Aker Horizons Asa

Good morning and welcome to the presentation of Auker's fourth quarter results for 2025. My name is Christina Chardim and I am the head of communications at Auker. I am joined in the studio today by our president and CEO, Eivind Erikson, who will walk you through the key highlights and recent developments across the portfolio. We are also fortunate to have Josh Payne, founder and CEO of Emscale with us, to give an update on this exciting company. Our chief financial officer, Sven-Oskar Stoknes, will then take you through the financial results in more detail. After the presentation, we'll host a Q&A. And with that, I'll hand it over to Eivind.

Thank you, Kinstina, and good morning, everyone. 2025 was a pivotal year. Aker became a more focused industrial owner with greater scale in fewer platforms, and a portfolio positioned to deliver through cycles. That comes through clearly in our full year results. Net asset value closed at 67.3 billion kr, up 22.4% for the year if you add the 3.9 billion kr Aker paid in dividends. Total shareholder return was nearly 50%, a strong reflection of both underlying delivery and the choices we made during the year. Dividend income of 6 billion kroner continued to form the financial backbone of Aker, supporting predictable returns while giving us the freedom to invest where long-term ownership makes a difference. We also saw clear progress across the portfolio. Our listed holdings grew 28%, reflecting strong delivery from companies that remain central to Arcus' long-term industrial foundation. And our unlisted holdings, including technology platforms like Cognite and Enscale, grew 33%, and is moving forward in ways that increase scale and strategic relevance. Taken together, 2025 strengthened Aker both financially and operationally, while also making it more clear how the mix of our companies' positions Aker to navigate a more competitive and capacity-constrained decade. The fourth quarter closed broadly unchanged from the net asset value of the third quarter, despite a substantial dividend distribution of 2 billion kroner, or 26.5 kroner per share. For 2026, the Board proposes a dividend of 29 kroner per share in the second quarter, with authorization for an additional dividend later in the year. The intention remains the same, a competitive, reliable payout supported by a portfolio that has become structurally stronger. AKI BP and AKI Solutions have remained the core of AKI's industrial foundation, and 2025 reinforced why they sit at the center of the portfolio. RKBP delivered another year of strong performance. Projects stayed on track, production remained high, and the company continued to operate as a low-cost, low-emission producer on the Norwegian continental shelf, a competitive position it has built systematically over time. The year also strengthened its long-term resource base through exploration successes. while maintaining the reliability and efficiency that underpin its cash generation. Johan Svedrup is the jewel in the AKBP crown, accounting for more than half of the company's production at record low production costs and CO2 emissions per barrel. The laws of nature will trigger decline in production for any oil and gas field over time, including Johan Svedrup. which is why that is embedded in RKBP's plans and guidance. What's not included is the potential of enhanced oil recovery due to technology and drilling. History shows how big oil fields have outperformed forecasts repeatedly. For Accu, AccuBP continues to generate solid valuation, attractive dividends and continued confidence in a business that performs through cycles. AccuSolutions also had a solid year with high activity levels and good progress across major projects, particularly those tied to AccuBP. Its strength lies in deep engineering competence, long-term customer relationships, and asset light model that continues to generate cash while expanding into new verticals. It also benefits from the scale and positions built through one subsea, which is increasingly well placed in a growing subsea market. Together, Aker BP and Aker Solutions anchor the kind of stability that lets us take a long-term view across the rest of the portfolio. Real estate has become a significant and growing part of Aker's portfolio, now representing a gross 145 billion kroner platform. Beyond structure, the returns delivered over the past year deserve attention. Since the transaction announced in May 2025, all of Akers' real estate investments have significantly outperformed the broader market. Over this period, PPI delivered a 23% return Svea Fastigheter 20% and SBB 16%, while the OMX Stockholm real estate index declined by 4%. This reinforces our view of real estate as a disciplined, return-driven allocation, one that strengthens cash flow, reduces volatility, and improves the portfolio resilience over time. A key driver of this progress was the transaction between Public Property Invest, PPI, and SBB. It tripled PPI's portfolio and established a leading listed platform in the European social infrastructure, characterized by long-duration leases, high occupancy, and dependable public sector tenants. For Aker, The transaction increased our economic ownership in PPI to 34% and expanded our exposure to a platform with stable, predictable cash flows and counter-cyclical characteristics. The structure of the transaction was equally important. It reduced risk, strengthened balance sheets and simplified ownership. while allowing SSBB to remain the majority owner in a higher quality platform. The result was a material improvement in the quality and robustness of the ownership structure. Moving on to Cognite, our exposure to industrial software and industrial AI. 2025 marked a clear shift. Focus is now on how AI will move from excitement to enabler of improvement and change and how these technologies are being used in day-to-day operations. Cognite sits at the core of this work. In environments where complexity is high, uptime matters, and the tolerance for error is near zero, Cognite provides the foundation that makes AI useful in production. Cognite Data Fusion delivers the contextualized data layer, while Atlas AI and Dune drive how AI is actually deployed in practice. Atlas AI is Cognize's industrial agent platform, built on contextualized operational data, enabling AI agents to act on real operating conditions. Dune is Cognize's low-code environment for building and adapting industrial applications, reducing the time from ID to deployment significantly. Together, they shortened the distance between data, domain expertise and action, which is what industrial operators need for AI at scale. The shift in adoption this year has been unmistakable. Cognate delivered 164 million US dollars in annual revenue, with ARR up 32% to $124 million. The number of Atlas AI customers grew nearly eightfold, firmly moving the product into mainstream use. And in 2025, more than 70% of new bookings included Atlas AI, showing how central it has become in new customer engagements. The fourth quarter reinforced this. Kongnets signed 13 new customer contracts, underlining its ability to scale across asset-heavy industries globally. At the same time, the quality of the business strengthened. Gross margin increased and reached 68%. And the software part of that gross margin exceeded 80%, reflecting a high-value software-as-a-service mix and operational leverage. And importantly, these are not generic AI pilots. Customers are deploying product-grade AI agents and workflows for maintenance planning, root cause analysis, energy optimization, and decision support. Use cases tied directly to uptime, efficiency, safety, and profitability where AI has real economic impact. Commercially, Cognite continues to broaden. Around 80% of revenue now comes from customers outside the ARCA group, and roughly 40% from outside oil and gas, reflecting significant sector and customer diversification. A new vertical, pharma and life science, is showing especially strong traction, with four of the top ten global companies now cognate customers. Cognite is also investing for growth. The company is expanding its sales force, deepening its market coverage, and continuing to invest heavily in product development to maintain its pole position in industrial AI. A key differentiator remains the company's industrial proximity. Early deployments inside the demanding operating environments, including RKBP's Yggdrasil development, provide a feedback loop few software companies can match. There, Cognite's technology enables automated operations, remote control rooms, and digitally enabled work processes, such as robotic inspection. Taken together, Cognite is moving from early adoption to embedded use. AI is becoming part of day-to-day industrial operations. That is what supports continued growth, and why Cognite plays a critical role in ARCA's long-term valuation. is providing advanced visualization and collaboration tools that help asset-heavy industries plan, operate and maintain large facilities more efficiently. The company continues to strengthen its position, delivering advanced visualization and collaboration tools for heavy asset industries. Its technology is now deployed across 66 facilities worldwide, supporting customers like BP, Exxon and SBN offshore. While ACE is well established in EPC and offshore operations, its addressable market is broader. The next area of expansion is onshore processing, and in the fourth quarter ACE secured a first major contract for a large onshore LNG facility in the US, an important step in that direction. 2025 marked a shift in the company's revenue profile. ACE generated more than 14 million USD in recurring revenue, with subscription revenues increasing as the product matured. Revenue from customers outside the ARCA group also made a meaningful step forward, reflecting broader international traction. Looking ahead, the company is targeting a 50 million USD in recurring revenue by 2029, with around 90% of the business on a recurring basis, reflecting a more scalable and predictable model as adoption grows. We are very pleased to have Josh Payne, founder and CEO of EndScale, with us today. Josh has built one of the fastest-scaling AI infrastructure platforms globally, and he'll take you through the company's trajectory and plans in more detail shortly. Arcus Sheldon in N-scale is our exposure to AI infrastructure at true international scale, where access to compute, power, and grid capacity has become the defining constraint. The company combines data center capacity, GPU clusters, and orchestrations in one integrated model built around long-duration customer commitments. We are also executing locally through the 50-50 Aker N-scale joint venture in Northern Norway, where Aker's industrial capabilities and Norway's strengths in renewable power and grid access come together. Construction is underway in Nyrvik with 230 MW of secured grid capacity and around 1.5 GW in the official queue across multiple sites, locations suited for large-scale energy-efficient AI infrastructure workloads. Over time, our joint venture stake can be rolled into EnScale parent company, ensuring that what we build locally connects directly with a larger long-term ownership in the broader global platform. And with that, I'll hand it over to you, Josh, for a deeper introduction and presentation of your great company, EnScale.

Good morning, and thank you to Oiven and the team for your leadership and to the ARCA shareholders for your continued support. Nscale is a European headquartered, vertically integrated AI infrastructure company. The true challenge in the market is the enormous demand for AI infrastructure and the lack of supply, driven by the complexities of deploying large-scale infrastructure at speed and the disconnection between each segment of the value chain. Nscale solves this by both building and operating the data centers building and operating the compute clusters, and also the software, delivering large-scale training and inference as an end-to-end service for customers worldwide. Today, we have deployments across five countries, and we're working together with ARCA as part of the ARCA N-scale joint venture to deliver large-scale AI infrastructure in Norway by utilising the surplus renewable energy that exists in NO4. Norway, I believe, is one of the most compelling places in Europe to deliver on the global demand for AI compute capacity. Here in Norway, there are abundant renewable power resources, a mature industrial base, optimal climate and a high density of human capital. Norway has a long history of turning low-cost renewable energy into economic value. And for this reason, we firmly believe that Norway can leverage its energy resources to emerge as a global leader in artificial intelligence. That's why the partnership between Arca and Enscale matters. Arca is a Norwegian national champion with world-class industrial project delivery. Enscale brings the full AI infrastructure stack, which involves the data center design and operations, the clusters, the platform software that makes the compute valuable for customers. Together, we are building a new market for the country, turning Norway's economic and industrial strengths into high-performance AI capacity that is both sovereign, sustainable, and built to the highest standards. Under the ARCA N-scale joint venture, we are progressing a portfolio of AI infrastructure projects in Norway, anchored first by our flagship site in Kabandel near Narvik. In Narvik, we have 230 megawatts of secured grid capacity, with a further 290 megawatts in capacity queue, and customer negotiations are ongoing for adjacent plots at Narvik to support continued expansion. Overall at M-scale, our future expansion is in line with the incredible demand we're seeing today, and we expect this will continue to grow in the future. The market is moving into a phase where the overall limiting factors are power, speed and efficiency of operations. In other words, this is becoming an execution story, and that is where our focus is in 2026 and beyond. In Q4, Nscar also strengthened the foundation for that execution. We successfully completed a Series B funding round, which was the largest Series B in European history at 1.1 billion US dollars, attracting both strategic investors and also global institutional top tier investors. In parallel with this round, we also closed a $433 million Series C safe, driven by investor demand and the oversubscribed nature of that Series B round. This capital both underscores the demand for the product that we have and also supports what matters most now, which is delivery. We have a large global power pipeline, multi-billion dollar contracts signed, Tier 1 strategic partnerships in place, including NVIDIA, Dell and Nokia, and hundreds of thousands of GPUs awarded to Wenscale to date. We're also expanding our leadership team, bringing in deep industrial experience, and recently acquired global DC engineering firm, FutureTech, bringing in a team of designers, engineers, consultants, project managers, and more, which empowers us to accelerate our delivery and execution. What we're building in Norway and beyond is differentiated and durable. It's both engineered for scale, for performance, built to serve demanding training and inferencing workloads reliably, and to expand in phases in line with the breakneck speed of the market. And lastly, it's sovereign. both by design, giving customers clarity and control of where their data and workloads run, and most importantly, aligned to European standards. We're proud to be building this with ARCA. So thank you to Oivind for your partnership, and thank you to the ARCA shareholders for your continued support as we work together to build a long-term European AI infrastructure asset here in Norway and globally. Thank you.