend generating. Focused on long-term strategy and maintaining position and profitability. 4421 August 2026 1 2 Reduce Grow Harvest A portfolio containing both stable cash flow generating companies and growth prospects
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Figures in parentheses refer to the same period the previous year Financials•Group revenue: NOK 884m (899m). 2% decline due to ENRX, offset by hydropower•Group EBIT: NOK 123m (32m), driven by hydropower + profitability in ENRX, Tekna•Equity ratio: 84% (84%) reflecting strong balance sheet and liquidity (NOK 2,6bn) Portfolio highlights•Volue: 17% recurring rev growth. 16% adj. Cash EBITDA margin. TA trx. closed (July)•ENRX: 9% (3%) EBIT margin and 22% growth in order intake•Tekna: 18% revenue growth. Fourth consecutive positive adj. EBITDA quarter•NSSLGlobal: Softer quarter due to delayed project invoicing•AFK Vannkraft: NOK 104m (13m) EBIT. High production and prices Development last 5 quartersRevenue and other income (MNOK) and EBIT margin Highlights Q2 2026 21 August 2026 4%4%-16%17%14% 55 899852990929884 Q2-25Q3- 25Q4- 25Q1 -26Q2-26
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21 August 2026 Portfolio company highlights6
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21 August 20267 •Revenue: EUR 37.6m (up 15% YoY in EUR), 17% growth in recurring revenue•Adj. Cash EBITDA: EUR 5.9m (7.6m), 16% margin (23%)•Commercial momentum: Bookings up 45% YoY organically, strong backlog•M&A: FlexPowerHub acquired, adding ancillary market bidding intelligence•After the quarter: Indicative non-binding bid for Energy One (ASX:EOL)•Outlook: Organic growth to accelerate in H2 2026. Operating leverage to drive margin expansion. Continued M&A activity Development last five quarters1Revenue and other income (MNOK) and adjusted cash EBITDA margin Q2 update Strong bookings and broad-based growthOwnership36% (as of July’26)Head officeOslo, Norway 1) Pro forma figures for Volue Group 23%24%19%18%16% 10% 380366389392420 Q2-25Q3- 25Q4- 25Q1 -26Q2-26
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21 August 20268Currency rates (NOK/EUR)Average Q2 2026: 11.17. Average Q2 2025: 11.66. End Q2 2026: 11.31. End Q2 2025: 11.83. Development last five quartersOperating revenue (MNOK) and EBIT margin 3%-3%-91%7%9% •Revenue: EUR 32.5m (37.4m). Decline primarily driven by East Asia•EBIT: EUR 3.1m (1.2m). Cost reductions + no losses from Charge division•Order intake: EUR 41.9m (22% up YoY). Book-to-bill 1.3x. Gradual market recovery•Backlog: EUR 67.1m (61.5m)•Cost base: Reductions completed in Q4-25 giving run-rate effect from Q1-26. Operating cost down 8% YoY•Outlook: Heating market expected to remain challenging over the coming 12 months. Cost and capital discipline. Further measures if needed -18% Ownership98%Head officeSkien, Norway Q2 update Order intake pick-up and improving profitability 437 368 417 346 357 Q2-25Q3- 25Q4- 25Q1 -26Q2-26
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21 August 20269Currency rates (NOK/GBP)Average Q2 2026: 12.88. Average Q2 2025: 13.84. End Q2 2026: 13.12. End Q2 2025: 13.83. Development last five quartersRevenue and other income (MNOK) and EBIT margin 20%19%14%18%14% •Revenue: GBP 23.2m (23m). Higher airtime traffic largely offset by lower project revenue on timing delays•EBIT: GBP 3.3m (4.6m). Lower gross margins from delayed project invoicing•New contracts: GBP 4.0m across the government and maritime sectors, of which GBP 3.2m was new business•Pipeline: Strong sales and bid pipeline, including 12 multi-million tender opportunities for implementation from late 2026 onwards•Outlook: LEO constellations keep pressure on airtime margins. Transition towards higher value-added services continues, supported by high government activity -7% Ownership80%Head officeLondon, United Kingdom Q2 update Stable revenue amid project timing delays 317340334324293 Q2-25Q3- 25Q4- 25Q1 -26Q2-26
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21 August 202610Currency rates (NOK/CAD)Average Q2 2026: 6.95. Average Q2 2025: 7.58. End Q2 2026: 6.97. End Q2 2025: 7.38. Development last five quartersOperating revenue (MNOK) and EBIT margin -38%-11%-6%-15%1% •Revenue: CAD 10.6m (up 18% YoY) on higher activity in both Materials and Systems•Adj. EBITDA: CAD 1.4m (12,8% margin), fourth consecutive positive quarter. Higher revenue, improved contribution margin and cost reductions•Order intake: CAD 19m (>2x YoY). Book-to-bill 1,8x. Anchored on 11.5m System order•Backlog: Record level CAD 28.5m (up 36% YoY). Extending visibility into 2027•Segments: Materials rev. +20% YoY. Systems rev. +13% YoY•Outlook: Reshoring, rising defense spend support double-digit annual growth through 2030 8% Ownership72%Head officeSherbrooke, CanadaMarket cap (30.06)NOK 894 millionListed atOslo Børs Q2 update Profitability and enhanced commercial visibility 67 61 71 71 73 Q2-25Q3- 25Q4- 25Q1 -26Q2-26
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21 August 202611 •Revenue: NOK 129m (37m), high production and prices.•EBIT: NOK 104m (13m), 80% margin.•Production: 124.2 GWh (58.6 GWh), >2x YoY•Power prices (NO2): EUR 96.5/MWh (up 65% YoY)•Outlook: Prices and production above 2025 levels. Price and power generation per week*Power generation (GWh/Week) Power price (EUR/MWh)Development last five quartersRevenue and other income (MNOK) and EBIT249% 34%60%77%81%80%0 100 20 0 30 0 40 0 50 0 60 0 0, 0 2, 5 5, 0 7,5 10,0 12 ,5 15, 0 03/ 2109/ 2103/ 2209/ 2203/ 2309/ 2303/ 2409/ 2403/ 2509/ 2503/ 26 Ownership100%Head officeArendal, Norway Q2 update Strong quarter with high production and prices 37 59 137 129 Q2-25Q3-25Q4-25Q1-26Q2-26 162
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21 August 202612 Financials
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21 August 202613 Q2 summary•Group EBIT: NOK 123m (32m), reflecting higher revenue level in AFK Vannkraft, and improved profitability in ENRX and Tekna.•ENRX with improved margins, driven by effective cost reduction initiatives and the absence of operating losses from the former Charge division.•NSSLGlobal with lower margins largely due to lower gross margins following delayed project invoicing.•Tekna: Materials growth, positive EBIT and strong Systems order intake.•AFK Vannkraft delivered solid margin due to high production and prices.•Other: Impairments of NOK 34m primarily in Veyt due to organisational and financial restructuring•Earnings after tax reflect the high effective tax rate, including the resource rent tax, applicable to Norwegian hydropower. Resilient portfolio performance 1. Other includes Group Management, Other investments and eliminations2. Including investment in Faraday Topco AS, the company that indirectly owns all shares in Volue Operating Profit (MNOK)Q2 2026Q2 2025DIFFERENCEYTD 2026YTD 2025DIFFERENCE3413+205717+404263-21101110-910414+91235106+1291-26+26-10-48+392-1 +32-1+3Other1 -60-30-29-107-78-29Arendals Fossekompani Consolidated12332+91278106+171 AFK share of profit/loss from associated companies2 -161329-4927-76 Earnings after tax (MNOK)Q2 2026Q2 2025DIFFERENCEYTD 2026YTD 2025DIFFERENCE Arendals Fossekompani Consolidated-2342-641038-28
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NIBD of NOK 246m and NOK 2.6bn in liquidity 21 August 202614 179 246499 Borrowings59RoUliabilitiesBonds -491 Cash & cash equivalentsNet debt 30.06.2026 491Cash & cash equivalents 2,119 Undrawn Credit FacilityAvailable liquidity 30.06.2026 2,611Net debtMNOK LiquidityMNOK
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24.04.202315 Total revenue for 2026 is expected to be in line with 2025EBIT is expected to be significantly higher, driven by 2025 impairment in ENRX and expected margin recovery, and higher hydropower revenue•ENRX: Revenue expected lower, EBIT higher than 2025•NSSLGlobal: Revenue expected in line, EBIT lower than 2025•Tekna: Revenue expected higher than 2025, improved EBIT•AFK Vannkraft: Revenue and EBIT expected higher than 2025•Volue: Revenue and adj. cash EBITDA expected higher than in 2025 Outlook
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Develop value in our existing portfolio companies. Ensure strong balance sheet and financial flexibility. Optimise our portfolio to maximise risk adjusted return while balancing the capital cycle. Capture structural opportunities both on portfolio level and on parent level. 21 August 202616 Our priorities
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Q&A21 August 202617
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This Presentation includes and is based on forward-looking information and statements that are subject to risks and uncertainties that could cause actual results to differ from the projected results. These statements and this Presentation are based on current expectations, estimates and projections about global economic conditions and the economic conditions of the regions and industries that compose major markets for the businesses of Arendals Fossekompani ASA and its subsidiaries and affiliates (the ”Arendals Fossekompani Group”). These expectations, estimates and projections are generally identifiable by statements containing words such as ”expects”, ”believes”, ”estimates” or similar expressions. Important factors that could cause actual results to differ materially from those expectations include, among others, economic and market conditions in the geographic areas and industries that are or will be major markets for the businesses of the AFK Group, energy prices, market acceptance of new products and services, changes in governmental regulations, interest rates, fluctuations in currency exchange rates and such other factors as may be discussed from time to time in the Presentation. Although the Arendals Fossekompani Group believes that its expectations and the Presentation are based upon reasonable assumptions, it can give no assurance that those expectations will be achieved or that the actual results will be as set out in the Presentation.The Arendals Fossekompani Group is making no representation or warranty, express or implied, as to the accuracy, reliability or completeness of the Presentation, and neither the Arendals Fossekompani Group nor any of its directors, officers or employees will have any liability to you or any other persons resulting from the use of the Presentation. Disclaimer © Arendals Fossekompani ASA. All Rights Reserved. VISITING ADDRESSLangbryggen 9, 4841 ArendalPOSTAL ADDRESSBox 280, 4803 Arendal+47 37 23 44 00firmapost@arendalsfoss.noarendalsfossekompani.no
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VISITING ADDRESSLangbryggen 9, 4841 ArendalPOSTAL ADDRESSBox 280, 4803 Arendal+47 37 23 44 00firmapost@arendalsfoss.noarendalsfossekompani.no© Arendals Fossekompani ASA. All Rights Reserved. Thank you!