Aker Horizons Asa

Good morning and welcome to Aker's third quarter 2026 results presentation. I'm Cecilia Langenbecker, head of media relations. I am joined today by Aker's president and CEO, Eivind Eriksson, who will take you through the key highlights and the portfolio developments in the quarter. Aker's CFO, Svein-Oskar Soknes, will lead you through the financial results in more detail. And after the presentation, we will open for questions. You may submit your questions at any time using the chat function in the webcast player. With that, I hand it over to Eivind Eriksen.

Thank you, Cecilia, and good morning, everyone. Before we go into the third quarter, let me take a step back and look at the bigger picture. We are living through a period of profound change. Geopolitics, Energy Security and Technology are reshaping industries and shifting capital flows. In this environment, the Nordics are uniquely positioned with abundant energy, strong industrial capabilities and political stability. For Aker, that creates significant opportunities across the industrial themes where we have chosen to invest. At the same time, Markets will remain volatile. We have seen that in recent weeks. Not least in AI technology and AI infrastructure. Sentiment will come and go. At Aker, we measure our sales over time. Our job is to stay disciplined on capital, focused on execution, and mitigate risks. and we encourage our portfolio companies to be prepared for market volatility and to be transaction ready when opportunities arise. Aker has maneuvered steadily and safely year to date. Aker net asset value increased by 44 billion Norwegian kroner during the course of the first three quarters. reaching 111 billion at the end of Q3 after paying 2.2 billion kronor in dividends. Total shareholder return was 83% year-to-date, including dividends, significantly outperforming both the Oslo Stock Exchange benchmark index and the Brent oil price. Market volatility has reduced the return so far this quarter, but it is still North of 50%. That's not an achievement happening by chance. Three drivers stand out. First, energy. RKBP and our other listed energy holdings added 22 billion Norwegian kroner through higher share prices and dividends. Second, end scale. It added also 22 billion kroner and is now our second largest asset. Our net asset value reflects the 14.6 billion USD valuation from the Series C funding round in March. Third, Cognite. The sale added 7 billion kroner to Akku. Closing is expected this quarter, and the proceeds will significantly strengthen our net asset value, liquidity, and financial flexibility. That is what ARCA is about. Building value as an active owner, and crystallizing it when the timing is right. With that, let me turn to the third quarter. As mentioned, ARCA's net asset value ended the quarter at 111 billion Norwegian kroner. This was up from 106 billion in the second quarter, and the highest quarter-end net asset value in ARCA's history. The main driver in the period was ARCA BP. The total shield return in the quarter as such was 20.2%. Across the portfolio, our companies continue to develop, strengthen their positions, and build a solid foundation for further growth. And in line with Arcus' dividend policy of paying a predictable and growing dividend, the board has approved a second dividend of 29 kroner per share, bringing the total for the year to 58 kroner per share, or 4.3 billion Norwegian kroner. To sum up, yet another solid quarter for Accu. Let me now turn to the portfolio and the key drivers behind our performance. Starting with energy, still Accu's largest segment at around half of gross asset value. At the end of the quarter, our listed energy holdings were valued at 64 billion kroner, including 5 billion in dividends. They have added 22 billion kroner to our net asset value so far this year. RKBP alone added around 14 billion kroner this year, including 2.5 billion in dividends. Operationally, RKBP continues to deliver. Production has been solid, realized prices strong, and free cash flow is now expected to be well ahead or what we anticipated at the start of the year. RKBP has also announced a new executive management team from January 1st, 2027, aimed at reducing complexity, improving execution and strengthening collaboration. The market backdrop is also supportive. The physical oil and gas market is exceptionally tight. Achieved crude prices On VSA NCS, it knew all-time highs above 150 USD a barrel in October, while jet fuel and diesel have traded about 200 USD per barrel in Europe. And this is not a spot price story. The Hormuz crisis has lifted the whole forward curve, Since January 2027, prices are up around 50%. 2028, around 30%. And 2029, around 20%. That supports RKBT's value and cash generation well beyond 2026. Energy security matters. Europe needs reliable supply, and the Norwegian continental shelf delivers. Norwegian oil and gas has never been more valuable, economically or politically, as Europe faces low gas inventories and continued competition with Asia for LNG. This fall, the Norwegian continental shelf passed 100 fields in production for the very first time. Our belief in the shelf remains strong, but unlocking the increased complex resources will require greater scale, collaboration, and better use of software and AI. RKDP is adapting to that reality. The strategy remains unchanged, but the company is strengthening execution through partnerships. Technology and AI to unlock more resources and create more shareholder value. That's why AKBP's two new partnerships matter. One with Equinor and Vore Energy, targeting some of the largest remaining opportunities on the Norwegian continental shelf, and one with Equinor using technology to unlock resources in tight reservoirs. Which thing is the largest known undeveloped oil discovery on the Norwegian continental shelf for the time being? Through Aker BP's 27.5% stake, Aker is well positioned for its development. For Aker Solutions. The first Wisting Award was not the outcome we had hoped for. As several large projects are completed in 2027, engineering and fabrication activity will normalize. At the same time, Arcus Solutions has a substantial backlog in lifecycle services and a strong track record of adapting to changing markets. As an active owner, Aqua will support Aqua Solutions in adapting and developing new industrial and commercial opportunities. Solskjaer Maritime and Solskjaer Offshore have also delivered. Their combined market value is up more than 3 billion Norwegian kroner this year and they have paid more than half a billion kroner in dividends. Across the board, has contributed another 241 million kroner in dividends this year. In short, energy remains Arke's industrial backbone. It generates cash today and gives us optionality for decades ahead. Over to real estate. This year shows the benefit of having a diversified portfolio. Higher commodity prices have benefited our energy holdings. While higher inflation and interest rates have put pressure on real estate. The sector has largely been driven by interest rates rather than company performance. As long-term owners, we see three reasons why this is an attractive time to own high-quality real estate. First, valuation. The sector trades at around 13 times cash earnings. Close to 30% below its 10-year average, while listed shares trade below net asset value. Second, private transactions support these values, with deals at or around book value despite the discount in listed markets. Third, higher interest rates trade upside if rates come down, while rents linked to inflation support earnings below. In the meantime, what matters most to us is what the companies deliver. Public Property Invest, Svea Fastigheter and SBB have been transformed since we became owners in May 2025. Public Property Invest has grown its portfolio from 15 to 53 billion Swedish kronor. It's now listed in Stockholm, rated triple B plus by Fitch, and cash earnings per share is up 37% year on year. The underlying market remains attractive, supported by an aging population and growing demand for care. Sveafossetet completed its merger with Klarabo, creating Sweden's largest listed residential company, with more than 45 billion Swedish kronor in property value and twice the size of its closest peer. The merger also removed expensive financing for SPD, costing 13% a year, and earned Svea an upgraded credit rating from BBB- to BBB. SBB has also changed fundamentally since we became owners. It has continued to strengthen its balance sheet, including through property sales of more than 8 billion Swedish kronor. It has gone from an operational property company with a complex structure to a simplified real estate investment company with attractive stakes in market-leading platforms. Aker has been instrumental in reducing its debt by around 14 billion Swedish kronor over the past year. So, how do we view this from an Aker perspective? Real estate is counter-cyclical to much of our portfolio. It provides stable, inflation-protective cash flows, that balance our more cyclical energy exposure and make our portfolio less prone to volatility. We own market leaders with investment-grade balance sheets and remain focused on discipline growth, low leverage and shareholder distribution. In short, energy gives us strong cash flow when commodity prices are high, Real estate gives us stability through the cycle. Together, they make Aker more resilient. Now, let me take you through what is happening in AI infrastructure and why it matters. Markets have been volatile in recent weeks, and AI stocks have been at the center of it. Views on AI investments will shift over time. But one thing is certain. Compute is becoming the engine of our future society. Whoever leads this race will shape the future. Today, the race is dominated by the US and China.

Europe simply has to move faster.