(Arendal, 23 August 2024) Arendals Fossekompani ASA (OSE:AFK) reports revenues
of NOK 1,682 million (1,404 million) and an operating profit of NOK -660 million
(148 million) in the second quarter of 2024. Ordinary profit after tax, but
before non-controlling interests, totaled NOK -807 million (41 million).
Arendals Fossekompani will pay a dividend of NOK 1.00 per share for the quarter.


"Revenue increased by 20% compared to the same quarter last year, driven by
apartment handovers in AFK Property and strong performance from NSSLGlobal,"
says Benjamin Golding, Chief Executive Officer at Arendals Fossekompani. 

The reduced operating profit for Arendals Fossekompani Group compared to the
second quarter in 2023 was mainly driven by impairment of the entire book value
of the shareholding and shareholder debt in Commeo and Ampwell, as well as lower
electricity prices leading to lower profits from hydropower production. 

After the end of the quarter, Arendals Fossekompani sold its portfolio company
Vergia to Swiss Life Asset Managers, which included shareholdings in Seagust,
North Ammonia, and HydePoint.

"The discontinuation of Commeo and the divestment of Vergia contribute to
focusing, de-risking and optimizing our portfolio, while reducing exposure to
capital intensive businesses in line with strategy," says Golding.

Electricity prices in the quarter were substantially lower from the same period
last year, with the NO2 price area averaging EUR 44.8/MWh (EUR 82.4 MWh). Power
generation was comparable to the same period last year of 135.2 GWh (133.7 GWh).
Lower prices reduced quarterly revenues and operating profit for AFK Vannkraft
to NOK 70 million (127 million) and NOK 44 million (107 million), respectively.

Operating in international markets, Arendals Fossekompani Group is naturally
exposed to currency fluctuations. Revenue growth in NSSLGlobal was positively
fueled by a stronger GBP compared to the second quarter of 2023, whereas the EUR
and CAD remained at approximately the same levels.

SEGMENT DEVELOPMENTS 
Volue reports total operating revenues in Q2 of NOK 409 million (399 million).
SaaS revenues reached NOK 135 million in the quarter, an increase of 38%
compared to Q2 2023, representing 33% of total revenues. Adjusted EBITDA in the
quarter totaled NOK 88 million (63 million), corresponding to an adjusted EBITDA
margin of 22% (17%). 

On 8 July, the newly established entity, Edison Bidco AS, announced the
intention to launch a voluntary cash offer for all outstanding shares in Volue.
Edison Bidco AS is controlled by Arendals Fossekompani, Advent International L.
P. and Generation Investment Management LLP. The proposed acquisition will
privatize Volue and will support its next phase of growth under the new
consortium. In the contemplated transaction, Arendals Fossekompani intends to
reduce its shareholding in Volue from 60% to 40%.

NSSLGlobal reports revenues of GBP 29.3 million (22.9 million) for the second
quarter. The growth was largely due to the catch-up and completion of several
large government projects in the period. NSSLGlobal won new business estimated
to GBP 6.1 million (GBP 16.3 million) during the quarter, of which 67% was due
to government orders.

Tekna reports CAD 11.2 million in revenue, a 2% increase year-over-year, a 3%
revenue decline for the first half of 2024 compared to the same period in 2023,
and a 30% increase in revenue from Q1 to Q2. Tekna's nano material is
progressing through qualification for next-generation multilayer ceramic
capacitors (MLCCs), with the first revenue-generating order now shipped for
customer factory trials.

ENRX reports total operating revenues of EUR 36.9 million in the second quarter,
in line with the same quarter in 2023. Slightly reduced activity within the Heat
division was offset by a positive contribution from the Charge division. Total
order intake for the quarter reached EUR 40,3 million (EUR 37.8 million). Total
order backlog at end of Q2 2024 was EUR 75.6 million (EUR 94.2 million) up from
EUR 74.3 million in Q1 2024.

FINANCIAL POSITION 
Arendals Fossekompani's financial position remains solid. The company's
available cash on 30 June amounted to NOK 837 million. In addition, the company
has undrawn credit facilities of NOK 1123 million, securing available liquidity
of NOK 1,960 million as per end of the quarter.

"Our companies are well positioned within high-growth global industry verticals
that have a positive long-term outlook. The portfolio is diversified, with both
stable cash-flow generating assets and attractive growth opportunities," says
Golding. 

DIVIDEND 
On August 22nd, Arendals Fossekompani's Board of Directors decided to pay an
ordinary cash dividend of NOK 1.00 per share for the second quarter of 2024. The
dividend is set to be paid on 9 September 2024.

ENDS 
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For inquiries or additional comments, please contact:  
Benjamin Golding, Chief Executive Officer: +47 974 04 496 
Hanne Watts, VP Communications & Sustainability: +47 974 04 496 
 
Arendals Fossekompani | 
Arendals Fossekompani (AFK) is an industrial investment company that owns energy
and technology-related companies which enable the energy transition and develop
next generation industrial technologies. Arendals Fossekompani operates globally
in several forward-thinking industries, such as B2B software and analytics,
satellite communications, induction technology and industrial 3D printing.
Established in 1896, Arendals Fossekompani has been a proud producer of
renewable hydro power for more than 100 years. The company is headquartered in
Arendal, Norway and has been listed at the Oslo Stock Exchange since 1913. For
more information on Arendals Fossekompani, please visit:
https://arendalsfossekompani.no/en
- - - - - 
 
This information is considered 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 23 August 2024 at 08:00 CET.