Annual integrated report
2023
Disruptive technologies
— sustainable results
CEO letter
Company highlights
About Nekkar
The Board of Directors
The Board of Directors’ report
Corporate governance
Material topics
Consolidated financial statements
Parent company financial statements
Auditors’ report
Statement on compliance
Appendices
Remuneration report
This annual integrated report is a
natural continuation of the business
strategy Nekkar has pursued in
the past couple of years, where
sustainability and profitability are
intrinsically intertwined.
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NEKKAR ANNUAL REPORT 2023 CEO LETTER
Broadening our
revenue base
2023 was a year of noteworthy progress for Nekkar. Through organic growth
from existing business, we have successfully broadened our revenue base.
Coupled with smart and accretive M&A activity, this resulted in significant
improvements in both revenue and profitability, leading to record high revenue
for Nekkar for the year.
Firstly, this is Nekkar’s first ever integrated report,
where our annual report and accounts are integrated
with our environmental, social and governance (ESG)
improvement efforts. In many ways, this integrated
report is a natural continuation of the business
strategy Nekkar has pursued in the past couple
of years, where sustainability and profitability are
intrinsically intertwined.
Nekkar’s strategy is to leverage the group’s superior
engineering, electrification, automation, and
digitalisation heritage from the offshore environment,
to develop and utilise disruptive technologies that
can make high-growth ocean-based industries more
sustainable, productive, and profitable. We operate in
four main segments: shipyard solutions, renewables,
aquaculture and offshore energy.
Nekkar’s portfolio consists of a variety of companies
at different development stages, from mature and
financially solid businesses to new impact technology
ventures. In 2023, we made an effort to clarify where
the various portfolio companies are in terms of
maturity level and focus areas, with the objective of
being even more transparent about available growth
opportunities, and the commercial and technical
hurdles that need to be crossed in order to realise such
growth prospects.
We define Syncrolift as an established, mature
business. It is Nekkar’s main revenue contributor. The
company is a global market leader within shiplifts
and ship transfer systems. In 2023, Syncrolift was
awarded newbuild contracts in Vietnam, India,
United Arab Emirates, Indonesia and Europe,
emphasising the company’s global reputation and
competitiveness. Syncrolift delivered revenues of
NOK 515 million and EBITDA of NOK 132 million,
equivalent to an EBITDA margin of 26 percent, in
2023. The company’s service revenues increased
to a record high of NOK 90 million in 2023, proving
that our concentrated effort to tap into Syncrolift’s
substantial installed base continues to yield results.
Syncrolift continues to be certified according to
ISO 45001 on Occupational Health and Safety – an
international standard aiming to improve employee
safety, reducing workplace risks and creating better
and safer working conditions.
As part of our portfolio, we have three companies that
we define as growth businesses: Intellilift, Techano
Oceanlift and FiiZK. They share a common focus of
Ole Falk Hansen
CEO of Nekkar
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NEKKAR ANNUAL REPORT 2023 CEO LETTER
broadening their customer base, scaling business
models and optimising products and services in order
to capitalise on growth opportunities.
Intellilift is already well known to Nekkar’s
shareholders. The company delivers industrial
software solutions that are focused on digitalising
workflows through automation and remotely
controlled systems for drilling and offshore load
handling. In 2023, Intellilift had a major breakthrough
via its participation in the InteliWell joint venture
that secured the first contract for its game-changing
drilling automation solution with the Transocean
Norge drilling rig. Applying InteliWell’s solution
will enable reduced drilling time and consistent
performance on board the drilling rig. Intellilift
delivered revenues of NOK 34 million and EBITDA of
NOK 6 million in 2023.
Early in 2023, we acquired Techano Oceanlift, a
provider of intelligent load handling systems, such as
cranes and gangways, for the renewable, aquaculture
and offshore energy industries. The company also
delivers live fish transfer systems to offshore fish
farms. Techano Oceanlift won two crane contracts for
offshore vessels last year, one for a cable-lay support
vessel (CLSV) and one for a subsea IMR/survey vessel.
The company delivered revenues of NOK 30 million
and EBITDA of NOK 1 million in 2023. Its EBTIDA-
margin was, as planned, negatively affected by pricing
of market entry projects and time to build up volume.
We expect this to improve over time. During 2023,
Techano Oceanlift has developed a new series of
offshore/subsea cranes to meet the increased demand
for subsea operations and construction. The cranes
may be electrified, including the winch, enabling it to
deliver regenerated power back to the vessel.
As a result of progress in our growth companies, the
second quarter of 2023 was the first quarter when
Nekkar generated revenue from three different
subsidiaries. This is in line with our buy-to-own strategy
where we through our flexible ownership model can
maximise value and synergies per company.
Another example of our flexible ownership model
and business development mandate was our entry
into aquaculture industry supplier FiiZK. We invested
NOK 50 million for a 39 percent ownership share
in FiiZK. The consideration consisted of NOK 25
million in cash and a NOK 25 million payment in-
kind contribution through our cutting-edge Starfish
technology. Integrating our Starfish closed fish cage in
FiiZK, a leading provider of closed cage systems and
software solutions for fish farming, was a sensible and
natural step in its development phase. As Nekkar has a
minority shareholding in FiiZK, the company’s results
are not consolidated into Nekkar’s accounts.
Our third portfolio category is impact technology
ventures such as the SkyWalker wind turbine service
and installation tool. The SkyWalker can significantly
lower the cost and time associated with major
component replacement on offshore wind turbines.
Towards the end of 2023, a project consortium
headed by Nekkar was conditionally awarded a
research and innovation grant of NOK 75 million, in
total, to develop a safe and efficient solution for main
component replacement on offshore wind turbines.
The project will develop a remote-controlled, self-
hoisting lifting system that moves up and down the
turbine tower to replace main components, such
as for example gearbox and blade, while on-site
offshore. Also, a 3D motion-compensated crane will
be developed with the purpose of lifting SkyWalker
from a floating vessel to the offshore wind turbine.
The objective is to develop a main component
replacement solution that can be utilised offshore
on both floating and fixed-bottom wind turbine
generators across OEMs, both for newbuilds as well
as the installed base.
All in all, 2023 has been a year of significant progress
across all our portfolio companies. As explained above,
these commercial advancements can also result in
environmental benefits and long-term value creation
for society, operators, our customers and shareholders.
We expect this progress to continue in 2024, which
means that we will continue our efforts to broaden
and diversify our revenue base. We look forward to
updating you throughout the year on this progress.
Yours sincerely,
Ole Falk Hansen
CEO of Nekkar
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NEKKAR ANNUAL REPORT 2023 COMPANY HIGHLIGHTS 2023
Company
highlights 2023
REVENUE
NOK 575 MILLION
+48%
vs 2022
100%
of new suppliers screened
using social criteria
EBITDA
NOK 109 MILLION
+60%
vs 2022
NEW KRISTIANSAND
OFFICE
from sustainable and recyclable
building materials
First rig services contract
secured for INTELIWELL
joint venture
Acquisition of TECHANO
OCEANLIFT: Re-entering load
handling and lifting segment
NOK ~250 million in new shiplift
and ship transfer system
contracts for SYNCROLIFT
Investment in 39% ownership
share in aquaculture industry
supplier FIIZK
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NEKKAR ANNUAL REPORT 2023 CHAPTER TITLE
About
Nekkar
↘
Nekkar is an industrial technology
group offering impact technologies
combined with high-end software and
automation solutions.
We combine 50 years’ heritage from the world’s
number one shiplift company, Syncrolift, with
new investments into sustainable and digitalised
technology businesses that aim to unlock future
customer-value within ocean-based industries
such as offshore energy, renewables, aquaculture
and shipyard solutions.
Our strategy is to leverage the group’s superior
engineering, electrification, automation,
and digitalisation heritage from offshore
environments, to develop disruptive technologies
that can make high-growth industry sectors more
sustainable, productive, and profitable.
Nekkar ASA is the holding company in the Nekkar
Group, which is headquartered in Kristiansand,
Norway. The company is listed on Oslo Stock
Exchange with the ticker code NKR.
For more information about Nekkar, visit our
website: www.nekkar.com
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NEKKAR ANNUAL REPORT 2023 ABOUT NEKKAR
UN Sustainable
Development Goals
Nekkar supports the UN’s Sustainable Development Goals (UN
SDGs). The company is implementing activities and initiatives
relating to four of the SDGs, where the company has the potential
to make the biggest contribution:
Nekkar promotes equal opportunities for employees regardless of their gender, age,
ethnic or cultural background. Nekkar’s employees should be treated with respect and the
company shall ensure a safe and healthy working environment for everyone.
Designing and adapting our products to foster innovation and the development of
sustainable technology is a key consideration in Nekkar’s product development. An example
is the wind turbine installation and service tool SkyWalker. This innovation has the potential
to increase the efficiency and decrease the environmental footprint of installing and
maintaining wind turbines.
The ocean represents a highly significant resource in terms of food, energy and value
creation and has a high priority in our efforts to ensure a sustainable future. Nekkar’s
business operations are closely linked to the sea as our products are designed for the
maritime and marine industries. Our goal is to design and produce products that can
contribute positively to development in marine areas.
Nekkar aims to promote and maintain the highest ethical standards to create a trust-based
relationship with our stakeholders. The company shall comply with relevant laws and
regulations, act in an ethical, sustainable and socially responsible manner and otherwise
practice good corporate governance.
Supply chain
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NEKKAR ANNUAL REPORT 2023 ABOUT NEKKAR
Nekkar has global
presence with projects
all over the world
Production
(outsourced)
Sales
Design
Transport
Installation/
comissioning
Raw
materials
Intermediate
goods
Manufacturing
Service/
end-of-life
SaaS
revenue/
lifecycle
support
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NEKKAR ANNUAL REPORT 2023 CHAPTER TITLE
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NEKKAR ANNUAL REPORT 2023 ABOUT NEKKAR
Locations
Nekkar comprises five businesses: Syncrolift, Intellilift, Techano Oceanlift, and our Impact
Technology Ventures arm which includes the SkyWalker project. Nekkar is also one of two
leading shareholders of the associated company FiiZK.
49
Kristiansand (headquarter)
Intellilift, Techano Oceanlift,
Impact Technology Ventures
2
Singapore
Syncrolift
1
USA
Syncrolift
2
Dubai
Syncrolift
38
Vestby
Syncrolift
Employees by location
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NEKKAR ANNUAL REPORT 2023 ABOUT NEKKAR
Based on alternative performance measures
1)
2023 2022 2021 2020 2019
ORDERS AND RESULTS (MNOK)
Order backlog 803 824 838 1 146 778
Order intake 478 277 113 701 396
Revenue 575 388 480 359 267
EBITDA 109 67 145 70 51
EBITDA margin % 18.9% 17.4% 30.1% 19.5% 19.0%
BALANCE SHEET (MNOK)
Total assets 601 507 451 558 416
Total equity 427 351 316 203 234
Equity ratio % (total equity/total assets) 71.1% 69.2% 70.1% 36.5% 56.1%
SHARE (NOK)
Share price 31 December 9.25 6.10 9.97 6.02 2.05
Basic earnings per share
2)
0.78 0.30 1.04 -0.33 1.90
EMPLOYEES
No. of employees 31 December
3)
92 73 62 54 50
Sick-leave rate % 2.4% 3.4% 2.2% 1.6% 0.7%
1) As the IFRS regulations do not define order backlog/intake/ EBITDA the number should be considered as an APM
2) Basic earnings per share are based on net profit for the year attributable to ordinary equity holders of the parent company
3) 2023 and 2022 figures include hired in personnel
Key figures
575
REVENUE
MNOK
601
TOTAL ASSETS
MNOK
109
EBITDA
MNOK
427
TOTAL EQUITY
MNOK
18.9
EBITDA MARGIN
PERCENT
71.1
EQUITY RATIO
PERCENT
92
NO. OF EMPLOYEES
31 DEC
2.4
SICK-LEAVE RATE
PERCENT
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NEKKAR ANNUAL REPORT 2023 ABOUT NEKKAR
Membership assosiations
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NEKKAR ANNUAL REPORT 2023 ABOUT NEKKAR
Portfolio
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NEKKAR ANNUAL REPORT 2023
COMPANIES
Techano Oceanlift
Techano Oceanlift is a leading innovator in the
development of advanced motion compensated load
handling and lifting equipment. Its cutting-edge
solutions cater to the specific needs of the offshore
renewables, energy and aquaculture industries.
Intellilift
The foundation of Intellilift’s business is superior
engineering, electrification, automation, and
digitalisation competence with heritage from “Drilling
Bay” in Kristiansand, Norway. Intellilift applies this
competence across the Nekkar Group as well as to
external clients. Intellilift software also increases
efficiency on drilling rigs and reduces emissions
through reduced drilling time.
Syncrolift
Syncrolift has been a significant player in the
shipyard market for more than five decades. The
company invented the production lines for building
ships efficiently on assembly lines. It also invented
innovative solutions for heavy load handling of ships.
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NEKKAR ANNUAL REPORT 2023 ABOUT NEKKAR
13
IMPACT TECHNOLOGY VENTURES
ASSOCIATED COMPANIES BELOW 50% OWNERSHIP
SkyWalker
Nekkar is currently developing the SkyWalker —
a disruptive installation tool and service based on
offshore lifting systems that will significantly reduce
the cost and environmental footprint associated
with wind turbine installations and major component
replacements.
FiiZK
FiiZK is a group with three business units delivering
technical textiles, closed cages and software
solutions to the aquaculture industry. In addition,
the company manufactures and designs products in
technical textiles for the industrial, offshore, and the
construction industry. The closed cage solutions from
FiiZK improves both fish and fjord welfare.
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NEKKAR ANNUAL REPORT 2023 ABOUT NEKKAR
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NEKKAR ANNUAL REPORT 2023 ABOUT NEKKAR
Syncrolift
The safer choice
in shiplifts
Syncrolift has been a market leading player in the
shipyard market for more than five decades. It
invented the production lines for building ships
efficiently on assembly lines. The company also
invented innovative solutions for heavy load handling
of ships.
Since Syncrolift entered the shiplift market ten years
ago, the company have won more than 60 percent of
the shiplift and transfer market, a market share more
than twice that of number two in our business.
Syncrolift supplies the market’s safest and most
reliable shiplift, and always make sure to stay close to
customers worldwide.
We recognise the significance of time and cost
efficiency for our customers. Regardless of their
location worldwide, they can rely on having a nearby
Syncrolift Service office, dedicated to providing 24/7
support.
SYNCROLIFT IN BRIEF
Head office Vestby, Norway
Manager Rolf-Atle Tomassen
Employees 43
KEY HIGHLIGHTS 2023
• Total five newbuild contracts
with order intake of around NOK
250 million
• Opening new offices in India and
Australia to serve customers
closer and better
• Continued service revenue
growth with NOK 90 million for
the year
FINANCIAL FIGURES (MNOK) 2023 2022 2021
Revenue 515 383 469
EBITDA 132 93 158
EBITDA margin% 25.6% 24.2% 33.8%
Profit after tax 109 62 119
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NEKKAR ANNUAL REPORT 2023 ABOUT NEKKAR
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NEKKAR ANNUAL REPORT 2023 ABOUT NEKKAR
Intellilift
Digital performance
improvement
The foundation of Intellilift’s business is superior
engineering, electrification, automation, and
digitalisation competence with heritage from “Drilling
Bay” in Kristiansand, Norway. Intellilift applies this
competence across the Nekkar group as well as to
external clients.
Leading the way in data driven performance
improvement for the offshore energy and other
industries, including aquaculture, Syncrolift and the
renewables industry.
Automation and remote operations, including
robotisation, are key elements in Intellilft’s
technology. We enable our customers for the digital
transformation by use of Cloud solutions and SaaS
models.
INTELLILIFT IN BRIEF
Head office Kristiansand, Norway
Manager Stig Trydal
Employees 16
FINANCIAL FIGURES (MNOK) 2023 2022 2021
Revenue 34 22 42
EBITDA 6 4 6
EBITDA margin % 18.3% 17.9% 15.0%
Profit after tax 4 2 3
KEY HIGHLIGHTS 2023
• First rig services contract
awarded to InteliWell JV
• Successful installation and
operation of InteliAutomate
system on board Transocean
Norge drilling rig
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NEKKAR ANNUAL REPORT 2023 ABOUT NEKKAR
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NEKKAR ANNUAL REPORT 2023 ABOUT NEKKAR
Techano Oceanlift
Smart offshore lifting
and load handling
A leading innovator in the development of advanced
motion compensated load handling and lifting
equipment. Its cutting-edge solutions cater to the
specific needs of the offshore renewables, energy
and aquaculture industries. By harnessing the power
of sensors, cameras, and intelligent automation,
Techano Oceanlift offers unparalleled precision,
efficiency, and safety.
The team consists of skilled engineers and industry
experts who collaborate to develop solutions
that optimise productivity, reduce downtime, and
enhance operational performance.
TECHANO OCEANLIFT IN BRIEF
Head office Kristiansand, Norway
Manager Nils Stray
Employees 22
FINANCIAL FIGURES (MNOK) 2023 2022 2021
Revenue 30 - -
EBITDA 1 - -
EBITDA margin % 4% - -
Profit after tax 2 - -
KEY HIGHLIGHTS 2023
• Joined Nekkar group of
companies
• Award of two advanced offshore
subsea cranes for construction
and inspection
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NEKKAR ANNUAL REPORT 2023 ABOUT NEKKAR
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NEKKAR ANNUAL REPORT 2023 ABOUT NEKKAR
Impact Technology
Ventures
Nekkar’s Impact Technology Ventures arm consists of
innovation projects where potentially disruptive technologies
and business models are developed together with existing or
potential customers and other business partners.
The solutions under development are intended to create value
for both the development partners and society as a whole. As
such, the initiatives target soft funding opportunities, such as
grants and loans from governmental institutions, to develop and
commercialise the technologies and solutions in question.
Nekkar is currently developing the SkyWalker – a
disruptive installation tool based on technology that
will significantly reduce the cost and environmental
footprint associated with wind turbine installations
and major component replacements.
SkyWalker uses active heave compensation derived
from offshore lifting systems, combined with digital
solutions that allow for remote-controlled and
automated lifting and installation solutions.
In 2021, Nekkar was awarded a NOK 21 million
grant from Innovation Norway to progress with
the SkyWalker, which culminated in the successful
development and testing of a downscaled model.
Towards the end of 2023, a project consortium
headed by Nekkar was conditionally awarded a
research and innovation grant of NOK 75.2 million,
in total, through the Norwegian government’s Green
Platform Initiative. The consortium aims to develop
a safe and efficient solution for main component
replacement (MCR) on offshore wind turbines -
thereby realising significant reductions in time, cost
and loss of revenue due to downtime.
In recent years, Nekkar has developed Starfish – an
automated, digitally, and remotely managed closed
fish cage solution. In 2022, Nekkar completed a
successful ocean-based pilot test of the Starfish.
In 2023, Nekkar announced that it would partner
with BEWI Invest through a joint investment in
aquaculture industry supplier FiiZK - a leading
provider of closed cage systems and software
solutions for fish farming. Part of Nekkar’s investment
in FiiZK was a payment in-kind contribution through
the Starfish. This milestone marked a significant step
forward in advancing Nekkar’s investments in the
aquaculture industry, including the Starfish closed
fish cage solution.
IMPACT TECHNOLOGY VENTURES
Head office Kristiansand
Manager Mette Harv
Employees 6
SKYWALKER STARFISH
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NEKKAR ANNUAL REPORT 2023 ABOUT NEKKAR
The Board of Directors
Trym Skeie
Chair of the Board
Trym Skeie (b. 1968) is a co-founder of Skagerak Capital, a sustainable oriented venture fund focused
on technology, climate change and resource scarcity, where he is currently a part-time partner. He is
Chair and Board member of several growth companies in Norway, such as Noroff Education, Vissim
and Stimline. He runs his own investment business through Skeie Alpha Invest, Skeie Alpha Venture
and Skeie Kappa Invest. Many of his investments have a clear positive impact on the environment such
as Tunable, Vixel and Vissim. He has worked as an Investment Manager at Kistefos Venture Capital,
as a management consultant at Acccenture and as a structural engineer at Hydralift. Skeie holds a
Master of Science (M.Sc.) in Economics and Business Administration from the Norwegian School of
Economics and Administration (NHH), and a M.Sc. in Civil Engineering from the Norwegian University
of Science and Technology (NTH). Skeie has been Chair of the Board of Nekkar ASA since 2009.
As of 31 December 2023, Trym Skeie and associated companies, hold 1,718,115 shares and zero share
options in Nekkar ASA.
Håkon Andre Berg
Director of the Board
Håkon Andre Berg (b. 1980) has been Director of the Board of Nekkar ASA since 2023. He is CEO
of Skeie Technology, a major shareholder of the Company. Berg holds a M.Sc. from the Norwegian
School of Economics and Business Administration. Berg has various executive management and
Board experiences mainly within aquaculture/seafood and maritime/offshore/suppliers to oil & gas.
Berg holds no shares or share options in Nekkar ASA.
Trine Ingebjørg Ulla
Director of the Board
Trine Ingebjørg Ulla (b. 1961) has been Director of the Board of Nekkar ASA since 2023. She is a Vice
President at Equinor Renewables. Ulla holds a Master’s degree in Chemical Engineering from the
Norwegian University of Science and Technology. She has held several senior positions within the
Equinor Group and has more than 10 years of experience in offshore wind. Ulla is also a Director of the
Board of Fornybar Norge.
Ulla holds no shares or share options in Nekkar ASA.
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NEKKAR ANNUAL REPORT 2023 ABOUT NEKKAR
Marit Solberg
Director of the Board
Marit Solberg (b. 1956) has been Director of the Board of Nekkar ASA since 2019. She has a long
career in senior management positions in the seafood industry, including eight years as COO Farming
in Mowi ASA. Solberg has a high level of technical and biological expertise within aquaculture and
holds a Master degree in Marine Microbiology from the University of Bergen (UiB). Solberg has
extensive Board experience.
As of 31 December 2022, Marit Solberg holds 127,140 shares and zero share options in Nekkar ASA.
Gisle Rike
Director of the Board
Gisle Rike (b. 1953) is Director of Property in Rasmussengruppen AS, a major shareholder of the
Company. He holds an M. Sc. from the Norwegian University of Science and Technology (NTNU). Rike
has various executive management experiences from project management and business development
from Rasmussengruppen AS and Maritime Tentech AS. Rike has been Director of the Board of Nekkar
ASA since 2015.
Rike holds no shares or share options in Nekkar ASA.
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NEKKAR ANNUAL REPORT 2023 ABOUT NEKKAR
Management
Ole Falk Hansen
CEO
Ole Falk Hansen (b. 1983) joined Nekkar June 2022 after nearly five years as CEO in Beckman – a
market leading backpack company headquartered in Kristiansand, Norway, exporting to 20 countries.
Prior to this, Falk Hansen was CFO at MHWirth (now HMH), an international drilling technology
company, and at Aker Solutions, where he held the role as Head of Strategy and M&A for the drilling
business domain. Ole also has several years’ experience as a consultant with McKinsey & Company. He
holds a master’s degree in finance from the Norwegian School of Economics (NHH).
As of 31 December 2023, Falk Hansen holds 296,601 shares and zero share options in Nekkar ASA.
Mette Harv
Executive Vice President
Mette Harv (b. 1968) has extensive management experience from marine and offshore industries. She
has a proven track record within business development, project management, finance and supply
chain. Harv holds a degree in Economics and Business Administration from Norwegian School of
Economics (NHH).
As of 31 December 2023, Harv holds 249,991 shares and zero share options in Nekkar ASA.
Petter Brøvig
Head of Strategy
Petter Brøvig (b. 1989) joined Nekkar in September 2022, after having served as a management
consultant for the company. Previously, he held key roles such as VP of Strategy at Telenor Digital in
South East Asia and as a product manager at Tapad in New York. Petter brings specialised expertise
in B2B Software as a Service to his current role. He holds a master’s degree in Innovation Management
from Imperial College London
As of 31 December 2023, Brøvig holds 96,290 shares and zero share options in Nekkar ASA.
Marianne Voreland Ottosen
Head of Finance
Marianne Voreland Ottosen (b. 1982) joined Nekkar in April 2022, after four years as Vice President
of Finance at MH Wirth (now HMH), where Ottosen spent a total of eight years. Previous experience
includes Compliance Manager at Aker Solutions and Manager at Deloitte within Audit & Advisory. She
holds a master’s degree in Accounting and auditing from the Norwegian School of Economics (NHH).
As of 31 December 2023, Ottosen holds 19,258 shares in Nekkar ASA.
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NEKKAR ANNUAL REPORT 2023
Portfolio lead
ABOUT NEKKAR
Rolf-Atle Tomassen
Managing Director, Syncrolift
Rolf-Atle Tomassen (b. 1965) is a highly experienced manager who has been with Nekkar since 2003.
His previous experience includes, among other things, sales and marketing director at VINN Design
and managing director at MultiCraft AS. Tomassen has a bachelor with Honors degree in Mechanical
Engineering from University of Newcastle-upon-Tyne, Great Britain.
As of 31 December 2023, Tomassen holds 3,303 shares in Nekkar ASA.
Nils Stray
Managing Director, Techano Oceanlift
Nils Stray (b. 1963) has strong management experience from the offshore industry. He has a proven
track record within business development, change management, and supply chain development,
Stray holds an engineering and a business administration degree.
Stray holds no shares or share options in Nekkar ASA.
Stig Trydal
Managing Director, Intellilift
Stig Trydal (b. 1972) is one of the key founders of Intellilift. He has substantial experience from
Nationall Oilwell Varco (NOV) where he has held leading positions in software and automation
departments.
As of 31 December 2023, Trydal holds 71,289 shares in Nekkar ASA.
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NEKKAR ANNUAL REPORT 2023 THE BOARD OF DIRECTORS’ REPORT
The Board of
Directors’ report
Highlights 2023
• Revenue of NOK 575 million, up 48 percent
compared to 2022 (NOK 388 million)
• EBITDA of NOK 109 million, an increase of 60
percent from the prior year (67)
• Order intake of NOK 478 million in 2023, up
from NOK 277 million in 2022, driven by multiple
contracts to Syncrolift
• Order backlog of NOK 803 at year-end (824)
• First rig services contract for InteliWell JV, with
subsequent successful installation and operation
of system
• Acquisition of Techano Oceanlift, a supplier of smart,
electric lifting and handling solutions, plus award of
two first advanced offshore crane contracts
• Invested in 39 percent ownership in aquaculture
supplier FiiZK
• Nekkar-led consortium awarded conditional NOK
75 million grant to develop SkyWalker as main
component replacement tool on offshore wind
turbines
Strategy and organisational develoment
Nekkar is an industrial technology group offering
impact technologies combined with high-end
software and automation solutions. Nekkar combines
50 years’ heritage from the world’s number one
shiplift company, Syncrolift, with new investments
into sustainable and digitalised technology
businesses that aim to unlock future customer-value
within large ocean-based industries such as offshore
energy, renewables and aquaculture.
The foundation of Nekkar’s business is world-class
mechanical engineering, electrification, automation
and digitalisation. Nekkar aims to apply this world-
class competence as levers to develop disruptive and
sustainable products combined with digital solutions
in selected industries such as offshore energy,
renewables and aquaculture.
Further, the unique combination of disruptive
technologies, automation sensor legacy, agile
digitalisation skills and open software platform
approach will be building blocks for future SaaS
(Software as a Service) offerings from Nekkar.
BUSINESS OVERVIEW
Nekkar ASA is the holding company in the Nekkar
group, which is headquartered in Kristiansand,
Norway. The company is listed on the Oslo Stock
Exchange with the ticker code NKR. Nekkar consists
of three portfolio companies, one impact technology
venture, and one associated company:
• Syncrolift
• Intellilift
• Techano Oceanlift
Impact technology ventures:
• SkyWalker
Associated companies (below 50 percent ownership):
• FiiZK
Syncrolift
Syncrolift is a global leading provider of shipyard
solutions for safe, reliable and efficient ship docking.
Headquartered in Vestby, Norway, Syncrolift is
Nekkar’s main revenue and cash-generating business.
Syncrolift has local presence in important markets
through subsidiaries in the US and in Singapore and
a sales/service office in Dubai. In 2023, Syncrolift
opened new offices in India and Australia.
Syncrolift is the global market leader for shiplifts
and transfer systems that are offered to repair
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NEKKAR ANNUAL REPORT 2023 THE BOARD OF DIRECTORS’ REPORT
and newbuilding yards. It delivers turnkey and
customised solutions for shipyards and navy bases
around the world. The product range includes
shiplifting systems for launching and retrievals of
vessels and transfer systems for a fast and reliable
way of moving vessels around the yard. In addition,
the company delivers FastDocking
TM
products for
efficient operations during docking and maintenance
of vessels. As the global market leader, Syncrolift
has successfully increased focus on the service
and upgrade capabilities related to the company’s
installed base.
In 2023, Syncrolift secured multiple new orders with
a total order intake of NOK 333 million. One contract
was an extension of a shiplift and ship transfer
system previously supplied by Syncrolift to Song
Thu Shipyard in Vietnam, followed by a reactivation
of a previously paused shiplift project with Cochin
Shipyard in India and a ship transfer system to Dubai
Maritime City. Syncrolift was also awarded a NOK 30
million contract to deliver an advanced ship transfer
system to an undisclosed European naval shipyard,
and a USD 15 million contract to deliver a newbuild
shiplift and ship transfer system to PT Pal Indonesia,
a government owned company. Syncrolift’s service
revenue continues to grow, in line with the company’s
aftermarket strategy. In 2023, service revenue grew
to NOK 90 million, which is equivalent to 18 percent
of the company’s total revenue.
Techano Oceanlift
Techano Oceanlift was acquired by Nekkar in March
2023. The company delivers intelligent lifting and
load handling systems for renewables, subsea
and aquaculture vessels. The team’s specialist
competence includes the development and
manufacturing of advanced load handling and lifting
equipment, including cranes, winches, fish crowding
systems, fish transfer systems, and offshore wind
load handling cranes.
Techano Oceanlift has developed a new series
of offshore/subsea cranes to meet the increased
demand for subsea operations and construction.
The cranes may be electrified, including the winch,
thereby enabling it to deliver regenerated power
back to the vessel.
In 2023, Techano Oceanlift won two new contracts
at a total contract value of more than NOK 100
million. One was a EUR 4 million contract to deliver
a 70 tonnes offshore crane to a newbuild cable-
lay support vessel (CLSV) that Sefine Shipyard
is building for Norwegian shipowner Agalas. The
second award was a EUR 6.5 million contract with
Sefine Shipyard to deliver an offshore crane to a
newbuild subsea IMR/survey vessel. Both cranes are
capable of performing subsea construction work plus
topside lifting operations.
Intellilift
Intellilift delivers industrial software solutions focused
on digitalising workflows through automation and
remotely-controlled systems for drilling and offshore
load handling. The company serves both external
customer and other companies in the Nekkar group.
Nekkar is the majority shareholder of Intellilift
with a 51 percent ownership share. The company
possesses unique competence within engineering,
electrification, digitalisation and automation. It
develops open software platforms for collection,
monitoring and control of data for numerous
industries. Collecting data from numerous different
sensors, will improve the real time operation as well
as enable remote operation and robotisation.
Intellilift’s business model is threefold – project
based, perpetual upfront software licenses and
SaaS revenue, depending on customer preferences.
Intellilift supports projects in Syncrolift and Techano
Oceanlift with controls and automation deliveries.
In recent years, Intellilift has established a joint
venture (JV) – named InteliWell – with Transocean
Inc. and global communication company Viasat Inc.
InteliWell has proven to accelerate the decrease
of drilling time through rig automation, and to
streamline the well construction processes through
developing new AI-driven processes and tools,
allowing operators to further improve the consistency
of their operations while reducing drilling costs
through more reliable and faster drilling operations.
In 2023, the InteliWell JV secured its first rig services
contract with Transocean, on behalf of its customers
Wintershall Dea and OMV, to equip and utilise its
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NEKKAR ANNUAL REPORT 2023 THE BOARD OF DIRECTORS’ REPORT
KEY FIGURES, NEKKAR GROUP
MNOK 2023 2022 2021
Revenue 575 388 480
EBITDA 109 67 145
EBIT 101 57 139
EBITDA % 18.9% 17.4% 30.1%
Order intake 242 277 113
Order backlog 803 824 838
EPS (NOK) 0.78 0.30 1.04
575
Revenue
109
EBITDA
18.9%
EBITDA margin
proprietary InteliWell software on the Transocean
Norge drilling rig. InteliWell’s InteliAutomate system
was installed and first operations were successfully
executed during the second half of 2023.
SkyWalker
Nekkar is developing a disruptive wind turbine
installation and service tool that could significantly
reduce the cost and environmental footprint
associated with wind turbine installations and
maintenance. The solution - called SkyWalker - uses
active heave compensation derived from offshore
lifting systems combined with digital solutions
that allows for remote-controlled and automated
solutions. Nekkar’s competence within electrification,
automation and digitalisation is being utilised to
develop this potentially gamechanging technology.
Nekkar’s original intention for SkyWalker was to
use it solely as a wind turbine installation tool, first
onshore and then for quayside assembly of offshore
wind turbines. However, requests from operators
and OEMs throughout 2022 and 2023 indicate that
SkyWalker can also favourably be deployed in the
operations and maintenance phase of an offshore
wind farm as a major component replacement tool.
This expands SkyWalker’s commercial potential
significantly.
Towards the end of 2023, a project consortium
headed by Nekkar ASA, and including Kongsberg
Maritime, DOF, an undisclosed global wind farm
developer and several leading research institutions,
was conditionally awarded a research and innovation
grant of NOK 75 million, in total, through the
Norwegian government’s Green Platform Initiative.
The consortium, which also includes GCE Node,
NORCE, Sustainable Energy Catapult Center, Sintef
Ocean and University of Agder, aims to develop
a safe and efficient solution for main component
replacement (MCR) on offshore wind turbines -
thereby realising significant reductions in time, cost
and loss of revenue due to downtime.
The project will develop a remote-controlled,
self-hoisting lifting equipment, based on Nekkar’s
SkyWalker wind turbine installation tool, that moves
up and down the turbine tower to replace the main
components like gearbox, blade, etc. while on-site
offshore. Also, a 3D motion-compensated crane will
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NEKKAR ANNUAL REPORT 2023 THE BOARD OF DIRECTORS’ REPORT
be developed with the purpose of lifting SkyWalker
from a floating vessel to a floating turbine. Further,
specifications of a multi-purpose vessel integrating
the requirements of SkyWalker and 3D crane will be
developed. The project will also evaluate the impact
of the solution from a total wind farm perspective
using and developing existing tools for offshore
logistics, vessel design, and marine operations.
The project is contingent on approval of capital
contributions from each project partner to activate
the NOK 75.2 million funding from the Green
Platform Initiative.
FiiZK (39 percent ownership)
In August 2023, Nekkar announced that it would
partner with BEWI Invest through a joint investment
in aquaculture industry supplier FiiZK - a leading
provider of closed cage systems and software
solutions for fish farming. The transaction was
completed at the end of September. Nekkar invested
NOK 50 million for a 39 percent ownership share
in FiiZK. The consideration consisted of NOK 25
million in cash and a NOK 25 million payment in-kind
contribution through Nekkar’s cutting-edge Starfish
technology. This milestone marked a significant step
forward in advancing Nekkar’s investments in the
aquaculture industry, including the Starfish closed
fish cage solution.
As Nekkar is a minority shareholder, FiiZK’s financial
results are not consolidated into Nekkar’s accounts.
Instead, Nekkar’s proportion of FiiZK’s financial
results is recognised as financial income or expense
in the profit and loss statement.
PEOPLE AND ORGANISATION
The different businesses are managed by the
following executives:
• Syncrolift: Rolf-Atle Tomassen
• Techano Oceanlift: Nils Stray
• Intellilift: Stig Trydal
• SkyWalker: Mette Harv
In Nekkar ASA, Marianne Voreland Ottosen is head
of finance and Petter Børvig is head of strategy.
Together with Ole Falk Hansen, CEO, and Mette Harv,
they represent the management of Nekkar ASA.
EMPLOYEES
The total number of employees in the Nekkar group
was 92 at year-end 2023, compared to 73 at the end
of 2022. For Nekkar ASA , employee numbers were 11
and 17, respectively.
See Note 1 for further details on the operating
segments.
Financial performance
PROFIT AND LOSS
Revenue for the Nekkar group was NOK 575 million
in 2023, an increase of 48 percent compared to 2022
(NOK 387.5 million). EBITDA was NOK 109 million
in 2023, up from NOK 67 million in 2022, equivalent
to EBITDA margins of 18.9 percent and 17.5 percent
respectively.
EBIT was NOK 101 million in 2023, compared to
NOK 57 million in 2022. Pre-tax profit was NOK 109
million in 2023, up from NOK 43 million the previous
year. Profit after tax was NOK 83 million and NOK 33
million for 2023 and 2022 respectively.
The solid 2023 results stem from strong operational
and financial performance in Syncrolift, with positive
contribution from Intellilift too.
Order intake in 2023 was NOK 478 million compared
to NOK 277 million in 2022. Nekkar’s order backlog
was still strong at NOK 803 million (824) at year-end
2023.
Syncrolift
Syncrolift generated revenue of NOK 515 million in
2023 compared to NOK 383 million in 2022. EBITDA
was NOK 132 million in 2023, an increase from NOK
93 million in 2022. EBITDA margin came in at 25.6
percent. The increase is a result of solid project
progress and an increase in service and aftermarket
revenue.
Techano Oceanlift
Techano Oceanlift was acquired in March 2023. The
company delivered revenue of NOK 30 million in
2023. EBITDA was NOK 1 million in 2023, equivalent
to an EBITDA margin of 4 percent. Techano Oceanlift
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NEKKAR ANNUAL REPORT 2023 CHAPTER TITLE
Syncrolift generated revenue of
NOK 515 million in 2023 compared
to NOK 383 million in 2022.
delivered softer EBITDA margins as the company is
still in the build-up phase.
Intellilift
Intellilift delivered revenues of NOK 34 million in
2023 compared to NOK 22 million in 2022. Some
of Intellilift’s revenue is internally generated as
Intellilift’s products and solutions are integrated
with other businesses of the group, e.g. deliveries
of control systems to Syncrolift. External revenue
in Intellilift amounted to NOK 29 million in 2023
compared to NOK 4 million in 2022.
EBITDA in Intellilift was NOK 6 million in 2023 compared
to NOK 4 million in 2022, equivalent to an EBITDA
margin of 18.3 percent. Intellilift’s EBITDA-margin
illustrates its nature as a software driven business.
CONSOLIDATED STATEMENT OF FINANCIAL
POSITION
Total assets at the end of 2023 were NOK 579.1
million, compared to NOK 507.1 million in 2022.
The net working capital (ref. definition of APMs) was
positive with NOK 124.1 million, compared to positive
with NOK 78.5 million at the end of 2022. The group’s
business practice may affect cash balances substantially
from time to time due to prepayments (milestone
payments) received from customers and payments to
suppliers in the newbuilding business of Syncrolift, which
are independent of when revenue recognition occurs.
Nekkar had a strong total cash balance at NOK 194.2
million at the end of 2023 compared to NOK 181.3
million in 2022.
Nekkar group has an overdraft facility and a revolving
credit facility of in total NOK 200 million with Nordea.
No amounts have been drawn under these facilities
as of 31 December 2023. Additionally, guarantee and
currency facilities are established with Nordea and DNB.
The reporting currency of Nekkar group is NOK
(Norwegian krone). Since significant portions of its
income and expenses are denominated in foreign
currencies, fluctuating foreign exchange rates may
affect the group’s operating results. To mitigate this
risk, the Nekkar group employs hedging instruments.
FX contracts are measured at fair value and recorded
as financial income or expenses in the profit and loss
statement, as they do not meet the criteria for hedge
accounting. For additional information, please refer
to the Accounting principles, section 2.9.
The consolidated accounts have been prepared in
accordance with the International Financial Reporting
Standards (IFRS) as adopted by the EU. The Board of
Directors affirms that the accounts provide a true and
fair view of the company’s financial position as of 31
December 2023. The Board of Directors is not aware
of any unreported events occurring subsequent to
the balance sheet date of 31 December 2023, which
may be material to the Nekkar group or to the annual
accounts of 2023. See Note 23 Subsequent events,
for further information.
SHARE CAPITAL
At the end of 2023, Nekkar ASA had a share capital
of NOK 11.817.982 divided into 107.427.112 shares at
0.11 each. The company held 1,398,965 own shares as
of 31 December 2023.
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NEKKAR ANNUAL REPORT 2023 THE BOARD OF DIRECTORS’ REPORT
CASH FLOW
The reported cash flow on consolidated level from
operating activities was positive with NOK 75.2
million in 2023, compared to NOK 39.4 million in
2022. Positive operational cash flow in 2023 is driven
by solid results combined with an increase in working
capital of NOK 46 million. Accrued non-invoiced
production at the end of 2023 has to a large extent
been converted to receivables or cash in the first
quarter of 2023, as projects have reached milestones
for invoicing.
Consolidated cash flow from investment activities
was NOK -50.7 million in 2023 which mainly
consists of investments in FiiZK and acquisition and
expenditures related to fixed and intangible assets
(capitalised development costs). In 2022, the net cash
flow from investing activities was NOK -22.4 million.
In 2023, net cash flow from financing activities
on the consolidated level was NOK -11.5 million,
compared to NOK 0.3 million in 2022. The 2023
figure includes acquisition of treasury shares of NOK
11.0 million and issuance of share capital in relation to
employee share purchase program of NOK 3.4 million
compared to NOK 2.1 million in 2022.
Nekkar had a net cash position of NOK 194.2 million
at year-end 2023, of which NOK 10 million is held as a
deposit for FX-derivative exposures in DNB. Nekkar’s
net cash position at year-end 2022 was NOK 181.3
million.
The company or group had no net interest-bearing
debt as of 31 December 2023, but has available credit
facilities of in total NOK 200 million.
RESEARCH AND DEVELOPMENT
The research and development (R&D) activities
of Nekkar are closely linked to the strategy of
developing disruptive technologies that offer high
sustainability impact for ocean-based industries. R&D
initiatives have shown good progress during 2023.
The highlights are:
• Development of walkway for personnel transfer
related to offshore wind operations on SOVs
(service operation vessels)
• Optimising SkyWalker for offshore major
component replacement operations
In 2023, net capitalised development costs amounted
to NOK 15 million (MNOK 19).
Received public grants from Innovation Norway and
SkatteFUNN are treated as a reduction of capitalised
development costs. This amounted to NOK 6 million
in 2023.
As per 31 December 2023, capitalised development
costs in the consolidated balance sheet amounted to
NOK 43.8 million.
Cost from other development activities related
to customer specific projects, may in some cases
be charged to the profit and loss as an operating
expense.
ORDER BACKLOG
Nekkar’s order backlog at the end of 2023 was NOK
803 million, down from NOK 824 million at year-end
2022. This backlog is mainly related to newbuilding
projects in Syncrolift.
GOING CONCERN
As of 31 December 2023, the equity ratio at
consolidated level was 73.7 percent. There was no
interest-bearing debt on neither consolidated nor
Nekkar ASA level at year-end 2023.
The financial objective of the group is to have
sufficient cash reserves or credit lines available to
finance operations and investments on an ongoing
basis. The group’s cash position combined with
established credit facilities, guarantee and currency
facilities are considered sufficient to fund the existing
business plan at least mid-term.
In accordance with Section 3-3 of the Norwegian
Accounting Act, the Board of Directors confirms
that the financial statements have been prepared
based on the going concern assumption and that the
requirements are fulfilled.
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NEKKAR ANNUAL REPORT 2023 CHAPTER TITLE
Nekkar’s order backlog at
the end of 2023 was NOK
803 million.
Risk factors and risk management
The Nekkar group is exposed to various markets,
financial and operational risks and as experienced from
latter events, also political and health-oriented risks.
The Board of Directors reviews operating reports
from management on a monthly basis. In addition to
the continuous risk mitigation, the Board of Directors
and management carry out specific risk analyses in
connection with major investments and contracts.
Specific risk areas or projects are continuously
monitored and assessed. The group has furthermore
implemented thorough procedures related to
contract approvals and authorisation matrixes.
Near term, the group is mainly exposed towards the
shipyard business, but as the new business areas
increase in importance and size, the group will be
exposed in other market segments as well. The
prevailing business strategy is planned to be funded
with cash flow from operations.
MARKET RISKS
There are a number of risks related to the market
development for Nekkar’s products and services.
Nekkar monitors these risks through its sales network
and by available information on relevant trends.
Syncrolift is the main business of the group.
The activity in the market is depending on the
construction and upgrade of navy bases and
shipyards, which is suitable for the Syncrolift® shiplift
systems and solutions.
Expected future demand for the current product
portfolio depends on the shipyards’ need to
implement more efficient production lines which
again depends on the general market activity.
Currently there are no signs long term that the
yard industry will reduce its focus on increased
productivity.
Syncrolift has a solid order backlog for its 2024 new
building business, and is also part of several tender
processes for new projects. It is also positioned for
accumulative success in acquiring recurring service
business. Scheduled deliveries for the current project
portfolio extend into 2025/2026.
SkyWalker, which represents the group’s impact
technology ventures, is a product development
project. For SkyWalker, the main risk factor is related
to commercialisation of the technology. Intellilift has
proven commercialised technology and the products
have been sold to both oil and gas related business
and the wind industry, while Techano Oceanlift’s
products are commercialised and have been sold to
customers in the offshore renewables, offshore oil
and gas, aquaculture and marine industries.
CLIMATE RISK
Nekkar develops digitalised impact technologies that
aim to unlock customer value, including reduction
of environmental footprint and CO
2
-emissions,
in numerous industries including renewables,
aquaculture, shipping and offshore energy. As
such, climate change represents both a risk and
an opportunity for Nekkar. Nekkar considers its
main climate risks to be associated with the global
ambition/implementation gap for the transition to
more renewable energy, as well as climate policy
and taxation changes that could limit or delay
the adoption of Nekkar’s new technologies that
are enablers to reduce the carbon footprint in the
industries the company operates. This applies to both
the renewables and aquaculture industries.
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NEKKAR ANNUAL REPORT 2023 THE BOARD OF DIRECTORS’ REPORT
Nekkar’s exposure to the offshore energy industry
is limited today, but could grow in the coming years.
The offshore energy industry has been identified
as high risk by the Task Force on Climate-Related
Financial Disclosures, and the industry is under
pressure to reduce its emissions. Although the
Ukraine war and associated energy shortage in
Europe has resulted in heavy investments in the
offshore energy industry in the coming years, there is
a long term risk of declining investment in upstream
oil and gas. However, the software and technologies
that Nekkar deliver are capable of significantly
reducing drilling time and amount of personnel
required offshore, thereby substantially reducing
the carbon footprint associated with this type of
offshore operations. As such, climate-related risk also
represents an opportunity for Nekkar.
The energy transition may shorten the expected
useful lives of oil and gas related assets, which has
the potential to accelerate depreciation charges.
However, Nekkar is primarily a software supplier to
the offshore energy industry, which means that the
company does not expect assessment of effect on
useful lives to have significant accounting impact.
Another climate risk is the increase in the frequency
and intensity of extreme weather events. As the
large majority of Nekkar’s operations is based in
Norway, this expectation is not assessed to lead
to any effects on expected useful economic life of
property, plant and equipment. However, extreme
weather could result in delayed project progress, for
example for installation of shiplifts in parts of the
world that are more exposed to extreme weather.
This could potentially mean that revenue and margin
recognition could be delayed in such projects. Nekkar
has not experienced any delays caused by extreme
weather events during 2023.
Overall, it is Nekkar’s view that the company is
well positioned to profit from a stronger focus
on reducing emissions from the industries the
company operates within, and that there are more
positive business opportunities than negative risks
associated with stronger industry efforts on reducing
emissions and combating climate change. Nekkar
has considered the impact of climate change on
going concern. Effective assessment and analysis
of climate-related risks and opportunities is vital to
understand the potential impacts of climate-related
risks on asset valuations, revenue and investment
requirements.
FINANCIAL RISKS (SHORT TERM FINANCING)
The Nekkar group is exposed to credit, liquidity and
currency-related risks, and has adopted an active
approach to managing risk in the financial markets.
The aim of the group’s financial strategy is to be
sufficiently robust to withstand adverse conditions.
The financial risks related to credit, liquidity, and
currency are described below.
Credit risks represent potential financial losses
stemming from contractual partners’ failure to fulfil
their contractual obligations. Developments in the
part of the shipyard business applicable for Syncrolift
have historically resulted in only modest losses on
payments from customers.
With the understanding that substantial credit risks
can be present, Nekkar group has taken measures
to limit these risks through evaluating the financial
strength of its contract partners, restricting credit
and utilising mechanisms to secure payments, such
as letters of credit and prepayments. Nekkar works
continuously to limit its exposure to credit risks.
The liquidity risk is related to a situation in which
Nekkar group may be unable to meet short-term
financial demands and fulfil its obligations as they
fall due. In order to monitor liquidity risk, Nekkar
prepares, on regular basis, rolling cashflow forecasts
to predict liquidity requirements. The group’s overall
cash position is strong and evaluated to be sufficient
to fund the prevailing business plan in combination
with the credit, guarantee and currency facilities,
established with its bank relations.
The company will in addition to the operating cash
flow normally have access to capital markets for
further funding with the option to finance activities
through either equity or debt or a combination.
In order to manage currency risks, Nekkar’ policy
is to hedge significant currency exposures within a
24-month period. The hedging is performed based
on firm contracts for sale or purchase in currencies
other than the functional currency of the Nekkar
unit entering into the hedging contract. Hedging
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NEKKAR ANNUAL REPORT 2023 THE BOARD OF DIRECTORS’ REPORT
contracts are measured at fair value and recorded as
financial income or expenses through the profit and
loss statement.
OPERATIONAL RISKS
Nekkar group’s new-build business is primarily
organised through deliveries of completed projects.
The operational risks related to the project execution
are mainly deliveries from sub-suppliers, project
management, and customer related issues.
During the tender phase, projects undergo a
thorough risk evaluation in order to identify and
mitigate potential technical and commercial risks
in addition to an assessment of other potential
risk areas, and the level of contingency required.
Measures have been implemented to ensure that
projects are being satisfactorily assessed both
prior to signing the contracts and during execution
phase. The bid review process, where major risks are
evaluated before a binding offer is sent to potential
customers, is an essential part of the procedures.
Nekkar will continue to focus on improving its risk
monitoring and assessment tools, as well as its
project management tools.
GLOBAL PANDEMIC RISK
In mid-2023, the World Health Organisation
announced that the COVID-19 pandemic no
longer constituted a public health emergency of
international concern. A new negative development
of the Covid-19 situation or other pandemics globally
or in key countries or regions may impact Nekkar in
the following manner:
• Personnel may not be able to perform their work
due to illness, quarantines, travel restrictions and
social distancing
• Manufacturing sites, service bases or office
buildings may be shut down
• Supplies from suppliers and deliveries to clients
may be delayed
• Available future market could decrease as clients
reduce CAPEX expenditure
GEOPOLITICAL RISK
The invasion of Ukraine by Russian forces has led to
increased geopolitical risk which have significantly
impacted both the energy and raw material prices.
Nekkar has no business activity in either Russia,
Ukraine, or Belarus, however the company may be
negatively affected by increased raw material prices
and uncertainties in the market if the situation persists
for an extended period. In general, the business
outlook for Nekkar is positive, but it is difficult to
predict short, medium and long-term effects on
all business lines from a potential escalation of the
war. However, Syncrolift has a large number of navy
customers. Increased geopolitical risk often means
increased defence spending. As such, this also
represent a business opportunity for Nekkar.
Corporate social responsibility
Nekkar is part of a global industry where what is
good for the globe and the people, and what is good
for business are more closely related than ever. Our
ability to create value is dependent on promoting and
maintaining high ethical standards to create a trust-
based relationship with our employees, our owners,
our business partners, our communities, and other
stakeholders.
Nekkar is dedicated to conducting its activities in an
ethical and responsible way; aiming at sustainable
development for employees, customers, investors,
and the communities in which it operates. Nekkar’s
policies for corporate social responsibility encompass
health and safety, business ethics, support for human
and employee rights and anti-corruption measures.
In 2023, the Board has taken several measures
to advance the collective knowledge, skills and
experience on sustainable development. Specifically,
a presentation regarding the Corporate Sustainability
Reporting Directive (CSRD) was held by the auditing
firm KPMG.
Nekkar is committed to OECD’s Guidelines for
Multinational Enterprises and contributing to the
improvement of international business standards
and practices, especially with regard to corruption,
labour relations and the global environment. Nekkar
operates in a manner that respects the human rights
as set out in the UN’s Universal Declaration of Human
Rights and the core conventions of the International
Labor Organization.
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NEKKAR ANNUAL REPORT 2023 THE BOARD OF DIRECTORS’ REPORT
Nekkar releases its fifth ESG report this year, for the
first time fully integrated with the annual report.
The report is based on the 2021 Global Reporting
Initiative (GRI) Standard and Euronext guidance on
ESG reporting. The report also includes a section on
Nekkar’s adherance to the Norwegian Transparency
Act which requires companies to promote respect
for human rights and decent working conditions. A
report on human rights, in line with the Norwegian
Transparency Act, is included in this report (see
Business ethics and anti-corruption).
Nekkar gives high priority to creating a working
environment where employees thrive and develop as
humans and professionals. The company supports
its workers’ opportunities to exercise their employee
rights and to be organised through trade and
labour unions, and it facilitates annual meetings for
global employee representatives. Nekkar is also an
advocate for equal rights for all employees regardless
of gender, sexual orientation, disability, ethnicity,
religion or political orientation.
The Nekkar Code of Conduct describes Nekkar’s
ethical commitments and requirements to expected
behavior in areas such as anti-corruption and conflict
of interest. It sets expectations for personal conduct
and business practice.
The Code includes the most important ethical
principles and provides some references to more
detailed requirements for expected business and
personal conduct. The Code applies to the Nekkar
companies, Board members, management and
employees, including temporary personnel and
consultants or contractors that act on Nekkar’s
behalf. Nekkar has also developed a separate policy
applying to our subcontractors.
Nekkar has zero tolerance for corruption and
encourages its employees to report suspected
infringements.
Quality, health, safety and
environment (QHSE)
The Board of Directors believes that a proactive
QHSE policy is a precondition for the successful
development of a long-term sustainable and
profitable business to the benefit of customers,
employees, shareholders and all other stakeholders.
The Nekkar group therefore never compromises
on issues of quality and safety and has committed
itself to a zero-harm-and-fault policy. Nekkar always
operates with worker safety and environmental
sensitivity at the forefront and supports a company
culture characterised by strong day-today
compliance with high QHSE standards. Nekkar’s
QHSE ambitions are to cause no harm to people or to
the environment, to prevent accidents and damages
to property and to avoid faults and non-conformities
that may influence the quality of all deliveries.
The group comprises of companies and business
areas that differ in size, operate in different business
segments and face different legislative systems.
The Board of Directors advocates a consistent
QHSE policy at corporate level, and common QHSE
reporting procedures are applied.
The group also welcomes a general, global tendency
towards more stringent QHSE requirements from
customers, contributing to fair competition based on
quality, experience, efficiency and technology, with
no compromise on safety.
All employees are accountable for contributing to
their own health, safety and wellbeing as well as that
of their colleagues. Managers at all levels, however,
have a special responsibility to monitor and mitigate
any safety risks and to contribute to the improvement
of management systems and Nekkar’s QHSE
performance.
The skilled and dedicated workers of Nekkar are the
group’s most important success factors, and the
Board of Directors wishes to express its gratitude to
all employees for their contribution in 2023.
Nekkar has a strong focus on risk awareness, and the
Board of Directors urges management to continue
promoting a culture of workplace injury prevention.
Reported absence due to illness was 2.4 percent in
2023 (3.4 percent in 2022). Nekkar experienced two
workplace incidents resulting in the need for medical
treatments in 2023 (zero in 2022).
36
NEKKAR ANNUAL REPORT 2023 CHAPTER TITLE
Nekkar is dedicated to
conducting our activities in an
ethical and responsible way.
Nekkar continuously works towards ensuring a
healthy and motivating working environment for
its employees. Efforts are made to encourage joint
corporate culture based on the core values described
above.
Environment
Nekkar’s ambition is to avoid any negative impact
of its operations on the physical environment,
and measures are taken to ensure that operations
are conducted in accordance with applicable
environmental standards.
The use of products delivered by Nekkar represents
limited risks of environmental pollution. The group’s
operations are not regulated by any licenses or
regulatory orders. Nekkar conducts carbon accounting
on Scope 1 and 2, and a limited Scope 3 reporting, and
has in 2023 started a project to better document the
environmental impact of the group’s products. This
project will continue in 2024. For more information,
please see pages 54-57 of this document.
Equal opportunities
Nekkar promotes a working environment that
offers equal rights, equal treatment and equal
opportunities to everyone regardless of gender,
religion, nationality, age, disabilities or the like. It is an
important goal that all employees experience equal
possibilities regarding their professional and personal
development.
Engineers make up the majority of Nekkar’s
workforce and represent a profession where
women historically have been underrepresented.
The challenge of attracting women to the field is
reflected by the fact that women constituted only 14
percent of the workforce in 2023 (2022: 18 percent).
Consequently, the Board of Directors considers it
important that Nekkar complies with a recruitment
policy where it is more attractive for women to join
the company.
Two out of Nekkar’s executive management team’s
four members are female. The Board of Directors of
Nekkar ASA consists of two women and three men.
Pursuant to the law prohibiting discrimination based
on disabilities (the Norwegian Equality and Anti-
Discrimination Act), Nekkar has made efforts, where
applicable, to locate operations and implement
office layout in a manner that enhances accessibility
for everybody, and make reasonable workplace
accommodations to meet the needs of employees
with hearing or sight impairments.
Board of Directors
The Board of Directors consists of Trym Skeie (Chair),
Marit Solberg (Deputy Chair), Håkon André Berg,
Gisle Rike and Trine Ingebjørg Ulla.
At the Annual General Meeting held 30 May 2023,
Marit Solberg, Håkon Andre Berg and Trine Ingebjørg
Ulla were elected for a period of two years. Trym
Skeie and Gisle were not up for re-election.
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NEKKAR ANNUAL REPORT 2023 THE BOARD OF DIRECTORS’ REPORT
Insurance for Board members
and management
Nekkar ASA has Directors’ and officers’ liability
insurance which includes the Board members and
management in Nekkar ASA and subsidiaries. The
liability limit is NOK 75 million.
Auditor
KPMG is the elected auditor for Nekkar ASA.
Board statement on corporate governance
The Nekkar Board of Directors adheres to good
corporate governance standards and uses the
Norwegian Code of Practice for Corporate
Governance as a guideline. A more detailed account
of the applicable principles for corporate governance
is provided as a separate Corporate Governance
section in the annual report. Resolutions from the
General Meetings are published on the company’s
website, www.nekkar.com.
Shareholder structure and limitation
The shares of Nekkar ASA are publicly traded at the
Oslo Stock Exchange, where the company trades
under the ticker code NKR. All shares are identified
by the owner’s name. As reflected in the company’s
Articles of Association, there are no restrictions
to voting, or to the transfer of share ownership,
nor are there any mechanisms in effect aimed at
preventing takeovers. Nekkar ASA has one class
of shares, and each share confers one vote at the
General Meeting. There is no specific representation –
neither individually nor jointly – for shares owned by
employees of Nekkar.
Capital structure
Nekkar group’s total equity at the end of 2023 was
NOK 427 million, of which NOK 404.4 million was
attributable to the majority, and NOK 22.5 million
was attributable to the non-controlling interests. The
equity to total assets ratio was 73.7 percent at the
end of 2023, compared to 69.2 percent in 2022. At
the end of 2023, the equity in Nekkar ASA was NOK
312.9 million, of which NOK 5.9 million was share
premium capital, NOK 11.7 million share capital and
NOK 295.2 million other equity. Comparable figures
from year end 2022 were NOK 312.9 million, NOK
5.9 million, NOK 11.7 million and NOK 295.2 million,
respectively.
Outlook
Syncrolift entered 2024 with an order backlog of
NOK 708 million, which provides good visibility for
2024 and 2025.
Syncrolift’s order intake in 2023 was NOK 333 million,
with contract wins in multiple countries worldwide.
This reflects general high tendering activity and
Syncrolift’s global reputation and competitiveness.
The market situation for newbuild projects within
Syncrolift remains promising, but investment
decisions for newbuild projects may still see some
delays.
In 2019, Nekkar initiated a project to generate more
service revenues from Syncrolift’s extensive global
installed base of ship lifts and transfer systems. The
aging installed base provides a solid foundation
for both upgrades and replacements of existing
systems. This strategic effort has started to yield
strong results. In 2023, Syncrolift’s service revenue
reached NOK 90 million, a 32 percent increase from
NOK 68 million in 2022. Nekkar expects this positive
development to continue in 2024.
Intellilift continues to play important roles in
developing Syncrolift’s and Techano Oceanlift’s
digital platforms. In 2023, the InteliWell JV, which
Intelillift is part of, signed its first commercial
contract. Intellilift successfully executed the project
on behalf of the JV during 2023. The successful
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NEKKAR ANNUAL REPORT 2023 THE BOARD OF DIRECTORS’ REPORT
Kristiansand, 29 April 2024
Board of Directors, Nekkar ASA
Trym Skeie
Chair
Marit Solberg
Deputy Chair
Håkon André Berg
Director
Gisle Rike
Director
Trine Ingebjørg Ulla
Director
implementation of this contract is likely to open
up further rig market opportunities, but timing of
additional awards is uncertain.
Investments in the oil and gas industry is currently
at a high level and is expected to remain high in
the coming years. This, coupled with a demand to
reduce emissions from oil and gas developments
and production, could result in increased demand for
Intellilift’s products and technologies.
At year-end 2023, Techano Oceanlift won a EUR 6.5
million crane contract that is expected to be a revenue
contributor in 2024 and in the delivery year 2025.
Techano Oceanlift is exposed to the shipbuilding
market for the offshore energy industries. It is
predicted that a significant number of new offshore
energy systems will be installed in the coming years,
within both oil and gas and renewable energy. A
potential increase in newbuild offshore vessels could
represent opportunities for Techano Oceanlift.
Offshore aquaculture is another target market for
Techano Oceanlift. Although there is significant
potential for increased production and value creation
for offshore aquaculture, operational, technological,
and regulatory challenges must be overcome to
realise this potential.
For FiiZK, the aquaculture industry is seeing
increased pressure to improve both fish and fjord
welfare. FiiZK closed cage solutions improves this by
avoiding sea lice and also enables waste collection
from the harvest process.
Nekkar will continue its development of the
SkyWalker wind turbine installation tool and together
with partners explore opportunities for installation
and major component exchange for both bottom-
fixed and floating offshore wind. The market
outlook for the renewables industry which Nekkar is
targeting with its SkyWalker tool, is promising with
investment levels predicted to grow substantially in
the coming years and decades. Increased pressure on
profitability for wind farm developers and operators
could also stimulate interest in more cost-efficient
wind turbine installation tools such as the SkyWalker.
39
NEKKAR ANNUAL REPORT 2023 CORPORATE GOVERNANCE
The Board of Directors (“the Board”) of Nekkar ASA (“Nekkar” or the “Company” is
responsible for ensuring that the Company is organised, managed and controlled in an
appropriate and satisfactory manner in compliance with applicable laws and regulations.
Compliance with generally accepted corporate
governance guidelines is important because it
contributes to:
• reduced risk
• enhanced values in the best interests of all
stakeholders
• fair treatment of all stakeholders
• strengthened confidence and attractivity
• desired conduct
The Board considers compliance with generally
accepted corporate governance guidelines as an
important prerequisite for long-term value creation.
The Company strives to ensure that its internal
control mechanisms, organisation and management
structures comply with good corporate governance
principles.
Nekkar seeks to comply with the Norwegian
Code of Practice for Corporate Governance (the
“Corporate Governance Code” or “the Code”), last
revised on 14 October 2021, which is available at
the Norwegian Corporate Governance Committee’s
website www.nues.no. The principal purpose of the
Corporate Governance Code is to ensure (i) that
listed companies implement corporate governance
that clarifies the respective roles of shareholders,
the Board of Directors and executive management
more comprehensively than what is required by
legislation and (ii) effective management and control
over activities with the aim of securing the greatest
possible value creation over time in the best interest
of companies, shareholders, employees and other
parties concerned.
The following statement explains how Nekkar addresses
the 15 governance topics covered by the Code.
Corporate governance
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NEKKAR ANNUAL REPORT 2023 CORPORATE GOVERNANCE
1. Implementation and reporting on
corporate governance
The Board is aware of its responsibility for
implementation of internal procedures and
regulations to ensure that the company and its
subsidiaries (“the Group”) complies with applicable
principles for good corporate governance in line with
Norwegian and applicable international standards.
The Board actively adheres to this.
Good corporate governance is an integral part of the
decision-making process in matters dealt with by
the Board. Governing structures and controls help
to ensure that the policy is enacted upon. The work
of the Board is based on defined division of roles
and responsibilities between the shareholders, the
Board and management. Nekkar has implemented
a specific set of rules and procedures for the
Board, constituting the governance structure and
administrative procedures for their work.
According to Nekkar’s own evaluation, the company
deviates from the Corporate Governance Code on the
following points.
• Item 6: Nekkar deviates from the recommendation
to have all Board members present at the general
meeting as the company deemed it satisfactory
to require the presence of the chairperson of
the Board, the chairperson of the nomination
committee, the auditor, and the CEO. Nekkar also
deviates from the recommendation to establish
routines for appointment of an independent
person to chair the general meeting. In case
particular items on the agenda requires such
measures, the Board will consider appointing an
independent chairperson.
• Item 9: Nekkar does not have an audit committee.
Pursuant to Nekkar’s Articles of Association, the
complete Board serves as audit committee of
the company provided that the Board at all times
satisfies the requirements in the Norwegian Public
Limited Liability Act section 6-42. Considering a
lower complexity level in the business after the
disposal of the maritime and offshore business, as
well as the reduced number of Board members,
the Board deems it sensible that all members are
equally informed about the accounting issues.
• Item 9: Nekkar does not have a remuneration
committee. Instead, the Board resolves matters
relating to compensation paid to the executive
personnel. As all Board members are independent
of the Company’s executive personnel, it is the
Board’s view that it is a suitable body to help
ensure a thorough and independent preparation
of matters relating to compensation paid to the
executive personnel.
• Item 14: Due to the unpredictable nature of a
takeover situation, the Company has decided
not to implement detailed guidelines on take-
over situations. In the event of a takeover, the
Board of Directors will consider the relevant
recommendations in the Corporate Governance
Code and whether a potential situation entails
that the recommendations in the Corporate
Governance Code can be complied with or not.
Corporate governance in Nekkar is subject to regular
reviews and discussions by the Board.
2. Business
Nekkar (OSE: NKR) is an industrial technology group
offering impact technologies combined with high-
end software solutions. The group combines 50
years’ heritage from the world’s number one shiplift
company, Syncrolift, with new investments into
sustainable, digitalised technology businesses that
aim to unlock growth within ocean-based industries
such as offshore energy, renewables and aquaculture,
and make them more sustainable, productive and
profitable.
Nekkar is a public limited liability company organised
under the laws of Norway and subject to the
provisions of the Norwegian Public Limited Liability
Companies Act.
Nekkar’s objective is currently defined in the Articles
of Association as follows:
The company’s purpose is to engage in industrial
activities and related matters such as direct and
indirect investments in companies carrying out
industrial activity, as well as active ownership of the
different companies.
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NEKKAR ANNUAL REPORT 2023 CORPORATE GOVERNANCE
Nekkar’s operations are based on cross border trade,
and interaction with people from many countries
and different cultures. Nekkar embraces social
responsibility by increasing the understanding of
cultural differences, seeking to increase tolerance.
The company has approved more specific guidelines
for Corporate Social Responsibility (CSR) based on
the principles of the UN Global Compact about CSR
related to human rights, labour, environment and
anti-corruption.
In addition, Nekkar each year publishes a
sustainability report where it presents the main
social, societal, and environmental challenges
Nekkar faces, and how the company approaches
them. Following dialogue with the Company’s key
stakeholders, Nekkar has identified three priority
areas – health and safety, business ethics and anti-
corruption, and environment and climate – that are
integrated with the Company’s business strategy,
and goals are each year defined to improve Nekkar’s
performance within these areas.
To discuss and evaluate goals, strategy and risk
profile, the Board conducts an annual two-day
strategy meeting, where the main purpose is to set
the long-term direction for the Company.
A further description of the Company’s operations,
goals, strategy, and risk profile is provided in
the group’s annual report, which shows how its
operations and strategies are aligned with objectives
defined in the Articles of Association.
3. Equity and dividends
The Company’s solidity is continuously assessed based
on the its goals, strategies and risk profile. Total assets
at the end of 2023 were NOK 579.1 million and the
company’s equity was NOK 427 million, providing an
equity-to-assets ratio of 73.7 percent.
Nekkar aims to give shareholders a competitive
long-term return that reflects the risk inherent in the
Company’s operations. Based on Nekkar’s capital
structure and growth strategy, the shareholders’
return should be realised mainly through an increase
in the value of their shares. However, dividends and
share buybacks may be relevant, if and when the
circumstances permit it. Growth through acquisitions
will be funded through a balanced mix of equity and
debt.
The Annual General Meeting determines the annual
dividend, based on the Board’s proposal. The Board
has not proposed a dividend payment for the 2023
financial year.
The shareholders can give the Board the authority to
increase the share capital or purchase the Company’s
own shares at the Annual General Meeting. However,
such mandates should be intended for a defined
purpose.
The General Meeting has given the Board
authorisations to increase the Company’s share
capital. One authorisation is to conduct a share
capital increase in the form of an acquisition of other
business activity or capital asset within the same
or corresponding business sector as the company.
This authorisation comprises a resolution regarding
merger, including merger with a subsidiary against
settlement in parent company shares. The General
Meeting has also authorised the Company to increase
its share capital by issuing shares to employees and
Board members under a share purchase programme,
and for the Company to buy own shares at Oslo Stock
Exchange of up to 10 percent of the face value of the
share capital of the Company as part of a new share
buy-back programme. All authorisations expire at the
annual general meeting of the Company in 2024, and
30 June 2024 at the latest.
4. Equal treatment of shareholders
Equal treatment of all shareholders is a core
governance principle. Nekkar has one class of shares
and is listed on Oslo Stock Exchange under the ticker
symbol NKR. Each share carries one vote at the
General Meeting.
In situations where normal preferential rights shall be
deviated from, the Company’s Board is proposed to
prepare grounds for such a decision in accordance
with the Corporate Governance Code and shall
present these to the General Meeting. Own shares are
purchased through ordinary trade on the Oslo Stock
Exchange if applicable.
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NEKKAR ANNUAL REPORT 2023 CORPORATE GOVERNANCE
On 31 December 2023, the Company owned
1,398,965 own shares, of which the large majority has
been acquired in conjunction with its share buy-back
program.
5. Share and negotiability
All Nekkar shares carry equal rights and are freely
negotiable and the Company’s articles of association
do not contain any form of restriction on negotiability.
6. General meetings
The interest of the Company’s shareholders is
exercised at the General Meeting (GM). The Annual
General Meeting is usually held end of May or
beginning of June. The meeting for 2023 is scheduled
on 30 May 2024.
The General Meetings deal with and decide on the
following matters:
• Adoption of income statement and balance sheet.
• Application of profit or coverage of deficit
pursuant to the adopted income statement and
balance sheet as well as distribution of dividends.
• Election of Board of Directors. The General
Meeting shall elect the Chair of the Board and the
Deputy Chair of the Board.
• Other issues pursuant to the provisions of the
Norwegian laws and Articles of Association are to
be treated by the General Meeting.
All shareholders with known address registered in
the Norwegian Central Securities Depository (VPS)
will receive an invitation to the General Meeting. The
invitation is sent at least three weeks prior to the
meeting. Other documents will be made available at
Nekkar’s website. A shareholder may request a print
of documents relating to matters to be dealt with at
the General Meeting.
The deadline for shareholders to give notice of their
intention to attend the meeting is two working days
prior to the meeting.
Shareholders who are unable to attend the General
Meeting may vote by proxy. The proxy form is
designed in such a way that voting instructions may
be given for each item on the agenda.
The Company’s Board chooses whether to hold
the general meeting as a physical meeting or as an
electronic meeting.
The chairperson of the Board, the chairperson of the
nomination committee, the auditor, and the CEO are
present at the General Meeting, in addition to other
Board members when appropriate. The chairperson
of the Board opens the General Meeting and is
normally elected to chair the meeting.
Nekkar has not deemed it necessary to require
the presence of all members of the Board at
the General Meeting. Nekkar also deviates from
the recommendation to establish routines for
appointment of an independent person to chair
the General Meeting. In case of particular items on
the agenda requiring such measures, the Board will
consider appointing an independent chairperson.
All shares carry an equal right to vote at General
Meetings. Resolutions at General Meetings are
normally passed by simple majority unless otherwise
is required by Norwegian law.
The minutes of the General Meeting are made
available on Nekkar’s website and published to the
Oslo stock exchange (www.newsweb.no).
7. Nomination committee
Pursuant to Nekkar’s Articles of Association, the
nomination committee shall consist of 2-3 members,
independent of the Board and management.
The committee nominates candidates to the Board
and proposes Board members’ remuneration. No
member of the Company’s Board is a member of the
nomination committee.
As part of its nomination process, the committee
will have contact with major shareholders, the Board
and the Company’s executive management to ensure
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NEKKAR ANNUAL REPORT 2023 CORPORATE GOVERNANCE
that the process takes both the Board’s and the
Company’s needs into consideration.
A justification for a candidate will include information
on each candidate’s competence, capacity and
independence.
The current members of the nomination committee
are Anne-Grete Ellingsen (Chair) and Ditlef de
Vibe. Both members are independent of the
major shareholders, the Board and the executive
management.
The members of the nomination committee are
elected by the General Meeting. According to the
Code, the General Meeting shall elect the Chair of the
nomination committee and set the guidelines for the
committee’s work.
Information regarding the committee members, the
procedures, as well as how input and proposals may
be submitted to the committee is published on the
Company’s website.
8. Board of Directors, composition and
independence
Pursuant to Nekkar’s Articles of Association, the
Company’s Board shall consist of three to five
members. The current Board consists of five
members elected by the General Meeting.
At the General Meeting on 30 May 2023, the
shareholders elected the following members to the
Board:
NAME ELECTION PERIOD POSITION
Marit Solberg 2023 – 2025 Deputy Chair
Trine Ulla 2023 – 2025 Director
Håkon Andre Berg 2023 – 2025 Director
Not up for re-election
Trym Skeie 2022 – 2024 Chair
Gisle Rike 2022 – 2024 Director
Nekkar strives to ensure that the Board has a
composition necessary to safeguard the interest of the
shareholders. The Board consider its composition to
be diverse and competent with respect to expertise,
capacity and diversity adapted to the Company’s
objectives, main challenges and the common interest
of all shareholders. The Board emphasises the
importance of efficiency as a collegial body. The Board
consists of three men and two women.
Trym Skeie is, both directly and indirectly, a major
shareholder in the company. Gisle Rike is employed
by Rasmussengruppen AS, which is a major
shareholder in the Company. Håkon Andre Berg is
the CEO of Skeie Technology AS, which is the largest
shareholder in Nekkar. Marit Solberg and Trine Ulla
are independent of the major shareholders and
executive management. The Board does not include
executive management and the majority of the
Board members are independent of the Company’s
executive personnel and material business contacts.
The Directors of the Board are elected for a period
of two years. Please see the Annual Report for a
presentation of the Board members.
According to the Code, the Chairperson of the Board
should be elected by the General Meeting. This is also
stated in the Company’s Articles of Association.
Both Trym Skeie and Marit Solberg own shares in
Nekkar. None of the Board members hold any share
options.
9. The work of the Board of Directors
The Board has the overall responsibility to oversee
the organisation, operation and management of
Nekkar, whilst the CEO is responsible for day-to-
day management. This means that the Board is
responsible for how to organise the Company’s
activities and establishing systems in order to ensure
that Nekkar operates in compliance with laws and
regulations, corporate governance guidelines and the
values stated in the company’s Code of Conduct.
The Board conducts its work through established
procedures (Rules and procedures for the Board
of Directors) where its responsibilities for the work
and administrative procedures are outlined. The
Board has adopted an annual plan for its work to
ensure that all important issues and business areas
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NEKKAR ANNUAL REPORT 2023 CORPORATE GOVERNANCE
are covered, emphasising objectives, strategy, and
implementation of the company’s business plan in
particular. The rules and procedures for the Board
also state how the Board of Directors and executive
management shall handle agreements with related
parties, including whether an independent valuation
must be obtained. The Board should also present any
such agreements in their annual Directors’ report.
Further, If the chairperson of the Board is personally
involved in matters of a material character, the
Board’s consideration of such matters will be chaired
by another member of the Board.
The rules and procedures for the Board includes
instructions to ensure that the Company’s impact on
the economy, environment and people is managed
adequately. The rules and procedures describe how the
Board is responsible for reviewing and approving the
organisation’s purpose, value or mission statements,
strategies, policies and goals related to sustainable
development, and delegate implementation of
such matters to the Company’s management. The
procedures also include stipulations to ensure that the
Company has the necessary due diligence and other
processes in place to identify and manage its impacts
on the economy, environment and people, and ensure
that the management of the Company engages with
relevant stakeholders to support these processes.
At least annually, the Board reviews the company’s
sustainability performance, including key
performance indicators and priorities going forward.
Pursuant to Nekkar’s Articles of Association, the
complete Board shall serve as audit committee of
the company provided that the Board at all times
satisfies the requirements in the Norwegian Public
Limited Liability Act section 6-42. Considering a
lower complexity level in the business after the
disposal of the maritime and offshore business, as
well as the reduced number of Board members, the
Board deems it sensible that all members are equally
informed about the accounting issues.
The Board has considered but not established
a remuneration committee. Instead, the Board
resolves matters relating to compensation paid to
the executive personnel. As all Board members are
independent of the Company’s executive personnel,
it is the Board’s view that it is a suitable body to help
ensure a thorough and independent preparation
of matters relating to compensation paid to the
executive personnel. There are no other committees
established by the Board of Directors.
The Board assess the need for additional roles and
functions for the Board and its Directors on an annual
basis. The Board evaluates its own performance
and expertise on an annual basis, including its role
in overseeing the management of the company’s
impacts on the economy, environment and people. The
evaluation is submitted to the nomination committee.
10. Risk management and internal control
The Board focuses on ensuring adequate
organisation and supervision of Nekkar’s internal
control and overall risk management. On an annual
basis, the Board discusses and assesses the group’s
risk exposures, systems, routines, and internal control
to mitigate these risks. Internal control procedures,
limiting authorisations, organisational changes and
increased reporting are part of the improvements.
The Board’s work with internal control and applicable
systems encompasses the Company’s corporate
values, Code of Conduct and guidelines for Corporate
Social Responsibility.
Procedures and systems upholding uniform reporting
are prepared. Management prepares monthly
financial reports, which are submitted to, and
reviewed by the Board.
As part of ongoing risk management efforts, the
Board and management carry out specific risk
reviews of major investments and contracts.
As part of the annual budget and strategy process,
the Board and executive management conduct an
annual review to discuss and identify external and
internal opportunities and threats for the group.
In addition, the Board carries out a thorough review
of the Company’s financial status in the annual Board
of Directors’ Report. This review also includes a
description of the main elements of the Company’s HSE
efforts with a corresponding action plan if needed.
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NEKKAR ANNUAL REPORT 2023 CORPORATE GOVERNANCE
The Code of Conduct outlines Nekkar’s ethical
commitments and requirements to expected
behavior regarding issues such as anti-corruption
and conflict of interest. It sets standards for personal
conduct and business practice.
The Code of Conduct has been communicated to
all employees and implemented in order to ensure
that the Company’s ethical commitments and
requirements are reflected in all business behavior.
The Code of Conduct includes the most important
ethical principles and provides references to more
detailed requirements related to business and
personal conduct.
The Code of Conduct applies to all Nekkar group
companies, Board members, management and
employees, including temporary personnel and
consultants or contractors acting on behalf of Nekkar.
11. Remuneration of the Board of Directors
Remuneration of the Board is determined by the
General Meeting, based on recommendation from
the nomination committee. The recommendation
is normally linked to the Board members’
responsibilities, competence and time commitment,
taking the company’s size and complexity into
consideration. It also references the level of Board
remuneration in comparable, Norwegian stock
exchange listed companies. The remuneration is not
linked to the company’s performance. There is no
share option program for the Board of Directors but
they can take part in the company’s share purchase
program.
Members of the Board, including companies with
whom they are associated, are usually not given
separate assignments by Nekkar in addition to their
function as Directors. Such assignments will be based
on approval from the Board. There were no such
assignments in 2023
12. Salary and other remuneration for
executive personnel
The Board determines the principles applicable to
the group’s policy for compensation of executive
management. The Board is directly responsible for
determining the CEO’s salary and other benefits. The
CEO is, in consultation with the chairperson of the
Board, responsible for determining the salary and
other benefits for the group’s other senior executives.
The guidelines for salaries and other remuneration
are communicated yearly to the General Meeting,
where so far, the Board has asked for the
endorsement of all sections of the declaration of the
determination of salaries and other remuneration of
leading employees, except the option program where
they have asked for approval. Executive management
remuneration consists of three main elements: salary,
bonus and equity-based instruments.
The Board’s view on management compensation is
that it should be competitive, simple and motivating,
but not above observed market levels, and help
ensure that the executive personnel and shareholders
have convergent interests. Bonuses are determined
according to specific targets set for each year.
Bonus schemes are limited to a portion of the salary,
increasing according to the position category up
to a maximum of 50 percent of base annual salary
unless special circumstances apply. Guidelines and
the annual remuneration report are presented in the
Annual Report.
13. Information and communication
Nekkar’s reporting and communication policy
is based on openness, taking into account the
requirement for equal treatment of all stakeholders in
the financial markets.
The Company has established guidelines for
reporting of financial and other information. The
purpose of these guidelines is to ensure that
timely and correct information is made available to
shareholders and other stakeholders. A financial
calendar and other shareholder information,
including the investor relations policy, is available on
the Company’s website.
46
NEKKAR ANNUAL REPORT 2023 CORPORATE GOVERNANCE
Any dividend proposals are presented in the
meeting call for the General Meeting. All information
distributed to the Company’s shareholders is
simultaneously published on the Company’s website
and Oslo stock exchange’s website (www.newsweb.
no).
14. Take-overs
The Company’s Articles of Association do not include
defense mechanisms aimed towards take-over bids,
nor are any other obstacles implemented with the
objective of reducing the trade and/or transferability
of the company’s shares.
The shares are freely negotiable. Transparency and
equal treatment of the shareholders are fundamental
principles the company adheres to. No additional
principles have been established for how Nekkar will
or should act with respect to takeover bids, but the
Board intends to act in accordance with applicable
regulations as well as the general principles of
the stock market if such a situation should occur.
Furthermore, the Board will issue a statement to the
shareholders with an assessment of the bid and a
recommendation of whether to accept it or not.
15. Auditor
The external auditor is independent in relation to
Nekkar and elected by the Annual General Meeting.
The auditor’s fee is approved by the General
Meeting. The auditor conducts a minimum of two
meetings per year with the Board, and at least in
one of the meetings a part of the meeting is held
without management present. One of the meetings
is conducted in connection with the review of the
annual accounts, while the second meeting’s purpose
is to review the company’s internal control systems
and routines. The Board reviews the yearly audit plan
with the auditor together with identified weaknesses
and suggestions for improving the Company’s
internal control. In addition, the auditor is present in
the Board meetings as and when required. It has not
been deemed necessary by the Board to implement
additional guidelines regarding the use of the auditor
for services other than auditing.
47
NEKKAR ANNUAL REPORT 2023 CORPORATE GOVERNANCE
48
NEKKAR ANNUAL REPORT 2023 MATERIAL TOPICS
Priority areas for Nekkar
Business ethics and
anti-corruption
Emissions from
our operations
Health and safety
49
NEKKAR ANNUAL REPORT 2023 BUSINESS ETHICS AND ANTI-CORRUPTION
Business ethics and
anti-corruption
Doing business with integrity and building a culture that prevents
unethical business practices is highly important to us.
Materiality
As a global company, we are both directly and
indirectly exposed to ethical risks throughout our
value chain. Syncrolift’s projects constitutes the
highest risk, since the company delivers projects
to countries such as China and Vietnam (the Far
East), the Middle East, Africa and South America.
Significant risks include health and safety risks, illicit
labour practices, corruption risks, violation of IP
rights and data security breaches.
By establishing clear guidelines, conducting due
diligence and physical audits, communicating about
possible risks and expectations, and by providing
training in business ethics and anti-corruption, we
seek to positively impact this topic.
Policy commitment
Our business should be conducted in a manner
that respects internationally recognised human
and labour rights. We apply the precautionary
principle and are committed to follow internationally
recognised business standards and practices such as
the OECD’s guidelines for Multinational Enterprises.
We also adhere to international and national laws
and regulations, including (but not limited to) the
Human Rights Act, the Money Laundering Act, the
Transparency Act, and the Penal Code with related
regulations.
50
NEKKAR ANNUAL REPORT 2023 BUSINESS ETHICS AND ANTI-CORRUPTION
Our internal guidelines for ethics and anti-corruption
are described in the Code of Conduct, which has
been approved by our management and Board of
Directors. The Code of Conduct addresses important
principles and sets clear rules and expectations
for ethical behaviour for all our stakeholders and
ourselves, including respecting human rights and
conducting due diligence.
We have also developed a Business Partner Code
of Conduct, which is part of our standard terms and
conditions in contracts with suppliers and available
through our website. The Business Partner Code of
Conduct has been approved by the Board.
Approach
The Management Group is responsible for
communicating and ensuring compliance with the
Code of Conduct. The Code of Conduct is shared
with all employees as part of the onboarding process
Countries where Nekkar are present and
the associated corruption risk Score
Norway 84
Singapore 83
United States of America 69
United Arab Emirates 68
CORRUPTION
PERCEPTIONS
INDEX 2021
#cpi2021
www.transparency.org/cpi
This work from Transparency International (2021) is licensed under CC BY-ND 4.0
SCORE
0-9 10-19 20-29 30-39 40-49 50-59 60-69 70-79 80-89 90-100 No data
Very
Clean
Highly
Corrupt
The perceived levels of public sector
corruption in 180 countries/territories
around the world.
USA
Dubai
Singapore
Norway
Score
Highly
corupt
Very
clean
No data
This work from Transparency International
(2024) is licensed under CC BY-ND 4.0
CORRUPTION
PERCEPTIONS
INDEX 2021
#cpi2021
www.transparency.org/cpi
This work from Transparency International (2021) is licensed under CC BY-ND 4.0
SCORE
0-9 10-19 20-29 30-39 40-49 50-59 60-69 70-79 80-89 90-100 No data
Very
Clean
Highly
Corrupt
The perceived levels of public sector
corruption in 180 countries/territories
around the world.
and in 2023, 100 percent of employees had read
and agreed to the Code of Conduct. Members of the
Board are also obliged to read and comply with the
Code of Conduct.
Code of Conduct trainings are regularly held at all
business locations as well as workshops focused on
raising ethical awareness. Joint information meetings
are held whenever the Code of Conduct is updated. The
latest information meeting was held in December 2022.
51
NEKKAR ANNUAL REPORT 2023 BUSINESS ETHICS AND ANTI-CORRUPTION
Operations assessed for risks relating to corruption 2023 2022
No. of confirmed incidents of corruption 0 0
No. of criminal actions faced related to corruption or illicit business practices 0 0
No. of contracts with partners that were terminated or allowed to expire due to
violations related to corruption 0 0
Communication on anti-corruption Total Europe America Asia
Permanent employees 100% 100% 100% 100%
Temporary employees 100% 100% N/A N/A
Board members 100% 100% N/A N/A
Clients 100% 100% 100% 100%
Suppliers of key components 100% 100% 100% 100%
Steel assembly producers 100% 100% 100% 100%
Anti-corruption training* Total Europe America Asia
Permanent employees 100% 100% 100% 100%
Temporary employees 100% 100% N/A N/A
Full-time employees 100% 100% 100% 100%
Part-time employees 100% 100% N/A N/A
* Numbers from Syncrolift only.
52
NEKKAR ANNUAL REPORT 2023 BUSINESS ETHICS AND ANTI-CORRUPTION
New business partners usually sign contracts where
our policies are stated, and we, or a third party on
our behalf, conducts risk assessments in relation
to financial and illicit activities for new suppliers,
customers, and sales representatives. Nekkar policies
are conveyed and agreed to through a supplier
screening process. We also ask for their financial
turnover. New clients are screened for risks regarding
payment issues.
Syncrolift screens key suppliers and has a live list
of the 100 top suppliers for standard components,
made to order equipment and system deliveries. The
list of suppliers is maintained with updated surveys
following a planned interval. The company uses a
supplier evaluation questionnaire, aiding the process
of becoming an approved supplier. The questionnaire
includes questions on sustainability, ethical
standards, environmental management and health
and safety. In 2023 we performed six screenings
of new suppliers (eight in 2022), and reviewed six
newbuild orders (five in 2022).
Human rights
Transparency Act reporting 2023
In 2022, Norway implemented the “Act relating to
enterprises’ transparency and work on fundamental
human rights and decent working conditions”, more
commonly known as the Transparency Act.
The purpose of the Act is to promote respect for
fundamental human rights and decent working
conditions in connection with the production of
goods and the provision of services, and to ensure
the general public access to information regarding
how enterprises address adverse impacts on
fundamental human rights and decent working
conditions.
At Nekkar, we oppose from all forms of
discrimination, human trafficking, forced labour and
child labour, and expect that our business partners
and suppliers act in compliance with applicable laws
internationally recognised compliance standards,
as described in our Code of Conduct for Business
Partners.
We are aware that we operate in geographical areas
where the potential risk of child labour, unequal
pay conditions, forced labour or health and safety
deviations are higher. To reduce this risk, we began a
due diligence process in 2022 to identify and assess
actual and potential adverse impacts on fundamental
human rights and decent working conditions that we
could either have caused or contributed to.
In the 2023 due diligence process we have listed all
our suppliers and mapped them out by country of
operation and industry. We also looked closer at our
suppliers’ own guidelines and routines regarding
business ethics, as reported through our Supplier
Evaluation Questionnaire, and made sure that
suppliers agreed to our Code of Conduct for Business
Partners.
We frequently communicate our expectations to
suppliers, carry out non-disclosed evaluations, and
ask for more information where needed. We also
carry out physical audits of selected suppliers as part
of our continous screening / due diligence process.
In 2023, all key suppliers were screened using social
criteria as part of the supplier approvement process.
We have not registered any negative impact from
the related topics in our value chain, including human
rights breaches. We aim to further strengthen our
work related to human rights and supplier due
diligence in 2024.
Nekkar has developed a Business
Partner Code of Conduct , which
is part of our standard terms and
conditions in contracts with business
partners.
↘
53
NEKKAR ANNUAL REPORT 2023 BUSINESS ETHICS AND ANTI-CORRUPTION
WHISTLEBLOWING / REPORTING
All conditions, which give rise to ethical issues or
considered a breach of the Code of Conduct shall
be reported to an employee’s closest line manager
or to the HSEQ manager and registered, so that
necessary follow-up and suitable measures can be
implemented. Employees can also seek advice from
their management on how to implement Nekkar’s
policies and practices for responsible conduct if
unsure. Critical concerns shall be reported to the
Board. Examples of concerns that may be reported
include:
• Criminal activities
• Violations of health, safety or the environment
• Infringements of Nekkar’s Code of Conduct
• Violation of generally accepted rules/standards
In 2022, we fully implemented the anonymous
whistleblowing channel (My Voice / Mitt Varsel).
Information about the channel was published on
our website for external users and employees were
informed and trained on when and how to use it
during 2023.
Supplier social assessment 2023
No. of suppliers assessed for social impacts 6
No. of suppliers identified as having significant actual
and potential negative social impacts 0
% of suppliers identified as having significant actual and potential negative social impacts with which
improvements were agreed upon as a result of the assessment 0
% of suppliers identified as having significant actual and potential negative social impacts with which
relationships were terminated as a result of the assessment 0
ADDRESSING GRIEVANCES
We are committed to provide for or cooperate
in the remediation of negative impacts that
we identify we have caused or contributed to.
Grievance mechanisms have been established to
enable stakeholders to raise concerns about, and
seek remedy for, our potential and actual negative
impacts. Employees have been involved in the
design, review, operation and improvement of the
grievance mechanisms. We have not registered
any incidents of negative impacts in the reporting
period and have therefore not instituted processes
to remediate negative impacts or tracked the
effectiveness of the grievance mechanism.
There were no significant instances of non-compliance
with laws and regulations in 2023, and we did not
receive any fines for non-compliance with laws and
regulations. There are no ongoing investigations or
legal actions pending, and the Board has not received
any reports of critical concern.
54
NEKKAR ANNUAL REPORT 2023 EMISSIONS FROM OWN OPERATIONS
Emissions from
own operations
We aim to contribute to the sustainable use and development of
marine resources through our innovative products and reduce our
own emissions where we can.
Materiality
Nekkar provides equipment for the maritime
and marine industries. Both the production and
use of these products can negatively impact the
environment. Our goal is therefore to continuously
improve our products, and thereby have a positive
impact on this topic.
Policy commitment
We acknowledge the important challenges that
the world is facing in terms of climate change and
environmental pollution. We aim to contribute to
the sustainable use and development of marine
resources through our innovative products and
reduce our own emissions where we can.
Nekkar has developed environmental guidelines which
are outlined in the company’s internal health and safety
handbook. Syncrolift has established an environmental
policy, which is communicated to employees,
contractors, and suppliers and is available through our
website: www.nekkar.com.
Approach
In 2023, we have initiated a project to develop
Environmental Product Declarations (EPD’s) for each
of our products, to map their impact and implement
improvement measures. This will not only benefit
Nekkar but will also make it easier for our customers
to choose the greener solution. The EPD project will
continue in 2024, and the goal is to conclude the
EPD’s by the end of 2024.
We aim to increase our supplier’s awareness on
issues related to emissions. In our Supplier Evaluation
Questionnaire, we ask whether suppliers have a
documented Environmental Management system,
environmental certificates, environmental impact
assessments, and about the risk management of
chemicals and other substances, to track their efforts.
We started carbon accounting in 2020 (base year),
which was updated in 2021 and 2022 using CEMAsys’
digital solution. Up until 2022, the carbon accounting
comprised the following organisational units:
Aquaculture, Intellilift, Syncrolift, and Renewables.
As a result of the restructuring of Nekkar in 2023,
Aquaculture is no longer included in our carbon
accounting, and Techano Oceanlift has been added,
which impacts the CO2 emissions reported.
The information comes from both external and
internal sources and is based on the “Corporate
Accounting and Reporting Standard”, as developed
by the Greenhouse Gas Protocol Initiative (the GHG
protocol). This is the most widely used method for
measuring greenhouse gas emissions, and the ISO
standard 14064-I is also based on this.
55
NEKKAR ANNUAL REPORT 2023 EMISSIONS FROM OWN OPERATIONS
Performance
In total, our emissions across Scope 1, 2, and 3
amounted to 3,298.2 tCO2e in 2023, up from
1,689.7 tCO2e in the previous reporting period*. The
big increase is largely due to an increase in steel
consumption and business travel. Nekkar is still in
the process of mapping its carbon footprint, which
should be taken into account when comparing 2023
emissions with historical numbers.
SCOPE 1:
We have limited emissions from sources that are
owned or controlled by the company (Scope 1
emissions). Our Scope 1 emissions stems from the
use of company cars, amounting to 1.1 tCO2e in the
reporting period.
The office building in Kristiansand is BREEAM-certified, constructed from cross-laminated timber, and
equipped with solar panels on the roof.
* Restatement of information: The company incorrectly reported to have total emissions of 21,141.61 tCO2e in 2022. The number
has been updated in the 2023 carbon accounting report.
Nekkar has developed environmental
guidelines which are outlined in the
company’s internal health and safety
handbook.
↘
56
NEKKAR ANNUAL REPORT 2023 EMISSIONS FROM OWN OPERATIONS
SCOPE 2:
The heating and ventilation of office buildings in
Norway and Singapore is the main source of our
indirect emissions (Scope 2 emissions). Consumption
of electricity in own or rented premises and/or
buildings are measured using an operational control
approach.
In 2023, we had a total electricity consumption of
215.3 MWh, which gave total Scope 2 emissions of 2.1
tCO2e (location-based). Total market-based Scope
2 GHG emissions was 107.9 tCO2e in the reporting
period.
SCOPE 3:
Scope 3 (indirect GHG emissions) accounts for
the majority (99.9 percent) of our total emissions.
The main source of Scope 3 emissions stems
from outsourced global production, particularly
steel manufacturing, and the transportation from
suppliers to the installation sites. Purchased steel for
manufacturing amounted to 3,140.8 CO2e in 2023, a
significant increase compared to 2022.
Our Scope 3 emissions were 152.4 tCO2e in 2023*,
and the major increase stems from increased
air travel. The total number of kilometers driven
by private cars within working hours (employee
commuting) was 25,386.8, which gave an emission of
1.7 tCO2e.
* Restatement of information: The company incorrectly reported that business travel amounted to 19 483.2 tCO2e in 2022. The
actual number was 125.5 tCO2e. The number has been updated in the 2023 carbon accounting report.
Key energy and climate performance indicators Unit 2023 2022 2021
Scope 1 + 2 emissions (tCO2e) tCO
2
e 3.3 4.2 3.4
Total emissions (s1 + s2 + s3) tCO2e) tCO
2
e 5,176.0 1,689.7 3,298.2
Total energy scope 1 + 2 (MWh) MWh 219.6 245.0 188.4
Market-based GHG emissions Unit 2023 2022 2021
Electricity total (Scope 2) with market-based calculations tCO
2
e 107.9 97.1 74.4
Scope 2 total with market-based electricity calucations tCO
2
e 107.9 97.1 74.4
Scope 1+2+3 total with market-based electricity calculations tCO
2
e 3,404.0 1,783.9 5,247.8
Percentage change 100.0% -66.0% 90.8%
57
NEKKAR ANNUAL REPORT 2023 EMISSIONS FROM OWN OPERATIONS
ANNUAL ENERGY CONSUMPTION SCOPE 1 & 2
MWh MWh
2021 2022 2023
3.2
5.1
4.3
0
1
2
3
4
5
6
Scope 1
185.2
239.9
215.3
0
50
100
150
200
250
Scope 2
58
NEKKAR ANNUAL REPORT 2023 HEALTH AND SAFETY
Health and
safety
Safe operations are at the core of our values, and we continuously
work to ensure that employees return home safely every day.
Materiality
Maintaining a safe and healthy working environment
is critical to Nekkar and our stakeholders. We can
have an actual or potential positive impact on
occupational health and safety by establishing
health and safety guidelines, conducting risk
assessments, implementing reporting procedures,
and by providing communication and training to
employees about health and safety risks. We can also
positively impact this topic by ensuring access to and
appropriate use of health and safety gear.
Working at Nekkar could potentially involve different
health and safety risks depending on whether
employees are working in one of the company’s office
locations or on site. For employees doing production
follow-up from suppliers or on site inspections and
installation supervision, there are work hazards that
require special attention, including lifting, working at
heights, working with scaffolding, dropped objects,
trapping, entanglement, burns and other risks arising
from hazard-intensive tools used in manufacturing
processes. At Nekkar’s office locations, risks are
mainly associated with sedentary work.
Policy commitment
Everyone working in or on behalf of Nekkar shall
always comply with applicable rules and regulations
to prevent accidents, injuries and damage to people,
assets, and the environment. We adhere to the
Norwegian Working Environment Act and local laws
and regulations in other countries where we are
present. Syncrolift’s policies and guidelines regarding
health and safety are described in the Employee
Handbook and the Health and Safety Handbook to
which all employees have been onboarded. Syncrolift
is certified according to ISO 45001 Occupational
Health and Safety, which is an international standard
aiming to improve employee safety, reducing
workplace risks, and creating better and safer
working conditions.
59
NEKKAR ANNUAL REPORT 2023 HEALTH AND SAFETY
Occupational health and safety management system 2023 2022
% of employees that are covered by the occupational health and safety
management system 100 100
% of workers who are not employees that are covered by the occupational health
and safety management system 100 100
Approach
Health and safety are continuously discussed at
management level, and the CEO/General Manager as
well as the HSEQ Manager in each company have the
overall responsibility for health and safety, in addition
to individual health and safety representatives for
each business unit. Managers have a particular
responsibility to monitor and mitigate any safety
risks and report conditions that may impact quality,
safety, the environment, or assets. Employees have
a duty to follow the health and safety guidelines,
prevent unsafe actions and otherwise promote good
safety behaviour. Due to our company’s size, we have
not maintained a Working Environment Committee,
but we have appointed a Health and Safety
representative which meets with the management
group on a regular basis, and we have also appointed
a safety representative in Kristiansand.
We have established an Emergency Response Plan,
which includes information about internal notification
procedures, mobilising, 24/7 preparedness and
communications and an Emergency Response Team.
We actively promote a safety culture. Employees
receive training on work-related hazards regularly,
including fire safety, which continues to a prioritised
area. In addition to reviewing our company’s fire
safety guidelines, we arrange fire drills. Service
personnel undergo on-the-job-training guided by
experienced co-workers upon hiring, and also attend
specific health and safety trainings organised by
clients to receive work permits before entering a
work site. Employees also receive information about
when and how to use personal protective equipment.
Personal protective equipment is site specific and
determined by the different risk factors on each site.
Everyone working in or on behalf
of Nekkar shall always comply with
applicable rules and regulations
to prevent accidents, injuries and
damage to people, assets, and the
environment.
↘
To minimise health and safety risks, we have taken
a number of precautions, including the investment
in ergonomic desks / chairs at our office locations
and giving employees working in Syncrolift access
to certain health services. Specific project risk
assessments are regularly carried out for the work
sites, which mainly relates to Syncrolift’s projects. At
the work sites, Safe Job Analyses are carried out, as
well as safety rounds to identify any risk factors and
ensure necessary improvements.
Syncrolift conducts safety rounds at our premises in
Vestby on a regular basis. During the safety round
employees are asked to undertake a survey where
they have to rank several statements relating to
health and safety, which include topics such as indoor
climate, ergonomics, and fire safety.
60
NEKKAR ANNUAL REPORT 2023 HEALTH AND SAFETY
Work-related injuries 2023
WORKERS WHO ARE
NOT EMPLOYEES EMPLOYEES
No. of fatalities as a result of work-related injuries 0 0
No. of cases of recordable work-related injuries 2 0
Work-related ill health 2023
WORKERS WHO ARE
NOT EMPLOYEES EMPLOYEES
No. of fatalities as a result of work-related ill health 0 0
No. of cases of recordable work-related ill health 0 0
EMPLOYEE WELLBEING
Equally important as to ensure a physically safe
working environment is the focus on mental health
in the workplace. In addition to regular development
talks, we conduct employee surveys annually to
map employee wellbeing. In the survey, employees
are asked to rank different statements relating to
the working environment on a scale from 1 (lowest)
to 10 (highest). The 2023 employee survey had an
89 percent response rate, and the results show that
the motivation indicator among employees is at 79
percent on average. This percentage is based on
a ranking of the following: tasks, responsibilities,
feedback, relationship to leaders/management,
competence/professional development, collegial
support, cooperation and mastering of tasks.
SUPPLIERS, BUSINESS PARTNERS AND
SUBCONTRACTORS
Health and safety requirements for our suppliers
have until now followed the legislation and standards
in the supplier’s home country. Today, all our
key suppliers must fill out a “Supplier Evaluation
Questionnaire” (SEQ) where we ask about the
suppliers’ occupational health and management
system. Key suppliers working for Nekkar shall have
their own occupational health and management
system, and must report injuries and work-related
incidents. To follow up on the health and safety of
subcontractors, we are working to implement an
occupational health and management system in
Kristiansand.
REPORTING IRREGULARITIES
It is of critical importance to have full overview of
any adverse event at our sites to be able to work on
prevention and improvement. Injuries are registered
at site level and employees have a duty to report
incidents or dangerous occurrences. Injuries and
incidents are registered through the health and
safety web portal at Landax.no or in a mobile app,
in addition to immediate internal notification to
the CEO, HSEQ Manager or nearest line manager.
Examples of incidents that shall be reported include:
• Near incidents / incidents and accidents
• Influence of damage/hazardous conditions
• Breaches of health and safety regulations
• Missing or evacuation of personnel
• Security breaches or criminal acts towards Nekkar
and employees
• Chemical spills which require notification to
authorities and local response
61
NEKKAR ANNUAL REPORT 2023 SUSTAINABILITY PRIORITIES 2024
On the 21st of April 2021, the EU commission announced the adoption of the Corporate
Sustainability Reporting Directive (CSRD) in line with the commitment made under the
European Green Deal. The CSRD will amend the existing Non-Financial Reporting Directive
(NFRD) and will substantially increase reporting requirements on the companies falling within
its scope.
In 2024, Nekkar will take steps to meet the CSRD requirements. A first priority will be to update
the current materiality assessment, to also consider financial impact (following a double
materiality approach). Additionally, the company will prepare its transition from the 2021 GRI
Standards to the new European Sustainability Reporting Standard (ESRS) and external audit.
In 2023, Nekkar started a project to develop Environmental Product Declarations (EPD) for its
products. This project will continue in 2024.
Sustainability priorities 2024
62
NEKKAR ANNUAL REPORT 2023 CONSOLIDATED FINANCIAL STATEMENTS
62
NEKKAR ANNUAL REPORT 2023 CONSOLIDATED FINANCIAL STATEMENTS
NEKKAR PER 31 DECEMBER 2023
Consolidated
financial statements
Income statement
Financial position
Equity
Cash flow
Accounting principles
NOTES
Note Operating segments
Note Revenue
Note Inventories
Note Payroll expenses and employee information
Note Pensions
Note Fixed assets
Note Intangible assets
Note Subsidiaries and investments in other companies
Note Trade and other receivables
Note Equity accounted investments
Note Assets pledges as security and guarantees
Note Share capital and shareholder information
Note Tax
Note Earnings per share
Note Other operating expenses
Note Related parties
Note Derivatives
Note Financial items and foreign currency gainslosses
Note Provisions and other accruals
Note Financial risk management
Note Business combination
Note Non controlling interest (NCI)
Note Contingent liabilities Material disputes
Note Subsequent events
63
NEKKAR ANNUAL REPORT 2023 CONSOLIDATED FINANCIAL STATEMENTS | NEKKAR
Consolidated statement of comprehensive income
For the year ended 31 December
Amounts in NOK 1000 Notes 2023 2022
OPERATING REVENUE
Sales revenue 2 575 086 387 503
Total revenue 575 086 387 503
OPERATING EXPENSES
Material, goods and services 304 493 209 129
Personnel costs 4,5 113 812 78 294
Losses on accounts receivable 23 6 604 -
Depreciation of fixed and intangible assets 6,7 7 685 10 475
Other operation expenses 4.15 41 420 32 781
Total Operating Expenses 474 014 330 679
Operating profit / (loss) 101 073 56 824
FINANCIAL INCOME AND EXPENSES
Financial income 18 24 099 16 921
Financial expense 18 8 825 31 111
Share of net profit (loss) from equity-accounted investees 18 -7 083 -
Net finance 8 191 -14 190
Profit/loss before tax 109 264 42 634
Income tax expense 13 25 955 9 981
Profit for the period 83 309 32 654
OTHER COMPREHENSIVE INCOME
Items that may be reclassified subsequently to profit or loss
Foreign currency differences for foreign operations - -
Total comprehensive income for the period 83 309 32 654
Attributable to equity holders of the company 81 243 31 839
Attributable to non-controlling interests 22 2 066 815
Earnings per share (NOK) 14 0.78 0.30
Diluted earnings per share (NOK) 14 0.78 0.30
64
NEKKAR ANNUAL REPORT 2023 CONSOLIDATED FINANCIAL STATEMENTS
Consolidated statement of financial position
For the year ended 31 December
Amounts in NOK 1000 Notes 2023 2022
ASSETS
NON-CURRENT ASSETS
Deferred tax assets 13 - 7 032
Goodwill 7 17 050 16 643
Other intangible assets 7 50 234 58 035
Property, plant and equipment 6 9 188 9 809
Equity-accounted investees 10 47 712 -
Other financial assets 1 155 -
Right of use assets 6 13 541 4 409
Total non-current assets 138 881 95 929
CURRENT ASSETS
Inventories 3 11 861 2 317
Trade receivables 2,9,23 85 270 106 875
Other receivables 9 6 387 7 126
Accrued non-invoiced production 2 144 007 113 616
Derivative financial instruments 17 20 144 -
Cash and cash equivalents 11 194 162 181 281
Total current assets 461 831 411 214
Total assets 600 711 507 143
65
NEKKAR ANNUAL REPORT 2023 CONSOLIDATED FINANCIAL STATEMENTS | NEKKAR
Consolidated statement of financial position
For the year ended 31 December
Amounts in NOK 1000 Notes 2023 2022
EQUITY AND LIABILTIES
EQUITY
Issued share capital 12 11 817 11 746
Treasury shares 12 -153 -1
Share premium 12 9 206 5 919
Other equity 12 383 528 313 214
Shareholders equity 404 398 330 878
Non-controlling interest 22 22 548 20 090
Total equity 426 945 350 968
NON-CURRENT LIABILITIES
Deferred tax 13 17 859 454
Lease liabilities 6 9 087 2 716
Total non-current liabilities 26 946 3 169
CURRENT LIABILITIES
Trade payables 57 242 45 893
Income tax payable 13 1 512 1 562
Social Security and Employee taxes 7 973 7 469
Prepayment from customers 2 39 002 42 418
Derivative financial instruments 0 7 198
Current lease liabilties 6 4 276 1 549
Other current liabilities 23 36 815 46 917
Total current liabilities 146 820 153 006
Total liabilities 173 766 156 175
Total equity and liabilities 600 711 507 143
Kristiansand, 29 April 2024
Board of Directors, Nekkar
Trym Skeie
Chair of the Board
Gisle Rike
Director
Ole Falk Hansen
CEO
Håkon André Berg
Director
Trine Ingebjørg Ulla
Director
Marit Solberg
Director
66
NEKKAR ANNUAL REPORT 2023 CONSOLIDATED FINANCIAL STATEMENTS
Consolidated statement of changes in equity
For the year ended 31 December
Amounts in NOK 1000 Note
Share
capital
Treasury
shares
Share
premium
Other
equity
Share-
holders
equity
Non-
controlling
interests
Total
equity
Equity as of 1.1.2022 11 714 -1 3 863 281 376 296 952 19 276 316 228
Total comprehensive income - - - 31 839 31 839 815 32 654
New Shares Issued 12 32 - 2 056 - 2 087 - 2 087
Equity as of 31.12.2022 11 746 -1 5 919 313 215 330 878 20 090 350 968
Equity as of 1.1.2023 11 746 -1 5 919 313 215 330 878 20 090 350 968
Total comprehensive income - - - 81 243 81 243 2 066 83 309
New Shares Issued 12 71 3 287 - 3 359 - 3 359
Treasury shares (purchase) 15 - -152 - -11 144 -11 296 - -11 296
Acquisitions new subsidiaries 21,22 - - - - - 297 297
Other changes - - - 215 215 94 309
Equity as of 31.12.2023 11 817 -153 9 206 383 529 404 398 22 547 426 945
67
NEKKAR ANNUAL REPORT 2023 CONSOLIDATED FINANCIAL STATEMENTS | NEKKAR
Consolidated statement of cash flows
For the year ended 31 December
Amounts in NOK 1000 Notes 2023 2022
CASH FLOW FROM OPERATING ACTIVITIES
Profit (loss) before tax 109 264 42 634
Adjustments for:
Depreciation / impairment 6, 7 7 685 10 475
Net interest cost (income) -6 016 -1 447
Other Financial items 18 -3 423 -
Share of net profit (loss) from Equity-accounted investees 7 083 -
Income tax paid 13 - -2 625
Interest paid 18 -6 647 -3 437
Interest received 18 12 662 4 884
Changes in:
Inventories 3 -9 545 1 157
Trade receivables 9 21 605 27 874
Trade payables 11 349 25 210
Accrued, non-invoiced production -30 391 -93 462
Other receivables and other payables -38 472 17 554
Net cash flow from operating activities 75 155 28 819
CASH FLOW FROM INVESTMENT ACTIVITIES
Acquisition and expenditures of fixed/intangible assets 6, 7 -19 240 -22 401
Investment in subsidiaries 8 -2 733 -
Investment i associated company 10 -28 763 -
Net cash flow from investment activities -50 736 -22 401
CASH FLOW FROM FINANCING ACTIVITIES
Proceeds from issuance of share capital 3 010 2 088
Acquisition of treasury shares -11 009 -
Payment of lease liabilities -3 539 -1 725
Net cash flow from financing activities -11 538 363
Net change in cash and cash equivalents 12 881 6 780
Cash and cash equivalents at the end of the period 194 162 181 281
Cash flow attributable to non-controlling interests -3 727 798
68
NEKKAR ANNUAL REPORT 2023 CONSOLIDATED FINANCIAL STATEMENTS
Accounting principles
69
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70
NEKKAR ANNUAL REPORT 2023 CONSOLIDATED FINANCIAL STATEMENTS
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72
NEKKAR ANNUAL REPORT 2023 CONSOLIDATED FINANCIAL STATEMENTS
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74
NEKKAR ANNUAL REPORT 2023 CONSOLIDATED FINANCIAL STATEMENTS
75
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76
NEKKAR ANNUAL REPORT 2023 CONSOLIDATED FINANCIAL STATEMENTS
77
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78
NEKKAR ANNUAL REPORT 2023 CONSOLIDATED FINANCIAL STATEMENTS
79
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80
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82
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84
NEKKAR ANNUAL REPORT 2023 CONSOLIDATED FINANCIAL STATEMENTS
85
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86
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87
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88
NEKKAR ANNUAL REPORT 2023 CONSOLIDATED FINANCIAL STATEMENTS
89
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90
NEKKAR ANNUAL REPORT 2023 CONSOLIDATED FINANCIAL STATEMENTS
91
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1)
92
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93
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94
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95
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96
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100
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NEKKAR ANNUAL REPORT 2023 CONSOLIDATED FINANCIAL STATEMENTS
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106
NEKKAR ANNUAL REPORT 2023 CONSOLIDATED FINANCIAL STATEMENTS
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108
NEKKAR ANNUAL REPORT 2023 CONSOLIDATED FINANCIAL STATEMENTS
109
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110
NEKKAR ANNUAL REPORT 2023 PARENT COMPANY FINANCIAL STATEMENTS
110
NEKKAR ANNUAL REPORT 2023 PARENT COMPANY FINANCIAL STATEMENTS
NEKKAR ASA PER 31 DECEMBER 2023
Parent company
financial statements
Profit and loss
Balance sheet
Equity
Cash flow
Accounting principles
NOTES
Note Related parties
Note Personnel costs number of employees remunerations loans to employees etc
Note Pensions
Note Tangible and intangible assets
Note Other operating costs
Note Financial items and exchange rate gainslosses
Note Tax
Note Subsidiaries and associated companies
Note Trade and other receivables
Note Other current liabilities
Note Assets pledged as security and guarantees
Note Cash and cash equivalents
Note Share capital and shareholder information
Note Subsequent events
111
NEKKAR ANNUAL REPORT 2023 PARENT COMPANY FINANCIAL STATEMENTS | NEKKAR ASA
Statement of profit and loss
For the year ended 31 December
Amounts in NOK 1000 Notes 2023 2022
OPERATING INCOME
Intra-Group operating income 5 245 7 389
Operating income 422 -
Group service fee from subsidiaries 1 4 150 4 150
Total operating income 9 816 11 539
OPERATING COSTS
Personnel cost 2, 3 34 990 38 347
Capitalised personel cost 2 -9 100 -11 600
Depreciation on tangible fixed assets 4 1 037 5 739
Other operating costs 2, 5 17 274 16 870
Total operating costs 44 200 49 356
Operating profit/-loss -34 384 -37 817
FINANCIAL INCOME AND EXPENSES
Income from investments in subsidiaries 1, 6 161 489 -
Interest income 6 6 128 2 835
Other financial income 6 4 957 405
Interest expenses 6 5 852 3 201
Other financial expenses 6 2 042 567
Net financial items 164 679 -528
Profit before tax 130 295 -38 345
Tax 7 -5 235 -8 031
Profit for the year 135 530 -30 313
Transferred to other equity 135 530 -30 313
112
NEKKAR ANNUAL REPORT 2023 PARENT COMPANY FINANCIAL STATEMENTS
Balance sheet
For the year ended 31 December
Amounts in NOK 1000 Notes 2023 2022
ASSETS
NON-CURRENT ASSETS
INTANGIBLE ASSETS
Deferred tax assets 7 21 738 16 503
Intangible assets 4 8 405 23 254
Total intangible assets 30 143 39 757
FIXED ASSETS
Furniture, office and computer equipment 4 4 285 4 128
Total fixed assets 4 285 4 128
FINANCIAL FIXED ASSETS
Shares in subsidiaries 8 249 008 246 275
Investments in associated companies 8 53 763 -
Other receivables 6 878 -
Total financial fixed assets 303 650 246 275
Total non-current assets 338 078 290 160
CURRENT ASSETS
CURRENT RECEIVABLES
Trade receivables 9 527 13
Intra-group accounts receivable 1, 9 16 789 7 740
Other receivables 9 1 589 3 431
Other intra-group receivables 1, 9 100 000 -
Total current receivables 118 905 11 184
Bank deposits 12 160 547 172 168
Total current assets 279 452 183 353
Total assets 617 530 473 512
113
NEKKAR ANNUAL REPORT 2023 PARENT COMPANY FINANCIAL STATEMENTS | NEKKAR ASA
Balance sheet
For the year ended 31 December
Amounts in NOK 1000 Notes 2023 2022
EQUITY AND LIABILITIES
EQUITY
PAID UP EQUITY
Share capital 13 11 817 11 746
Treasury shares 13 -153 -1
Share premium 13 9 206 5 919
Total paid up equity 20 870 17 664
RETAINED EARNINGS
Other equity 419 627 295 240
Total retained earnings 419 627 295 240
Total equity 440 497 312 904
LIABILITIES
OTHER NON-CURRENT LIABILITIES
Liabilities to financial institutions - -
Total other non-current liabilities - -
CURRENT LIABILITIES
Trade payables 3 761 4 659
Intra-group trade payables 1 255 5 775
Social security and employees` tax deduction 1 974 1 752
Other intra-group liabilities 1, 12 161 657 141 210
Other current liabilities 2, 6, 10 9 386 7 211
Total current liabilities 177 033 160 608
Total liabilities 177 033 160 608
Total equity and liabilities 617 530 473 512
Kristiansand, 29 April 2024
Board of Directors, Nekkar ASA
Trym Skeie
Chair of the Board
Gisle Rike
Director
Ole Falk Hansen
CEO
Håkon André Berg
Director
Trine Ingebjørg Ulla
Director
Marit Solberg
Director
114
NEKKAR ANNUAL REPORT 2023 PARENT COMPANY FINANCIAL STATEMENTS
Statement of change in equity
For the year ended 31 December
Amounts in NOK 1000 Share capital Treasury shares Share premium Other equity Total
Equity as of 1.1.2022 11 714 (1) 3 863 325 554 341 131
New share issued 32 - 2 056 - 2 088
Net profit for the year - - - (30 313) (30 313)
Equity as of 31.12.2022 11 746 (1) 5 919 295 240 312 904
Equity as of 1.1.2023 11 746 (1) 5 919 295 240 312 904
New share issued 71 - 3 287 - 3 359
Change in treasury shares - (152) - (11 162) (11 314)
Net profit for the year - - - 135 548 135 548
Equity as of 31.12.2023 11 817 (153) 9 206 419 627 440 497
115
NEKKAR ANNUAL REPORT 2023 PARENT COMPANY FINANCIAL STATEMENTS | NEKKAR ASA
Statement of cash flow
For the year ended 31 December
Amounts in NOK 1000 Notes 2023 2022
CASH FLOW FROM OPERATING ACTIVITIES
Net profit before tax 130 295 -38 345
Paid tax 7 - -
Depreciation 4 1 037 5 739
Net interest received 6 -275 366
Change in current receivables and current liabilities -112 450 2 419
Net cash flow from operating activities 18 607 -29 821
CASHFLOW FROM INVESTMENTS
Investment i associated company 8 -25 000 -
Transacton costs related to investements 8 -3 763 -
Investments in subsidiaries 8 -2 733 -67 542
Expenditures of tangible and intangible assets 4 -11 805 -17 520
Proceeds to and repayment from intra-group loans - 17 631
Net cashflow from investments -43 301 -67 431
CASHFLOW FROM FINANCING
Proceeds from group contribution - 151 432
Proceeds from issuance of share capital 7 3 359 2 088
Net change overdraft facility / cash pool 12 20 446 -16 574
Treasury shares purchase 13 -11 009 -
Net interest paid 6 275 -366
Net cashflow from financing 13 072 136 580
EFFECTS OF EXCHANGE-RATE FLUCTUATIONS ON CASH AND CASH EQUIVALENTS
Net change in cash and cash equivalents -11 623 39 328
Cash and cash equivalents (opening balance) 172 168 132 839
Cash and cash equivalents (closing balance) 160 547 172 168
This consists of:
Bank and cash pool deposits 160 547 172 168
116
NEKKAR ANNUAL REPORT 2023 PARENT COMPANY FINANCIAL STATEMENTS
The financial statements have been prepared in
accordance with The Norwegian Accounting Act and
generally accepted accounting principles in Norway.
Subsidiaries, associated companies
Subsidiaries and associates are valuated at cost,
less any impairment losses. Impairment losses
are reversed if the reason for the impairment
loss disappears in a later period. Dividends,
group contributions and other distributions from
subsidiaries are recognised as financial income
in the same year as they are recognised in the
financial statement of the provider. If dividends /
group contribution exceed withheld profits after
the acquisition date, the excess amount represents
repayment of invested capital, and the distribution
will be deducted from the recorded value of the
acquisition in the balance sheet for the parent
company.
Operating income
Operating income includes income on delivered
products and services granted over the year. The
income is recognised once the delivery of services
has taken place and most of the risk and return has
been transferred.
Classification and valuation of balance sheet items
Current assets and short-term liabilities include items
which fall due within one year, and items related to
the operating cycle. Other balance sheet items are
classified as fixed assets / long term liabilities.
Current assets are valued at the lower of cost and fair
value. Short term liabilities are posted in the balance
sheet at the nominal value at the time of initial
establishment.
Fixed assets are valued at cost, less depreciation and
impairment losses. Long term liabilities are posted in
the balance sheet at the nominal value at the time of
the initial establishment.
Accounts receivables and other receivables
Accounts receivable and other current receivables
are recorded in the balance sheet at their nominal
value less impairment provision on unsecured claims.
Provisions on unsecured claims are made on basis of
an individual assessment of the different receivables.
A general loss provision on other receivables is
estimated based on expected loss.
Short term investments
Short term investments are valued at the lower
of acquisition cost and fair value at the balance
sheet date. Dividends and other distributions are
recognised as other financial income.
Property, plant and equipment
Property, plant and equipment is capitalised and
depreciated linearly over the asset’s estimated useful
life. Costs for maintenance are expensed as incurred,
whereas costs for improving and upgrading property,
plant and equipment are added to the acquisition
cost and depreciated with the related asset. If
carrying value of non-current asset exceeds the
estimated recoverable amount, the asset is impaired
to the recoverable amount. The recoverable amount
is greater of the net value and value in use. When
assessing value in use a DCF-model on the cash flow
from the asset are applied.
Pensions
Nekkar ASA has established a defined contribution
plan for its employees.
Within the defined contribution plan the company
pays a fixed contributions to a separate legal entity.
The company has no legal or other obligation to
pay further contributions if the insurance company
does not have sufficient assets to pay all employee
benefits relating to employee service in current and
prior periods. Contributions are recorded as payroll
expense in the financial statements.
The Group recognises the service cost of the pension
plan as a payroll expense in the statement of profit
and loss.
Accounting principles
Nekkar ASA
117
NEKKAR ANNUAL REPORT 2023 PARENT COMPANY FINANCIAL STATEMENTS | NEKKAR ASA
Taxes
The tax expense in the profit and loss accounts
consists of the current tax payable and changes to
deferred tax. Deferred tax/tax assets are calculated
on all differences between the book value and
tax value of assets and liabilities. Deferred tax is
calculated as 22 percent of temporary differences
and the tax effect of tax losses carried forward. Tax-
increasing and tax-reducing temporary differences
which are reversed, or could be reversed, during
the same period are offset against each other and
recorded as a net sum. Temporary changes are only
assessed for the Norwegian companies. Deferred tax
assets are recorded in the balance sheet when it is
more likely than not that tax assets will be utilised.
Taxes payable and deferred taxes are recognised
directly in equity to the extent that they relate to
equity transactions.
Foreign currency
Transactions in foreign currency are translated at the
rate applicable on the transaction date. Monetary
items in a foreign currency are translated into NOK
using the exchange rate applicable on the balance
sheet date.
Non-monetary items that are measured at their
historical price expressed in foreign currency
are translated into NOK using the exchange rate
applicable on the transaction date. Non-monetary
items that are measured at their fair value expressed
in a foreign currency are translated at the exchange
rate applicable on the balance sheet date.
Changes to exchange rates are recognised in
the income statements as they occur during the
accounting period.
Currency rates on year end which is basis for
revaluation of balance sheet items are:
Currency rate 2023 2022
EUR 11.24 10.51
USD 10.17 9.86
118
NEKKAR ANNUAL REPORT 2023 PARENT COMPANY FINANCIAL STATEMENTS
Note 1 Related parties
Amounts in NOK 1000
Subsidiaries and associates (Note 8), members of the Board (Note 2) and members of the senior executive
group are considered as related parties. Nekkar ASA is involved in various transactions with associated
companies where all transactions are based on normal course of business and at arms length prices.
2023 2022
SALES, ROYALTIES, SALES FEES, GROUP FEE:
Subsidiaries, group fees 4 150 4 150
Dividends 61 489 -
Group contribution 100 000 -
RECEIVABLES
Accounts receivables 16 789 7 740
Other short term receivables
1)
100 000 -
CURRENT LIABILITIES
Accounts payable to subsidiaries 255 5 775
Other short term payables to subsidiaries
2)
161 657 141 210
1) Other short term receivables consist of group contribution from Syncrolift AS.
2) Other short term payables to subsidiaries includes Syncrolift AS’ share of cash within the global cash pool (MNOK 161.6).
Chair of the Board, Trym Skeie, is also Chair and shareholder in Stimline AS. Nekkar ASA has acquired services
from Stimeline AS of MNOK 0.1 during 2023.
The above mention transactions are based on normal course of business and are at arm’s length prices.
Information on the Board and senior executive group’s shares are stated in Note 13.
119
NEKKAR ANNUAL REPORT 2023 PARENT COMPANY FINANCIAL STATEMENTS | NEKKAR ASA
Note 2 Personnel costs, number of employees, remunerations, loans to
employees etc.
Amounts in NOK 1000
Payroll expense: 2023 2022
Salaries 27 024 32 210
Employer's social security contribution 4 108 2 682
Capitalised payroll expenses
1)
-9 100 -11 600
Pension costs 1 892 1 774
Other benefits 1 966 1 681
Total payroll expenses 25 890 26 747
1) Payroll expenses of MNOK 9.1 has been capitalised as Development costs in 2023 (Note 4)
Number of average full-time employees 17 14
Board remunerations
1)
2023 2022
Trym Skeie Board member since 06.2008. 550 500
Gisle Rike
2)
Board member since 06.2015. 347 315
Ingunn Svegården
3)
Board member since 10.2019 - 05.2023 347 315
Marit Solberg Board member since 10.2019 347 315
Trine Ulla Board member since 06.2023 - -
Håkon Andre Berg Board member since 06.2023 - -
Total 1 590 1 445
1) The Annual General Meeting determines the remuneration to the Board and nomination commitee from one General Meeting to the next.
For the financial year 2023, the reported remuneration is related to the remuneration paid in 2023 based on the amounts determined by the
Board at the Annual General Meeting for 2022.
2) Gisle Rike represents Rasmussengruppen AS and the Board fee is paid to Rasmussengruppen AS.
3) Ingunn Svegården was replaced by Trine Ulla at the general meeting 31.05.2023.
The Board has not received any remuneration beyond Director’s fee. No loans or severance pay is given to the
Directors.
Nomination committee remuneration
Nekkar’s nomination committee comprised of the following members: Anne Grethe Ellingsen (Chair) and Ditlef
de Vibe.
The nomination committee remuneration paid in 2023 was TNOK 67 for the Chair and TNOK 40 for the member,
a total of TNOK 107.
120
NEKKAR ANNUAL REPORT 2023 PARENT COMPANY FINANCIAL STATEMENTS
Statement regarding the stipulation of remuneration and other benefits for the CEO and
other executives
Regarding Group management, Nekkar ASA’s remuneration policy is based on offering competitive terms.
Remunerations should reflect that Nekkar is a listed company with an international focus.
The annual remuneration is based on Group managements part-taking in the results generated by the company
and the added value for shareholders through increased company value.
Remuneration consists of two main components; Base salary and bonus.
• Base salaries is intented to be competetive and motivating, but in line with general market terms.
• Bonus for the CEO and other executives is determined on the basis of target results and on individual
targets. Bonus targets are revised annually and is limited to 50 percent of base salary for the CEO and
other executives. Bonus payments reported in 2023 is based on the evaluation of the relevant performance
criteria for the fiscal year ending 31 December 2023. Bonus payments are based on individual employment
contracts. A bonus provision of MNOK 3,7 is included in other current liabilities per 31 December 2023 for
the CEO and other executives based on the 2023 targets. The final bonus payment is to be approved by the
board.
Senior executives have notice six months, and severance pay periods of up to six months.
Reference is made to remuneration report for further details. .
Renumeration and other benefits for the CEO and other senior executives
Amounts in NOK 1000
Name Position
Base
salary
Other
benefits
Bonus
paid
Pension
cost
Ole Falk Hansen CEO 3 022 22 579 168
Preben Liltved COO (until 6.2023) 934 12 194 172
Petter Brøvig Head of Strategy 1 065 14 69 121
Mette Harv EVP Impact Technology Ventures 1 843 23 392 186
Marianne Voreland Ottosen Head of finance 1 259 14 276 151
Remunerations Taxable remuneration
Other benefits Board remuneration, sign-on fee, car, group life insurance, phone, newspaper, etc.
Bonus paid Bonus paid in current year
Auditors’ fees (excl. VAT) 2023 2022
Statutory audit 1 254 890
Other attestation services - 75
Tax advisory - -
Other assistance 3 108
Total 1 257 1 073
121
NEKKAR ANNUAL REPORT 2023 PARENT COMPANY FINANCIAL STATEMENTS | NEKKAR ASA
Note 3 Pensions
Amounts in NOK 1000
Net pension costs from defined contribution plan 2023 2022
Service cost 1 892 1 774
Payroll tax of net pension cost 267 250
Net periodic pension cost 2 159 2 024
Nekkar has established a defined contribution plan for all employees in compliance with Norwegian pension
schemes, fulfilling the requirements as stipulated by the “lov om obligatorisk tjenestepensjon” law.” All
employees are part of the Norwegian Companies’ pension scheme: 36. Reference is made to remuneration
report for further details.
Note 4 Tangible and intangible assets
Amounts in NOK 1000
Intangible assets,
Development
Furniture and
office equip.
Starfish down-
scaled pilot
version" Total
2022 Fiscal year
Book value as of 1.1. 19 456 4 832 4 813 29 100
Additions 28 094 222 - 28 316
Grants recognised as a reduction to the assets -10 796 - - -10 796
Disposals -13 500 - - -13 500
Depreciation, amortisation and impairments
1)
- -926 -4 813 -5 739
Book value as of 31.12.2022 23 254 4 128 - 27 382
As of 31.12.2022
Acquisition cost 31.12. 23 254 24 239 5 500 52 993
Accumulated depreciation as of 31.12. - -20 113 -5 500 -25 613
Book value as of 31.12.2022 23 254 4 128 - 27 382
2023 Fiscal year
Book value as of 1.1. 23 254 4 128 - 27 382
Additions 9 256 1 194 - 10 450
Grants recognised as a reduction to the assets -2 765 - - -2 765
Disposals -21 340 - - -21 340
Depreciation, amortisation and impairments
1)
- -1 037 - -1 037
Book value as of 31.12.2023 8 405 4 285 - 12 690
As of 31.12.2023
Acquisition cost 31.12. 8 405 25 433 - 33 838
Accumulated depreciation as of 31.12. - -21 149 - -21 149
Book value as of 31.12.2023 8 405 4 285 - 12 690
Depreciation schedule None Linear Linear
Depreciation period 3-10 years 2 years
122
NEKKAR ANNUAL REPORT 2023 PARENT COMPANY FINANCIAL STATEMENTS
The company has no leases classified as financial lease.
Development costs:
The book value of Development assets, TNOK 8 405, includes development expenses incurred in connection
with the development of the 3D compensated crane Vector and new Gangway concept Voyager in addition to
SkyWalker for offshore main component replacement. During 2023 Nekkar continued the development of a
closed cage for fish farming, Starfish. This project received a Government grants of TNOK 2,765 in 2023. The
additions is presented net of grants received. Upon Nekkar’s investment in Fiizk, Starfish, was transferred to
Starfish AS, whichwas included as a in-kind contribution in the Fiizk transaction.
Impairment assessment:
The company performed its impairment assessment in December 2023. The recoverable amount has been
determined based on a value in use calculation using five-year cash flow projections. The impairment test
indicated that the recoverable amount exceeds book value, hence no impairment is recognised as per 31
December 2023.
Operating lease agreements:
Nekkar ASA has entered into a lease agreements for offices. The lease is classified as operational lease.
Total lease payment in 2023 is TNOK 2,043.
123
NEKKAR ANNUAL REPORT 2023 PARENT COMPANY FINANCIAL STATEMENTS | NEKKAR ASA
Note 5 Other operating costs
Amounts in NOK 1000
2023 2022
Cost of premises 868 705
IT costs 3 043 2 575
Marketing, travel 1 391 902
Consultancy, hire-ins and external services 7 456 8 642
Other expenses 4 515 4 045
Total other operating costs 17 274 16 870
Note 6 Financial items and exchange rate gains/losses
Amounts in NOK 1000
2023 2022
Group contribution from subsidiaries 100 000 -
Dividend from subsidiaries
1)
61 489 -
Interest income from bank deposits 6 128 2 835
Other financial income 4 544 -
Interest paid to financial institutions -5 852 -3 201
Other financial costs -2 042 -567
Net exchange rate gains/losses(-) 413 405
Net financial items 164 679 -528
Exchange rate gains/losses:
Currency differences booked to income and costs in the profit and loss account are as follows: 2023 2022
Currency exchange income 1 581 1 220
Currency exchange costs (1 168) (815)
Total 413 405
1) Dividends from subsidiaries for the 2022 fiscal year, issued after Nekkar ASA’s reporting period, are not accounted for in the 2022
financial statements
124
NEKKAR ANNUAL REPORT 2023 PARENT COMPANY FINANCIAL STATEMENTS
Note 7 Tax
Amounts in NOK 1000
Change in deferred tax assets and deferred tax liabilities:
01.01.2022
Changes
2022 31.12.2022
Changes
2023 31.12.2023
Deferred tax
Fixed assets 54 -37 17 117 134
Tax loss carry forward -8 472 -8 048 -16 520 -5 352 -21 872
Gross deferred tax (assets = - / liabilities = +) -8 417 -8 085 -16 503 -5 235 -21 738
Unrecognised deferred tax assets related to other temp.
differences -55 55 - - -
Net deferred tax reported (assets = - / liabilities = +) -8 472 -8 031 -16 503 -5 235 -21 738
Deferred tax assets related to losses which can be carried forward for tax purposes, are reported if the
management believes it is likely that the company can use these against future taxable income. Nekkar
ASA, Syncrolift AS, Techano Oceanlift AS, Nekkar SkyWalker Onshore AS and Nekkar Invest AS represent a
Norwegian Taxable group as the ownership is more than 90 percent. Based on expected taxable profit inthe
taxation group for the forthcoming five-year period, tax assetsof MNOK 21,738 have been recognised as per 31
December 2023.
Breakdown of differences between profit before tax as per the accounts and tax basis for year: 2023 2022
Result before tax 130 295 -38 345
Permanent differences -59 854 1 593
Change to temporary profit/loss differences -531 167
Contribution from subsidiaries -94 236 -
Basis for tax payable -24 326 -36 584
125
NEKKAR ANNUAL REPORT 2023 PARENT COMPANY FINANCIAL STATEMENTS | NEKKAR ASA
Note 8 Subsidiaries and associated companies
Amounts in NOK 1000
Nekkar ASA
Investments in subsidiaries valued at cost:
Subsidiary
Registered
office
Acqui-
sition
date
Owner-
ship
Voting
share
Cur-
rency
Share
capital
Number
of
shares
Equity
31.12.2023
Net
Result
2023 Cost
Net
book
value
2023
Net
book
value
2022
Syncrolift AS
Vestby,
Norway 1994 100% 100% NOK 1 045 000 95 000 302 072 111 864 215 078 215 078 215 078
Nekkar Invest AS
Kristiansand,
Norway 2018 100% 100% NOK 60 000 30 000 46 765 3 750 17 697 17 697 17 697
Nekkar SkyWalker
Onshore AS
Kristiansand,
Norway 2022 100% 100% NOK 30 000 30 000 13 389 23 13 500 13 500 13 500
Techano Oceanlift
AS
Kristiansand,
Norway 2023 90% 90% NOK 505 051 30 000 4 691 1 931 2 733 2 733 -
Total 366 917 117 568 249 008 249 008 246 275
Associated
companies
Registered
office
Acqui-
sition
date
Owner-
ship
Voting
share
Cur-
rency
Share
capital
Number
of
shares
Equity
31.12.2023
Net
Result
2023 Cost
Net
book
value
2023
Net
book
value
2022
FiiZK Topco AS
Trondheim,
Norway 2023 39% 39% NOK 136 215 325 30 000 65 813 -70 396 53 763 53 763 -
126
NEKKAR ANNUAL REPORT 2023 PARENT COMPANY FINANCIAL STATEMENTS
Note 9 Trade and other receivables
Amounts in NOK 1000
2023 2022
Trade receivables 527 13
Intra-group accounts receivables 16 789 7 740
Group contribution receivable 100 000 -
Other receivables, including prepayments 1 589 3 431
Short-term receivables 118 905 11 184
Receivables based on intercompany trade and group fees are settled on a regular basis.
There are no long-term receivables, maturing at over one year.
Note 10 Other current liabilities
Amounts in NOK 1000
2023 2022
Provision for unpaid wages and salaries 3 700 1 433
Provision for holiday pay 2 219 1 695
Other accrued expenses 3 466 4 083
Total other current liabilities 9 386 7 211
127
NEKKAR ANNUAL REPORT 2023 PARENT COMPANY FINANCIAL STATEMENTS | NEKKAR ASA
Note 11 Assets pledged as security and guarantees
Amounts in NOK 1000
Nekkar ASA has no interest bearing debt, however a guarantee facility with Nordea Norge ASA is established.
Nekkar has the following credit facilities through its facilitators:
2023 2022
Limit Drawn Limit Drawn
Guarantee limit for Group (Nordea) 290 000 164 363 290 000 200 897
Overdraft facility (Nordea) 100 000 - 100 000 -
Revolving Credit facility (Nordea) 100 000 - 100 000 -
The finance agreements include pledges of plant and machinery, inventory and accounts receivables in Nekkar
ASA, Techano Oceanlift AS and Syncrolift AS. The guarantee limit is utilised by Nekkar ASA, Techano Oceanlift
AS and Syncrolift AS and cover performance guarantees and advance payment guarantees.
Under the new credit facilities established in 2022, the financial covenants are a debt ratio based on net debt/
EBITDA and an equity ratio based on equity/total assets.
• The company’s debt ratio shall not exceed 2,5 times the EBITDA and is calculated from the consolidated total
interest bearing debt to the consolidated EBITDA.
• Equity ratio shall not be lower than 35 percent, calculated from the consolidated total equity to consolidated
total assets.
The covenants also include a term related to Nekkar maintaining its 100 percent ownership in Syncrolift AS. The
covenants are monitored on a regular basis to ensure compliance with the credit agreements which are tested
and reported on a quarterly basis. Nekkar was in compliance with its covenants as of 31 December 2023.
For the above mentioned facilities the following assets have been pledged as collateral to Nordea:
Assets pledged as collateral for secured debt - Group values: 2023 2022
Account/Group receivables 77 588 125 947
Inventory/Work in progress, including non-invoiced production 151 706 125 035
Property, plant and equipment 9 068 8 995
Assets pledged as collateral * 238 362 259 976
* Assets pledged as collateral only includes Nekkar ASA and Syncrolift AS. The pledged assets are presented in the balance sheet under
the differenct categories.
128
NEKKAR ANNUAL REPORT 2023 PARENT COMPANY FINANCIAL STATEMENTS
Note 13 Share capital and shareholder information
Amounts in NOK 1000
Date Number of shares Nominal value Share capital
31.12.2023 107 427 112 0.11 11 817
31.12.2022 106 780 334 0.11 11 746
In 2023 there was an increase in share capital of NOK 71,146 and an increase in share premium of NOK 3,287,354.
The capital increase was related to a share purchase program where 646,778 shares were issued.
Dividends paid and proposed: 2023 2022
Dividend declared and paid during the year: per share 0.00 0.00
Dividend proposed: per share 0.00 0.00
Repayment of issued equity: NOK per share 0.00 0.00
Treasury shares: Number of shares Share capital
Purchase/(sale) of treasury shares 2022 - -
Treasury shares as of 31.12.2022 6 632 1
Purchase/(sale) of treasury shares 2023 1 392 333 153
Treasury shares as of 31.12.2023 1 398 965 154
On August 29th Nekkar announced its decision to initiate a share buy-back programme. The share buy-
back programme is executed in accordance with the authorisation granted to the Board of Directors by the
Annual General Meeting of Nekkar held on 30 May 2023. The program will be used for corporate purposes
in accordance with the above-mentioned authorisation. Nekkar currently holds 1,398,965 of its own shares,
representing 1.3 percent of the company’s total shares. The total transaction value for the purchased treasury
shares in 2023 amounted to NOK 11.3 million
Note 12 Cash and cash equivalents
Amounts in NOK 1000
2023 2022
Bank deposits / (withdrawal), cash etc. as per 31.12. (1 110) 30 958
Deposits (+)/withdrawals (-) from cash pool account system as at 31.12. 161 657 141 210
Total cash and cash equivalents 160 547 172 168
Restricted bank deposits per 31 December 2023 were TNOK 1,500 and is related to employee’s tax witholding.
Additional undrawn committed current bank revolving credit facilities and overdraft facilities amount to MNOK
200 million, that together with cash and cash equivalents gives a total liquidity reserve of MNOK 360 as of 31
December 2023. See also note 11.
129
NEKKAR ANNUAL REPORT 2023 PARENT COMPANY FINANCIAL STATEMENTS | NEKKAR ASA
Principal shareholders of Nekkar ASA as of 31.12.2023:
Shareholder Number of shares Ownership Voting share
4)
Skeie Teknologi AS
1,3)
31 475 823 29.3% 29.7%
Rasmussengruppen AS 11 512 506 10.7% 10.9%
Mp Pensjon PK 5 126 303 4.8% 4.8%
Tigerstaden AS 5 000 000 4.7% 4.7%
Nordnet Bank AB 4 994 006 4.6% 4.7%
Dnb Bank ASA 4 053 000 3.8% 3.8%
Avanza Bank AB 3 953 850 3.7% 3.7%
Hatle AS 2 755 361 2.6% 2.6%
Vinterstua AS 1 570 279 1.5% 1.5%
Seb Cmu/Secfin Pooled Account 1 520 528 1.4% 1.4%
Skeie Consultants AS
2)
1 507 243 1.4% 1.4%
Itlution AS 1 475 261 1.4% 1.4%
Nekkar ASA 1 365 965 1.3% 1.3%
Skeie Kappa Invest AS
3)
1 204 828 1.1% 1.1%
Patronia AS 1 014 429 0.9% 1.0%
Alundo Invest AS 1 000 000 0.9% 0.9%
Jæderen AS 896 330 0.8% 0.8%
Sedal AS 810 000 0.8% 0.8%
Avant AS 744 034 0.7% 0.7%
Citibank Europe PLC 675 037 0.6% 0.6%
Total, 20 largest shareholders 82 654 783 76.9% 78.0%
own shares 1 398 965 1.3% 0.0%
Total other 23 373 364 21.8% 22.0%
Total 107 427 112 100.0% 100.0%
1) Shares owned or controlled by the Skeie family, and companies directly or indirectly controlled by them, holds 34 701 181 shares
representing 32,5% of total shares.
2) Shares owned or controlled by Bjarne Skeie, and companies directly or indirectly controlled by him, holds 1 507 243 shares representing
1,4% of total shares.
3) Trym Skeie holds 513 287 shares in person and 1 204 828 through Skeie Kappa Invest AS. Total shares owned or controlled by Trym
Skeie, and companies directly or indirectly controlled by him, is 1 718 115, representning 1,6% of total shares.
4) Voting portion are calculated after eliminating shares held by Nekkar ASA.
130
NEKKAR ANNUAL REPORT 2023 PARENT COMPANY FINANCIAL STATEMENTS
Note 14 Subsequent events
Subsequent events regarding Nekkar ASA are listed in Note 23 in Nekkar Group.
Shares, share options and convertion rights owned or controlled by Board members, Group executives and
their relatives:
Shares
31.12.2023 31.12.2022
Board members
Trym Skeie
1)
1 718 115 1 669 970
Marit Solberg 127 140 96 809
Group Executives
Ole Falk Hansen
2)
296 601 200 311
Marianne Voreland Ottosen 19 258 -
Petter Brøvig
3)
96 290
Mette Harv 249 991 198 765
1) Trym Skeie holds 513 287 shares in person and 1 204 828 through Skeie Kappa Invest AS. Total shares owned or controlled by Trym
Skeie, and companies directly or indirectly controlled by him, is 34 701, representning 33,6% of total shares.
2) Ole Falk Hansen holds 296 601 shares through OFH Invest AS
3) Petter Brøvig holds 96 290 shares through Pimlico AS
On 30 May 2023, the Annual General Meeting
adopted a resolution to give the Board general
authority to issue a maximum of 21,485,422 shares
against cash or non-monetary redemption, including
merger related activities to acquisitions of business
or assets within the same or corresponding business
sector as the company. This authorisation is valid
until the next Annual General Meeting and latest on
30 June 2024. No shares have been issued on the
basis of this authorisation in 2023.
On 30 May 2023, the Annual General Meeting
adopted a resolution to give the Board authority
to issue a maximum of 2,820,058 shares against
cash redemption for the benefit of the company’s
executive management and Board members. This
authorisation is valid until the next Annual General
Meeting and latest on 30 June 2024. After 30 May
2023, 646,778 shares have been issued in relation to
the share purchase programme.
On 30 May 2023, the Annual General Meeting
adopted a resolution to give the Board authority
to buy own shares of up to 10 percent of the face
value of the share capital of the company. The Board
decides aquisition method, at a price between 1 to 25
NOK. This authorisation is valid until the next Annual
General Meeting and latest on 30 June 2024.
1,392,333 shares have been bought back on the basis
of this authorisation in 2023, at a total value of NOK
11,313,981.
131
NEKKAR ANNUAL REPORT 2023 AUDITORS’ REPORT
Auditors’ report
KPMG AS
Kanalveien 11
P.O.
Box 4 Kristianborg
N
-5822 Bergen
Telephone +47 45 40 40 63
Internet www.kpmg.no
Enterprise 935 174 627 MVA
© KPMG AS, a Norwegian limited liability company and a member firm of the KPMG global organization of independent member
firms affiliated with KPMG
International Limited, a private English company limited by guarantee. All rights reserved.
Statsautoriserte revisorer
-
medlemmer av Den norske Revisorforening
Offices in:
Oslo
Alta
Arendal
Bergen
Bodø
Drammen
Elverum
Finnsnes
Hamar
Haugesund
Knarvik
Kristiansand
Mo i Rana
Molde
Sandefjord
Stavanger
Stord
Straume
Tromsø
Trondheim
Tynset
Ulsteinvik
Ålesund
To the General Meeting of Nekkar ASA
Independent Auditor’s Report
Report on the Audit of the Financial Statements
Opinion
We have audited the financial statements of Nekkar ASA, which comprise:
• the financial statements of the parent company Nekkar ASA (the Company), which comprise
the balance sheet as at 31 December 2023, statement of profit and loss, statement of
changes in equity and statement of cash flow for the year then ended, and notes to the
financial statements, including a summary of significant accounting principles, and
• the consolidated financial statements of Nekkar ASA and its subsidiaries (the Group), which
comprise the consolidated statement of financial position as at 31 December 2023,
consolidated statement of comprehensive income, consolidated statement of changes in
equity and consolidated statement of cash flows for the year then ended, and notes to the
financial statements, including material accounting policy information.
In our opinion
• the financial statements comply with applicable statutory requirements,
• the financial statements give a true and fair view of the financial position of the Company as at
31 December 2023, and its financial performance and its cash flows for the year then ended in
accordance with the Norwegian Accounting Act and accounting standards and practices
generally accepted in Norway, and
• the consolidated financial statements give a true and fair view of the financial position of the
Group as at 31 December 2023, and its financial performance and its cash flows for the year
then ended in accordance with IFRS Accounting Standards as adopted by the EU.
Our opinion is consistent with our additional report to the Audit Committee.
Basis for Opinion
We conducted our audit in accordance with International Standards on Auditing (ISAs). Our
responsibilities under those standards are further described in the Auditor’s Responsibilities for the
Audit of the Financial Statements section of our report. We are independent of the Company and the
Group as required by relevant laws and regulations in Norway and the International Ethics Standards
Board for Accountants’ International Code of Ethics for Professional Accountants (including
International Independence Standards) (IESBA Code), and we have fulfilled our other ethical
responsibilities in accordance with these requirements. We believe that the audit evidence we have
obtained is sufficient and appropriate to provide a basis for our opinion.
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NEKKAR ANNUAL REPORT 2023 AUDITORS’ REPORT
2
To the best of our knowledge and belief, no prohibited non-audit services referred to in the Audit
Regulation (537/2014) Article 5.1 have been provided.
We have been the auditor of the Company for 14 years from the election by the general meeting of the
shareholders on 30 November 2009 for the accounting year 2009.
Key Audit Matters
Key audit matters are those matters that, in our professional judgment, were of most significance in
our audit of the financial statements of the current period. These matters were addressed in the
context of our audit of the financial statements as a whole, and in forming our opinion thereon, and we
do not provide a separate opinion on these matters.
Revenue recognition
Reference is made to Note 2.16 Revenue Recognition and 4 Use of Judgement and Estimates in
Accounting principles and Note 2 Revenue
The Key Audit Matter How the matter was addressed in our audit
The majority of the Group's revenues and profits
derive from long-term construction contracts.
IFRS 15 Revenue from contracts with customers
("IFRS 15") is based on a five-step model for
revenue recognition and requirements and
guidance relevant to project accounting
estimates and judgements.
Judgement is required in determining the
number of performance obligations which can
impact the timing and amount of revenue
recognition for certain contracts. The standard
also has a complex criterion for assessing if
revenue should be recognized over time or at a
certain point in time. This assessment is
complicated, due to the group's different
revenue streams and the contract structures.
Timing of revenue recognition is based on the
assessment of contractual facts vs. criteria
under IFRS 15 and is subject to a high degree of
judgement.
Accounting for long term construction contracts
involves management estimates and judgments
and complex assessments of future events for
which there may be limited or no external
information available.
The key judgements and estimates applied by
management include their assessment of the
stage of project completion and cost outcomes.
Cost outcomes factored in management's
forecasts include expected cost to completion.
Contract accounting estimates and timing of
revenue recognition require significant attention
during the audit and are subject to a high degree
of auditor judgment. As such, revenue
recognition is considered a key audit matter.
Our audit procedures relating to significant long-
term construction contracts, performed by the
group team included:
• Challenging management's assumptions in
determining if certain contracts contain
single or multiple performance obligations
by obtaining, reading, and critically
assessing the terms and conditions of
relevant contractual documents.
• Assessing contractual revenue forecasts
including reconciling those forecasts with
reference to signed contracts and variation
orders.
• Critically considering the terms and
conditions of significant contracts and
comparing these to management's
assessment of the requirements in IFRS 15
relating to timing of revenue recognition;
over time vs. point in time revenue
recognition.
• For financially significant contracts and any
contracts with a reasonable possibility of
being in a significant loss-making position,
we applied professional scepticism and
critically assessed the accounting estimates
and judgments against the requirements of
IFRS 15
• Evaluating management's process for
assessing measurement of progress and the
method applied.
• Reading and discussing project reports with
management and comparing current
forecasts to historical outcomes where
relevant.
• Challenging management on the estimate of
cost to complete and the risk assessment
related to forecast cost.
• Evaluating the adequacy and
appropriateness of the disclosures in the
financial statements related to IFRS 15,
revenue from construction contracts.
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NEKKAR ANNUAL REPORT 2023 AUDITORS’ REPORT
3
Other Information
The Board of Directors and the Managing Director (management) are responsible for the information
in the Board of Directors’ report and the other information accompanying the financial statements. The
other information comprises information in the annual report, but does not include the financial
statements and our auditor’s report thereon. Our opinion on the financial statements does not cover
the information in the Board of Directors’ report nor the other information accompanying the financial
statements.
In connection with our audit of the financial statements, our responsibility is to read the Board of
Directors’ report and the other information accompanying the financial statements. The purpose is to
consider if there is material inconsistency between the Board of Directors’ report and the other
information accompanying the financial statements and the financial statements or our knowledge
obtained in the audit, or whether the Board of Directors’ report and the other information
accompanying the financial statements otherwise appears to be materially misstated. We are required
to report if there is a material misstatement in the Board of Directors’ report or the other information
accompanying the financial statements. We have nothing to report in this regard.
Based on our knowledge obtained in the audit, it is our opinion that the Board of Directors’ report
• is consistent with the financial statements and
• contains the information required by applicable statutory requirements. Our opinion on the
Board of Director’s report applies correspondingly to the statements on Corporate Governance
and Corporate Social Responsibility.
Responsibilities of Management for the Financial Statements
Management is responsible for the preparation of financial statements of the Company that give a true
and fair view in accordance with the Norwegian Accounting Act and accounting standards and
practices generally accepted in Norway, and for the preparation of the consolidated financial
statements of the Group that give a true and fair view in accordance with IFRS Accounting Standards
as adopted by the EU. Management is responsible for such internal control as management
determines is necessary to enable the preparation of financial statements that are free from material
misstatement, whether due to fraud or error.
In preparing the financial statements, management is responsible for assessing the Company’s and
the Group’s ability to continue as a going concern, disclosing, as applicable, matters related to going
concern. The financial statements of the Company use the going concern basis of accounting insofar
as it is not likely that the enterprise will cease operations. The consolidated financial statements of the
Group use the going concern basis of accounting unless management either intends to liquidate the
Group or to cease operations, or has no realistic alternative but to do so.
Auditor’s Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole
are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that
includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that
an audit conducted in accordance with ISAs will always detect a material misstatement when it exists.
Misstatements can arise from fraud or error and are considered material if, individually or in aggregate,
they could reasonably be expected to influence the economic decisions of users taken on the basis of
these financial statements.
As part of an audit in accordance with ISAs, we exercise professional judgment and maintain
professional scepticism throughout the audit. We also:
• identify and assess the risks of material misstatement of the financial statements, whether due
to fraud or error. We design and perform audit procedures responsive to those risks, and
obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The
risk of not detecting a material misstatement resulting from fraud is higher than for one
resulting from error, as fraud may involve collusion, forgery, intentional omissions,
misrepresentations, or the override of internal control.
• obtain an understanding of internal control relevant to the audit in order to design audit
134
NEKKAR ANNUAL REPORT 2023 AUDITORS’ REPORT
4
procedures that are appropriate in the circumstances, but not for the purpose of expressing an
opinion on the effectiveness of the Company's and the Group's internal control.
• evaluate the appropriateness of accounting policies used and the reasonableness of
accounting estimates and related disclosures made by management.
• conclude on the appropriateness of management’s use of the going concern basis of
accounting and, based on the audit evidence obtained, whether a material uncertainty exists
related to events or conditions that may cast significant doubt on the Company's and the
Group's ability to continue as a going concern. If we conclude that a material uncertainty
exists, we are required to draw attention in our auditor’s report to the related disclosures in the
financial statements or, if such disclosures are inadequate, to modify our opinion. Our
conclusions are based on the audit evidence obtained up to the date of our auditor’s report.
However, future events or conditions may cause the Company and the Group to cease to
continue as a going concern.
• evaluate the overall presentation, structure and content of the financial statements, including
the disclosures, and whether the financial statements represent the underlying transactions
and events in a manner that achieves a true and fair view.
• obtain sufficient appropriate audit evidence regarding the financial information of the entities or
business activities within the Group to express an opinion on the consolidated financial
statements. We are responsible for the direction, supervision and performance of the group
audit. We remain solely responsible for our audit opinion.
We communicate with the Board of Directors regarding, among other matters, the planned scope and
timing of the audit and significant audit findings, including any significant deficiencies in internal control
that we identify during our audit.
We also provide the Audit Committee with a statement that we have complied with relevant ethical
requirements regarding independence, and to communicate with them all relationships and other
matters that may reasonably be thought to bear on our independence, and where applicable, related
safeguards.
From the matters communicated with the Board of Directors, we determine those matters that were of
most significance in the audit of the financial statements of the current period and are therefore the
key audit matters. We describe these matters in our auditor’s report unless law or regulation precludes
public disclosure about the matter or when, in extremely rare circumstances, we determine that a
matter should not be communicated in our report because the adverse consequences of doing so
would reasonably be expected to outweigh the public interest benefits of such communication.
Report on Other Legal and Regulatory Requirements
Report on Compliance with Requirement on European Single Electronic Format (ESEF)
Opinion
As part of the audit of the financial statements of Nekkar ASA, we have performed an assurance
engagement to obtain reasonable assurance about whether the financial statements included in the
annual report, with the file name 5967007LIEEXZXIFE872-2023-12-31-en, have been prepared, in all
material respects, in compliance with the requirements of the Commission Delegated Regulation (EU)
2019/815 on the European Single Electronic Format (ESEF Regulation) and regulation pursuant to
Section 5-5 of the Norwegian Securities Trading Act, which includes requirements related to the
preparation of the annual report in XHTML format.
In our opinion, the financial statements, included in the annual report, have been prepared, in all
material respects, in compliance with the ESEF regulation.
Management’s Responsibilities
Management is responsible for the preparation of the annual report in compliance with the ESEF
regulation. This responsibility comprises an adequate process and such internal control as
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NEKKAR ANNUAL REPORT 2023 AUDITORS’ REPORT
5
management determines is necessary.
Auditor’s Responsibilities
Our responsibility, based on audit evidence obtained, is to express an opinion on whether, in all
material respects, the financial statements included in the annual report have been prepared in
compliance with ESEF. We conduct our work in compliance with the International Standard for
Assurance Engagements (ISAE) 3000 – “Assurance engagements other than audits or reviews of
historical financial information”. The standard requires us to plan and perform procedures to obtain
reasonable assurance about whether the financial statements included in the annual report have been
prepared in compliance with the ESEF Regulation.
As part of our work, we have performed procedures to obtain an understanding of the Company’s
processes for preparing the financial statements in compliance with the ESEF Regulation. We
examine whether the financial statements are presented in XHTML-format. We believe that the
evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Bergen, 29 April 2024
KPMG AS
Knut Olav Karlsen
State Authorised Public Accountant
136
NEKKAR ANNUAL REPORT 2023 STATEMENT ON COMPLIANCE
Statement on
compliance
Today, the Board of Directors and the CEO has issued the 2023 annual integrated report which includes the Board
of Directors’ report, the sustainability report and the consolidated and separate financial statements related to
Nekkar ASA as of 31 December 2023.
This statement is based on reports, information and statements from the group’s CEO, CFO and other
administration, on the results of the group’s relevant activities, and on other information which is essential to
assess the position of the group and parent company.
To the best of our knowledge we confirm that;
• the Consolidated annual financial statements for 2023 have been prepared in accordance with IFRS Accounting
Standards as adopted by the EU, and additional Norwegian disclosure requirements in the Norwegian
Accounting Act
• the sustainability information have been prepared in accordance with the 2021 GRI Standards
• the Board of Directors report gives a true and fair view of the development, performance, financial position,
principle risks and uncertainties of the company and the group
• the information presented in the financial statements gives fair view of the company’s and the group’s assets,
liabilities, financial position and results for the period viewed in their entirety
• the Board of Directors report for the group and the parent company is in accordance with the Norwegian
Accounting Act and relevant Norwegian Accounting Standards
• the separate financial statement for Nekkar ASA for 2023 has been prepared in accordance with the Norwegian
Accounting Act and Norwegian Accounting Standards
Kristiansand, 29 April 2024
The Board and Management of Nekkar ASA
Trym Skeie
Chair of the Board
Gisle Rike
Director
Ole Falk Hansen
CEO
Håkon André Berg
Director
Trine Ingebjørg Ulla
Director
Marit Solberg
Director
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NEKKAR ANNUAL REPORT 2023 STATEMENT ON COMPLIANCE
138
NEKKAR ANNUAL REPORT 2023 CHAPTER TITLE
138
NEKKAR ANNUAL REPORT 2023 APPENDIX
139
APPENDICESNEKKAR ANNUAL REPORT 2023
Appendices
1 Stakeholders and stakeholder dialogue 140
2 Materiality assessment 142
3 Equality statement 144
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NEKKAR ANNUAL REPORT 2023 APPENDIX
Appendix 1
Stakeholders and stakeholder dialogue
NEKKAR
Customers
Government/
authorities
Investors/Board
of Directors
Civil society
Employees
Business partners/
suppliers
Investors/Board of Directors (BoD)
Investors and owners are primary stakeholders that
directly affect the company’s priorities and strategic
direction, including sustainability. Ensuring value for
shareholders is one of our main priorities.
Customers
Customers directly affect the company economically
and our ability to offer attractive products at
acceptable cost is decisive for customer retention.
Increased sustainability awareness among customers
is part of driving our sustainability priorities.
Employees
We are greatly dependent on the competence and
contributions from existing employees, and our
ability to attract future talent. Employees are directly
affected by our internal policies and activities, and
the overall working environment in Nekkar.
Business partners/suppliers
Business partners and suppliers are directly affected
economically by the company, and their conduct is
indirectly affected by our focus on and expectations
for demonstrating responsible business practices.
Government/authorities
We are directly affected by government regulations
in the countries in which we operate, including
the Oslo Stock Exchange’s regulations for listed
companies. We are also dependent on good and
predictable framework conditions.
Civil society
Civil society is directly, socially and economically,
affected by our activities, for example through the
ripple effects from job creation and tax contribution.
Civil society can also indirectly be impacted
environmentally by our company’s products.
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NEKKAR ANNUAL REPORT 2023 APPENDIX
Stakeholder dialogue
Stakeholder dialogue strengthens our company’s
relationship with the society in which we operate and
it also ensures a strategic approach to sustainability
reporting. Our aim is to have an ongoing dialogue
with key stakeholder groups.
In December 2021, employees, business partners /
suppliers, customers, investors and Board members
were invited to participate in Teams interviews
with representatives from Nekkar where we asked
about general sustainability topics as well as
their perception of our company’s approach to
sustainability. At the same time, we conducted
desktop research of the sustainability priorities of
relevant governmental authorities, and a summary
can be found in the table below.
The findings from the stakeholder dialogue
were structured for discussion with our internal
sustainability task force consisting of members
from the management team in January 2022, and
the Board were also informed of this process. The
result from these discussions can be found in the
materiality chapter on page 142-143 of this report.
We will continue to engage with stakeholders for
future reporting processes.
Stakeholder group Topics mentioned Arena for dialogue
Investors/BoD • Product innovation and development
• Environment and climate
• Regulations
• ESG report
• Direct communications (emails/meetings)
• BoD meetings
• Social media
Customers • Product innovation and development
• Climate and the environment
• Health and safety (HSE)
• Inclusion
• Material use
• Biodiversity
• Supply chain management
• Direct communication (emails/meetings)
• Website
Employees • Good corporate governance
• Product innovation and development
• Climate and the environment
• Product lifetime (LCA/LCM)
• Supply chain management
• Compensation/renumeration
• Diversity, equality and non-discrimination
• Health and safety (HSE)
• Working environment
• Employee surveys
• Annual report
• ESG report
• ESG Day (previously Green Day)
• All hands meeting
• Meetings
Business partners/suppliers • Fair and equal treatment of suppliers
• Supply chain management
• Health and safety (HSE)
• Anti-corruption
• Working environment
• Competence/recruitment
• Climate and the environment
• Diversity, equality and non-discrimination
• Product lifetime (LCA/LCM)
• Product innovation and development
• Annual report
• ESG report
• Newsletters
• Website
Governments/authorities • Human rights
• Global sustainability development goals
• Climate and the environment
• Labour rights
• Anti-corruption
• Consumer interests
• Good corporate governance
• Risk evaluation
• Circularity
• Pollution prevention
• Biodiversity
• Desktop research
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NEKKAR ANNUAL REPORT 2023 APPENDIX
Appendix 2
Materiality assessment
The concept of materiality reflects the significance
of certain sustainability topics to a company. Double
materiality is here understood as the union of impact
materiality and financial materiality. A sustainability
topic meets the criteria of double materiality if it is
material from the impact perspective or from the
financial perspective, or from both perspectives.
• Impact perspective: The company’s operations,
products or services contribute significantly to the
impact, whether directly or indirectly.
• Financial perspective: The topic triggers financial
effects, i.e. generates risks or opportunities that
influence or are likely to influence the future cash
flows in the short, medium, or long term. The risks
and opportunities may derive from past or future
events.
Nekkar’s materiality assessment
Nekkar conducted a materiality assessment in
January 2022, where we looked specifically at our
impact. In this process, we interviewed a selection of
stakeholders (employees, business partners, suppliers,
customers, authorities, and investors) to get the
‘outward-in’ perspective, before organising an internal
workshop with our ESG task force group to get the
‘inward-out’ perspective. A summary can be found in
the materiality matrix on the next page, with topics
considered material in the upper right section.
Representatives from the management group took
part in this evaluation, and the material topics were
also approved by the Board of Directors. We are
continuously engaging with stakeholders regarding
the actions taken relating to each of the material
topics, and the outcome of such actions, for example
through our annual sustainability reports.
Going forward
The materiality assessment is updated on a regular
basis to reflect changes in our environment and
the development/expansion of our business. In
2023, Nekkar invested in a minority shareholding
in sea food industry supplier FiiZK, which included
a payment in-kind contribution through Nekkar’s
Starfish closed fish cage solution. As a consequence,
‘sustainable fish farming’ has been removed from the
list of material topics.
In 2024, we plan to conduct another workshop
where we will also consider financial impacts of
sustainability topics, adopting a double materiality
approach.
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NEKKAR ANNUAL REPORT 2023 APPENDIX
• Climate adaption • Supply chain control
• Diversity, equality and
inclusion
• Occupational health & safety
• Human rights
• Anti-corruption
• Innovation & product
development
• Worker’s rights (incl.
Compensation/renumeration
• Recycling/circular economy
• Product lifetime
• CO
2
emissions
• Material use
• Working environment
• Recruitment/competence
development
Materiality matrix
Low Moderate
Importance to stakeholders
Nekkar’s impact
Low Moderate High
High
144
NEKKAR ANNUAL REPORT 2023 APPENDIX
Ensuring a diverse workforce is important to us and
we have a direct ability and responsibility to impact
gender equality and diversity in the workspace. Equal
opportunities are offered to all employees, regardless
of their background.
At the end of 2023, we employed 88 persons, up
from 73 in 2022. The main reason for the increase
was the acquisition of Techano Oceanlift including
Appendix 3
Equality statement 2023
11 permanent employees. 87.5% of our employees
are male, while 12.5% are female. The low level of
female employees is due to that the majority of our
employees are engineers, and the percentage of
females pursuing an education within engineering
is currently very low in Norway (11.11% as of March
2023). We have the ambition to increase the number
of female employees going forward and will look at
specific measures to improve gender balance in 2024.
Gender distribution per employee category and region
1)
Total Europe America Asia
PERMANENT EMPLOYEES
Female 11 11 0 0
Male 68 63 1 4
Total 79 74 1 4
TEMPORARY EMPLOYEES
Female 0 0 0 0
Male 13 13 0 0
Total 13 13 0 0
NON-GUARANTEED HOURS EMPLOYEES
Female 0 0 0 0
Male 0 0 0 0
Total 0 0 0 0
FULL-TIME EMPLOYEES
Female 11 11 0 0
Male 79 74 1 4
Total 90 85 1 4
PART-TIME EMPLOYEES
Female 0 0 0 0
Male 2 2 0 0
Total 2 2 0 0
1) In head count at the end of the reporting period.
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NEKKAR ANNUAL REPORT 2023 APPENDIX
Gender and age distribution per employee function Total <30 years 30-50 years >50 years
BOARD OF DIRECTORS
Female 2 0 0 2
Male 3 0 1 2
Total 5 0 1 4
EXECUTIVE LEVEL MANAGEMENT
Female 2 0 1 1
Male 5 0 2 3
Total 7 0 3 4
REST OF THE ORGANISATION
Female 11 0 4 7
Male 81 2 42 37
Total 92 2 46 44
The number of workers who are not employees was
13 in 2023. There are two main types of workers who
are not employees. The first is hired-in engineers and
the second is personnel working on site in different
locations around the world. There have been no
significant fluctuations in the number of workers who
are not employees during the reporting period or
between reporting periods.
As a Norwegian Public Limited Company, we are
required to have at least 40% female participation
in the Board of Directors. At the end of 2023, three
(60%) Board members were men, and two (40%)
Board members were women. Our Executive
Management Team comprised of five (71%) men and
two (29%) women in the reporting period.
In addition to gender, age is also an important
diversity indicator. To date, we have few employees
under the age of 30. Traditionally, we have sought to
recruit people with longer experience and education
but are aiming to increase the number of young
people within the company. For example, we visited
the Norwegian University of Science and Technology
(NTNU), and the Norwegian University of Life
Sciences and University of Agder in 2023 to look for
candidates and to make our company known among
young people.
We offer equal pay for equal work. For data privacy
reasons, we are not disclosing salaries where there
are less than five employees in each category, hence,
only salaries for employees in Norway are shown.
The annual total compensation for our employees
in Norway was on average NOK 1,125,164 in the
reporting period, up from NOK 989,101 in 2022
(14% increase). On average, male employees in
Norway earned NOK 1,140,954 in 2023, up from
NOK 1,004,569 in 2022 (14% increase), compared
to female employees who earned NOK 1,037,620 in
2023, up from NOK 920,620 in 2022 (13% increase).
This means that in Norway, our female employees
earned 90% of male employees’ salaries in 2023. The
main differences in salaries are due to a difference in
responsibility and competence.
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NEKKAR ANNUAL REPORT 2023 APPENDIX
Gender and age distribution per employee category
1)
Total <30 years 30-50 years >50 years
PERMANENT
Female 11 0 4 7
Male 68 1 37 30
Total 79 1 41 37
TEMPORARY
Female 0 0 0 0
Male 13 0 4 9
Total 13 0 4 9
FULL-TIME
Female 11 0 4 7
Male 79 1 40 38
Total 90 1 51 45
PART-TIME
Female 0 0 0 0
Male 2 0 1 1
Total 2 0 1 1
Remuneration men to women
2)
Gender balance in %
% salary of
women to men
EMPLOYEE FUNCTION MEN WOMEN
TOTAL
BENEFITS
BASE
SALARY BONUS OVERTIME
Administration 65% 35% 33,750,002 30% 26% 29%
Engineers/technical personnel 95% 5% 47,502,060 3% 5% 0%
1) In head count at the end of the reporting period.
2) Numbers in headcount per 31 December 2023. Significant locations of operations is Norway due to the majority of workers being
employed here.
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NEKKAR ANNUAL REPORT 2023 APPENDIX
PARENTAL LEAVE 2023 2022 2021
MEN WOMEN MEN WOMEN MEN WOMEN
No. of employees on parental leave 4 0 3 0 3 0
No. of weeks on parental leave 30.2 0 18.5 0 21.7 0
Our work on diversity
To improve gender balance on all levels of the
organisation, we are taking several measures. Our
main focus has been in recruitment processes, where
we actively seek out female candidates for open
positions. It is also important to retain our female
workers, especially in a phase with young children.
All employees (100%) are entitled to parental leave,
following the Norwegian Working Environment Act,
and in 2023 there were four employees that took
parental leave, all male.
Our work on non-discrimination
Discrimination is defined as the unfair or
prejudicial treatment of people and groups based
on characteristics such as race, gender, age, or
sexual orientation. Nekkar has zero tolerance
for discrimination. The company is operating in
accordance with the Norwegian Equality and Anti-
discrimination Act, and has established its own
guidelines regarding non-discrimination which
is part of the Code of Conduct. To identify cases
of discrimination, Nekkar conducts employee
surveys and employee development talks, where
discrimination is one of the topics we are asking
about.
Incidents of discrimination should be reported to
the employee’s nearest line manager or through the
company’s external and anonymous whistleblowing
channel. All reports will be handled with discretion
and without reprisals for the person reporting. No
incidents of discrimination were reported in 2023,
and therefore no actions have been taken.
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NEKKAR ANNUAL REPORT 2023 APPENDIX
GRI content index
GRI 2 - General Disclosures 2021
Disclosure Disclosure description Reference Omission
2-1 Organisational details About Nekkar
Locations
2-2 Entities included in the organisation’s
sustainability reporting
About this report
2-3 Reporting period, frequency and
contact point
About this report
2-4 Restatements of information Scope 3 footnote
2-5 External assurance 15. Auditor
About this report
N/A the report has not
been externally assured.
2. Activity and workers
2-6 Activities, value chain and other
business relationships
Portfolio
Value chain
CEO letter
2-7 Employees Employees by gender and region
Employees by gender and region (Footnote 1)
Equality statement
2-8 Workers who are not employees Equality statement
3. Governance
2-9 Governance structure and composition The work of the board of directors
Board of directors, composition and independence
Information incomplete:
The company does not
report information about
underrepresented social
groups
2-10 Nomination and selection of the
highest governance body
Nomination committee Information incomplete:
Not mentioning diversity.
2-11 Chair of the highest governance body Board of directors, composition and independence N/A: The Chair is not a
senior executive in the
organisation
2-12 Role of the highest governance body
in overseeing the management of
impacts
The work of the board of directors
2-13 Delegation of responsibility for
managing impacts
The work of the board of directors
2-14 Role of the highest governance body
in sustainability reporting
The work of the board of directors N/A: The Board is
responsible for reviewing
and approving the
reported information.
2-15 Conflict of interest Risk management and internal control
2-16 Communication of critical concerns Whistleblowing / reporting
2-17 Collective knowledge of the highest
governance body
Corporate Social Responsibility (Board of Directors
report)
2-18 Evaluation of the performance of the
highest governance body
The work of the board of directors
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NEKKAR ANNUAL REPORT 2023 APPENDIX
2-19 Remuneration policies 11. Remuneration of the Board of Directors
12. Salary and other remuneration for executive
personnel
Note 4 Payroll expenses and employee information
Statement regarding the stipulation of remuneration
and other benefits for the CEO and other Executives
4 Remuneration | Executive Management
2-20 Process to determine remuneration 4 Remuneration | Executive Management
2-21 Annual total compensation ratio Note 4 Payroll expenses and employee information Information incomplete:
Instead of reporting
the median annual
compensation for all
employees, the company
is reporting their average
salary.
4. Strategy, policies and practices
2-22 Statement on sustainable development
strategy
CEO letter
2-23 Policy commitments Business ethics (policy commitment)
Human rights (Transparency Act reporting 2023)
Business ethics (policy commitment)
Business ethics (policy commitment & approach)
2-24 Embedding policy commitments Business ethics (approach)
2-25 Processes to remediate negative
impacts
Addressing grievances
2-26 Mechanisms for seeking advice and
raising concerns
Whistleblowing / reporting
2-27 Compliance with laws and regulations Whistleblowing / reporting
2-28 Membership associations About Nekkar (membership associations)
5. Stakeholder engagement
2-29 Approach to stakeholder engagement Appendix 1 Stakeholders and stakeholder dialogue
2-30 Collective bargaining agreements N/A: None of Nekkar’s
employees are covered
by collective bargaining
agreements. Employees’
salaries are determined in
annual reviews.
Material topcis
GRI 3: Material topcis 2021
3-1 Process to determine material topcis Appendix 2 Materiality assessment
Business ethics and anti-corruption (materiality)
Emissions from own operations (materiality)
Health and safety (materiality)
3-2 List of material topics Appendix 2 Materiality assessment
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NEKKAR ANNUAL REPORT 2023 APPENDIX
BUSINESS ETHICS AND ANTI-CORRUPTION
3-3 Management of material topics Business ethics and anti-corruption (materiality)
Business ethics and anti-corruption(policy
commitment)
Business ethics and anti-corruption(approach)
Appendix 1 Stakeholders and stakeholder dialogue
GRI 205: Anti-corruption
205-2 Communication and training about
anti-corruption policies and procedures
Communication on anti-corruption
Anti-corruption training (tables)
Information incomplete:
We are not reporting on
anti-corruption training
and information provided
to non-guaranteed hour
employees. We are only
providing the percentage,
not the total number of
employees, business
partners and Board
members receiving training
and communication on
anti-corruption.
205-3 Confirmed incidents of corruption and
actions taken
Operations assessed for risks relating to corruption
(table)
N/A: There have been
no confirmed incidents
of corruption in the
reporting period.
GRI 414: Supplier social assessment
414-2 Negative social impacts in the supply
chain and actions taken
Supplier social assessment (table)
Human rights (Transparency Act reporting 2023)
EMISSIONS FROM OWN OPERATIONS
3-3 Management of material topics Emissions from own operations (materiality)
Emissions from own operations (policy
commitment)
Emissions from own operations (approach)
Appendix 1 Stakeholders and stakeholder dialogue
GRI 305: Emissions
305-1 Direct (scope 1) GHG emissions Emissions from own operations (approach)
Scope 1
Key energy and climate performance indicators
(table)
305-2 Energy indirect (scope 2) GHG
emissions
Emissions from own operations (approach)
Scope 2
Key energy and climate performance indicators
(table)
Market-based GHG emissions (table)
305-3 Other indirect (scope 3) GHG emissions Emissions from own operations (approach)
Scope 3
Key energy and climate performance indicators
(table)
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NEKKAR ANNUAL REPORT 2023 APPENDIX
HEALTH AND SAFETY
3-3 Management of material topics Health and safety (materiality)
Health and safety (policy commitment)
Health and safety (approach)
Appendix 1 Stakeholders and stakeholder dialogue
GRI 403: Occupational health and safety
403-1 Occupational health and safety
management system
Health and safety (approach)
Occupational health and management system
(table)
Information incomplete:
403-2 Hazard identification, risk assessment,
and incident investigation
Health and safety (approach) Information incomplete:
403-3 Occupational health services Health and safety (approach) Information incomplete:
403-4 Worker participation, consultation, and
communication on occupational health
and safety
Health and safety (approach) Information incomplete:
403-5 Worker training on occupational health
and safety
Suppliers, business partners and subcontractors Information incomplete:
403-6 Promotion of worker health Health and safety (approach) Information incomplete:
403-7 Prevention and mitigation of
occupational health and safety impacts
directly linked by business relationships
Health and safety (approach)
Reporting irregularities
Own KPI
KPI Absence due to illness Quality, health, safety and environment (QHSE)
KPI Work incidents Quality, health, safety and environment (QHSE)
Own KPI
Parental
leave
a) Number of employees on parental
leave
b) No. of weeks in the reporting period
Parental leave (table)
Employee
survey
Participation rate employee survey Employee wellbeing
GRI 405: Equality and diversity
405-1 Diversity of governance bodies and
employees
Gender and age distribution per employee functions
(table)
N/A: Due to Norwegian
legislation, the company
does not track information
about minorities or
vulnerable groups.
405-2 Ratio of basic salary and remuneration
of women to men
Remuneration men to women (table)
GRI 406: Non-discrimination
406-1 Incidents of discrimination and
corrective actions taken
Our work on diversity and non-discrimination N/A: there were
no incidents of
discrimination during the
reporting period.
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NEKKAR ESG REPORT 2023 CHAPTER TITLE
Disruptive technologies
— Sustainable results
Remuneration report
2023
153
NEKKAR ESG REPORT 2023 CHAPTER TITLE
154
NEKKAR ESG REPORT 2023 CHAPTER TITLE
1 Introduction/Statements 155
2 Overview | Financial performance in 2023 155
3 Remuneration | Board of Directors 157
4 Remuneration | Executive Management 159
5 Remuneration of the Board and
Executive Management | Comparative overview 162
6 Compliance with the Remuneration Policy 162
7 Audit assurance report 163
Content
155
NEKKAR REMUNERATION REPORT 2023
1 Introduction/Statements
2 Overview | Financial performance in 2023
The report on salaries and other remuneration
to leading personnel (the “Report”) provides an
overview of the total remuneration received by
each member of the Board of directors (“Board”)
and of the executive management (“Executive
Management”) of Nekkar ASA (the “Company”) for
the financial year 2023 with comparative figures for
the past five financial years.
The remuneration of the Board and Executive
Management during the past financial year is based
on the guidelines for determination of salaries and
other remuneration in the Company, which were
approved by the annual general meeting on 30 May
2023. (the “Guidelines”). The overall objective of
the remuneration is to attract, motivate and retain
qualified members of the Board and the Executive
TTotal revenues of the Nekkar Group amounted to
NOK 575 million in 2023, an increase of 48.4 percent
compared to 2022. EBITDA ended at NOK 108,7
million in 2023 compared to NOK 67,8 million in
2022, equivalent to EBITDA-margins of 18.9 percent
and 17,5 percent respectively.
Management and to align the interests of the Board
and the Executive Management with the interests of
the Company and its shareholders.
The report is based on the requirements set out in
the Norwegian Public Limited Companies Act of
13 June 1997 no. 45 (the “Companies Act”) section
6-16a and 6-16b, as well as Regulation on guidelines
and report on remuneration for Senio Executives of
11 December 2021 No. 2730 (the “Regulation”)
The information included in the Report has been
derived from the audited annual reports of the
Company for the financial years 2018 – 2023
available on the Company’s website, www.nekkar.
com. All amounts are presented in NOK.
Pre-tax profit was NOK 109,3 million in 2023, up
from NOK 42.6 million the previous year. Profit after
tax (continued business) was NOK 83,3 million and
NOK 32.6 million for 2023 and 2022 respectively.
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NEKKAR REMUNERATION REPORT 2023
157
NEKKAR REMUNERATION REPORT 2023
3 Remuneration | Board of directors
3.1 Fixed annual fee
Members of the Board receive a fixed annual base
fee approved by the annual general meeting. The
nomination committee assesses and presents
proposals for the remuneration of the Board. Further,
the nomination committee conducts an assessment
of the Company’s remuneration on the basis of the
Company’s size and complexity as well as the level of
Director’s fees in other listed Norwegian companies.
The size of the remuneration is not affected by the
Company’s financial development.
During 2023 there has been 19 Board meetings.
This annual base fee shall be in line with market
practice of comparable listed companies taking into
account the required competencies, effort and scope
of work of the members of the Board. The members
of the Board also serves as Audit committee and the
fixed annul fee includes committee work.
At the annual general meeting 30 May 2023, Ingunn
Svegården was replaced by Trine Ulla, and Håkon
Andre Berg was elected as an additional Board
member
The below table outlines the remuneration for the
Board.
TABLE 1 | REMUNERATION OF BOARD FOR THE FINANCIAL YEAR 2023-(2022)
Name and position
NOK
Annual
fee
Audit
Committee
fees
Other
Benefits Pension
Extra-
ordinary
items
Total
remuneration
Trym Skeie
Chair
550 000
(500 000)
-
(-)
-
(-)
-
(-)
-
(-)
550 000
(500 000)
Marit Solberg
1
Deputy Chair
347 000
(315 000)
-
(-)
-
(-)
-
(-)
-
(-)
347 000
(315 000)
Gisle Rike
Board member
347 000
(315 000)
-
(-)
-
(-)
-
(-)
-
(-)
347 000
(315 000)
Ingunn Svegården
1
Board member
347 000
(315 000)
-
(-)
-
(-)
-
(-)
-
(-)
347 000
(315 000)
Total 1 591 000
(1 445 000)
-
(-)
-
(-)
-
(-)
-
(-)
1 591 000
(1 445 000)
1) The remuneration is based on a 12 month period between the ordinary annual general meeting.
NOMINATION COMMITTEE REMUNERATION
In 2023, Nekkar’s nomination committee comprised of the following members: Anne Grethe Ellingsen (Chair) and
Leif Haukom. The nomination committee remuneration in 2023 was TNOK 67 for the Chair and TNOK 40 for the
member.
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NEKKAR REMUNERATION REPORT 2023
3.2 Shareholding members of the Board
As of 31 December, the Board members held shares in Nekkar ASA as follows:
Name and position Year Total no of shares Market value year-end NOK million
Trym Skeie
1
2023
2022
1 718 115
1 669 970
15.9
10.2
Marit Solberg
2023
2022
127 140
98 809
1.2
0.6
Gisle Rike 2023 - -
Ingunn Svegården 2023 - -
Håkon Andre Berg 2023 - -
Trine Ulla 2023 - -
1) Trym Skeie holds 513 287 shares in person and 1 204 828 through Skeie Kappa Invest AS. Total shares owned or controlled by Trym
Skeie, and companies directly or indirectly controlled by him, is 34 701, representning 33,6% of total shares outstanding
159
NEKKAR REMUNERATION REPORT 2023
4 Remuneration | Executive Management
The remuneration policy for Executive Management
of Nekkar ASA is based on offering competitive
terms that should also reflect that Nekkar is a listed
company with an international focus. Competitive
terms are imporatant for the Company’s ability
to recruit and retain highly qualified personnel.
However, as a general principles the management
salary should not be leading compared to the
industry, in addition to avoiding that the variable
element constitutes a too large portion of the
total compensation and thus entailing unfortunate
incentives and short-term focus.
The remuneration of the members of the Executive
Management is assessed on an annual basis and is
effective from 1 August. The remuneration and the
remuneration components is approved by the Board.
Members of the Executive Management are entitled
to an annual remuneration package in accordance
with the Remuneration Policy, which may consist
of the following fixed and variable remuneration
components:
a. fixed base salary,
b. pension contribution,
c. performance-related pay arrangements
consisting of an annual cash bonus,
d. long-term incentive remuneration consisting of
participation in share purchase- or share option
programs,
e. termination and severance payments, and
f. non-monetary employee benefits.
The choice of these components create a well-
balanced remuneration package reflecting (i)
individual performance and responsibility of
the members of the Executive Management in
relation to goals and targets, both in the short and
the longer term, and (ii) the Company’s overall
performance.
Members of the Executive Management includes
the Chief Executive Officer, Chief Financial Officer,
Chief Operating Officer along with Executive Vice
Presidents for the various business units.
3.1 Remuneration composition
3.1.1 FIXED BASE SALARY
The fixed base salary is stipulated based on the
position’s responsibility, complexity, competence
and seniority. The base salary is intended to be
competetive and motivating, but in-line with general
market terms.
3.1.2 PENSION CONTRIBUTION
The Company has established a defined contribuion
pension scheme in accordance with mandatory law.
Members of the Executive Management team does
not have special agreements which includes early
retirement plans or supplementary pension schems.
The defined contribution plan includes 7% of fixed
base salary up to 7.1G and 25.1% of fixed based
salary ranging from 7.1G to 12G.
3.1.3 PERFORMANCE-RELATED CASH BONUS
Under the Company’s bonus scheme, the maxium
bonus is limited to 6 months fixed base salary. The
measurement criteria are linked to personal goals
and financial goal achievment for the Group or
relevant business unit. The defined performance
criteria in the bonus scheme includes both sales &
operational targets along with organisational- and
financial goals.
The purpose of the annual cash bonus is to stimulate
the continous development of the Company’s
value creating, growth and results as the individual
member’s interests is aligned with the Company.
Stipulation of the cash bonus is based on an overall
assessment of the measurment criterias.
For the financial year 2023, a total cash bonus
of TNOK 2 021 (2022: TNOK 691) was paid to the
Executive Management.
3.1.4 LONG-TERM INCENTIVE, SHARE PURCHASE
PROGRAM
A share-based investment program is established in
the Company. All the employees of the Group and
the members of the Company’s Board are given the
opportunity to acquire shares in the Company at a
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NEKKAR REMUNERATION REPORT 2023
discounted price of 25% against a 2-3 year lock-in
period which prevents sale of the shares within the
period.
The Board determines the detailed allocations
within the limit, based ona separate authorisation
approved by the annual general meeting 30 May
2023. Distribution of shares to the Board is made
after conferring with the nomination committee.
During 2023, a total of 646 778 (2022: 287 334) shares
were issued related to the share purchase program.
3.1.5 TERMINATION AND SEVERANCE PAYMENTS
Members of the Executive Management has a notice
period of six months. The use of severence pay is
limited, however this may in some instances serve
as a good alternative for all involved parties. The use
of severance pay is limited upwards to one annual
salary.
3.1.6 NON-MONETARY EMPLOYEE BENEFITS
Members of the Executive Management may be granted
certain non-monetary benefits such as company car
as well as other customary non-monetary employee
benefits such as, newspaper, telephony, internet access,
group life insurance and post-qualifying education/
course as approved by the Board.
3.1.7 CLAW-BACK
The share purchase program includes a good-/bad
leaver clause which entitles the Company to acquire
a proportional, or all, shares from the employee
if he/she resigns within the lock-up period. E.g. if
an employee resigns (good leaver) one year post
participating in the share purchase program, the
Company has the right to acquire 50% of the shares
from the employee. The price shall be equal to the
employee’s subscription price per share.
If the employee is legally dismissed within the lock-
up period, the Company has the right to acquire all
shares obtained in the share purchase program at a
price per share set to the lowest of the subscription
price and share price at Oslo Børs.
In the financial year 2023, no incentive remuneration
was reclaimed.
.
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NEKKAR REMUNERATION REPORT 2023
4.2 Remuneration and shareholdings
4.2.1 REMUNERATION DEVELOPMENT 2023-2022
The development in the remuneration of the Executive Management is summarised in the table below:
Name and position
NOK thousand Year Base salary
Other
benefits
Bonus
paid
Pension
cost
Total
remuneration
Proportion
fixed
Ole Falk Hansen
CEO from 07.2022
2023 3 022 22 579 168 3 791 85%
2022 1 288 7 - 98 1 393 100%
Preben Liltved
Interim CEO from 09.2020-
06.2022, COO from 07.2022
2023 934 12 194 172 1 312 85%
2022 1 931 7 - 103 2 041 100%
Marianne Voreland Ottosen
Head of finance from 04.2022
2023 1 259 14 276 151 1 699 84%
2022 819 111 - 138 1 068 100%
Kristoffer Lundeland
Interim CFO from 04.2019 - 08.2022
2023 - - - - - -
2022 1 667 - - - 1 667 100%
Rolf-Atle Tomassen
General Manager Syncrolift AS
2023 1 967 38 580 195 2 781 79%
2022 1 955 20 691 196 2 862 76%
Mette Harv
EVP Impact Technology ventures
2023 1 843 23 392 186 2 444 84%
2022 1 765 14 - 222 2 001 100%
Petter Brøvig
Head of Strategy from 9.2022
2023 1 065 14 69 121 1 269 90%
2022 367 5 - 45 416 89%
As illustrated, the total cash bonus paid to Executive Management amounted to TNOK 2 2021 in 2023 which
corresponds to ~20% of fixed base salary for the executive management. The bonus targets included both
qantitative and qualitative targes. These targets include; sales & operation, financial targets (budget) and
organisational targets.
4.2.2 SHAREHOLDING EXECUTIVE MANAGEMENT
As of 31 December, the Executive Management held shares in Nekkar ASA as follows:
Name and position Year Total no of shares
Market value year-end
NOK million
Ole Falk Hansen
CEO from 07.2022
2023 296 601 2.7
2022 200 311 1.2
Preben Liltved
Interim CEO from 09.2020-06.2022, COO from 07.2022
2023 120 819 1.1
2022 101 561 0.6
Marianne Voreland Ottosen
Head of finance from 04.2022
2023 19 258 0.2
2022 - -
Rolf-Atle Tomassen
General manager Syncrolift AS
2023 3 303 0
2022 3 303 0
Mette Harv
EVP Impact Technology Ventures
2023 249 991 2.3
2022 198 765 1.2
Petter Brøvig
Head of Strategy from 9.2022
2023 96 290 0.9
2022 - -
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NEKKAR REMUNERATION REPORT 2023
5 Remuneration of the Board and Executive Management |
Comparative overview
The development in the remuneration of the Board and Executive Management over the past five financial years is
summarised in the table below.
Name and position
NOK thousand
Act.
2023
2023
vs.
2022
Act.
2022
2022
vs.
2021
Act.
2021
2021
vs.
2020
Act.
2020
2020
vs
2019
Act.
2019
2019
vs.
2018
Ole Falk Hansen (CEO from 07.2022)
3 791 172% 1 393 100%
- - - - - -
Preben Liltved (Interim CEO from
09.2020-06.2022, COO from
07.2022)
1 312 -36% 2 041 -26% 2 760 3 744
- - -
Marianne Voreland Ottosen (Head of
finance from 04.2022)
1 699 59% 1 068 100% -
- - - - -
Rolf-Atle Tomassen (EVP)
2 781 -3% 2 862 10% 2 614 0% 2 610 -4% 2 718 11%
Mette Harv (EVP)
2 444 22% 2 001 6% 1 886 1% 1 866 -4% 1 936 -20%
Petter Brøvig (Head of strategy from
09.2022)
2 001 381% 416 100% - - - - - -
Toril Eidesvik (former CEO 04.2016-
09.2020)
- - -
-100% 1 350 -49% 2 661 -33% 3 980 -38%
Kristoffer Lundeland (Interim CFO
from 04.2019 - 08.2022)
-
-100% 1 667 -45% 3 030 12% 2 706 24% 2 188 -
Leiv Kallestad (former CFO 08.2017-
04.2020)
-
-
- - - - -
-100% 1 040 -65%
Chair of the Board
1
550 10% 500 0% 500 10% 455 8% 420
-
Board member
1
347 10% 315 0% 315 7% 294 0% 294 22%
Revenues
575 000 48% 387 503 -19% 479 983 34% 359 467 35% 266 614 21%
Operational EBITDA
108 700 55% 70 296 -51% 143 733 101% 71 382 39% 51 282 202%
Profit before tax
109 000 156% 42 634 -68% 132 534 85% 71 717 117% 33 102 149%
Company employees
92 19 73 11 62 8 54 4 50 12
Average remuneration
2)
1 237 15% 1 073 -6% 1 191 11% 1 073 6% 1 016 -13%
1) The remuneration for the Board equals the approved amount from the Annual General Meeting.
2) Hired-in personnel are included in 2023 and 2022 figures .
6 Compliance with the Remuneration Policy
The remuneration of the Board and Executive Management for the financial year 2023 is consistent with the
framework provided by the remuneration guidelines, approved by the annual general meeting 30 May 2023.
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NEKKAR REMUNERATION REPORT 2023
Auditor assurance report
KPMG AS
Kanalveien 11
P.O.
Box 4 Kristianborg
N
-5822 Bergen
Telephone +47 45 40 40 63
Internet www.kpmg.no
Enterprise 935 174 627 MVA
© KPMG AS, a Norwegian limited liability company and a member firm of the KPMG global organization of independent member
firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved.
Statsautoriserte revisorer
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medlemmer av Den norske Revisorforening
Offices in:
Oslo
Alta
Arendal
Bergen
Bodø
Drammen
Elverum
Finnsnes
Hamar
Haugesund
Knarvik
Kristiansand
Mo i Rana
Molde
Sandefjord
Stavanger
Stord
Straume
Tromsø
Trondheim
Tynset
Ulsteinvik
Ålesund
To the General Meeting of Nekkar ASA
Independent auditor’s assurance report on report on salary and
other remuneration to directors
Opinion
We have performed an assurance engagement to obtain reasonable assurance that Nekkar ASA
report on salary and other remuneration to directors (the remuneration report) for the financial year
ended 31 December 2023 has been prepared in accordance with section 6-16 b of the Norwegian
Public Limited Liability Companies Act and the accompanying regulation.
In our opinion, the remuneration report has been prepared, in all material respects, in accordance with
section 6-16 b of the Norwegian Public Limited Liability Companies Act and the accompanying
regulation.
Board of directors’ responsibilities
The board of directors is responsible for the preparation of the remuneration report and that it contains
the information required in section 6-16 b of the Norwegian Public Limited Liability Companies Act and
the accompanying regulation and for such internal control as the board of directors determines is
necessary for the preparation of a remuneration report that is free from material misstatements,
whether due to fraud or error.
Our Independence and Quality Management
We are independent of the company as required by laws and regulations and the International Ethics
Standards Board for Accountants’ Code of International Ethics for Professional Accountants (including
International Independence Standards) (IESBA Code), and we have fulfilled our other ethical
responsibilities in accordance with these requirements. We apply the International Standard on Quality
Management (ISQM) 1, Quality Management for Firms that Perform Audits or Reviews of Financial
Statements, or Other Assurance or Related Services Engagements, and accordingly, maintain a
comprehensive system of quality control including documented policies and procedures regarding
compliance with ethical requirements, professional standards and applicable legal and regulatory
requirements.
Auditor’s responsibilities
Our responsibility is to express an opinion on whether the remuneration report contains the
information required in section 6-16 b of the Norwegian Public Limited Liability Companies Act and the
accompanying regulation and that the information in the remuneration report is free from material
misstatements. We conducted our work in accordance with the International Standard for Assurance
Engagements (ISAE) 3000 – “Assurance engagements other than audits or reviews of historical
financial information”.
We obtained an understanding of the remuneration policy approved by the general meeting. Our
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NEKKAR REMUNERATION REPORT 2023
2
procedures included obtaining an understanding of the internal control relevant to the preparation of
the remuneration report in order to design procedures that are appropriate in the circumstances, but
not for the purpose of expressing an opinion on the effectiveness of the company’s internal control.
Further we performed procedures to ensure completeness and accuracy of the information provided in
the remuneration report, including whether it contains the information required by the law and
accompanying regulation. We believe that the evidence we have obtained is sufficient and appropriate
to provide a basis for our opinion.
Bergen, 29 April 2024
KPMG AS
Knut Olav Karlsen
State Authorised Public Accountant
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NEKKAR REMUNERATION REPORT 2023
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NEKKAR REMUNERATION REPORT 2023
About this report
This annual integrated report applies to the reporting period 1 January to
31 December 2023. The report comprises both financial and sustainability
information for all entities in the Nekkar Group.
The report was published on 29 April 2024, and has been reviewed and approved
by Nekkar’s Board of Directors. The sustainability information has not been
audited by a third party.
For information about this report and its content, please contact Nekkar’s CEO, Ole
Falk Hansen: Ole.falk.hansen@nekkar.com.
