(Arendal, 5 May 2023) Arendals Fossekompani ASA (OSE:AFK) reported revenues of
NOK 1,405 million (1,052 million) and an operating profit of NOK 202 million
(149 million) in the first quarter of 2023. Arendals Fossekompani will pay a
dividend of NOK 1.00 per share for the quarter.

"This is the best quarterly result recorded in our 127-year long history," says
Lars Peder Fensli, Chief Financial Officer at Arendals Fossekompani.

Consolidated earnings before tax came in at NOK 238 million (134 million).
Ordinary profit after tax, but before non-controlling interests, totaled NOK 71
million (36 million). 

"Operating profit in the quarter was driven by increased production of
hydropower and stronger results from key portfolio companies ENRX, Volue and
NSSLGlobal, in addition to a record-breaking quarter from Tekna," says Fensli.

SEGMENT DEVELOPMENTS
AFK Vannkraft produced 167 GWh (122 GWh) electricity from its hydropower plants
during the quarter, generating substantial revenues and operating profit.
Electricity prices were higher than the season average, but lower than in the
first quarter of 2022. The average spot price in the NO2 price area was EUR
108/MWh (EUR 151/MWh), lifting revenues for AFK Vannkraft to NOK 190 million
(169 million) and operating profit to NOK 161 million (153 million). 

Volue continues its transformation towards recurring revenues and
Software-as-a-Service (SaaS). Volue generated solid growth rates during the
quarter. SaaS revenues were NOK 88 million in the quarter, an increase of 34%
compared to the first quarter of 2022, representing 26% of total revenues.
Revenues and other income in the quarter amounted to NOK 339 million (286
million). Adjusted EBITDA in the quarter totaled NOK 55 million (45 million),
corresponding to an adjusted EBITDA-margin of 16% (16%). 

In a record-breaking quarter, Tekna reported 44% revenue growth compared to the
corresponding quarter previous year. Total revenue came in at CAD 9.4, the
highest quarterly revenues ever recorded for Tekna. Both Systems (+53%) and
Advanced Materials (+40%) contributed to the revenue growth.

ENRX' total operating revenues increased by 40% year-over-year to EUR 42
million. Revenue growth was driven by a higher activity level within the Heat
division, as well as a smaller contribution from the Charge division. The
company experienced solid growth in all geographical regions. March isolated was
particularly strong, representing an all-time high in sales revenues. 

NSSLGlobal reported quarterly revenues of GBP 23.8 million, which is 4.9 million
higher than last year. Operating profit in the quarter was GBP 4.3 million,
compared to GBP 3.2 million in the same quarter last year. 

"Our companies are positioned within high growth global industry verticals,
serving customers in reaching transformational business goals. The value
creation platform provides a positive outlook for Arendals Fossekompani," says
Fensli.

CORPORATE DEVELOPMENTS
Arendals Fossekompani's financial position remains solid. The company's
available cash as of 31 March amounted to NOK 1,074 million. In addition, the
company has undrawn credit facilities of NOK 1,925 million, securing available
liquidity of NOK 2,999 million as per end of the quarter.
DIVIDEND
AFK will pay a quarterly dividend of NOK 1.00 per share, based on the company's
quarterly dividend policy.


ENDS

- - - - -

For additional comments, please contact: 
Lars Peder Fensli, Chief Financial Officer: +47 974 04 496
Hanne Watts, VP Communications & Sustainability: +47 974 04 496

Arendals Fossekompani | www.arendalsfossekompani.no 
Arendals Fossekompani (AFK) is a long-term investment company that owns energy-
and technology-related companies which enable the transition to energy security
and next generation industrial technologies. AFK operates globally in several
future-oriented industries, including 3D printing, wireless charging, algo
trading, satellite services, battery- and solar technology, software, and
digitization. Established in 1896, AFK has been a proud producer of renewable
hydro power for more than 100 years. The company is headquartered in Arendal,
Norway and listed at the Oslo Stock Exchange.

- - - - -

This information is considered to be inside information pursuant to the EU
Market Abuse Regulation and is subject to the disclosure requirements pursuant
to section 5-12 of the Norwegian Securities Trading Act.

This stock exchange announcement was published by Lars Peder Fensli, CFO,
Arendals Fossekompani ASA, on 5 May 2023 at 08:15 CET.