1
NEKKAR ESG REPORT 2021 CHAPTER TITLE
ANNUAL REPORT 2021
Disruptive
technologies,
sustainable
results
2 3
NEKKAR ESG REPORT 2021 NEKKAR ESG REPORT 2021CHAPTER TITLE CHAPTER TITLE
Key figures 4
The Board of Directors 6
The Board of Directors’ report 8
Corporate governance 22
Consolidated financial statements 30
Consolidated statement of comprehensive income
Consolidated statement of financial position
Consolidated statement of changes in equity
Consolidated statement of cash flows
Accounting principles
Notes
Parent company financial statements 82
Profit and loss
Balance sheet
Equity
Cash flow
Reporting principles
Notes
Auditors’ report 101
ESG report 106
Remuneration report 145
Statement on compliance 158
Content
“ Being a sustainable company
means that we are never
satisfied with the status quo,
but continuously improving.”
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NEKKAR ANNUAL REPORT 2021 KEY FIGURESNEKKAR ANNUAL REPORT 2021 KEY FIGURES
Based on alternative performance measures
1)
2021 2020 2019 2018
ORDERS AND RESULTS (MNOK)
Order backlog
Order intake
Revenue
EBITDA
EBITDA margin
BALANCE SHEET (MNOK)
Total assets
Total equity
Equity ratio (total equitytotal assets)
SHARE (NOK)
Share price December
Basic earnings per share
)
- -
EMPLOYEES
No of employees December
Sick-leave rate
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
Key figures
INTRODUCTION TO ALTERNATIVE PERFORMANCE
MEASURES (APM’S)
Nekkar group (Nekkar) discloses alternative
performance measures in addition to those normally
required by IFRS. Nekkar is of the opinion that APMs
are providing enhanced insight into the operations
and prospects of the company. APMs are used as
an integral part of the Management and Board of
Directors’ key performance measure reporting and
controls. Furthermore, securities analysts, investors,
and other interested parties, frequently use such
performance measures.
PROFIT MEASURES
EBITDA is short for “earnings before interest, taxes
depreciation, amortization and impairment” in the
consolidated income statement in the annual report.
EBIT is short for “earnings before interest and taxes”.
EBIT corresponds to “operating profit/loss” in the
consolidated income statement in the annual report.
Margins such as EBITDA margin and EBIT margin are
used to compare relative profit between periods. The
margins are calculated as EBITDA or EBIT divided by
revenue.
ORDER INTAKE MEASURES
Order intake and order backlog are presented
as APMs as they are indicators of the company’s
revenue generation and operations in the future.
Order intake includes new signed contracts in the
period in addition to expansion of existing contracts
and any cancellations of contracts. For new build
contracts, the order intake is based on the signed
contract value excluding potential options and
change orders. For service contracts, the order intake
is based on the value of the service orders received.
Order backlog represents the estimated value of
remaining work for signed new build contracts and
does not include the value of service orders (included
in the order intake defined above).
WORKING CAPITAL:
Short term assets less bank deposits and cash in
hand, less current liabilities adjusted for short term
financial debt.
480
REVENUE
MNOK
451
TOTAL ASSETS
MNOK
140
EBITDA
MNOK
316
TOTAL EQUITY
MNOK
29.1
EBITDA MARGIN
PERCENT
70.1
EQUITY RATIO
PERCENT
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NEKKAR ANNUAL REPORT 2021 NEKKAR ANNUAL REPORT 2021 THE BOARD OF DIRECTORSTHE BOARD OF DIRECTORS
The Board of Directors
Trym Skeie
Chair of the Board
Trym Skeie (b. 1968) is one of the main founders
of Skagerak Capital where he currently is a part
time partner. He holds either the Chair or Board of
Directors position in several venture and growth
companies in Norway, such as Noroff Education
and Vissim. In addition he holds his own investment
business through Skeie Alpha Invest and Skeie
Kappa Invest. He has been working as an Investment
Manager with Kistefos Venture Capital, management
consultant in Acccenture and as a structural design
engineer in Hydralift. Skeie holds a Master of Science
(M.Sc.) in Economics and Business Administration
from the Norwegian School of Economics (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 November 2009.
Ingunn Svegården
Director of the Board
Ingunn Svegården (b. 1978) is SVP within
Renewables at Equinor ASA. She holds a master’s
degree in Chemistry and Biotechnology from the
Norwegian University of Science and Technology
(NTNU). Svegården has held several senior positions
within the Equinor group, as well as several non-
executive director roles in start-ups and funds.
Svegården has been Director of the Board of Nekkar
ASA since 2019.
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.
Marit Solberg
Director of the Board
Marit Solberg (b. 1956) is an independent board
member with extensive board experience. 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’s degree in Marine
Microbiology from the University of Bergen (UiB).
Solberg has been Director of the Board of Nekkar
ASA since 2019.
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NEKKAR ANNUAL REPORT 2021 NEKKAR ANNUAL REPORT 2021 THE BOARD OF DIRECTORS’ REPORTTHE BOARD OF DIRECTORS’ REPORT
The Board of
Directors’ report
Operational highlights 2021
• Operational EBITDA
1
doubled from NOK 71 million
in 2020 to NOK 143 million in 2021
• Order intake of NOK 113 million in 2021, compared
to the record high intake of NOK 701 million in
2020
• Solid order backlog of NOK 838 million at year-
end 2021
• Successful ocean testing of 1:2.5 “Starfish” closed
fish cage conducted throughout 2021
• Completed development of 1:20 model of the
SkyWalker wind turbine installation tool
• Intllilift AS entered into a joint venture, Inteliwell,
with Transocean to develop a digital well
construction solution
• Ole Falk Hansen appointed CEO from 1 July 2022
Strategy and organisational
develoment
50 years’ heritage from the world’s number one
shiplift company, Syncrolift, with new investments
into sustainable and, digitalised technologies 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.
1) EBITDA is short for “earnings before interest, taxes,
depreciation, amortization and impairment”. Operational
EBITDA also excludes gains or losses from FX hedging
contracts measured at fair value through profit and loss.
10 1 1
NEKKAR ANNUAL REPORT 2021 NEKKAR ANNUAL REPORT 2021
BUSINESS OVERVIEW
Group, which is headquartered in Kristiansand,
Exchange with the ticker code NKR. The business
operation in the Nekkar Group is organized in the
following four business areas:
• Shipyard Solutions
• Aquaculture
• Renewables
• Digital Solutions
While Shipyard Solutions, Aquaculture and
Renewables are business areas that operate relatively
independent of each other, the Digital Solutions
business area utilises its unique digitalization skills
and automation sensor legacy to support the three
other business areas. The purpose is to enable digital
business models to capitalise on disruptive hard-tech
design to unlock additional revenue potential and drive
business value from SaaS revenue.
Shipyard Solutions
Shipyard Solutions, i.e. Syncrolift, with its main office
in Vestby, Norway, is expected to be Nekkar’s main
revenue and cash-generating business near term.
Syncrolift has local presence in important markets
through subsidiaries in the US and in Singapore and a
sales/service office in Dubai.
Syncrolift is the global market leader for shiplifts and
transfer systems offered to repair and newbuilding
yards. It delivers turnkey and customized 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, they deliver
FastDocking
TM
products for efficient operations
during docking and maintenance of vessels. As the
global market leader, Syncrolift has started to focus
more on the service and upgrade capabilities related
to the company’s installed base.
Aquaculture
Within the Aquaculture business area, Nekkar is
currently testing and developing game-changing
technologies with high sustainability impact on the
aquaculture industry. Nekkar’s “Starfish” is a fully
automated, closed cage solution that has double
protection against escapes, avoids problems with
salmon lice due to water intake from deep waters
below the cage, and can collect up to 90 percent of
biological waste. It is a solution that could reduce
OPEX levels dramatically for the fish farming
industry, while simultaneously improve fish welfare.
Ocean testing of the pilot version of Starfish started
in March 2021. Throughout 2021, successful testing
was conducted of the pilot fish cage’s circulation
units and flow system, monitoring system and
software, inlet pipes and water pressure, plus sludge
treatment system. Discussions were also started with
a leading fish farmer to identify suitable sites for a
full-scale test in 2022-2023.
Renewables
Nekkar is within this business area developing a
disruptive installation technology tool that could
significantly reduce the cost and environmental
footprint associated with wind turbine installations.
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.
Again, Nekkar’s competence within electrification,
automation and digitalisation is being utilised to
develop this potentially game-changing technology.
In 2021, Nekkar received a NOK 21 million grant from
Innovation Norway to progress the development of
the SkyWalker wind turbine installation tool. Nekkar
is working together with an undisclosed major wind
turbine original equipment manufacturer (OEM)
and Fred Olsen Renewables, in combination with
support from academia, to develop the SkyWalker.
During the third quarter 2021, Nekkar completed the
development of a 1:20 model. Final assembly with
software and wind tunnel testing will be conducted
in 2022.
Digital Solutions
This business area is a competence hub that serves
the other business areas in Nekkar along with
customers outside the group. The business area
possesses unique competence within engineering,
electrification, digitalisation and automation. Intellilift
AS, where Nekkar owns a majority share (51 percent),
is the driving force behind the Digital Solutions
business area which 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 robotization.
The business model will be threefold – project-
based, perpetual upfront software licenses and SaaS
revenue, depending on customer preferences.
Throughout 2021, a substantial number of resources
in the Digital Solutions business area were allocated
to projects in Shipyard Solutions, and to software
development for both the Starfish and SkyWalker
development projects. Further, in October 2021,
Intellilift AS established a joint venture (JV),
Inteliwell, with a subsidiary of Transocean Inc. for the
purpose of commercialising products and services
based on a digital well construction solution. The
JV will provide software solutions (SaaS) that allow
operators to further improve the consistency of their
operations while reducing drilling costs through more
reliable and faster drilling operations.
PEOPLE AND ORGANIZATION
The different business units are managed by the
following executives:
• Shipyard Solutions: Rolf-Atle Tomassen
• Aquaculture: Mette Harv
• Renewables: Mette Harv
• Digital Solutions: Stig Trydal
Preben Liltved was appointed interim CEO of Nekkar
ASA with effect from 1 October 2020. Subsequent
to year-end 2021, Ole Falk Hansen was appointed
CEO of the company from 1 July 2022, at which point
Preben Liltved will take on a role as EVP Operations
in Nekkar.
EMPLOYEES
The total number of employees in the Nekkar Group
were 62 at year end 2021, compared to 54 in the
previous year. For Nekkar ASA similar number of
employees were 14 and 13, respectively.
THE BOARD OF DIRECTORS’ REPORTTHE BOARD OF DIRECTORS’ REPORT
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NEKKAR ANNUAL REPORT 2021 NEKKAR ANNUAL REPORT 2021
KEY FIGURES, NEKKAR GROUP
MNOK 2021 2020
Revenue
Reported EBITDA
Operational EBITDA
EBIT
Reported EBITDA
Operational EBITDA
Order intake
Order backlog
EPS (NOK)
1) Continued business
Financial performance
FINANCIAL HIGHLIGHTS
• Nekkar Group’s revenue was NOK 480.0 million,
an increase of 33.5 percent compared to 2020
(NOK 359.5 million).
• Nekkar Group’s operational EBITDA of NOK 142.6
million, equivalent to an operational EBITDA-
margin of 29.8 percent, versus NOK 71.4 million
and 19.9 percent in 2020.
• Reported EBITDA was NOK 139.8 million in 2021,
an 80 percent increase from the reported EBITDA
in 2020 (77.4).
• Operating profit ended at NOK 134.1 million in
2021, a significant increase from NOK 74.6 million
in 2020.
• Strong order backlog of NOK 838 million (1,167)
per 31 December 2021.
PROFIT AND LOSS
The substantially improved profit for the group in
2021 was a result of strong operating and financial
performance in the Shipyard Solutions business.
Revenue for the Nekkar Group was NOK 480.0
million in 2021, an increase of 33.5 percent compared
to 2020 (NOK 359.5 million). Reported EBITDA was
systems to Syncrolift. External revenues amounted
to NOK 10.4 million in 2021 compared to NOK 15.0
million in 2020. The reported EBITDA was NOK 6.3
million in 2021 compared to NOK 5.0 million in 2020.
Aquaculture and Renewables
Both business areas are in their development phase
and therefore have limited impact on the financial
performance. However, important progress has been
made during the year.
During 2021, Nekkar has been testing the downscaled
prototype version of Starfish, a closed cage for fish
farming.
Capitalized development costs related to Starfish
amounted to NOK 13.5 million in 2021 while received
the public grants from Innovation Norway and
SkatteFUNN amounted to NOK 6.8 million.
In the Renewables area, the development of Nekkar’s
disruptive wind turbine installation tool, SkyWalker
has made good progress.
Capitalized development cost for SkyWalker
amounted to NOK 9.4 million in 2021. NOK 0.7 million
in public grant was received during the year.
In March 2021, Nekkar was awarded a grant of NOK 21
million from Innovation Norway to progress with the
development of SkyWalker.
Nekkar will continue to apply for public funding to
help finance the technology development towards
innovative and sustainable solutions that are
designed to disrupt its target industry sectors.
See Note 1 for further details on the operating segments.
Nekkar ASA
Revenue generated in Nekkar ASA in 2021 was NOK
5.3 million compared to NOK 5.9 million in 2020. The
operating profit was negative with NOK 25.5million
compared to NOK 16.9 million in 2020. Profit/(loss)
before tax for 2021 was NOK 167.5 million, versus
NOK -54.2 million in 2020. The settlement of the
Cargotec / MacGregor arbitration was the main
reason for the significant loss in 2020. In 2021, Nekkar
ASA recieved a group contribution of NOK 70.2
million from Syncrolift AS which was recognized as
financial income in 2020. A group contribuion of NOK
191.4 million is recognized as financial income in 2021.
Shipyard Solutions
Shipyard Solutions generated revenues of NOK 468.6
million in 2021 compared to NOK 343.2 million in
2020. Reported EBITDA was NOK 158.5 million in
2021, a significant increase from NOK 88.2 million
in 2020. The improvement is driven by strong
performance in the newbuilding business. During
2021, Syncrolift has delivered five large projects
with a combined contract value of more than NOK
850 million. Shipyards Solutions also experienced a
positive development in the service business, both in
terms of revenue- and order intake. The 2021 figures
are negatively impacted by losses on FX hedging
contracts of NOK 4.0 million compared to gains of
NOK 6.0 million in 2020. Shipyard Solutions has a
strong order backlog of NOK 838 million at the end of
2021 (1 167).
Digital Solutions
Intellilift delivered revenues of NOK 41.8 million in
2021 compared to NOK 30.9 million in 2020. A large
portion of the revenues are internally generated as
Intellilift’s products and solutions are integrated with
other segments of the group, e.g. deliveries of control
“Shipyard Solutions
generated revenues
of NOK 469 million
in 2021 compared
to NOK 343 million
in 2020.”
THE BOARD OF DIRECTORS’ REPORTTHE BOARD OF DIRECTORS’ REPORT
NOK 139.8 million in 2021, up from NOK 77.4 million
in 2020.
Operational EBITDA was NOK 142.6 million in 2021
compared to NOK 71.4 million in 2020, equivalent
to EBITDA-margins of 29.8 percent and 19.9 percent
respectively.
Operating profit (EBIT) ended at NOK 134.1 million in
2021, an increase from NOK 74.6 million in 2020.
Pre-tax profit was NOK 132.5 million in 2021, up from
NOK 71.7 million the previous year. Profit after tax
(continued business) was NOK 111.6 million and NOK
70.8 million for 2021 and 2020 respectively.
Including discontinued business, net result for 2021
was NOK 111.6 million, compared to a negative
result of NOK 32.9 million in 2020. The negative net
result for 2020 was highly impacted by loss from
discontinued business of NOK 103.7 million which
included a settlement of NOK 94 million in the
Cargotec / MacGregor arbitration. The settlement
amount was paid in January 2021.
Order intake in 2021 was NOK 113 million compared
to NOK 701 million in 2020. Nekkar’s order backlog
was still strong at NOK 838 million (1,167) per 31
December2021.
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NEKKAR ANNUAL REPORT 2021 NEKKAR ANNUAL REPORT 2021
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
Total assets at the end of 2021 were NOK 451.2
million, compared to NOK 558.1 million in 2020.
The net working capital (ref. definition of APMs) was
positive with NOK 42.9 million, compared to negative
with NOK 155.2 million at the end of 2020. The
group’s business practice may affect cash balances
substantially from time to time due to prepayments
(milestone payments) received from customers in
the newbuilding business of Syncrolift, which are
independent of when revenue recognition occurs.
Nekkar Group has no credit facilities as of 31
December 2021, however, guarantee and currency
facilities are established with Nordea and DNB.
The reporting currency of Nekkar Group is NOK
(Norwegian krone). As substantial parts of both
income and expenses are denominated in foreign
currencies, fluctuating foreign exchange rates may
affect the group’s operating results. Nekkar Group,
therefore, works on reducing its exposure to currency
fluctuations by using hedging instruments. Nekkar
is using hedge accounting for FX contracts that
qualify for hedge accounting, while the remaining FX
contracts are measured at fair value through profit
and loss. 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 2021. The Board of Directors is not aware
of any unreported events occurring subsequent to
the balance sheet date of 31 December 2021, which
may be material to the Nekkar Group or to the annual
accounts of 2021. As stated elsewhere in this report,
the Board of Directors is not able to predict all effects
from Covid-19 and the increased geopolitical risk
on the business, but the Board believes the group
is positioned to avoid serious harm. See Note 24
Subsequent events, for further information.
SHARE CAPITAL
At the end of 2021, Nekkar ASA had a share capital
of NOK 11,714,230 divided into 106,493,000 shares at
0.11 each. The company holds 6.632 own shares.
CASH FLOW
The reported cash flow on consolidated level from
operating activities was negative with NOK 54.6
million in 2021, compared to NOK 125.4 million in
2020. The high operational cash flow in 2020 was
driven by significant milestone payments received
from the customers in the Shipyard Solutions
segment. During 2021, these prepayments have to a
large extent been converted to revenues as projects
are being delivered.
Consolidated cash flow from investment activities
was NOK -124.6 million in 2021. The cash flow was
highly impacted by the NOK 94 million settlement
of the MacGregor / Cargotec arbitration. Acquisition
and expenditures related to fixed and intangible
assets (capitalised development costs) amounted to
NOK 26.3 million in 2021. In 2020, the net cash flow
from investing activities was NOK -26.5 million.
In 2021, net cash flow from financing activities on the
consolidated level was NOK -1.4 million, compared
to NOK -0.9 million in 2020. The 2021 figure includes
issuance of share capital in relation to employee
share purchase program of NOK 1.1 million compared
to NOK 2.8 million in 2020.
Nekkar had a net cash position of NOK 174.5 million
at year-end 2021, of which NOK 10 million is held as a
deposit for FX-derivative exposures in DNB. Nekkar’s
net cash position at year-end 2020 was NOK 355.1
million.
In 2021, the parent company’s net cash flow from
operating activities was negative with NOK 25.8
million (NOK -16.4 million), net cash flow from
investments NOK -45.1 million (NOK -8.4 million), and
net cash flow from financing was negative with NOK
103.4 million (NOK 123.3 million). The negative cash
flow in 2021 was highly impacted by the settlement
payment of the MacGregor / Cargotec arbitration.
The company or group had no net interest-bearing
debt as of 31 December 2021.
RESEARCH AND DEVELOPMENT
The research and development (“R&D”) activities of
Nekkar are closely linked to its strategy of developing
disruptive technologies that offer high sustainability
impact for ocean-based industries. Nekkar’s R&D
initiatives have shown good progress during 2021, and
in the beginning of 2022. The highlight are:
• Successful ocean testing of Starfish, a highly
innovative closed fish cage solution that is
designed to reduce environmental impact and
operating expenditures for the fish farmers.
• Completed development of a 1:20 model of the
SkyWalker wind turbine installation tool.
• On 7 April 2021, Nekkar was awarded a NOK 21
million grant from Innovation Norway to progress
with the development of SkyWalker.
• Within the Digital Solutions area, development of
our digital platform and remote-control systems
continued.
In 2021, gross capitalized development costs for
the Group, amounted to NOK 28.7 million (NOK
16 million), of which NOK 13.5 million is related to
the development of Starfish, NOK 9.4 million for
SkyWalker and NOK 5.8 million related to product
development within the Digital Solutions segment.
Received public grants from Innovation Norway and
SkatteFUNN are treated as a reduction of capitalized
development costs. This amounted to NOK 7.5
million in 2021, hence net capitalized development
costs were NOK 21.2 million. In 2020, net capitalized
development costs were NOK 11.0 million.
Gross capitalized development costs in the parent
company, Nekkar ASA, were NOK 22.9 million in
2021 and public grants amounted to NOK 7.5 million,
hence the net capitalized amount was NOK 15.4
million. In 2020, the net capitalized amount was
NOK6.3 million.
As per 31 December 2021, capitalized development
costs in the consolidated balance sheet amounted
to NOK 32.8 million. In Nekkar ASA, capitalized
development costs were NOK 19.5 million as of 31
December 2021.
Nekkar’s R&D investments is expected to increase in
2022 with the continuing development of Starfish,
SkyWalker and our products within the Digital
Solutions segment.
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 2021 was NOK
838 million, down from NOK 1,167 million at year-end
2020. This backlog is mainly related to newbuilding
projects in the Shipyard Solutions business.
GOING CONCERN
As of 31 December 2021, the equity ratio at
consolidated level was 70.1 percent. There was no
interest- bearing debt on neither consolidated nor
Nekkar ASA level at year-end 2021.
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
guarantee and currency facilities is 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.
“Nekkar’s order
backlog at the
end of 2021
was NOK 838
million”
THE BOARD OF DIRECTORS’ REPORTTHE BOARD OF DIRECTORS’ REPORT
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NEKKAR ANNUAL REPORT 2021 NEKKAR ANNUAL REPORT 2021
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 authorization matrixes.
Near term, the group is mainly exposed in 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.
Shipyard Solutions is the main business of the
group after closing of the MacGregor / Cargotec
transaction. The activity in the market is depending
on the construction and upgrade of navy- and
commercial shipyards, 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 docking- and infrastructure
solutions 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. However, the Covid-19 pandemic has
resulted in project delays and a reduction in short to
medium-term order intake.
Syncrolift AS has a solid order backlog for its 2022
new building business but is also positioned for
accumulative success in acquiring recurring service
business. Scheduled deliveries for the current project
portfolio extend into 2024.
Offshore energy, renewables and aquaculture,
which represent the group’s new investments, are
early phase product development projects. For
these business areas the risk factors mainly relate to
commercialization. Digital Solutions (Intellilift) has
proven commercialized technology and the products
have been sold to both oil and gas related business
and the wind industry. However, a potential long-
term downturn in the oil and gas industry, due to
the energy transition towards low-carbon solutions,
may impact the market outlook for some of these
products.
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 the inherent credit risk in
the conducted business, Nekkar has taken measures
to limit these risks through evaluating the financial
strength of its contract partners, restricting credit
and utilizing 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 satisfactory and evaluated
to be sufficient to fund the prevailing business plan
in combination with the 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’s 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. Hedge accounting
is applied for the hedging contracts that qualify as
hedging of firm commitments in accordance with
IFRS 9. Hedging contracts not qualifying for hedge
accounting are measured at fair value through profit
and loss.
If for some reason customer contracts are
terminated, the Company is exposed to currency loss
(gain) related to ongoing hedging contracts. This
risk may increase as a consequence of the ongoing
corona pandemic and the volatile currency situation.
OPERATIONAL RISKS
Nekkar Group’s new-build business is primarily
organized 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 the 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.
RISKS OF POLITICAL AND HEALTH ORIENTED NATURE
The situation related to Covid-19 has clearly shown
that there are business exposures to events that are
totally outside of the normal control or planning for
any management or Board of Directors. However,
the Board of Directors is of the opinion that the
group is well positioned to avoid serious harm due
to increased vaccination rates and reduced Covid-19
restrictions worldwide.
PANDEMIC RISK
During 2021, the spread of Covid-19 continued to
cause global disruption, with negative consequences
both for human health, business and the global
economy in general. The effects of Covid-19 on
Nekkar’s business in 2022 are difficult to predict,
however, the current, or future, pandemics 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 demand could decrease
as clients reduce CAPEX expenditure budgets
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 will
be long-lasting. 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.
THE BOARD OF DIRECTORS’ REPORTTHE BOARD OF DIRECTORS’ REPORT
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NEKKAR ANNUAL REPORT 2021 NEKKAR ANNUAL REPORT 2021
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 our activities in
an ethical and responsible way; aiming at sustainable
development for employees, customers, investors,
and the communities in which we operate. Our
policies for corporate social responsibility encompass
QHSE, business ethics, support for human and
employee rights and anti-corruption measures.
Nekkar is committed to follow OECD’s Guidelines
for Multinational Enterprises and contributing to the
improvement of international business standards
and practices, especially with regard to corruption,
labor 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.
Nekkar releases its third ESG report this year. The
report is based on the Global Report Initiative (GRI)
Standard and Euronext guidance on ESG reporting.
The ESG report can be found in this annual report
and on Nekkar’s website.
Nekkar gives high priority to creating a working
environment where employees thrive and develop as
humans and professionals. We support our workers’
opportunities to exercise their employee rights and
to be organized through trade and labor unions, and
we facilitate 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 our 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 expect
and encourage the employees to report suspected
infringements.
For more information, please see the ESG report at
our website www.nekkar.com.
“Nekkar is
dedicated to
conducting our
activities in
an ethical and
responsible way.”
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 characterized by strong
day-to- day compliance with high QHSE standards.
Our 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, and
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 their gratitude
to all employees for their contribution in 2021.
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 1.9 percent in
2021 (1.6 percent in 2020). Nekkar experienced zero
workplace incidents resulting in the need for medical
treatment in 2021 (nil in 2020).
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 takes care to avoid any negative impact of its
operations on the physical environment although the
group’s activities are viewed to have limited impact
on the external environment. 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 Nekkar
Group’s operations are not regulated by any licenses
or regulatory orders.
From 2021, Nekkar has started climate accounting on
Scope 1, 2 and 3. For more information, please see the
ESG report on our website www.nekkar.com.
Equal opportunities
Nekkar promotes a working environment that offers
equal rights, equal treatment and equal opportunities
to everyone regardless of gender, religion, disabilities
and ethnic background. 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. Women
constitute 18 percent of the workforce in 2021 (2020:
17 percent). Consequently, the Board of Directors
considers it important that Nekkar strives to attract
more women to join the company.
THE BOARD OF DIRECTORS’ REPORTTHE BOARD OF DIRECTORS’ REPORT
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NEKKAR ANNUAL REPORT 2021 NEKKAR ANNUAL REPORT 2021
One out of the corporate management team’s three
members is female. The Board of Directors of Nekkar
ASA consists of two persons of each gender.
Pursuant to the law prohibiting discrimination based
on disabilities (the Norwegian Anti-Discrimination
and Accessibility 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), Gisle Rike and Ingunn
Svegården.
At the Annual General Meeting held 27 May 2021,
Marit Solberg and Ingunn Svegården were re-elected
for a period of two years. Trym Skeie and Gisle Rike
were not up for re-election.
Insurance for board members and
management
Nekkar ASA has a directors’ and officers’ liability
insurance which includes the board members and
management in Nekkar ASA and subsidiaries.
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 2021 was
NOK 316.2 million, of which NOK 297.0 million was
attributable to the majority, and NOK 19.4 million
was attributable to the non-controlling interests. The
equity to total assets ratio was 70.1 percent at the
end of 2021, compared to 36.5 percent in 2020.
At the end of 2021, the equity in Nekkar ASA was
NOK 341.1 million, of which NOK 3.9 million was share
premium capital, NOK 11.7 million share capital and
NOK 325.6 million other equity. Comparable figures
from year end 2020 were NOK 198.0 million, NOK
2.8 million, NOK 11.7 million and NOK 183.6 million
respectively.
Outlook
Nekkar’s Shipyard Solutions business area entered
2022 with an order backlog of NOK 838 million, which
will ensure a healthy activity level going forward.
Order intake in 2021 was NOK 113 million, which was
as expected lower than in the previous year. However,
it is important to note that Shipyard Solutions did not
lose any significant tenders in 2021. There were simply
few newbuild tenders in the market, and investment
decisions on the active tenders were delayed because
of the Covid-19 pandemic.
Going forward, the market situation for newbuild
projects within Shipyard Solutions is promising.
Available short-term projects are typically smaller
fast-track projects, but there are also larger long-term
opportunities. Investment decisions for newbuild
projects may still see some delays.
Nekkar initiated a project in 2019 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 promising
results. In 2021, Nekkar’s order intake from aftersales
and services grew by 165 percent year-over-year, from
NOK 27.6 million to NOK 73.2 million. Nekkar expect
this positive development to continue in 2022.
Intellilift, which is the heart of Nekkar’s Digital
Solutions business area, continues to play an
important role in developing Syncrolift’s digital
platform. The company is also well positioned for
further growth in different sectors going forward. With
a developed digital platform based on its IP, Intellilift
offers solutions to Renewables, Aquaculture and its
traditional market within the offshore energy industry.
Late 2021, Intellilift established a joint venture,
Inteliwell, together with Transocean for the purpose
of commercialising products and services based on
a digital well construction solution. The development
and offering from Inteliwell looks promising and the JV
has solid leads on oil and gas SaaS projects that may
generate revenue in 2022.
In 2022, Nekkar’s Aquaculture business area will
continue the comprehensive testing of the 1:2.5 pilot
version of the fully digital closed fish cage, Starfish.
Nekkar will in parallel manufacture its first full scale
Starfish for commercial fish farming. The plan is that
a major Norwegian aquaculture company will test the
full-scale Starfish in one of its existing fish farms in
2022/2023.
Starfish will be suitable for both post smolt production
and farming of full-size salmon. It will be a tool
for developing a new and more sustainable way
of farming at sea. New technology will be needed
to grow and bring aquaculture into a more digital
and technology-driven age. Nekkar expects this to
create opportunities for its Starfish closed fish cage
technology.
Nekkar’s Renewables business area will continue
its development of the SkyWalker wind turbine
installation tool. In 2022, Nekkar and its innovation
partners will carry out physical test with the scaled
model. After initial tests, the target is to produce a full-
scale version for the land market and conduct on-site
testing during 2023/2024. Nekkar will also continue to
evaluate the market potential for the SkyWalker in the
offshore bottom fixed and floating market.
The market outlook for both the aquaculture and
renewables industries, which Nekkar is targeting with
its development projects, looks highly promising with
investment levels predicted to grow substantially in
the coming years and decades ,however, partly offset
by public funding schemes. Further, with energy prices
at a relatively high level historically, the investment
climate in the offshore energy industry can also be
favourable for Nekkar’s subsidiary Intellilft. Although
the business outlook for Nekkar looks positive, it is
difficult to predict short, medium, and long-term
effects on all business areas from the Covid-19
pandemic and the unstable geopolitical situation.
However, it is Nekkar’s view that the company is in
a sound financial and operational position to handle
short and medium-term volatility in the market.
THE BOARD OF DIRECTORS’ REPORTTHE BOARD OF DIRECTORS’ REPORT
Kristiansand, 28 April 2022
Board of Directors, Nekkar ASA
Trym Skeie
Chairman
Gisle Rike
Director
Preben Liltved
Interim CEO
Ingunn Svegården
Director
Marit Solberg
Director
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NEKKAR ANNUAL REPORT 2021 NEKKAR ANNUAL REPORT 2021 CORPORATE GOVERNANCECORPORATE GOVERNANCE
The Board of Directors (“the Board”) is responsible for ensuring that the company
is organised, managed and controlled in an appropriate and satisfactory manner in
full 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 ASA (“Nekkar” or the “Company”) seeks
to comply with the Norwegian Code of Practice for
Corporate Governance (the “Corporate Governance
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 has
addressed the 15 governance issues covered by the
Code.
Corporate governance
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NEKKAR ANNUAL REPORT 2021 NEKKAR ANNUAL REPORT 2021
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
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 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 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 the 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 and productive.
Nekkar’s investments in the development of the
“Starfish” closed fish cage and the “SkyWalker” wind
turbine installation tool, are examples of how this
strategy is implemented.
Nekkar is a public limited liability company organized
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.
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, ethics and anti-corruption
and the environment – that are integrated with the
company’s business strategy, and the 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 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 the
company’s 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 company’s goals, strategies and risk
profile. Total assets at the end of 2021 were NOK
451.2 million, and the company’s equity was NOK
316.2 million and hence the equity-to-assets ratio was
70.1 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 realized mainly through an increase
in the value of their shares. However, dividends
may also be relevant in the future, 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 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. This may be used in connection with
acquisitions of business or assets within the same
or corresponding sector as the Company, and in
connection with issuing shares to employees and/
or board members of the Company. The General
Meeting has also granted the Board authority to
buy own shares for deletion or to use them as part
of remuneration of leading employees. All the
authorisations expire at the annual general meeting
of the Company in 2022, and 30 June 2022 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 Norwegian Code of Practice for Corporate
Governance and shall present these to the General
Meeting.
Own shares are purchased through ordinary trade
on the Oslo Stock Exchange if applicable. On 28 April
2022, the Company owned 6,632 shares.
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 Meetings (GM). The Annual
General Meeting is usually held end of May or
beginning of June. The meeting for 2022 is scheduled
for 30 May 2022.
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
CORPORATE GOVERNANCECORPORATE GOVERNANCE
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NEKKAR ANNUAL REPORT 2021 NEKKAR ANNUAL REPORT 2021
balance sheet as well as distribution of dividends.
• Election of board of directors. The general
meeting shall elect the chairman of the board and
the vice-chairman of the board.
• Other issues that 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 GM. 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
GM.
The deadline for shareholders to give notice of their
intention to attend the meeting is one day prior to the
meeting.
Shareholders who are unable to attend the GM 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 GM, in addition to other Board
members when appropriate. The chairperson of the
Board opens the GM 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 GM.
Nekkar also deviates from the recommendation to
establish routines for appointment of an independent
person to chair the GM. 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 GMs are normally passed
by simple majority unless otherwise is required by
Norwegian law.
The minutes of the GM are made available on
Nekkar’s website.
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
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 Leif Haukom and Anne-Grete Ellingsen. Both
members are independent of the major shareholders,
the Board and the executive management.
The members of the nomination committee are
elected by the GM. According to the Code, the GM
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 four
members elected by the GM.
In accordance with the General Meeting on 27
May 2021, the shareholders elected the following
members to the Board:
NAME ELECTION PERIOD POSITION
Trym Skeie – Chairperson
Marit Solberg – Vice chairperson
Gisle Rike – Director
Ingunn Svegården – Director
Nekkar strive to ensure that the Board has a
composition necessary to safeguard the interest
of the shareholders. The Board considers 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
emphasizes the importance of efficiency as a collegial
body. The board consists of two 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. Marit Solberg and
Ingunn Svegården are independent of the major
shareholders and executive management. The Board
does not include executive management.
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 GM. 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 organization, 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 organize 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
are covered, emphasizing objectives, strategy, and
implementation of the company’s business plan in
particular. The Rules and procedures for the Board
also states 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.
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.
At present, the Board does not have a remuneration
committee.
There are no other committees established by the
Board of Directors. The Board assesses 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. The evaluation is
submitted to the nomination committee.
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NEKKAR ANNUAL REPORT 2021 NEKKAR ANNUAL REPORT 2021
10. Risk management and internal
control
The Board focuses on ensuring adequate
organization 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 authorizations, organizational 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
Directors’ Report. This review also includes a
description of the main elements of our HSE efforts
with a corresponding action plan if needed.
The Nekkar Code of Conduct outlines Nekkar’s
ethical commitments and requirements to expected
behavior regarding issues 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
GM, 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 2021.
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 GM, 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 Boards’ 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 is available on the
company’s website.
Any dividend proposals are presented in the meeting
call for the General Meeting.
All information distributed to the company’s
shareholders is published on the company’s website,
as well as at https://newsweb.oslobors.no at the
same time as it is sent to shareholders.
Nekkar is entitled to publish all information (including
the Annual Report) in English only.
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 has discussed the matter, and intends to act
in accordance with applicable regulations as well as
the general principles of the stock market if such a
situation should occur.
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 GM.
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.
CORPORATE GOVERNANCECORPORATE GOVERNANCE
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NEKKAR ANNUAL REPORT 2021 CONSOLIDATED FINANCIAL STATEMENTS | NEKKAR
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NEKKAR ANNUAL REPORT 2021 CONSILIDATED FINANCIAL STATEMENTS
NEKKAR PER 31 DECEMBER 2021
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 Assets pledged as security and guarantees
Note Share capital and shareholder information
Note Earnings per share
Note Tax
Note Other operating expenses
Note Related parties
Note Derivatives
Note Liabilities and accruals
Note Financial items and foreign currency gainslosses
Note Financial risk management
Note Business combination
Note Non controlling interest (NCI)
Note Discontinued Business
Note Contingent liabilities Material disputes
Note Subsequent events
Consolidated statement of comprehensive income
For the year ended 31 December
Amounts in NOK 1000 Notes 2021 2020
CONTINUED OPERATIONS
OPERATING REVENUE
Project revenue 478 892 359 467
Other income 1 091 -
Total revenue 479 983 359 467
OPERATING EXPENSES
Cost of goods sold 236 708 198 368
Personnel costs 73 820 57 966
Losses on accounts receivable 108 13 041
Other operating expenses 25 614 18 710
Depreciation of fixed assets 5 665 2 746
Other losses (gains) 3 965 -5 990
Total Operating Expenses 345 881 284 840
Operating profit (loss) 134 103 74 626
FINANCIAL INCOME AND EXPENSES
Financial income 5 696 2 357
Financial expense 7 265 5 267
Net Finance -1 569 -2 909
Profit (loss) before tax 132 534 71 717
Income tax expenses (- income) 20 914 896
Profit (loss) from continued operations 111 621 70 821
DISCONTINUED OPERATIONS
Profit (loss) after tax for the period from discontinued operation - -103 718
Profit for the period 111 621 -32 897
Attributable to equity holders of the company 110 224 -34 726
Attributable to non-controlling interests 1 397 1 829
OTHER COMPREHENSIVE INCOME
Items that may be reclassified subseqently to profit or loss
Foreign currency differences for foreign operations - -
Other comprehensive income for the period - -
Total comprehensive income for the period 111 621 -32 897
Attributable to equity holders of the company 110 224 -34 726
Attributable to non-controlling interests 1 397 1 829
Earnings per share (NOK) 1.04 -0.33
Diluted earnings per share (NOK) 1.04 -0.33
Earnings per share - Continued operations (NOK) 1.04 0.65
Diluted earnings per share - Continued operations (NOK) 1.04 0.65
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NEKKAR ANNUAL REPORT 2021 NEKKAR ANNUAL REPORT 2021CONSOLIDATED FINANCIAL STATEMENTS CONSOLIDATED FINANCIAL STATEMENTS | NEKKAR
Consolidated statement of financial position
For the year ended 31 December
Amounts in NOK 1000 Notes 2021 2020
EQUITY AND LIABILTIES
EQUITY
Issued share capital 11 714 11 696
Treasury shares -1 -1
Share premium 3 863 2 751
Other equity 281 376 171 152
Shareholders equity 296 952 185 598
Non-controlling interests 19 276 17 879
Total equity 316 228 203 477
NON-CURRENT LIABILITIES
Deferred tax 526 599
Lease liabilities 4 234 4 550
Total non-current liabilities 4 761 5 149
CURRENT LIABILITIES
Trade payables 20 682 24 616
Income tax payable 2 618 -
Social Security and Employee taxes 6519 5 092
Prepayments from customers 29 456 187 469
Derivative financial instruments 3 971 4 278
Current lease liabilities 1 566 950
Other current liabilities 65 439 127 053
Total current liabilities 130 253 349 458
Total liabilities 135 013 354 607
Total equity and liabilities 451 241 558 084
Consolidated statement of financial position
For the year ended 31 December
Amounts in NOK 1000 Notes 2021 2020
ASSETS
NON-CURRENT ASSETS
Deferred tax assets 15 982 34 204
Goodwill 16 643 16 643
Other intangible assets 40 084 26 840
Property plant and equipment 14 439 6 224
Right-of-use assets 5 804 6 076
Total non-current assets 92 952 89 987
CURRENT ASSETS
Inventories 3 474 5 412
Trade receivables 134 749 36 643
Other receivables 13 906 21 909
Accrued non-invoiced production 20 153 22 382
Derivative financial instruments 11 505 26 636
Bank deposits cash in hand etc 174 501 355 114
Total current assets 358 288 468 097
Total assets 451 241 558 084
Kristiansand, 28 April 2022
Board of Directors, Nekkar
Trym Skeie
Chairman
Gisle Rike
Director
Preben Liltved
Interim CEO
Ingunn Svegården
Director
Marit Solberg
Director
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Consolidated statement of cash flows
For the year ended 31 December
Amounts in NOK 1000 Notes 2021 2020
CASH FLOW FROM OPERATING ACTIVITIES
Profit (loss) before tax 132 534 71 717
Adjustments for
Depreciation impairment 5 665 2 746
Interest expense 2 549 78
Interest income -2 521 -1509
Other Financial Items 1 541 4341
Income tax paid - -245
Changes in
Inventories 1 938 -4 580
Trade receivables -98 106 1 616
Trade payables -3 934 10 611
Other receivables and other payables -94 260 40 645
Net cash flow from operating activities -54 595 125 421
CASH FLOW FROM INVESTMENT ACTIVITIES
Acquisition of Subsidiary - net of Cash acquired - -
Acquisition and expenditures of fixedintangible assets -26 253 -12 083
Cash distribution from divested companies - -
Disposal of discontinued operation -98 337 -13 964
Proceeds from sale of investments - -
Net cash flow from investment activities -124 590 -26 046
CASH FLOW FROM FINANCING ACTIVITIES
Proceeds from issuance of share capital 1 130 2 829
Dividends paid - -
Disbursement on short-term long-term debt - -
Payment of lease liabilities -991 -837
Interest received 2 521 1 509
Interest paid -2 549 -78
Other Financial items -1 541 -4 341
Net cash flow from financing activities -1 429 -918
Net change in cash and cash equivalents -180 614 98 457
Cash and cash equivalents at the start of the period 355 114 256 658
Cash and cash equivalents at the end of the period 174 501 355 114
Cash flow attributable to non-controlling interests -590 -389
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 11 619 (1 ) - 205 878 217 495 16 050 233 544
Profit (loss) for the period - - - -34 726 -34 726 1 829 -32 897
Total comprehensive income - - - -34 726 -34 726 1 829 -32 897
New Shares Issued 78 - 2 751 - 2 829 - 2 829
Equity as of 11 696 (1 ) 2 751 171 152 185 598 17 879 203 477
Equity as of 11 696 (1 ) 2 751 171 152 185 598 17 879 203 477
Profit (loss) for the period - - - 110 224 110 224 1 397 111 621
Total comprehensive income - - - 110 224 110 224 1 397 111 621
New Shares Issued 18 - 1 112 - 1 130 - 1 130
Equity as of 11 714 (1 ) 3 863 281 376 296 952 19 276 316 228
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NEKKAR ANNUAL REPORT 2021 NEKKAR ANNUAL REPORT 2021CONSOLIDATED FINANCIAL STATEMENTS CONSOLIDATED FINANCIAL STATEMENTS | NEKKAR
Accounting principles
1. General information
1.1 REPORTING ENTITY
incorporated and domiciled in No rway . The company
is listed on the O slo Stock Exchange where the shares
are publicly traded.
The registered head office is located at Andø y fa ret 15
As per 31 December 2021 Nekkar holds subsidiaries in
Norway, USA and Singapore.
Today, Nekkar 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 and renewables and
aquaculture.
Syncrolift delivers systems, products and services to
yards and naval bases within three main areas:
• Shiplift and transfer systems: The company
delivers complete tailored shiplift and transfer
systems. The offering includes design,
engineering, assembly, and installation.
• FastDocking: Innovative products and solutions
are designed to increase on-land productivity
within docking and ship handling.
• Service and upgrades: Systematic approach to
help clients maintain and improve the capability
and lifespan on shiplifts and transfer systems,
maintenance, spare replacements and upgrades
of small and larger components.
The Syncrolift business has a global customer base,
and its product offering addresses several core
operations on yards and naval bases around the
world. The shiplift products simplifies the docking
operations while the transfer systems secure a safe
and effective infrastructure as vessels are moved by
rails or wheels at the yard, enabling multiple use of
the shiplift, and improved yard utilization.
Further information of the principal activities of the
group is included in Note 1.
1.2 BASIS OF PREPARATION
Nekkar’s consolidated financial statements have
been prepared in accordance with International
Financial Reporting Standards (IFRS), as adopted by
the European Union. Standards and interpretations
effective for annual periods beginning on or after
1 January 2022 have not been applied in preparing
these consolidated financial statements.
The consolidated financial statements of the group
for the year ending 31 December 2021 were approved
by the Board of Directors on 28 April 2022.
The consolidated financial statements have been
prepared on the basis of uniform accounting
principles for similar transactions and events under
otherwise similar circumstances. The consolidated
financial statements are presented in NOK. Financial
information is presented and rounded to the nearest
thousands, except where stated otherwise.
2. Summary of key accounting
principles
The accounting principles set out below have been
applied consistently to all periods presented in the
consolidated financial statements and have been
applied consistently by group entities.
2.1 BASIC PRINCIPLES
a) New accounting standards and amendments
No changes in IFRS effective for the 2021 financial
statements are relevant this financial year.
b) Current versus non-current classification
The group presents assets and liabilities in the
consolidated statement of financial position as either
current or non-current. An asset is classified as
current when it is expected to be realized or intended
to be sold or consumed in the normal operating cycle,
held primarily for the purpose of trading, expected to
be realized within twelve months after the reporting
period, or is cash or cash equivalent. All other assets
are classified as non-current.
A liability is classified as current when it is expected
to be settled in normal operating cycle, it is held
primarily for the purpose of trading, it is due to be
settled within twelve months after the reporting
period, or there is no unconditional right to defer the
settlement of the liability for at least twelve months
after the reporting period. The group classifies all
other liabilities as non-current. Deferred tax assets
and liabilities are classified as non-current assets and
liabilities.
c) Fair value measurement
The group measures financial instruments, such as
derivatives, at fair value, as defined in IFRS 13, at each
balance sheet date.
The group uses valuation techniques that are
appropriate in the circumstances and for which
sufficient data are available to measure fair value,
maximizing the use of relevant observable inputs and
minimizing the use of unobservable inputs. All assets
and liabilities for which fair value is measured or
disclosed in the financial statements are categorized
within the fair value hierarchy, described as follows,
based on the lowest level input that is significant to
the fair value measurement as a whole:
• Level 1 — Quoted (unadjusted) market prices in
active markets for identical assets or liabilities
• Level 2 — Valuation techniques for which the
lowest level input that is significant to the fair
value measurement is directly or indirectly
observable
• Level 3 — Valuation techniques for which the
lowest level input that is significant to the fair
value measurement is unobservable
For the purpose of fair value disclosures, the group
has determined classes of assets and liabilities on
the basis of the nature, characteristics and risks of
the asset or liability and the level of the fair value
hierarchy as explained above.
2.2 BASIS FOR CONSOLIDATION
a) Subsidiaries
Subsidiaries are entities which Nekkar controls.
Control is achieved when the group is exposed, or
has rights, to variable returns from its involvement
with the investee and has the ability to affect those
returns through its power over the investee.
Subsidiaries are consolidated from the date of
acquisition, being the date on which the group
obtains control, and continue to be consolidated until
the date when such control ceases.
In cases where Nekkar achieves control over an
entity, business combinations are accounted for using
the acquisition method. Non-controlling interests
is presented separately as equity in the group’s
consolidated statement of financial position.
2.3 SEGMENT INFORMATION
For management purposes, the group is organized
into segments based on its products and services
(business units). The Board of directors monitors
the operating results of its business units separately
for the purpose of making decisions about resource
allocation and assessing performance. Segment
performance is evaluated based on profit or loss
and is measured consistently with profit or loss in
the consolidated financial statements. However,
the group’s financing (including finance costs and
finance income) is managed at group level and is not
allocated to operating segments.
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Group support functions from the parent company
along with Aquaculture and Renewables are
presented as “Other”. Refer to Note 1 for further
details.
2.4 FOREIGN CURRENCIES
a) Functional and presentation currencies
The financial statements of the individual entities in
the group are measured in the currency primarily
used in the economic area where the unit operates
(functional currency). The consolidated financial
statements are presented in Norwegian kroner
(NOK), which is the functional and presentation
currency of the parent company, and the
presentation currency of the group.
b) Transactions and balance sheet items
Transactions in foreign currencies are translated
into the functional currency using the currency spot
rates at the time of recognition. Foreign currency
gains and losses that arise from the payment of such
transactions, and the currency conversion effect from
monetary items (assets and liabilities) nominated in
foreign currencies, which are valued at the currency
spot rates at the balance sheet date, are recognized
in profit and loss. Non-monetary items measured at
historical cost in foreign currency are translated into
functional currency using the exchange rates as at
the dates of the initial transaction.
c) Group companies
On consolidation, the assets and liabilities of foreign
operations are converted into NOK at the rate of
exchange prevailing at the reporting date and
their income statements are translated at average
exchange rates. Currency effects derived from
consolidation are recognized in other comprehensive
income. On disposal of a foreign operation, the
component of other comprehensive income relating
to the specific foreign operation is reclassified to
profit or loss.
2.5 PROPERTY, PLANT AND EQUIPMENT
Property, plant and equipment are recognized in
the financial statements at cost less accumulated
depreciation and accumulated impairment. Cost
includes the costs directly related to the acquisition
of the fixed asset.
Subsequent expenditures are capitalized when it
is likely that the group will receive future economic
benefits from the expenditure, and the expenditure
can be measured reliably. Other repair and
maintenance costs are recognized in profit or loss in
the period when the expenses are incurred.
Property, plant and equipment are depreciated based
on the straight-line method. Historical cost of the
fixed asset is depreciated to the residual value over
expected useful life, which is:
Machinery and vehicles 3-5 years
Fixtures/office equipment 5-10 years
Computer equipment 3-5 years
Indicators related to possible impairment
requirements are monitored continuously. If the
carrying value of the fixed asset is higher than the
estimated recoverable amount, the value is impaired
to recoverable amount.
Gains and losses from disposal of assets are
recognized in profit or loss and represent the
difference between the sales price and the carrying
value.
Depreciation methods, useful lives and residual
values are assessed at the reporting date and
adjusted when required.
2.6 INTANGIBLE ASSETS
Intangible assets that have been acquired separately
are measured on initial recognition at cost. The
cost of intangible assets acquired through a
business combination is their fair value at the
date of acquisition. Capitalized intangible assets
are recognized at cost less any amortization and
impairment losses. Internally generated intangible
assets, excluding capitalized development costs, are
not capitalized but are expensed as incurred.
Intangible assets with a definite useful life are
amortized over their economic life and tested for
impairment if there are indications of impairment.
The amortization method and -period are assessed
at least once a year. Changes to the amortization
method and/or period are presented as change in
accounting estimate.
Intangible assets with an indefinite useful life are
tested for impairment at least once a year, either
individually or as a part of a cash-generating unit.
Intangible assets with an indefinite economic life are
not amortized.
Customer relationships and customer portfolio
Customer relationships and customer portfolios
are established through contracts with customers.
Customer relationships and customer portfolio
acquired through a business combination is
recognized as an asset based on its fair value at
the acquisition date. The customer relationship and
customer portfolios have limited useful life and are
amortized using the straight-line method over their
expected useful life (15 to 20 years).
Patents and licenses
Patents and licenses have limited useful life and are
recorded at historical cost in the balance sheet less
depreciation. Patents and technology are amortized
using the straight-line method over their expected
useful life (2 to 15 years).
Research and development
Research costs are expensed as incurred.
Development activities include design or planning of
production of new or significantly improved products
and processes. Development costs associated with
development of new products are capitalized to the
extent that they can be reliably measured, the product
or process is technically, or commercially feasible,
future financial benefits are likely, and the group
intends and has sufficient resources to complete the
development, and to sell or use the asset.
Capitalized development costs include materials,
direct labor, directly attributable overheads and
capitalized borrowing costs. Development costs
are depreciated over their expected useful life (2 to
15 years). Public grants related to capitalized R&D
projects, is recognized as a reduction of capitalized
costs.
2.7 BUSINESS COMBINATIONS AND GOODWILL
When acquiring a business, financial assets and
liabilities are recognized at fair value in the opening
group balance. The consideration paid in a business
combination is measured at fair value at the
acquisition date.
The initial accounting for a business combination can
be changed if new information about the fair value
at the acquisition date is present. The allocation can
be amended within 12 months of the acquisition date
provided that the initial accounting at the acquisition
date was determined provisionally. The non-
controlling interest is measured at fair value.
Goodwill is initially measured at cost, being the
excess of the aggregate of the consideration
transferred and the amount recognized for non-
controlling interests, and any previous interest held,
over the net identifiable assets acquired and liabilities
assumed.
After initial recognition, goodwill is measured at cost
less any accumulated impairment losses. For the
purpose of impairment testing, goodwill acquired in
a business combination is, from the acquisition date,
allocated to each of the group’s cash-generating
units that are expected to benefit from the
combination, irrespective of whether other assets or
liabilities of the acquire are assigned to those units.
2.8 FINANCIAL INSTRUMENTS
A financial instrument is any contract that gives
rise to a financial asset of one entity and a financial
liability or equity instrument of another entity and
is recognized when the group becomes party to the
contractual provisions of the instrument.
Initial recognition and measurement of financial
assets
At initial recognition, a financial asset is classified
in one of three principal classification categories:
financial assets subsequently measured at amortized
cost, fair value through other comprehensive income
or as fair value through profit and loss.
With the exception of forward FX contracts (see 2.9),
all financial assets are classified as financial assets
measured at amortized cost.
Trade receivable
Accounts receivables are on initial recognition
measured at the transaction price. The group utilize
the expedient in IFRS 15 for prepayment where
the transfer of goods is expected in less than one
year. Therefore, the group don’t measure the trade
receivables at fair value even if there may be a
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NEKKAR ANNUAL REPORT 2021 NEKKAR ANNUAL REPORT 2021CONSOLIDATED FINANCIAL STATEMENTS CONSOLIDATED FINANCIAL STATEMENTS | NEKKAR
significant financing component. For subsequent
measurement, accounts receivable is measured
at amortized cost determined using the effective
interest method, and less provision for expected
credit loss (ECL). The group doesn’t recognize any
initial ECL on trade receivables due to low historical
losses. The group engages in further judgement
for trade receivables not paid when due. The group
doesn’t use a provision matrix as allowed under
IFRS9.
Contract assets
Contract assets, which mainly is satisfied
performance obligations not yet invoiced, is
recognized with the estimated considerations
according to IFRS 15 for the work performed.
Contract assets are subject to impairment testing in
the same manner as trade receivables.
Recognition and measurement of financial liabilities
All financial liabilities in the group are classified as
financial liabilities as subsequently measured at
amortized cost unless the financial liabilities are
derivatives or financial liabilities held for trading,
which are classified and measured at fair value
In subsequent periods, financial instruments
are measured in accordance with classifications
described above.
2.9 DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGE
ACCOUNTING
The group is exposed to fluctuations in foreign
exchange rate which may affect the operating results.
The group utilizes hedging of contractual income and
cost in a foreign currency.
Fair value hedging
The group uses financial derivatives to hedge foreign
currency risk. Derivatives are recognized initially at
fair value and are subsequently re-measured at fair
value. Attributable transaction costs are recognized
in the profit and loss as they incur.
The entity applies hedge accounting to hedging
relationships that meets the qualifying criteria. The
group only uses forward currency contracts for
fair value hedging of the foreign currency risk in
unrecognized firm commitments. The group makes
an assessment, both at the inception of the hedge
relationship as well as on an ongoing basis, of whether
the hedging instruments are expected to be highly
effective in offsetting the changes in the fair value of
the respective hedged items attributable to the hedged
risk.
Changes to fair value of the hedging instrument are
recognized in profit and loss as a finance cost or
income along with the change in fair value associated
with the corresponding hedged asset or liability. The
accumulated change in fair value of the hedge item
are classified as other receivable or other short-term
liabilities.
In the event that the hedge no longer fulfils the criteria
for hedge accounting, the derivative is carried at fair
value through profit and loss. For financial instrument
initial acquired for a hedge purpose, the fair value
adjustment increases or decreases the operational
profit. This applies to derivatives where the underlying
delivery contract has been cancelled.
Derivatives at fair value through profit and loss
Derivatives that are not designated as hedging
instruments are recognized at fair value as financial
expenses and financial income.
2.10 LEASES
IFRS 16 sets out the principles for the recognition,
measurement, presentation and disclosure of leases.
At the commencement date of a lease, a lessee will
have to recognize a liability based on future lease
payments and an asset representing the right to use
the underlying asset during the lease term (“Right-
of-use assets”). Further, the lessee will be required to
separately recognize the interest expense on the lease
liability and the deprecation expense of the right-of-use
asset.
For 2021, the incremental borrowing rate is assessed to
be 3,95 percent which is used in the calculation of right-
of-use assets and the corresponding lease liability.
Nekkar has applied the following practical expedients
to leases previously classified as operating leases at the
date of initial application of IFRS 16:
• Exemption for short-term leases (defined as 12
months or less)
• Exemption for leases of low value assets
2.11 INVENTORIES
Inventories are valued at the lower of cost and net
realizable value. The cost is calculated by means of
the first-in, first-out principle (FIFO). For finished
goods and work in progress (for project in which
revenue recognition is “point-in-time”), the cost
consists of product design expenses, consumption
of materials, direct labor costs, other direct costs,
and indirect production costs (based on a normal
capacity level). Net realizable value is the estimated
selling price in the ordinary course of business, less
the estimated cost of completion and estimated costs
necessary to make the sale.
2.12 CASH AND CASH EQUIVALENTS
Cash and cash equivalents consist of bank deposits.
Withdrawals from the bank overdraft constitute part
of current liabilities. Deposits and overdrafts are
presented net if the bank has a legal/contractual right
to offset the deposits and liabilities.
The group has a cash pool arrangement where
Nekkar is the primary agreement holder. Cash
positions on bank accounts with different currencies
are presented net in the consolidated financial
statement.
2.13 FINANCIAL LIABILITIES
The group classifies financial liabilities at initial
recognition into the following: non-derivative
financial liabilities, loans and borrowings, payables,
financial liabilities at fair value through profit or loss
and derivatives designated as hedging instruments.
Non-derivative financial liabilities are initially
recognized at fair value plus directly attributable
transaction costs. After initial recognition, liabilities
are measured at amortized costs using the effective
interest method.
Loans are classified as current liabilities unless there
is an unconditional right to postpone payment of
the debt by more than 12 months from the date of
the balance sheet. The following year’s payment is
classified as short-term debt.
The group derecognizes a financial liability when the
contractual obligations are satisfied or cancelled.
2.14 TAXES
Tax in the profit and loss accounts comprise both
tax payable for the period and change in deferred
tax. Tax payable for the period and deferred tax
are recognized in profit or loss, with the exception
of tax on items related to business combinations or
taxes recognized directly in equity or comprehensive
income.
Deferred tax assets and deferred tax liabilities are
offset if a legally enforceable right exists to set
off current tax assets against current income tax
liabilities and the deferred taxes relate to the same
taxable entity and the same taxation authority.
Deferred tax assets are recognized when it is
convincing evidence that the company will have
a sufficient profit for tax purposes in subsequent
periods to utilize the tax asset. The group includes
the possibility of tax planning through group
contribution as part of the assessment of convincing
evidence. The group only recognized deferred tax
assets which can be utilized in five years as the
subsequent period is considered too uncertain. For
the period going forward, the disposal of former loss-
making entities in the Norwegian tax group is the
main driver for additional utilization of the deferred
tax assets going forward.
Deferred tax asset or liability is measured using tax
rates and tax laws enacted or substantially enacted
on the balance sheet date, and which presumably
may be utilized when the deferred tax advantage is
realized or when the deferred tax is settled.
2.15 PENSION OBLIGATIONS, BONUS SCHEMES AND
OTHER COMPENSATION SCHEMES FOR EMPLOYEES
a) Pension obligations
The companies in the group have various pension
plans. The pension plans are in general financed by
payments to insurance companies or pension funds.
As of 31 December 2021, Nekkar has only defined
contribution plans.
2.16 REVENUE RECOGNITION
IFRS 15 Revenue from contracts with customers was
adopted on 1 January 2018. The standard replaced
IAS 11 Construction contracts, IAS 18 Revenue and
related interpretations.
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IFRS 15 introduces a new five step model that applies
to all customer contracts;
1. Identify the contract
2. Identify the performance obligations in the
contract
3. Determine the transaction price
4. Allocate the transaction price to performance
obligations
5. Recognized revenue as performance obligation is
satisfied
During the application process, step 2 and 5 has
been the most complex due to the contract structure
within Nekkar. Below are further details on the 5-step
model, focusing on step 2 and 5.
1. Identification of contract
The group’s revenue derives from contracts with
customers in one of the following revenue streams;
a. Long-term construction contracts (engineer-to-
order)
b. Service contracts
c. After sales
All these revenue streams are based on a contract
with the customer.
2. Identification of performance obligations
Due to contract structure, there are differences
within the contracts with regards to identification of
performance obligations. The review has shown;
The deliveries in contracts are reviewed to identify if
there are distinct performance obligations. Contracts
held within continued business ordinarily represent
one performance obligation, ref section5. It could
be argued that there could be more than one
performance obligations in some of the contracts,
but those potential additional performance
obligations identified has been assessed immaterial.
3. Transaction price
Revenue from construction contracts includes
original contract amount and approved variation
orders. For contracts where it is identified multiple
performance obligations, a stand-alone selling price
is identified to each of the performance obligation.
Potential liquidated damages are recognized as a
reduction of the transaction price unless it is highly
probable that they will not be incurred. Beyond this
there are only immaterial variable considerations.
4. Allocation of transaction price to performance
obligation
Based on the extensive review of contracts upon the
implementation of IFRS 15, the following has been
identified;
Contracts represent one performance obligation,
hence allocation of transaction price to performance
obligation is 1:1.
5. Revenue recognition as performance obligation is
satisfied
Revenue is measured based on the consideration
specified in a contract with a customer. The group
recognizes revenue when it transfers control over a
good or service to a customer.
The following table provides information about the
nature and timing of the satisfaction of performance
obligations in contracts with customers, and the
related revenue recognition policies.
Type of contract
Nature and timing of satisfaction
ofperformance obligation Revenue recognition under IFRS 15
Shipyard solutions
Construction contracts
(Engineer-to-order)
Long term construction contracts with
a typical duration of - months from
contracts are signed to the projects are
closed These projects are engineer-to-order
projects which delivers highly customized
turnkey systems for shipyards around the
world The projects are highly specialized
systems for each individual project with
no alternative use for the company and
where each project is considered to be one
performance obligation
For the performance obligations identified
in the contracts it is assessed that control
will be transferred to the customer over time
as the items are constructed
After a thorough analysis of the criteria for
“over time” revenue recognition the main issue
relating to timing of revenue recognition was
Nekkar’s enforceable right to payment for the
performance completed to date in a situation
with termination by the customer for other
reasons than Nekkar’s failure to perform as
promised (termination by convenience)
Nekkar has assessed the right to payment to
date from a legal point of view The result of
the contract review is that the relevant contract
either includes a termination by convenience
clause that is in favor of the group or that
general legal basis in the relevant jurisdiction is
in favor of the group thus Nekkar have the legal
right to require payment from the customer
for performance to date Payment covers
approximately the expected selling price of the
goods and services transferred to date which
equals cost plus a reasonable profit margin
Based on this it is the company’s assessment
that revenue recognition over time is correct for
these contracts In addition there is often no
alternative use
Measure of progress is based on cost incurred
relative to the total expected cost to satisfy the
performance obligation
Construction contracts
(Engineer-to-order)
Long term construction contracts with
a typical duration of - months from
contracts are signed to the projects are
closed These projects are engineer-to-
order projects which delivers turnkey
systems for shipyards around the world The
projects are specialized systems for each
individual project however there might be
an alternative use for the company
“Point-in-time” revenue recognition where
revenue is recognized when the goods are
delivered and have been accepted by the
customer at their premises
Service and after sales
contracts
The company delivers service-based
business where work is done on the
customers equipment These deliveries are
man-hour based and considered over-time
deliveries Spare parts as part of the service
delivery are recognized upon delivery Lead
time from order to completed customer
delivery is normally less than three months
For after sales contracts in which is sale of
components etc revenue are recognized
upon delivery
Revenue from contracts with customers for
other services is recognized over-time using a
cost progress method or is recognized over-
time as manhours and materials are delivered to
the customer
Revenue from contracts with customers for
after sales are recognized at point-in-time upon
delivery
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2.17 CONTRACT COSTS
For revenue where performance obligations are
satisfied over time, which is the primary source of
revenue at the group, all cost are recognized as
expensed when incurred because control of the work
in progress transfers continuously to the customer as
it is produced and not at discrete intervals.
For contracts where performance obligation are
satisfied at a point in time, IAS 2, Inventory, sets the
accounting.
Cost to obtain a contract are immaterial for the group
and expensed when incurred.
Balance sheet classification
For contracts recognized “over-time”, an amount
equal to completed, not invoiced, performance
obligations based on transaction price are recognized
as contract asset, while prepayments from customers
are recognized as contract liability. For contracts
where there is both a contract asset and a contract
liability, it is presented net in the consolidated
statement of financial position.
Onerous contracts
The full loss is recognized immediately if contracts
are forecast to be loss making. The full loss includes
all relevant unavoidable costs which is the lower of
the cost of fulfilling the contract or any compensation
or penalties arising form the failure to fulfill it.
The cost of fulfilling a contract comprises the costs
that related directly to the contract, e.g. direct labour
and materials.
2.18 IMPAIRMENT OF ASSETS
Non-financial assets
At the reporting date, the group assesses whether
there are indications that an asset may be impaired.
If any indication exists, or when annual impairment
testing for an asset is required, the group estimates
the asset’s recoverable amount. For goodwill and
intangible assets not yet available for use, or with an
indeterminable useful life, the recoverable amount
is estimated at the same time each year. An asset’s
recoverable amount is the higher of an asset’s or
cash-generating unit’s (CGU) fair value less costs of
disposal and its value in use. Recoverable amount
is determined for an individual asset, unless the
asset does not generate cash inflows that are largely
independent of those from other assets or groups
of assets. When the carrying amount of an asset
or CGU exceeds its recoverable amount, the asset
is considered impaired and is written down to its
recoverable amount.
In the assessment of value in use, the estimated
future cash flow is discounted to net present value,
with a pretax market-based discount rate. The rate
takes into consideration the time value of money
and asset-specific risk. With the purpose of testing
for impairment, assets that have not been tested
individually are grouped in the smallest identifiable
group of assets that generate incoming cash flow
which in all material aspects is independent of
incoming cash flows from other assets or group of
assets (cash generating units or CGU). Impairment is
determined for goodwill by assessing the recoverable
amount of each CGU (or group of CGUs) to which the
goodwill relates.
Impairment losses relating to goodwill cannot be
reversed in future periods. For other assets, an
assessment is made on each reporting date whether
there are indications that previously recognized
impairment losses no longer exist or have decreased.
A previously recognized impairment loss is reversed
only if there has been a change in the assumptions
used to determine the asset’s recoverable amount
since the last impairment loss was recognized. The
reversal is limited so that the carrying amount of the
asset does not exceed its recoverable amount, nor
exceed the carrying amount that would have been
determined, net of depreciation, had no impairment
loss been recognized for the asset in prior years.
2.19 CASH FLOW STATEMENT
The cash flow statement has been prepared based on
the indirect method.
2.20 EARNINGS PER SHARE
The basic earnings per share and diluted earnings
per share are presented for ordinary shares. The
basic earnings per share is calculated by dividing
the period’s earnings attributable to owners of the
ordinary shares adjusted for the number of own
shares.
Diluted earnings per share are calculated by adjusting
the earnings and the weighted average number of
ordinary outstanding shares, adjusted for the number
of own shares, for potential dilution effects.
2.21 FINANCIAL INCOME AND COST
Financial income consists of capital gains on financial
investments and changes to fair value of financial
assets to fair value in profit and loss. Interest income
is recognized in profit and loss using the effective
interest method.
Financial costs comprise interest costs on loans, the
effect of interest in discounted accruals, changes
to the fair value of financial assets to fair value
in profit and loss, and impairment of financial
assets. Borrowing costs not directly attributable to
acquisition, processing or production of a qualifying
asset, are included in profit and loss using the
effective interest rate method.
Foreign currency gains and losses are reported net.
2.22 EQUITY
Transaction costs directly related to an equity
transaction are recognized directly in equity after
deducting tax expenses.
2.23 CONTINGENT LIABILITIES AND ASSETS
Contingent liabilities are not recognized in the
financial statements. Significant contingent liabilities
are disclosed, except for contingent liabilities that are
unlikely to incur.
Liabilities are recognized unless no reliable estimate
can be made. If no reliable estimate can be made,
the group accounts for the liability as a contingent
liability.
2.24 DISCONTINUED BUSINESS
A discontinued business is a component of the
group´s business, the operations and cash flows of
which can be clearly distinguished from rest of the
group and which:
• represents a major and separate line of business
or geographical area of operations
• is part of a single coordinated plan to dispose of
a separate major line of business or geographical
area of operations, or
• is a subsidiary acquired exclusively with a view for
sale.
Classification as a discontinued business occurs on
disposal or when the operation meets the criteria to
be classified as held-for-sale, if earlier.
When a business is classified as a discontinued
business, the comparative statement of
comprehensive income is re-presented as if the
business had been discontinued from the start of the
comparative period.
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3. Financial risk management
3.1 FINANCIAL RISK FACTORS
The group’s activities entail various types of financial
risk; market risk (including currency risk and interest
rate risk), credit risk, liquidity risk and operational risk.
The Board of Directors has the primary responsibility
for establishing and supervising the group’s
framework for risk management. The principles of
risk management have been established in order to
identify and analyze the risk to which the group is
exposed. Principles and systems for risk management
are regularly reviewed to reflect any changes in
activities and market conditions.
The audit committee reviews management’s
monitoring of the group’s principles and procedures
for risk management.
The group’s main risk management plan focuses
on the unpredictability of the capital market and
attempts to minimize its potentially negative effects
on the group’s financial results. The group engages in
international operations and is especially exposed to
currency risk. The group uses hedging to reduce the
risk of currency exposure.
The group has a decentralized structure with
operational supervision of the various business units,
where the main management of financial risk is
determined by the Board of Directors. This applies to
areas such as currency risk, interest rate risk, credit risk
and use of financial derivatives.
For the classification of financial assets and liabilities,
reference is made to Note 19.
MARKET RISK
Market risk is the risk of changes to market prices,
such as foreign exchange rates interest and
commodities, affecting the income or value of
financial instruments. Management of market risk
intends to monitor that risk exposure lies within a set
framework.
The companies of the group buy and sell financial
derivatives and incur financial obligations to control
market risk. Transactions are carried out within the
guidelines issued by the group. Hedge accounting
is used for FX contracts that qualify for hedge
accounting. The remaining contracts are measured at
fair value through profit and loss.
Further description of the group’s market risk can be
found in the Directors’ report.
a) Currency risk
The group operates on a world-wide basis and
is exposed to currency risk in foreign currencies.
Exposure to the risk in foreign exchange rates
relates primarily to the group’s operating activities
(when revenue or expense is denominated in foreign
currencies).
The group manages its foreign currency risk by
hedging the net exposure in foreign currencies, which
is mainly USD and EUR. Currency cash flow forecasts
are reviewed on a regular basis and the group aims
to hedge a portion of the forecasted net currency
exposure that matures within a 24-months period.
Forward exchange contracts are used as hedging
instruments and they are designated as hedges of
firm commitments for those hedging relationships
that qualify for hedge accounting. When necessary,
forward exchange contracts are prolonged as they
mature.
For other monetary assets and obligations in foreign
currency, net exposure is monitored, and is adjusted
by purchasing and selling foreign currency when
necessary.
The group has insignificant investments in foreign
subsidiaries where net assets are exposed to
currency risk at conversion of currency.
b) Interest rate risk
Interest rate risk is the risk that the fair value or future
cash flows of a financial instrument will fluctuate
because of changes in market interest rates. As per
31 December 2021, the group does not have any
interest-bearing debt, hence no material exposure
to the risk of changes in market interest rates.
The group’s surplus liquidity is in the form of bank
deposits. Any divergence from the use of a floating
rate of interest and placement of surplus liquidity
shall be determined by the Board of Directors.
Items exposed to interest rate risk are mainly related
to bank deposits.
CREDIT RISK
Credit risk is the risk that a counterparty will not
meet its obligations under a financial instrument or
customer contract, leading to a financial loss. The
group is exposed to credit risk from its operating
activities (primarily for trade receivables and contract
assets) and from its financing activities, including
deposits with bank and financial institutions,
foreign exchange transactions and other financial
instruments.
Credit risk is handled at a corporate level. The credit
risk is reduced through distribution on several
counterparts. Requirements to credit ratings have
been established toward counterparts, and new
customers are subject to credit rating test. In order
to minimize the risk of losses the group applies
comprehensive use of Letters of Credit toward its
customers. The group carries out assessment of
credit risk to the political structure depending on the
economic importance of the agreements based on
assessments from the OECD and other equivalent
factors.
Maximum risk exposure is represented by the extent
of financial assets recognized in the balance sheet.
Please find additional information in Note 19.
The counterparties for derivatives and bank deposits
are investment grade rated banks (Nordea and DNB),
and the credit risk related to these are considered
insignificant.
As of 31.12, the group had the following maturity distribution on its external customers:distribution on its
external customers:
(NOK 1000) Total Not due 0-3 months overdue 3-6 months overdue >6 months overdue
For accounts receivable that are not yet due, the
assessment is, based on previous experience, that
there is no need to impair the value. Accounts
receivables relate to independent customers who
have no previous history of failing to fulfill their
obligations to the group. Invoicing is to a large extent
carried out in accordance with milestone-based
progress in each project.
The above table is presented net of bad debt
provisions. As per 31 December 2021, a provision
NOK 13 million is included due to uncertainty for
payment in one project. Hence, the gross amount of
accounts receivables > 6 months overdue is NOK 16
million.
Additional information on accounts receivable is
available in Note 9.
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LIQUIDITY RISK
Liquidity risk is the risk of the group being unable
to fulfill its financial obligations as they fall due.
Liquidity risk management implies maintaining
sufficient cash and committed credit facilities for
the group to meet obligations as they mature for
payment.
As of 31 December 2021, the group’s credit facilities
include a guarantee and derivatives facility of
NOK 350 million with Nordea. As per 31 December
2021, the group had drawn NOK 224 million of the
guarantee facility.
The group is continuously focusing on efficient
management of working capital in order to optimize
OPERATIONAL RISK
Operational risk is the risk of direct or indirect losses
as a result of a whole range of causes related to
the group’s processes, personnel, technology and
infrastructure, as well as external factors besides
from credit risk, market risk and liquidity risk that
follow from laws, rules and generally accepted
principles for business conduct. Operational risk
arises in all of the group’s business areas.
The group’s deliveries are primarily organized in the
form of projects. The group continuously strives to
improve operations and project implementation.
This further includes operational and financial
qualification of major sub-suppliers in order to reduce
completion risk in the projects.
The group handles operational risk so that a balance
is reached between avoiding economic loss or
damage to the group’s reputation, general cost
effectiveness, and to avoid control routines that limit
initiative and creativity.
The responsibility to develop and implement controls
designed to handle operational risk is allocated to
the top management within each business area. This
responsibility is supported by developing the overall
group standard for management of operational risk
in various areas.
cash flow from operations. The group has established
a joint cash pool arrangement that includes Nekkar
ASA and Syncrolift AS. The cash pool arrangement
improves accessibility and flexibility in the
management of liquidity funds.
The group’s liquidity development is continuously
monitored based on liquidity forecasts from the
Business units.
The group’s strategy is always to have sufficient cash
reserves or credit facilities available to be able to
finance its operations and investments.
The table below gives an overview of the structure of
maturity of the group’s financial obligations:
Remaining period:
2021 < 6 months 6-12 months 1-5 years > 5 years Total
LONG-TERM FINANCIAL OBLICATIONS:
Interest-bearing non-current liabilities - - - - -
CURRENT FINANCIAL OBLIGATIONS:
First year’s installments on non-current liabilities - - - - -
FX-derivatives - -
Prepayments for customers - - -
Accounts payable and other current liabilities - - -
Total financial obligations - -
2020 < 6 months 6-12 months 1-5 years > 5 years Total
LONG-TERM FINANCIAL OBLICATIONS:
Interest-bearing non-current liabilities - - - - -
CURRENT FINANCIAL OBLIGATIONS:
First year’s installments on non-current liabilities - - - - -
FX-derivatives - - -
Prepayments for customers - - -
Accounts payable and other current liabilities - - -
Total financial obligations - -
3.2 ESTIMATION OF FAIR VALUE
Fair value of financial instruments traded in an active
market are based on the market value on the balance
sheet date. The group has non such items in the
financial statement.
Fair value of financial instruments not traded in an
active market is estimated using valuation techniques
(primarily discounted future prospective cash flows)
or other relevant information for giving a best
estimate of fair value on the balance sheet date.
Examples of this are forward contracts in foreign
currencies where fair value is calculated by using the
change in the currency on the balance sheet date.
Fair value of drawings/technology acquired in a
business combination is determined using the relief
of royalty method. The valuation is based on the
concept that if the company owns a technology,
it does not have to rent, and is then relieved from
paying a royalty.
The fair value of other intangible assets is based on
the discounted cash flows expected to be derived
from the use and eventual sale of the assets.
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4. Use of judgement and estimates
The key assumptions concerning the future and
other key sources of estimation uncertainty at the
reporting date, that have a significant risk of causing
a material adjustment to the carrying amounts of
assets and liabilities within the next financial year, are
described below. The group based its assumptions
and estimates on parameters available when the
consolidated financial statements were prepared.
Existing circumstances and assumptions about future
developments, however, may change due to market
changes or circumstances arising beyond the control
of the group. Such changes are reflected in the
assumptions when they occur.
In preparing these consolidated financial statements,
management has made judgements, estimates and
assumptions that affect the reported amounts of
assets, liabilities, income and expenses. Actual results
may differ from these estimates.
Estimates and underlying assumptions are reviewed
on an ongoing basis. Revisions to estimates are
recognized prospectively.
a) Judgements
Information about judgements made in applying
accounting policies that have the most significant
effects on the amounts recognized in the
consolidated financial statements is included below
and in respective notes:
• Revenue recognition - Right to payment (IFRS 15):
For contracts with no termination for convenience
clause, the group’s enforceable right to payment is
subject to general law in the relevant jurisdiction.
In most cases with termination, the group is
responsible to mitigating the customer’s losses
by maximizing revenue from alternative sources.
Based on historic numbers and current estimates,
alternative revenue sources are considered
insignificant. Consequently, the major portion
of a contract value and company profit will be
compensated from the initial contract holder.
b) Assumptions and estimation uncertainties
Information about assumptions and estimation
uncertainties that have a risk of resulting in a material
adjustment to the carrying amounts of assets and
liabilities within the year ending 31 December 2021 is
included below and in respective notes:
• Impairment test of intangible assets and goodwill:
Key assumptions underlying recoverable amounts.
For further description of assumptions and
estimation uncertainties, please see Note 7.
• Revenue recognition of construction contracts:
Recognition of revenue from construction
contracts is done in accordance with the
percentage of completion method, ref. IFRS 15.
The assessment of project costs is based on
several estimates and assessments, each which
have an inherent uncertainty. The percentage
of completion method requires that the group
prepares reliable estimates for future costs for
each project.
• Warranty liability: The group customarily offers
a warranty period of one/ two years on its
delivered products. Management estimates
accruals for future guarantee commitments
based on information from historical guarantee
claims, together with updated information of
the quality of recent deliveries. Factors that may
affect estimated obligations include the outcome
of productivity and quality initiatives, as well as
reference prices and labor costs.
• Deferred tax assets: The group has recognized
deferred tax assets related to the Norwegian
companies. The following criteria have been used
to estimate whether it is probable that future
taxable profit will be available against which
unused tax losses can be utilized:
* The group has convincing evidence that future
taxable profit will be available against which the
unused tax losses can be utilized by the entity
* The group has sufficient temporary differences
* Tax losses is a result of specific identifiable
causes
In addition to the above, the Syncrolift business has a
strong earnings history. The group has NOK 74 million
(2020: NOK 205 million) of tax losses carried forward
and recognized deferred tax assets as per 31 December
2021 is NOK 16 million (2020: NOK 34 million).
Further details on taxes are disclosed in Note 13.
c) 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 monitoring relevant available information on
trends like shipyard utilization indicators, investment
trends and oil prices.
Within Shipyard Solutions, the order backlog is
strong at NOK 838 million and represents a solid
operational foundation for the coming periods.
Future demand for the current product portfolio
depends on the shipyards’ need to implement more
efficient production lines. Currently, there are no
signs that the yard industry’s focus on restructuring
and increased productivity will diminish. From the
volume of identified prospects, we expect there is
potential for further growth in the segment.
Renewables and aquaculture are still early
phase product development projects. For
these business areas the risk factors mainly
relate to commercialization of the products and
solutions. Digital Solutions (Intellilift) has a proven
commercialized technology and the products have
been sold to both oil-gas related business and wind
industry. However, a potential downturn in the oil-gas
market may impact the market outlook for some of
these products.
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NEKKAR ANNUAL REPORT 2021 NEKKAR ANNUAL REPORT 2021CONSOLIDATED FINANCIAL STATEMENTS CONSOLIDATED FINANCIAL STATEMENTS | NEKKAR
Note 1 Operating segments
Amounts in NOK 1000
The segments structure in Nekkar are as follows:
CONTINUED BUSINESS consist of
Shipyard Solutions The Shipyard Solutions segment includes the business related to deliveries of
shiplift and docking systems along with other products and services to shipyards
and naval bases The business consists of three main areas
• Shiplift and transfer systems deliveries of complete tailored shiplifting and
transfer systems The offering includes design engineering assembly and
installation
• FastDocking new products and solutions which are designed to increase on-
land productivity within docking and ship handling
• Service and upgrades annual inspections on shiplifts maintenance spare
replacements and upgrades of small and larger components
Digital Solutions The Digital Solutions segment is the competence hub that serves both other
business areas in Nekkar along with customers outside the group The business
segment possesses unique competence within engineering electrification
digitalisation and automation Intellilift AS is the driving force of this business
segment Intellilift AS was acquired April
OtherEliminations This segment includes group functions in the parent company the development
projects within Aquaculture and Renewables and group eliminations In the
Aquaculture business area Nekkar is currently testing and developing game-
changing technologies with high sustainability impact on aquaculture Nekkar’s
“Starfish”” closed fish cage is a fully automated closed cage solution that
has double protection against escapes avoids problems with salmon lice due
to water intake from deep waters below the cage and are able to collect a
significant amount of biological waste It is a solution that could reduce OPEX
levels dramatically for the fish farming industry while simultaneously improve fish
health
Renewables include the development of SkyWalker a disruptive wind
turbine installation techonology that could significantly reduce the cost and
environmental footprint associated with wind turbine installations During the
year the production of a down-scaled version () was completed Testing an
design of the solution and down-scaled version is ongoing
In capitalized development costs related to the development of Starfish and
SkyWalker amounted to NOK million and NOK million respectively Due to
the current size of these business areas they are not yet qualified as an operating
segment hence presented as Other
2021 2020
BU SYS Digital
Other/
Elim Total BU SYS Digital
Other/
Elim Total
External revenue
Internal revenue
Total revenue
Intergroup eliminations - - - - - - - -
Consolidated revenue
Earnings before depreciation
finance and tax (EBITDA) - -
Depreciationamortisation
Operating profitloss - -
Financial income -
Financial cost
Segment profitloss before tax - -
Income tax expense - -
Profit after tax -
This years capital expenditures
Information about geographical areas
The activity are primarily distributed in the following regions:
Revenue 2021 2020
South Asia
North East Asia
Europe
South East Asia
Africa
America
West Asia
Australia -
Other -
Total revenue
Sales are allocated based on the customer’s country of domicile.
Since revenue is project based, historic geographical allocation will not be representative for business going
forward.
During 2021 Shipyard Solutions has four customers that each accounted for more than 10 percent of the
segments revenue. These customers generated revenue of NOK 112 million, NOK 80 million, NOK 52 million and
NOK 49 million respectively.
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NEKKAR ANNUAL REPORT 2021 NEKKAR ANNUAL REPORT 2021CONSOLIDATED FINANCIAL STATEMENTS CONSOLIDATED FINANCIAL STATEMENTS | NEKKAR
Note 2 Revenue
Amounts in NOK 1000
Revenue streams
Description of revenue streams are presented under “Accounting principles” in section 2.16.
2021 2020
Revenue from construction contracts recognized over time
Revenue from construction contracts recognized point in time
Revenue from service contracts
Other operating revenue
Total revenue
1) Other revenue of NOK 1.1 million in 2021 includes an arbitration case where Nekkar ASA has received a cash payment during the year.
Contract balances
2021 2020
Trade receivable
Contract assets
Contract liabilitites
Contracts assets are primarily related to the Group’s rights to considerations for work performed, but not
invoiced at the reporting date. This is classified as accrued, non-invoiced production in the consolidated
statement of financial position. Contracts liabilities relates to advance consideration received from customer
on work not yet completed. This is classified as prepayments from customer in the consolidated statement of
financial position. Contract assets and contract liabilities are presented net on project for project basis.
Disaggregation of revenue from contracts with customers
Revenue from contracts with customers is disaggregated by primary geographical market under segment
information in Note 1.
Transaction price allocated to the remaining performance obligation
The following table shows the remaining performance obligation on committed projects:
2021 2020
Contracted revenue projects and long-term service contracts
Accumulated Revenue recognized per December
Aggregated amount of the transaction price allocated to
unsatisfied performance obligation
Production time for typical Shipyard Solutions projects are up to 48 months, hence revenue allocated to the
remaining performance obligation is expected to be recognized within the next 48 months. The above does not
include short-term service orders.
Note 3 Inventories
Amounts in NOK 1000
2021 2020
Spare parts
Work in progress
)
Obsolescence - -
Total inventories
1) Work in progress relates to projects qualifying for point in time revenue recognition
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NEKKAR ANNUAL REPORT 2021 NEKKAR ANNUAL REPORT 2021CONSOLIDATED FINANCIAL STATEMENTS CONSOLIDATED FINANCIAL STATEMENTS | NEKKAR
Note 4 Payroll expenses and employee information
Amounts in NOK 1000
Payroll expenses 2021 2020
Salaries
Employers social security contribution
Pension cost
Other benefits
Total payroll expenses continued operations
Number of employees at the end of the year
Payroll expenses of NOK 16.7 million (NOK 7 million) has been capitalized as R&D in 2021 (Note 7).
Board remunerations
1)
2021 2020
Trym Skeie Board member since
Gisle Rike
)
Board member since
Ingunn Svegården Board member since
Marit Solberg Board member since
Total
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 2021, the reported remuneration is related to the remuneration paid in 2021 based on the amounts
determined by the Board at the Annual General Meeting for 2020.
2) Gisle Rike represents Rasmussengruppen and the board fee is paid to Rasmussengruppen.
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 is comprised of the following members: Anne Grethe Ellingsen (Chairman) and
Leif Haukom. The nomination committee remuneration paid in 2021 was NOK 67 thousand for the chairman and
NOK 40 thousand for the member, a total of NOK 107 thousand.
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 payment reported in 2021 is based on the evaluation of the relevant performance criteria
for the fiscal year ending 31.12.2020. Bonus payments are based on individual employment contracts.
Senior executives have six months notice, and severance pay periods of up to 6 months.
Reference is made to the remuneration report for further details.
Remuneration and other benefits for the CEO and other Senior Executives
employed during 2021
Amounts in NOK 1000
Name Position Base salary Other benefits Bonus paid Pension cost
Preben Liltved
)
Interim CEO - from - - -
Rolf-Atle Tomassen EVP Shipyard Solutions
Mette Harv EVP Aquaculture & Renewables
Kristoffer Lundeland
)
CFO - Hire in from - - -
1) Hired in, salary equals amount invoiced from Eyde Mooring Solutions AS. Preben Liltved holds 19.7 percent of the shares in Eyde
Mooring Solutions AS.
2) Hired in, salary equals amount invoiced from Ernst & Young AS
Other benefits Board remuneration car group life insurance phone newspaper etc
Bonus paid Bonus paid to employee in current year
Remuneration of Auditor 2021 2020
Statutory audit
Other attestation services
Other non-audit service
Total
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NEKKAR ANNUAL REPORT 2021 NEKKAR ANNUAL REPORT 2021CONSOLIDATED FINANCIAL STATEMENTS CONSOLIDATED FINANCIAL STATEMENTS | NEKKAR
Note 5 Pensions
Amounts in NOK 1000
Norwegian companies within Nekkar have established defined contribution plans for all employees.
See the remuneration report for further details.
2021 2020
Total pension cost Insured Uninsured Total Insured Uninsured Total
Defined contribution plan - -
Total pension cost - -
- of which recognized as payroll cost - -
- of which recognized as finance cost - - - - - -
Note 6 Fixed assets
Amounts in NOK 1000
Right-of-use
asset
Furniture, office-
equipment, etc.
Starfish
downscaled
pilot version Total
As of
Acquisition cost -
Accumulated depreciation and impairments as of - - - -
Book value as of -
Financial year
Book value as of -
Additions
Disposals - - - -
Depreciation and impairments - - - -
Book value as of
Useful life (years) -
As of
Acquisition cost
Accumulated depreciation and impairments as of - - - -
Book value as of
Useful life (years) -
Undiscounted lease liabilities and maturity of cash outflows
)
Lease payments
Lease payments -
Lease payments
Total undiscounted lease liabilities at
1) The lease liability does not included the 5 yr option period for the offices in Syncrolift. Yearly KPI adjustments are included in the rental
contract, however not included in the calculation of lease liability. When calculating the Right-of-use asset, a discount rate of 3.95
percent is applied.
Nekkar finalized the production of a down-scaled pilot version of Starfish at the end of Q3 2021. Total allocated
production cost is NOK 5 550 thousand and it is depreciated over a period of 2 years. The down-scaled pilot will
serve as a testing unit for new features and technology.
Lease expenses included in the profit and loss amounted to NOK 1.3 million and NOK 1.2 million in 2021 and 2020
respectively. The expensed leasing amount is related to short-term lease agreements and low value assets. No
interests expenses are recognized in 2020 related to the lease agreements included in Right-of-use assets.
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NEKKAR ANNUAL REPORT 2021 NEKKAR ANNUAL REPORT 2021CONSOLIDATED FINANCIAL STATEMENTS CONSOLIDATED FINANCIAL STATEMENTS | NEKKAR
Note 7 Intangible assets
Amounts in NOK 1000
Customer
portfolio
Patents,
licences etc
Digital
Solutions
Development
costs
Technology
assets Goodwill Total
As of
Acquisition cost
Acc depreciation and amortization - - - - - - -
Book value as of
Financial year
Book value
Additions
)
- - - - -
Acquisitions - - - - - - -
Disposals
)
- - - - - - -
Depreciation and amortization - - - - - - -
Book value as of
Useful life (years) years - - - years Infinite
As of
Acquisition cost
Acc depreciation and amortization - - - - - - -
Book value as of
1) Additions are presented net of public grants received, this amounts to NOK 7.5 million.
2) The down-scaled version of Starfish is presented as other fixed assests, NOK 5.5 million.
Development cost (R&D) includes capitalised
development cost of MNOK 7 related to the closed
fish cage solution Starfish, MNOK 9 to project Sky
Walker and MNOK 5.5 regarding project Inteliwell in
intellilift.
Technology assets and goodwill relates to the
acquisitions of Intellilift AS in 2019.
Total R&D expenditures in 2020 was MNOK 3.5. The
amount is included in other operating expenses in the
consolidated statement of comprehensive income.
Allocation of goodwill and
impairment assessment
Recognized goodwill relates to the acquisition of
Intellilift and amounts to MNOK 17 as of 31 December
2021. Included in goodwill is the value of employees
with special skills and expected synergies with the
existing business of the Group. These intangible
assets do not fulfil the recognition criteria under
IAS 38 and are therefore not recognized separately.
Reference is made to note 20 Business Combinations.
In accordance with IAS 36, goodwill is not amortized,
but is tested for impairment at least annually, or
when there are indications of impairment. Nekkar
performed its annual impairment test in December
2021.
Goodwill is tested for impairment by groups of cash
generating units (CGU) and Intellilift is assessed as
one CGU. As of 31 December 2021, the recoverable
amount of the CGU has been determined based on a
value in use calculation using cash flow projections
from the 2022 budget and a total forecast period of
5 years. The pre-tax discount rate applied to the cash
flow projections is 14.5% and the cash flows beyond
the five-year period are extrapolated using a 1.5%
growth rate.
The impairment test indicated that the recoverable
amount exceeds the book value of the CGU, hence no
impairment is recognized as per 31 December 2021.
The value in use is based on several key assumptions
and is most sensitive to the following:
• Discount rate (WACC)
• Gross margins
• Growth assumptions in cash flow projections
• Terminal growth rate
If these key assumptions are developing unfavorably
it may cause a need for impairment of the recognized
goodwill. However, management believes that only a
significant change in the assumptions used will lead
to an impairment.
CGU Digital Solutions 2021 2020
Goodwill
Other intangible assets
Total
Development costs
The Group performed its impairment assessment in
December 2021. The recoverable amount has been
determined based on a value in use calculation using
5 year cash flow projections. The impairment test
indicated that the recoverable amount exceeds book
value, hence no impairment is recognized as per 31
December 2021.
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NEKKAR ANNUAL REPORT 2021 NEKKAR ANNUAL REPORT 2021CONSOLIDATED FINANCIAL STATEMENTS CONSOLIDATED FINANCIAL STATEMENTS | NEKKAR
Note 8 Subsidiaries and investments in other companies
The following subsidiaries are basis for the consolidated accounts 31.12.21:
Subsidiary of Nekkar ASA Registered office
Acquisition
year Ownership
Voting
share
Local
currency
Share capital
in local currency
Syncrolift AS Vestby Norway NOK
Nekkar AS Kristiansand Norway NOK
Subsidiary of Syncrolift AS Registered office
Acquisition
year Ownership
Voting
share
Local
currency
Share capital
in local currency
Syncrolift Inc USA USD -
Syncrolift South East Asia Singapore SGD -
Subsidiary of Nekkar AS Registered office
Acquisition
year Ownership
Voting
share
Local
currency
Share capital
in local currency
Intellilift AS Kristiansand Norway NOK
Subsidiary of Intellilift AS Registered office
Acquisition
year Ownership
1)
Voting
share
1)
Local
currency
Share capital
in local currency
Intellirob AS Kristiansand Norway NOK
1) Represents Intellilift AS’ share.
As per 31 December 2021 Nekkar do not hold any positions in other companies.
Note 9 Trade and other receivables
Amounts in NOK 1000
Trade receivables 2021 2020
Trade receivables
Loss provisions - -
Net trade receivables
Trade receivables (net) per currency: 2021 2020
EUR
USD
NOK
SGD
Other currencies
Total
For additional information on accounts receivables and associated risks, see Accounting Principles and sections
2.8, 3.1 and 4 and Note 19.
Other short-term receivables 2021 2020
VAT
Prepayments
Fair value of firm commitment effective hedging contracts -
Prolonging of effective hedge relationship
Other receivables
Other short-term receivables
For accrued, not invoiced revenue, see Note 2 Revenue.
For receivables relating to derivatives and hedge accounting, see Note 16 Derivatives.
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NEKKAR ANNUAL REPORT 2021 NEKKAR ANNUAL REPORT 2021CONSOLIDATED FINANCIAL STATEMENTS CONSOLIDATED FINANCIAL STATEMENTS | NEKKAR
Note 10 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:
2021 2020
Limit Drawn Limit Drawn
Guarantee limit for group (Nordea)
The finance agreements include pledges of plant and machinery, inventory and accounts receivables in Nekkar
ASA and Syncrolift AS.
The guarantee limit is utilized by Nekkar ASA and Syncrolift AS and cover payment guarantee, performance
bonds, advance payment bonds and tax guarantees.
For the above mentioned facilities the following assets have been pledged as collateral to Nordea:
Assets pledged as collateral for secured debt: 2021 2020
AccountGroup receivables
InventoryWork in progress including non-invoiced production
Property plant and equipment
Assets pledged as collateral *
* Assets pledged as collateral only includes Nekkar ASA and Syncrolift AS. The pledged assets are presented in the balance sheet under
the differenct categories. In addition, investments in subsidiaries and intercompany balances and loans are eliminated in the group
accounts.
Other assets pledged as security and guarantees:
As per 31 December 2021, NOK 10 million is held as a restricted deposit for derivatives exposure in DnB.
Note 11 Share capital and shareholder information
Amounts in NOK
Date Number of shares Nominal value Share capital
In 2021 there was an increase in share capital of NOK 18 246 and an increase in share premium of NOK 1 111 754.
The capital increase was related to an share purchase program where 165 871 shares were issued.
Dividends paid and proposed: 2021 2020
Dividend declared and paid during the year per share
Dividend proposed per share
Repayment of issued equity NOK per share
Treasury shares: Number of shares
Share capital
(NOK 1 000)
Treasury shares as of
Purchase(sale) of treasury shares -
Treasury shares as of
Purchase(sale) of treasury shares - -
Treasury shares as of
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Principal shareholders of Nekkar ASA as of 31.12.2021: Number of shares Ownership Voting share
4)
Shareholder
SKEIE TECHNOLOGY AS
)
RASMUSSENGRUPPEN AS
AVANZA BANK AB
TIGERSTADEN AS
MP PENSJON PK
SKEIE CAPITAL INVESTMENT AS
)
NORDNET BANK AB
VINTERSTUA AS
SKEIE CONSULTANTS AS
)
ITLUTION AS
HATLE AS
SKEIE KAPPA INVEST AS
)
PIROL AS
GUTTIS AS
TIGERGUTT INVEST AS
JP MORGAN BANK LUXEMBOURG SA
BARCLAYS CAPITAL SEC LTD FIRM
AVANT AS
CLEARSTREAM BANKING SA
SVENSKA HANDELSBANKEN AB
Total largest shareholders
own shares
Total other
Total
1) Shares owned or controlled by the Skeie family, and companies directly or indirectly controlled by them, holds 34 616 005 shares
representing 32.5 percent 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 percent of total shares.
3) Trym Skeie holds 428 111 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 1 632 939, representning 1.5 percent of total shares.
4) Voting portion are calculated after eliminating shares held by Nekkar ASA.
Shares, share options and convertion rights owned or controlled by Board members, Group executives and
their relatives:
Shares
31.12.2021 31.12.2020 31.12.2019
Board
Trym Skeie
)
Marit Solberg -
Group Executives
Preben Liltved -
Rolf-Atle Tomassen
Mette Harv
1) Trym Skeie holds 428 111 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 1 632 939, representning 1.5 percent of total shares .
27 May 2021, the Annual General Meeting adopted
a resolution to give the Board general authority to
issue a maximum of 10 632 713 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 authorization is valid until the
next Annual General Meeting and latest on 30 June
2022. No shares have been issued on the basis of this
authorization in 2021.
27 May 2021, the Annual General Meeting adopted
a resolution to give the Board authority to issue
a maximum of 2 808 089 shares against cash
redemption for the benefit of the company’s
executive management and board members. This
authorization is valid until the next Annual General
Meeting and latest on 30 June 2022. During 2021,
165 871 shares have been issued in relation to a
share purchase program, hence the remaining share
issue authority as per 31 December 2021 is 2 642 218
shares. As per 31 December 2021, there are no share
options in palce in the company.
During 1Q 2022, a total number of 287 334 shares
have been issued to employees and Board members
as part of the share purchase program.
27 May 2021, the Annual General Meeting adopted
a resolution to give the Board authority to buy a
maximum of 7 325 450 shares in Nekkar ASA within
a price range of NOK 1 to NOK 25. The authority can
be used to buy own shares for deletion, or to use the
shares as part of remuneration of leading employees
or in the company’s share purchase program. The
authority is valid until the next Annual General
Meeting or latest 30 June 2022. No shares have been
bought on the basis of this authorization as of 28
April 2022.
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NEKKAR ANNUAL REPORT 2021 NEKKAR ANNUAL REPORT 2021CONSOLIDATED FINANCIAL STATEMENTS CONSOLIDATED FINANCIAL STATEMENTS | NEKKAR
Note 12 Earnings per share
Amounts in NOK 1000
Basic earnings per share
Basic earnings per share are calculated by dividing net profit for the year attributable to ordinary equity holders
of the parent by the weighted average number of ordinary shares outstanding during the year.
2021 2020
Net profit attributable to ordinary equity holders of the parent from continuing operations
Net profit attributable to ordinary equity holders of the parent from discontinued operations - -
Net profit attributable to ordinary equity holders of the parent from total -
Weighted average of issued shares excluding own shares
Earnings per share - continuing operation (NOK per share)
Earnings per share - discontinued operation (NOK per share) - -
Earnings per share - total (NOK per share) -
Diluted earnings per share:
In determining whether potential ordinary shares are dilutive or antidilutive, each issue or series of potential
ordinary shares is considered separately rather than in aggregate.
2021 2020
Profit used to calculate diluted earnings per share - continuing operation
Profit (loss) attributable to ordinary shareholders (diluted)
Profit used to calculate diluted earnings per share - discontinued operation - -
Profit (loss) attributable to ordinary shareholders (diluted) - -
Profit used to calculate diluted earnings per share - total -
Profit (loss) attributable to ordinary shareholders (diluted) -
Average of issued shares excluding own shares
Average number of ordinary shares for calculation of diluted earnings per share
Diluted earnings per share - continuing operation (NOK per share)
Diluted earnings per share - discontinued operation (NOK per share) - -
Diluted earnings per share - total (NOK per share) -
Share structure 2021 2020
Issued number of shares
Own shares
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NEKKAR ANNUAL REPORT 2021 NEKKAR ANNUAL REPORT 2021CONSOLIDATED FINANCIAL STATEMENTS CONSOLIDATED FINANCIAL STATEMENTS | NEKKAR
Note 13 Tax
Amounts in NOK 1000
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 expected taxable income for
the upcoming five years. Tax assets of NOK 16.0
million (NOK 34.2 million) have been recognized as
per 31 December 2021.
Intellilift AS, which is held 51 percent by NekkarASA,
is not part of the Norwegian tax group.
The following criteria have been applied to assess the
likelihood of taxable income against which unused
tax losses may be utilized:
• the Group has sufficient temporary differences
• the entities are expected to have taxable profits.
Tax losses carried forward do not expire within
the Norwegian tax system.
• tax losses are induced by specific identifiable
causes
• the Group do not carry any uncertainty
overincome tax treatments
Income tax expense: 2021 2020
Payable tax on profit -
Payable withholding taxes taxes outside Norway -
Not allocated tax losses - -
Change in deferred tax*
)
Changes in unrecognized deferred tax asset - -
Tax expense on continued operations
*) Includes NOK -73 thousand related to deferred tax on excess values from the acquisition of Intellilift in 2019.
Reconciliation of the effective tax rate 2021 2020
Profit before tax
Expected income tax according to income tax rate in Norway ()
This years losses and change in prior years losses not recignised - -
Tax expense in the profit and loss statement
Payable tax including witholding taxes - -
Effective tax rate
Origin of tax expense: 2021 2020
Norway
Total tax expense
Tax payable in the balance sheet 2021 2020
Tax payable (including withholding taxes) - -
Prepaid tax - -
Total tax payable in balance sheet at year end - -
Deferred tax assets: 2021 2020
Fixed assets
Current assets
Other temporary differences provisions -
Tax losses to be carried forward
Gross deferred tax asset
- Unrecognized tax losses - -
Net recognized deferred tax assets
)
- Deferred tax assets to be recovered after months -
- Deferred tax assets to be recovered within months
Net recognized deferred tax assets
1) Deferred tax asset relating to tax losses carried forward have been recognized as deferred tax asset to the extent that it is probable that
future profits will be available.
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NEKKAR ANNUAL REPORT 2021 NEKKAR ANNUAL REPORT 2021CONSOLIDATED FINANCIAL STATEMENTS CONSOLIDATED FINANCIAL STATEMENTS | NEKKAR
Note 14 Other operating expenses
Amounts in NOK 1000
2021 2020
Premises and office expenses
IT costs
Marketing and travel expenses
Consultancy and external services
Other expenses
Total other operating expenses
Note 15 Related parties
Nekkar ASA is the ultimate parent based and listed in
Norway.
The subsidiaries (Note 8), members of the Board
(Note 4) and members of the Senior Executive
Group (Note 4) are considered as related parties.
Transactions between subsidiaries have been
eliminated in the consolidation financial statements.
The Group has carried out various transactions with
subsidiaries in 2021. All the transactions have been
carried out as part of the ordinary business and on an
arm’s length basis. For the year ended 31 December
2021, the Group has not recorded any impairment
of receivables relating to the amounts owed by
related parties (NOK 0 million). The CEO, Preben
Liltved is hired from Eyde Mooring Solutions AS.
Total expensed amount in 2021 from Eyde Mooring
Solutions AS is NOK 3.0 million.
Impairment assessment is part of the annual
evaluation with regard to the financial position of
the related party and the market in which the related
party operates.
Information on Board and Senior Executive Group’s
shares and options are included in Note 11.
Note 16 Derivatives
Amounts in NOK 1000
2021 2020
Forward currency contracts - Market values Assets Liabilities
Net
market
value Assets Liabilities
Net
market
value
Forward currency contracts - effective hedging contracts - -
Forward currency contracts - ineffective hedging
contracts - included in other liabilitiesassets
)
- -
Forward currency contracts - market value - -
Maturity distribution of currency contracts and MTM:
Total
MTM
values
Total
MTM
values
Within months
months months - -
months months
months months -
months months -
Months - -
Total
1) FX contracts designed for hedging, but do not qualify for hedge accounting.
Nominal value currency contracts, original currency 2021 2020
Amounts in CUR Sold Bought Sold Bought
NOK -
USD -
EUR - -
SGD - - -
Other balance sheets effects 2021 2020
FV of firm commitment classified as other receivable
FV of firm commitment classified as other short term debt
Capitalized cost relating to prolonging of effective hedge relationship classified as other receivables
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Forward currency contracts
Derivatives are recognized at fair value on the
contract date. The value is adjusted to fair value at
the end of each balance sheet date. The value is set
to observable market price, Note 19.
The Group enters into hedging contracts that
qualifies as fair value hedges. In addition to these,
the Group may have hedging contracts that no
longer meet the criteria for hedge accounting as the
underlying delivery contract has been cancelled.
These are recognized at fair value in the financial
statement.
Changes in fair value of a an effective fair value
hedge is recognized in the financial statement. A
corresponding change in fair value of the hedged
object is also recognized, offsetting the gain/loss
from fair value hedge.
The ineffective portion of the recognized hedge
relationships is recognized in P&L together with the
changes in value of derivatives. In 2021, a loss of NOK
4 million is recognized in the consolidated statement
of comprehensive income related to FX contracts
not qualifying for hedge accounting. In 2020, this
amounted to a gain of NOK 6 million.
The asset or liability being hedged is contractual
income or cost related to production cost. Hedged
assets or liabilities are recognized in the balance
sheet at actual value. The hedged asset or liability
represents, among other things, the part of the
contractual income or cost that has not been invoiced
on the balance sheet date, or where invoices have not
been received from the supplier. The asset or liability
is included in Other current assets or Other current
liabilities respectively. Additionally the hedged asset
or liability for each contract is represented through
bank, client or supplier.
For additional information on foreign currency
and appurtenant risks, please refer to Accounting
principles, and see section 2.8 and 3.1.
Note 17 Liabilities and accruals
Amounts in NOK 1000
2021 2020
Accrual for unpaid wages and salaries
Accrued holiday pay
Provsion settlement agreement -
Provision for warranty -
Deferred income -
Other accrued expenses
Total other current liabilities
On 11 January 2021, a global settlement agreement in the arbitration between Nekkar ASA and MacGregor, a
subsidiary of Cargotec Oyj, was reached. The settlement resulted in a net payment of NOK 94 million from Nekkar
ASA to MacGregor. The payment includes final agreement regarding the calculation of the purchase price as well
as full and final settlement and release from warranties and obligations under the asset sale agreement.
A warranty provision is recognized for expected claims on installations delivered during the year. In 2021,
Shipyard Solutions delivered newbuilding projects with a combined contract value of more than MNOK 850, and
total warranty provsions of MNOK 26.6 have been recognized as per 31 December 2021. The warranty provision
includes an extraordinary provision of MNOK 10 related to one specific project.
There is an inherent uncertainty related to the amount of future warranty claims - however based on
management’s judgments of possible outcomes, a general warranty provision in the region of 2% of the contract
value on delivered new building projects have been applied. It is expected that these costs will be incurred during
the guarantee period for the respective deliveries, which normally vary from 12-36 months.
Risk related to the estimates that form the basis for the book values are further described in Accounting
principles, under sections 2.16 and 4.
Note 18 Financial items and foreign currency gains/losses
Amounts in NOK 1000
2021 2020
Interest income
Agio -
Other financial income -
Financial income
Interest expenses
Disagio
Other financial expenses
Financial expenses
Net finance - -
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NEKKAR ANNUAL REPORT 2021 NEKKAR ANNUAL REPORT 2021CONSOLIDATED FINANCIAL STATEMENTS CONSOLIDATED FINANCIAL STATEMENTS | NEKKAR
Note 19 Financial risk management
Amounts in NOK 1000
The following table shows the carrying amount and fair values of financial assets and financial liabilities,
including their levels in the fair value hierarchy. It does not include fair value information for financial assets and
financial liabilities not measured at fair value if the carrying amount is a reasonable approximation of fair value.
Financial assets and liabilities are described in Accounting Principles, under sections 2.8, 2.9, 2.10, 2.12, 2.13 and
2.14. Risks associated with the underlying estimates of the recognized values and financial risk management is
described in Accounting Principles, ref section 3.
Classification of financial assets
Financial derivative contracts
not designated for hedging /
ineffective hedges
Financial derivative
contracts designated
for hedging
Loans,
cash and
receivables Total
2021
Non current financial assets
Shares available for sale - - - -
Other receivables - - - -
Financial current assets
Trade receivables - -
Other current receivables - -
Acquired non-invoiced production - -
Derivatives
)
-
Prepayment to suppliers - - - -
Cash and cash equivalents - -
Total financial assets
2020
Non current financial assets
Shares available for sale - - - -
Other receivables - - - -
Financial current assets
Trade receivables - -
Other current receivables - -
Acquired non-invoiced production - -
Derivatives
)
-
Prepayment to suppliers - - - -
Cash and cash equivalents - -
Total financial assets
1) Fair value of financial liabilities: The Group’s derivatives consist of forward currency contracts. Fair value of forward currency contracts
is determined by utilizing market-to-market rate on the balance-sheet date as stated by the Group’s bank. Fair value relating to non-
current debt is considered approximately equal to carrying value, as loans are given at market terms and with a floating rate.
Classification of financial liabilities:
Financial derivative
contracts not designated for
hedging / ineffective hedges
Financial derivative
contracts designated
for hedging
Loans and
receivables Total
2021
Non-current financial liabilities
Interest-bearing non-current debt - - - -
Current financial liabilities
First year instalment of non-current debt - - - -
Interest-bearing current liabilities - - - -
Prepayments from customers - -
Derivatives
)
-
Accounts payable and other short-term liabilities - -
Total financial liabilities
2020
Non-current financial liabilities
Interest-bearing non-current debt - - - -
Current financial liabilities
First year instalment of non-current debt - - - -
Interest-bearing current liabilities - - - -
Prepayments from customers - -
Derivatives
)
- -
Accounts payable and other short-term liabilities - -
Total financial liabilities -
1) Fair value of financial liabilities: The Group’s derivatives consist of forward currency contracts. Fair value of forward currency contracts
is determined by utilizing market-to-market rate on the balance-sheet date as stated by the Group’s bank. Fair value relating to non-
current debt is considered approximately equal to carrying value, as loans are given at market terms and with a floating rate.
The Group uses the following hierarchy for determining and disclosing the fair value of financial instruments by
valuation technique:
• Level 1: Quoted (unadjusted) prices in active markets for identical assets or liabilities
• Level 2: Other techniques for which all inputs which have a significant effect on the recorded fair value are
observable, either directly or indirectly
• Level 3: Techniques which use inputs which have a significant effect on the recorded fair value that are not
based on observable market data.
2021 2020
Overall Level 1 Level 2 Level 3 Overall Level 1 Level 2 Level 3
Assets measured at fair value
Foreign exchange contracts - hedging - - - -
Foreign exchange contracts - non-hedging - - - -
Liabilities measured at fair value
Foreign exchange contracts - hedging - - - -
Foreign exchange contracts - non-hedging - - - - - -
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NEKKAR ANNUAL REPORT 2021 NEKKAR ANNUAL REPORT 2021CONSOLIDATED FINANCIAL STATEMENTS CONSOLIDATED FINANCIAL STATEMENTS | NEKKAR
Note 20 Business combination
Amounts in NOK 1000
Acquisition and divestments in 2021
There have been no acquisitions or divestments in
2021.
Acquisition and divestments in 2020
There have been no acquisitions or divestments in
2020.
Note 21 Non controlling interest (NCI)
Amounts in NOK 1000
The following table summarizes the information relating to Nekkar ASA’s subsidiaries that has material non
controlling interest, before intra group eliminations. Non-current assets include goodwill and technology assets
arising from the PPA, totalt amount of NOK 19.4 million.
2021 Total
Number presented on basis Intellilift AS
Non current assets
Current assets excluding cash
Cash and cash equivalents
Non current liabilities - -
Current liabilities - -
Net assets
Revenue
Profit after tax
Other comprehensive income (OCI) - -
Total comprehensive income
NCI percentage
Net assets attributable to NCI
Profit after tax allocated to NCI
OCI allocated to NCI - -
2020 Total
Number presented on basis Intellilift AS
Non current assets
Current assets excluding cash
Cash and cash equivalents
Non current liabilities - -
Short term liabilities to financial institutions - -
Current liabilities - -
Net assets
Revenue
Profit after tax
Other comprehensive income (OCI) - -
Total comprehensive income
NCI percentage
Net assets attributable to NCI
Profit after tax allocated to NCI
OCI allocated to NCI - -
80 8 1
NEKKAR ANNUAL REPORT 2021 NEKKAR ANNUAL REPORT 2021CONSOLIDATED FINANCIAL STATEMENTS CONSOLIDATED FINANCIAL STATEMENTS | NEKKAR
Note 22 Discontinued Business
MacGregor / Cargotec Transaction
On 11 January 2021, a global settlement agreement
of the Cargotec / MacGregor arbitration was reached
between Nekkar ASA and MacGregor. The settlement
resulted in a total payment of NOK 94 million from
Nekkar to MacGregor, which comprises of payment
of disputed items and previously withheld amount.
The payment includes final agreement regarding the
calculation of the purchase price as well as full and
final settlement and release from warranties and
obligations under the asset sale agreement.
NOK 103.7 million is recognized as loss from disposal
of subsidiares in the profit and loss statement for
2020. The amount includes the global settlemet
of NOK 94 million in addtion to transaction related
expenses such as legal- and consultancy fees.
Internal costs of NOK 3.7 million is included in the
amount.
The accounting effect of settlement agreement was
recognized in 2020.
Note 23 Contingent liabilities / Material disputes
Cargotec / MacGregor arbitration
A global settlement agreement was reached on 11
January 2021. Reference is made to Note 22.
Regular claims
Regular claims can be made against the Group as
a result of its ordinary operations. These claims are
part of ordinary business and are generally covered
by provisions for guarantee costs and contingencies
in ongoing projects. Nekkar is of the opinion that
recognized provisions will cover regular claims arising
as part of ordinary business. Reference is made
toNote 17.
Note 24 Subsequent events
Events regarding Nekkar are as follows:
On 26 January 2022, Nekkar ASA appointed Ole
Falk Hansen as chef executive officer (CEO) of
the company from 1 July 2022. Ole Falk Hansen
will succeed interim CEO, Preben Liltved, who has
served as CEO since October 2020. Preben Liltved
will serve as interim CEO untill 1 July 2022, and will
thereafter continue in the role of EVP Operations of
NekkarASA.
On 22 February 2022, Syncrolift AS was awarded
a contract to upgrade a shiplift and transfer
system at an Eqyptian shipyard. The contract value
was approximately USD 3.5 million and includes
installation of a fluid bed transfer system which is
a smart and cost-efficient way of expanding the
number of different vessels types the shipyard
can receive without having to make significant
investments into new infrastructure.
On 24 February 2022, Russian forces invaded Ukraine
and the attack is internationally considered an act of
aggression.
The invasion has led to increased geopolitical risk
and triggered Europe’s largest refugee crisis since
the World War II. In addition, both energy- and raw
material prices have increased significantly as a
consequence.
Nekkar has no business activity in either Russia,
Ukraine or Belarus, however the company may
be affected by increasing raw material prices and
general uncertainty in the market.
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NEKKAR ANNUAL REPORT 2021 PARENT COMPANY FINANCIAL STATEMENTS | NEKKAR ASA
82
NEKKAR ANNUAL REPORT 2021 PARENT COMPANY FINANCIAL STATEMENTS
NEKKAR ASA PER 31 DECEMBER 2021
Parent company
financial statements
Profit and loss
For the year ended 31 December
Amounts in NOK 1000 Notes NGAAP 2021 NGAAP 2020
OPERATING INCOME
Operating income
Group service fee from subsidiaries
Total operating income
OPERATING COSTS
Personnel cost
Depreciation on tangible fixed assets
Other operating costs
Total operating costs
Operating profit - -
FINANCIAL INCOME AND EXPENSES
Income from investments in subsidiaries
Interest income
Other financial income
Interest expenses
Other financial expenses
Net financial items -
Profit before tax -
Tax -
Profit for the year -
Provision dividend - -
Transferred to other equity -
Profit and loss
Balance sheet
Equity
Cash flow
Accounting principles
NOTES
Note Personnel costs
Note Pensions
Note Tangible and intangible assets
Note Subsidiaries and joint ventures
Note Trade and other receivables
Note Assets pledged as security and guarantees
Note Share capital and shareholder information
Note Cash and cash equivalents
Note Tax
Note Other current liabilities
Note Related parties
Note Other operating costs
Note Financial items and exchange rate gainslosses
Note Gain-loss calculation disposal of shares
Note Subsequent events
84 8 5
NEKKAR ANNUAL REPORT 2021 NEKKAR ANNUAL REPORT 2021PARENT COMPANY FINANCIAL STATEMENTS PARENT COMPANY FINANCIAL STATEMENTS | NEKKAR ASA
Balance sheet
For the year ended 31 December
Amounts in NOK 1000 Notes NGAAP 2021 NGAAP 2020
ASSETS
NON-CURRENT ASSETS
INTANGIBLE ASSETS
Deferred tax assets
Intangible assets
Total intangible assets
FIXED ASSETS
Furniture office and computer equipment
Other fixed assets -
Total fixed assets
FINANCIAL FIXED ASSETS
Shares in subsidiaries
Loans to companies in the Group
Total financial fixed assets
Total non-current assets
CURRENT ASSETS
CURRENT RECEIVABLES
Trade receivables
Intra-group accounts receivable
Other receivables
Other intra-group receivables
Total current receivables
Bank deposits
Total current assets
Total assets
Balance sheet
For the year ended 31 December
Amounts in NOK 1000 Notes NGAAP 2021 NGAAP 2020
EQUITY AND LIABILITIES
EQUITY
PAID UP EQUITY
Share capital
Treasury shares - -
Share premium
Total paid up equity
RETAINED EARNINGS
Other equity
Total retained earnings
Total equity
LIABILITIES
OTHER NON-CURRENT LIABILITIES
Liabilities to financial institutions - -
Total other non-current liabilities - -
CURRENT LIABILITIES
Trade payables
Intra-group trade payables
Social security and employees` tax deduction
Income tax payable - -
Other intra-group liabilities
Other current liabilities
Total current liabilities
Total liabilities
Total equity and liabilities
Kristiansand, 28 April 2022
Board of Directors, Nekkar ASA
Trym Skeie
Chairman of the board
Gisle Rike
Director
Preben Liltved
Interim CEO
Ingunn Svegården
Director
Marit Solberg
Director
86 8 7
NEKKAR ANNUAL REPORT 2021 NEKKAR ANNUAL REPORT 2021PARENT COMPANY FINANCIAL STATEMENTS PARENT COMPANY FINANCIAL STATEMENTS | NEKKAR ASA
Equity
For the year ended 31 December
Amounts in NOK 1000 Share capital Treasury shares Share premium Other equity Total
Equity as of - -
New share issued - -
Net profit for the year - - - - -
Equity as of -
Equity as of -
New share issued - -
Net profit for the year - - -
Equity as of -
Cash flow
For the year ended 31 December
Amounts in NOK 1000 Notes 2021 2020
CASH FLOW FROM OPERATING ACTIVITIES
Net profit before tax -
Dividend from investments in subsidiaries - -
Depreciation
Gain(-)Loss() from disposal of shares - -
Net interest income - -
Change in current receivables and current liabilities -
Net cash flow from operating activities - -
CASHFLOW FROM INVESTMENTS
Disposal of shares in subsidiaries - -
Net contribution received from subsidiaries
Expenditures of tangible and intangible assets - -
Proceeds to and repayment from intra-group loans - -
Net cashflow from investments - -
CASHFLOW FROM FINANCING
Proceeds from issuance of share capital
Net change overdraft facility cash pool -
Disbursements of dividends - -
Net interest income
Net cashflow from financing -
EFFECTS OF EXCHANGE-RATE FLUCTUATIONS ON CASH AND CASH EQUIVALENTS
Net change in cash and cash equivalents -
Cash and cash equivalents (opening balance)
Cash and cash equivalents (closing balance)
88 8 9
NEKKAR ANNUAL REPORT 2021 NEKKAR ANNUAL REPORT 2021PARENT COMPANY FINANCIAL STATEMENTS PARENT COMPANY FINANCIAL STATEMENTS | NEKKAR ASA
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 recognized as financial income
in the same year as they are recognized 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 recognized 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
recognized as other financial income.
Property, plant and equipment
Property, plant and equipment are capitalized 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 recognizes the service cost of the pension
plan as a payroll expense in the statement of profit
and loss.
Accounting principles
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 utilized.
Taxes payable and deferred taxes are recognized
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 recognized 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 2021 2020
EUR
USD
Cash flow statement
The cash flow statement is presented using the
indirect method. Cash and cash equivalents include
cash, bank deposits and other short term, highly
liquid investments with maturities of three months
orless.
Cash and cash equivalents
Cash and cash equivalents consist of cash and bank
deposits. Bank deposits in foreign currencies are
translated into NOK using the exchange rate on
the balance sheet date. Withdrawals from the bank
overdraft facility constitute part of current liabilities.
Use of estimates
The management has used estimates and
assumptions that have affected assets, liabilities,
incomes, expenses and information on potential
liabilities in accordance with generally accepted
accounting principles in Norway.
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NEKKAR ANNUAL REPORT 2021 NEKKAR ANNUAL REPORT 2021PARENT COMPANY FINANCIAL STATEMENTS PARENT COMPANY FINANCIAL STATEMENTS | NEKKAR ASA
Note 1 Personnel costs, number of employees, remunerations, loans
to employees etc.
Amounts in NOK 1000
Payroll expense: 2021 2020
Salaries
Employers social security contribution
Pension costs
Other benefits
Total payroll expenses
)
1) Payroll expenses of NOK 7 million has been capitalized as R&D in 2021 (Note 3) and NOK 5 million in public grants related to expensed
R&D is recognized as cost reduction.
Number of employees at the end of the year
Board remunerations
1)
2021 2020
Trym Skeie Board member since
Gisle Rike
)
Board member since
Ingunn Svegården Board member since
Marit Solberg Board member since
Total
1) “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 2021, the reported remuneration is related to the remuneration paid in 2021 based on the amounts
determined by the Board at the Annual General Meeting for 2020.
2) Gisle Rike represents Rasmussengruppen AS and the board fee is paid to Rasmussengruppen AS.
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 (Chairman) and
Leif Haukom.
The nomination committee remuneration paid in 2021 was NOK 67 thousand for the chairman and NOK 40
thousand for the member, a total of NOK 107 thousand.
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 2021 is based on the evaluation of the relevant performance criteria
for the fiscal year ending 31.12.2020. Bonus payments are based on individual employment contracts.
Senior executives have notice six months, and severance pay periods of up to 6 months.
Reference is made to remuneration report for further details.
Renumeration and other benefits for the CEO and other Senior Executives
Name Position Base salary Other benefits Bonus paid Pension cost
Preben Liltved
)
Interim CEO - from - - -
Rolf-Atle Tomassen EVP Shipyard Solutions
Mette Harv EVP Aquaculture & Renewables
Kristoffer Lundeland
)
CFO - Hire in from - - -
1) Hired in, salary equals amount invoiced from Eyde Mooring Solutions AS. Preben Liltved holds 19,7 percent of the shares in Eyde
Mooring Solutions AS.
2) Hired in, salary equals amount invoiced from Ernst & Young AS
Remunerations Taxable remuneration
Other benefits Board remuneration car group life insurance phone newspaper etc
Bonus paid Bonus paid in current year
Auditors’ fees (excl. VAT) 2021 2020
Statutory audit
Other attestation services -
Other assistance
Total
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NEKKAR ANNUAL REPORT 2021 NEKKAR ANNUAL REPORT 2021PARENT COMPANY FINANCIAL STATEMENTS PARENT COMPANY FINANCIAL STATEMENTS | NEKKAR ASA
Note 2 Pensions
Amounts in NOK 1000
Norwegian companies within Nekkar have established defined contribution planes for all employees.
See the remuneration report for further details.
Net pension costs from defined contribution plan 2021 2020
Service cost
Payroll tax of net pension cost
Net periodic pension cost
Note 3 Tangible and intangible assets
Amounts in NOK 1000
Intangible assets,
R&D
Furniture and
office equip.
Starfish
downscaled
pilot version Total
Book value as of -
As of
Acquisition cost -
Accumulated depreciation as of - - - -
Book value as of -
Fiscal year
Book value as of -
Additions
Disposals - - - -
Depreciation amortization and impairments
)
- - - -
Book value as of
As of
Acquisition cost
Accumulated depreciation as of - - - -
Book value as of
Depreciation schedule None Linear Linear
Depreciation period - years years
The company has no leases classified as financial lease.
Development costs / R&D:
The book value of R&D assets, NOK 19 456 thousand, includes development expenses incurred in connection
with the development of a closed cage for fish farming, Starfish, and the disruptive wind turbine installation
tool, SkyWalker. Government grants of NOK 7 460 thousand was received in 2021 and the additions is
presented net of grants received.
Total R&D expenditures in 2021 was NOK 1.4 million. The amount is included in other operating expenses in the
consolidated statement of comprehensive income.
Nekkar finalized the production of a down-scaled pilot version of Starfish at the end of Q3 2021. Total allocated
production cost is NOK 5 550 thousand and it is depreciated over a period of 2 years. The down-scaled pilot will
serve as a testing unit for new features and technology.
Impairment assessment:
The company performed its impairment assessment in December 2021. The recoverable amount has been
determined based on a value in use calculation using 5 year cash flow projections. The impairment test
indicated that the recoverable amount exceeds book value, hence no impairment is recognized as per 31
December 2021.
Operating lease agreements:
Nekkar ASA has entered into a lease agreements for offices. The lease is classified as operational lease.
Total lease payment in 2021 is NOK 407 thousand.
Note 4 Subsidiaries and joint ventures
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
31.12.2021
Net
Result
2021 Cost
Net
book
value
2021
Net
book
value
2020
Syncrolift AS
Vestby
Norway NOK
Nekkar AS
Kristiansand
Norway NOK - -
Total
At year end 2021, Nekkar ASA received a gross group contribution of NOK 191.4 million from Syncrolift AS which
is recognized as income from investments in subsidiaries in the profit and loss statement. In additon, Nekkar
ASA has issued a group contribution of NOK 40 million to Syncrolift AS which is recognized as an increase in
investments in subsidiaries.
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NEKKAR ANNUAL REPORT 2021 NEKKAR ANNUAL REPORT 2021PARENT COMPANY FINANCIAL STATEMENTS PARENT COMPANY FINANCIAL STATEMENTS | NEKKAR ASA
Note 5 Trade and other receivables
Amounts in NOK 1000
2021 2020
Trade receivables
Intra-group accounts receivables
Group contribution
Other receivables including prepayments
Short-term receivables
Receivables maturing at over one year
Other receivables - -
Loans to subsidiaries
)
Total
1) Intercompany loan to Nekkar AS.
Receivables based on intercompany trade and group fees are settled on a regular basis.
Note 6 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:
2021 2020
Limit Drawn Limit Drawn
Guarantee limit for group (Nordea)
The finance agreements include pledges of plant and machinery, inventory and accounts receivables in Nekkar
ASA and Syncrolift AS. The guarantee limit is utilized by Nekkar ASA and Syncrolift AS and cover performance
guarantees and advance payment guarantees.
For the above mentioned facilities the following assets have been pledged as collateral to Nordea:
Assets pledged as collateral for secured debt - Group values: 2021 2020
AccountGroup receivables
InventoryWork in progress including non-invoiced production
Property plant and equipment
Assets pledged as collateral*
* Assets pledged as collateral only includes Nekkar ASA and Syncrolift AS. The pledged assets are presented in the balance sheet under
the differenct categories.
Note 7 Share capital and shareholder information
Amounts in NOK 1000
Date Number of shares Nominal value Share capital
In 2021 there was an increase in share capital of NOK 18 246 and an increase in share premium of NOK 1 111 754.
The capital increase was related to an share purchase program where 165 871 shares were issued.
Dividends paid and proposed: 2021 2020
Dividend declared and paid during the year per share
Dividend proposed per share
Repayment of issued equity NOK per share
Treasury shares: Number of shares Share capital
Treasury shares as of
Sale of treasury shares -
Treasury shares as of
Purchase(sale) of treasury shares - -
Treasury shares as of
96 9 7
NEKKAR ANNUAL REPORT 2021 NEKKAR ANNUAL REPORT 2021PARENT COMPANY FINANCIAL STATEMENTS PARENT COMPANY FINANCIAL STATEMENTS | NEKKAR ASA
Principal shareholders of Nekkar ASA as of 31.12.2021:
Shareholder Number of shares Ownership Voting share
4)
SKEIE TECHNOLOGY AS
)
RASMUSSENGRUPPEN AS
AVANZA BANK AB
TIGERSTADEN AS
MP PENSJON PK
SKEIE CAPITAL INVESTMENT AS
)
NORDNET BANK AB
VINTERSTUA AS
SKEIE CONSULTANTS AS
)
ITLUTION AS
HATLE AS
SKEIE KAPPA INVEST AS
)
PIROL AS
GUTTIS AS
TIGERGUTT INVEST AS
JP MORGAN BANK LUXEMBOURG SA
BARCLAYS CAPITAL SEC LTD FIRM
AVANT AS
CLEARSTREAM BANKING SA
SVENSKA HANDELSBANKEN AB
Total largest shareholders
own shares
Total other
Total
1) Shares owned or controlled by the Skeie family, and companies directly or indirectly controlled by them, holds 34 616 005 shares
representing 32.5 percent 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 percent of total shares.
3) Trym Skeie holds 428 111 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 1 632 939, representning 1.5 percent of total shares.
4) Voting portion are calculated after eliminating shares held by Nekkar ASA.
Shares, share options and convertion rights owned or controlled by Board members, Group executives and
their relatives:
Shares
31.12.2021 31.12.2020 31.12.2019
Board members
Trym Skeie
)
Marit Solberg -
Group Executives
Preben Liltved -
Rolf-Atle Tomassen
Mette Harv
1) Trym Skeie holds 428 111 shares in person and 1 204 828 through Skeie Kappa Invest AS. Total shares owned or controlled by
TrymSkeie, and companies directly or indirectly controlled by him, is 1 632 939, representning 1.5 percent of total shares.
27 May 2021, the Annual General Meeting adopted
a resolution to give the Board general authority to
issue a maximum of 10 632 713 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 authorization is valid until the
next Annual General Meeting and latest on 30 June
2022. No shares have been issued on the basis of this
authorization in 2021.
27 May 2021, the Annual General Meeting adopted
a resolution to give the Board authority to issue
a maximum of 2 808 089 shares against cash
redemption for the benefit of the company’s
executive management and board members. This
authorization is valid until the next Annual General
Meeting and latest on 30 June 2022. During 2021,
165 871 shares have been issued in relation to a
share purchase program, hence the remaining share
issue authority as per 31 December 2021 is 2 642 218
shares. As per 31 December 2021, there are no share
options in palce in the company.
27 May 2021, the Annual General Meeting adopted
a resolution to give the Board authority to buy a
maximum of 7 325 450 shares in Nekkar ASA within
a price range of NOK 1 to NOK 25. The authority can
be used to buy own shares for deletion, or to use the
shares as part of remuneration of leading employees
or in the company’s share purchase program. The
authority is valid until the next Annual General
Meeting or latest 30 June 2022. No shares have been
bought on the basis of this authorization as of 28
April 2022.
Note 8 Cash and cash equivalents
Amounts in NOK 1000
2021 2020
Bank deposits (withdrawal) cash etc as per -
Deposits ()withdrawals (-) from cash pool account system as at
Total cash and cash equivalents
Restricted bank deposits per 31 December 2021 were NOK 1 500 thousand and is related to employee’s tax
witholding.
98 9 9
NEKKAR ANNUAL REPORT 2021 NEKKAR ANNUAL REPORT 2021PARENT COMPANY FINANCIAL STATEMENTS PARENT COMPANY FINANCIAL STATEMENTS | NEKKAR ASA
Note 9 Tax
Amounts in NOK 1000
Change in deferred tax assets and deferred tax liabilities:
1.1.2020
Changes
2020 31.12.20
Changes
2021 31.12.2021
Deferred tax
Fixed assets - -
Pension fund liabilities - - - - -
Credit deduction carried forward - - - - -
Allowance carried forward - - - - -
Convertible debt - - - - -
Tax loss carry forward - - -
Gross deferred tax (assets - liabilities ) - - -
Unrecognized deferred tax assets related tax losses - - -
Unrecognized deferred tax assets related to other temp differences - - -
Net deferred tax reported (assets - liabilities ) - - - -
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 and Nekkar 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 NOK
8.5 million have been recognized as per 31 December 2021.
Breakdown of differences between profit before tax as per the accounts and tax basis for year: 2021 2020
Result before tax -
Permanent differences
Change to temporary profitloss differences - -
Reversed group contribution from subsidiaries - -
Tax basis for theyear before group contribution - -
Breakdown of tax costs: 2020 2019
Tax payable - -
Withholding tax from activities outside Norway - -
Effect of group contribution on deferred tax
Effect of tax on issue costs netted directly with deferred tax assets - -
Not allocated deferred tax related to tax losses - -
Unrecognized change inother tempdifferences - -
Changes to deferred tax assets - -
Tax cost -
Note 10 Other current liabilities
Amounts in NOK 1000
2021 2020
Provision for unpaid wages and salaries
Provision for holiday pay
Provision for settlement of the Cargotec MacGregor arbitration -
Other accrued expenses
Total other current liabilities
Note 11 Related parties
Amounts in NOK 1000
Subsidiaries (Note 4), members of the Board (Note 1) 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.
2021 2020
SALES ROYALTIES SALES FEES GROUP FEE
Subsidiaries
COST OF SALES
Subsidiaries - -
BALANCE SHEET ITEMS RELATED TO PURCHASE AND SALE OF GOODS AND SERVICES
Receivables
Loans to group companies
Accounts receivables
Other short term receivables
)
Current liabilities
Accounts payable to subsidiaries
Other short term payables to subsidiaries
)
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 (NOK 157.8 million) in
addtion to group contribution from Nekkar ASA of NOK 40.0 million.
The CEO, Preben Liltved, is hired in from Eyde Mooring Solutions AS where he is chairman and shareholder.
During 2021, total transacions with Eyde Mooring Solutions AS amounted to NOK 3.0 million.
Chaiman of the Board, Trym Skeie, is also chariman and shareholder in Stimline AS. Nekkar ASA has acquired
services from Stimeline AS of NOK 0.6 million during 2021.
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 7.
100 1 0 1
NEKKAR ANNUAL REPORT 2021 NEKKAR ANNUAL REPORT 2021PARENT COMPANY FINANCIAL STATEMENTS
Note 12 Other operating costs
Amounts in NOK 1000
2021 2020
Cost of premises
IT costs
Marketing travel
Consultancy hire-ins and external services
Other expenses
Total other operating costs
Note 13 Financial items and exchange rate gains/losses
Amounts in NOK 1000
2021 2020
Group contribution from subsidiaries
Gainloss(-) from sale of subsidiaries shares in financial investments - -
Interest income from companies in same group
Other financial income
Interest paid to financial institutions - -
Other financial costs - -
Net exchange rate gains (losses) -
Net financial items -
Exchange rate gains/losses:
Currency differences booked to income and costs in the profit and loss account are as follows: 2021 2020
Currency exchange income
Currency exchange costs - -
Total -
Note 14 Gain-/loss calculation disposal of shares
MacGregor / Cargotec Transaction
“On 11 January 2021, a global settlement agreement of the Cargotec / MacGregor arbitration was reached
between Nekkar ASA and MacGregor. The settlement resulted in a total payment of NOK 94 million from Nekkar
to MacGregor, which comprises of payment of disputed items and previously withheld amount. Thepayment
includes final agreement regarding the calculation of the purchase price as well as full and final settlement and
release from warranties and obligations under the asset sale agreement.
The accounting effect of settlement agreement was recognized in 2020.
Note 15 Subsequent events
Subsequent events regarding Nekkar ASA are listed in Note 24 in Nekkar Group.
Auditors’ report
KPMG AS
Kanalveien 11
Postboks 4 Kristianborg
5822 Bergen
Telephone +47 45 40 40 63
Fax
Internet www.kpmg.no
Enterprise 935 174 627 MVA
KPMG AS, a Norwegian limited liability company and member firm of the KPMG network of independent member firms affiliated
with KPMG International Cooperative (“KPMG International”), a Swiss entity.
Statsautoriserte revisorer
-
medlemmer av Den norske Rev
isorforening
Offices in:
Oslo
Alta
Arendal
Bergen
Bodø
Drammen
Elverum
Finnsnes
Hamar
Haugesund
Knarvik
Kristiansand
Mo i Rana
Molde
Skien
Sandefjord
Sandnessjøen
Stavanger
Stord
Straume
Tromsø
Trondheim
Tynset
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 2021, the income statement and cash flow statement for
the year then ended, and notes to the financial statements, including a summary of significant
accounting policies, and
• The consolidated financial statements of Nekkar ASA and its subsidiaries (the Group), which
comprise the balance sheet as at 31 December 2021, the income statement, statement of
changes in equity and statement of cash flows for the year then ended, and notes to the
financial statements, including a summary of significant accounting policies.
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 2021, 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 financial statements give a true and fair view of the financial position of the Group as at 31
December 2021, and its financial performance and its cash flows for the year then ended in
accordance with International Financial Reporting 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 laws and regulations 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.
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 13 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
AUDITORS’ REPORT
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NEKKAR ANNUAL REPORT 2021 NEKKAR ANNUAL REPORT 2021 AUDITORS’ REPORTAUDITORS’ REPORT
Independent Auditor's Report - Nekkar ASA
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 accompanying
information 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 legal 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 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 and true and fair view of the consolidated financial
statements of the Group in accordance with International Financial Reporting Standards as adopted
by the EU, and 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
Independent Auditor's Report - Nekkar ASA
2
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.
1. Revenue recognition for long term construction contracts
Reference is made to note 2, the Key Audit Principles section 2.16 and the Board of Directors report.
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 and service
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.
IFRS 15 has a higher degree of judgment 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
criteria 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 as well as assessing
the estimated future contract revenue and cost
outcomes. Revenue and cost outcomes factored
in management's forecasts include:
• liquidated damages; and
• 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.
• Obtaining and reading the terms and
conditions of significant contracts and
comparing these to management's
assessment of the contract forecasts.
• 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 skepticism 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 and
service contracts.
104 105
NEKKAR ANNUAL REPORT 2021 NEKKAR ANNUAL REPORT 2021
Independent Auditor's Report - Nekkar ASA
4
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
procedures that are appropriate in the circumstances, but not for the purpose of expressing an
opinion on the effectiveness of the Company's or 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 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 Regulation on European Single Electronic Format (ESEF)
Opinion
We have performed an assurance engagement to obtain reasonable assurance that the financial
statements with file name 5967007LIEEXZXIFE872-2021-12-31-en.zip have been prepared in
accordance with Section 5-5 of the Norwegian Securities Trading Act (Verdipapirhandelloven) and the
accompanying Regulation on European Single Electronic Format (ESEF).
In our opinion, the financial statements have been prepared, in all material respects, in accordance
with the requirements of ESEF.
Management’s Responsibilities
Management is responsible for preparing, tagging and publishing the financial statements in the single
electronic reporting format required in ESEF. This responsibility comprises an adequate process and
Independent Auditor's Report - Nekkar ASA
5
the internal control procedures which management determines is necessary for the preparation,
tagging and publication of the financial statements.
Auditor’s Responsibilities
Our responsibility is to express an opinion on whether the financial statements have been prepared in
accordance with ESEF. 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”. The standard requires us to plan and perform procedures to obtain
reasonable assurance that the financial statements have been prepared in accordance with the
European Single Electronic Format.
As part of our work, we performed procedures to obtain an understanding of the company’s processes
for preparing its financial statements in the European Single Electronic Format. We evaluated the
completeness and accuracy of the iXBRL tagging and assessed management’s use of judgement. Our
work comprised reconciliation of the financial statements tagged under the European Single Electronic
Format with the audited financial statements in human-readable format. We believe that the evidence
we have obtained is sufficient and appropriate to provide a basis for our opinion.
Bergen, 28 April 2022
KPMG AS
Knut Olav Karlsen
State Authorised Public Accountant
AUDITORS’ REPORTAUDITORS’ REPORT
106
NEKKAR ESG REPORT 2021 CHAPTER TITLE
Disruptive
technologies,
sustainable
results
ESG REPORT 2021
107 108
NEKKAR ESG REPORT 2021 NEKKAR ESG REPORT 2021CHAPTER TITLE CHAPTER TITLE
At Nekkar, we have chosen a
business strategy where ESG
and corporate performance
are intertwined.
CEO letter 109
About this report 111
About Nekkar 113
Key figures 113
Nekkar company structure 114
Locations 115
Corporate governance and sustainability approach 117
Supply chain and sectors served 118
UN Sustainable Development Goals 119
ESG Day 2021 120
Stakeholders 122
Stakeholder dialogue 123
Defining Nekkar’s material topics 125
Reporting themes and topics 126
Working environment 127
Health and safety 133
Governance, ethics and anti-corruption 136
Environmental and climate impact 139
GRI content index 142
Content
110
NEKKAR ESG REPORT 2021
109
NEKKAR ESG REPORT 2021 CEO LETTER
Disruptive technologies,
sustainable results
Environmental, social and governance (ESG) issues are of increasing
concern. In 2021, this became ever more evident with the ongoing
pandemic and the imminent climate crisis. The COP26 meeting in Glasgow,
as well as the introduction of new regulations such as the EU Taxonomy and
the Transparency Act, have further helped push sustainability to the top of
the agenda in many companies – including Nekkar. For organisations like
ours, working systematically with sustainability and sustainability reporting
has become a must if we are to be taken seriously – not just by the investor
community, but by society at large. This is a development we welcome.
CEO LETTER
• Shipyard Solutions: Continued the development
of Syncrolift’s digital platform, which will enable
more cost-efficient operations of shiplifts and
transfer systems, while at the same time reducing
their environmental footprint. Skarvik shiplift
delivered with waste water collection system to
avoid waste to seawater.
• Digital Solutions: Entered a joint venture with
Transocean to develop a disruptive rig automation
solution that allows operators to reduce drilling
costs and emission levels through more reliable
and faster drilling operations.
As readers will notice, Nekkar’s sustainability
practices aim to benefit both our bottom line and
create greater impact on the wider community.
To find out more about how Nekkar utilises ESG as
topic to generate long-term value creation for society
and shareholders, please check out the following
pages of this report.
Preben Liltved
CEO of Nekkar
A new, sustainable direction
In 2020, Nekkar identified a new strategic direction:
To leverage the group’s superior engineering,
electrification, automation and digitalisation heritage
from “Drilling Bay” in Kristiansand, to develop
disruptive technologies that can make high-growth
industry sectors more sustainable, productive
and profitable. Throughout 2021, all four business
areas in Nekkar have demonstrated their ability to
implement a business strategy where sustainability
and profitability are intrinsically intertwined:
• Aquaculture: Progressed with extensive testing
of the down scaled Starfish (1:2,5). Starfish is a
fully automated, closed fish cage solution that
is digitally and remotely managed. It has been
designed to reduce environmental impact and
operating expenditure to a minimum, while also
avoiding the biological challenges that traditional
ocean-based pens face.
• Renewables: Continued the development of
the SkyWalker wind turbine installation tool,
including completion of a scaled down 1:20 model.
SkyWalker is a disruptive installation tool that
could significantly reduce the cost, CO
2
emissions
and footprint on nature that are associated with
wind turbine installations.
“Being a sustainable
company means that
we are never satisfied
with the status quo,
but continuously
improving.”
Preben Liltved, CEO
At Nekkar, we have chosen a business strategy where
ESG and corporate performance are intertwined.
In addition, we are taking a proactive approach
to manage ESG risks and opportunities. Being a
sustainable company means that we are never
satisfied with the status quo, but continuously
improving. That is why we started developing
sustainability reports three years ago, mapping our
direct and indirect impact, areas of improvement and
the road ahead.
In 2021, we took this work one step further. First,
Nekkar started climate accounting on our direct
and indirect emissions. Last year, we only included
numbers for electricity use, and this year we have
also gathered data relating to fuel, business travel
and purchased goods and services. Although we
will continue to strengthen our climate reporting in
the years to come, we see this as a first important
step towards cutting our emissions and setting bold
climate targets for our company.
Secondly, Nekkar organised another ESG Day in
2021 for all employees, where our sustainability
work was in focus. This was previously referred to
as Green Day, but this year we chose to rename
the event to underline that being sustainable is
about more than caring for the environment: It also
entails good corporate governance and taking social
responsibility, both within our own organisation and
when working with suppliers and business partners
around the world.
Finally, we have also conducted systematic
stakeholder dialogue and a materiality assessment,
following the GRI Standards’ management approach
for sustainability reporting. In the materiality
assessment, we revised our previously defined
sustainability topics, namely health and safety, ethics
and anti-corruption, and the environment. We have
also included working environment, specifically
gender equality and diversity, as a new priority
area from 2021. Our people are our most important
assets and making sure that everyone have the
ability to thrive and succeed are among our most
importantgoals.
111
NEKKAR ESG REPORT 2021 ABOUT THIS REPORT
This is Nekkar ASA’s (Nekkar) sustainability report for the reporting period
1 January to 31 December 2021.
The last sustainability report was published in March 2021 and can be found on Nekkar’s website.
For information about this report and its content, please contact Nekkar’s CEO, Preben Liltved:
preben.liltved@nekkar.com.
This report is prepared in accordance with the Global Reporting Initiative’s (GRI) framework, Core 0ption.
The report is also inspired by the Oslo Stock Exchange (OSE) Euronext guidelines for sustainability reporting.
The report has been reviewed and approved by Nekkar’s Board of Directors. It has not been audited by a
third party.
About this report
112
NEKKAR ESG REPORT 2021 ABOUT THIS REPORT
114
NEKKAR ESG REPORT 2021
113
NEKKAR ESG REPORT 2021 ABOUT NEKKAR
About Nekkar
Nekkar is a company that utilises electrification, automation
and digitalisation competence as levers to make high-growth
industries more efficient, profitable and sustainable.
Key figures 2021
480
REVENUE
MNOK
140
EBITDA
MNOK
70.1
EQUITY RATIO
PERCENT
ABOUT NEKKAR
Nekkar ASA
(holding company)
Digital solutions
Aquaculture RenewablesShipyard solutions
The company’s operations are divided into three business areas – Shipyard Solutions (Syncrolift),
Aquaculture and Renewables – that are all supported by Nekkar’s Digital Solutions business unit
which applies its unique competence within electrification, automation and digitalisation across
the entire Nekkar group.
Nekkar has extensive industrial experience and a strong legacy within product development and
project execution from both the former TTS brand, which grew from a small business to a multi-
billion global company, and the internationally recognized “Drilling Bay” in Kristiansand, Norway.
Our highly competent employees have a long track record of innovation and product development.
Nekkar is an ASA company listed on the Oslo Stock Exchange (ticker: NKR).
Nekkar company structure
115 116
NEKKAR ESG REPORT 2021 NEKKAR ESG REPORT 2021
Locations
Nekkar (the holding company, as well as the Aquaculture, and Renewables and
Digital business areas) is headquartered in Kristiansand, on the South coast of
Norway. Shipyard Solutions is located in Vestby, with subsidiaries in Singapore and
the US. The company also has a sales and service representative in Dubai.
28
3
1
1
39
Kristiansand
Aquaculture,
Renewables
and Digital
Singapore
Shipyard Solutions
subsidiary
US
Shipyard Solutions
subsidiary
Dubai
Shipyard Solutions
Vestby
Shipyard Solutions
Employees
by location
ABOUT NEKKAR
Location Employees 2020 Employees 2021 Percentage increase
Kristiansand (Aquaculture Renewables and Digital)
Vestby (Shipyard Solutions)
Singapore (Shipyard Solutions subsidiary)
US (Shipyard Solutions subsidiary)
Dubai (Shipyard Solutions)
At the end of 2021, Nekkar had 62 permanent employees
and 10 temporarily hired employee (project-based).
Employees by location
ABOUT NEKKAR
Includes full-time, part-time and temporarily hired employees
117 118
NEKKAR ESG REPORT 2021 NEKKAR ESG REPORT 2021ABOUT NEKKAR
For Nekkar, adhering to good corporate governance standards is a
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, including the Norwegian Code of Practice
for Corporate Governance (NUES). Nekkar is also
committed to OECD’s Guidelines for Multinational
Enterprises and contributing to the improvement
of international business standards and practices,
especially with regards to questions of corruption,
labour relations and the global environment. The
company and its employees should at all times
operate in an ethical and lawful manner.
Nekkar’s governance structure shall
ensure a systematic approach to
corporatesocialresponsibility.
The Annual General Meeting (AGM) is Nekkar’s
supreme governing body and where stakeholders
can influence how sustainability is practiced. The
Board of Directors (“the Board”) is responsible for
ensuring that the company is organised, managed,
and controlled in an appropriate and satisfactory
manner in full compliance with applicable laws
and regulations. The sustainability report has
also been reviewed and approved by the Board.
Corporate Executive Management bears the
ultimate responsibility for the company’s strategy,
development, and day-to- day work.
Nekkar’s main governing document is the company’s
Code of Conduct, in addition to the Code of Conduct
for Business Partners and the company’s Articles
ofAssociation.
Corporate governance and
sustainability approach
ABOUT NEKKAR
Supply chain and sectors served
Nekkar’s business operations are mainly related to ocean-based industries
and segments such as ports and harbours, aquaculture and renewable
energy. Nekkar has global presence with projects all over the world.
Production
(outsourced)
Raw
materials
Intermediate
goods
Manufacturing
Sales
Design
Transport
Installation/
comissioning
Service/
end-of-life
“It’s all about our responsibility to make the world
liveable and sustainable for the next generation.”
Trym Skeie, Board Member
NEKKAR ESG REPORT 2021
120 119
NEKKAR ESG REPORT 2021 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 tool SkyWalker. This innovation has the potential
of increasing the efficiency and decrease the environmental footprint of installing 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. Nekkar is currently developing the ‘Starfish’ cage, which
aims to improve the sustainability of fish farming by improving fish welfare and eliminating
sea lice and waste problems normally associated with fish farming. Our goal is to design and
produce products that can contribute positively to the 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 laws and regulations,
act in an ethical, sustainable and socially responsible manner and otherwise practice good
corporate governance.
On 25 November 2021, Nekkar arranged an ‘ESG Day’ – aiming to increase
employees’ awareness of Environmental, Social and Governance topics.
ESG Day 2021
The ESG Day was previously named Green Day, but
the company decided to change this in order to
include social and governance topics as well.
During the ESG Day 2021, the executive leadership
group gave an introduction to ESG in general and
Nekkar’s ESG work and guidelines specifically. This
included a review of the company’s Code of Conduct
and how this applies to employees, an introduction
to ESG software tools, a reminder of Nekkar’s ESG
goals for 2021 as well as suggested KPI’s for 2022.
Ideas discussed at last year’s Green Day were also
brought up, in addition to product improvement.
The next ESG Day will be arranged in the first half of
2022, and the main focus will be on social topics.
“Our company strives to
improve our ESG efforts
every day, and to make this
happen, we need to have all
employees on board. During
this years’ ESG Day, employees
were presented with our ESG
strategy and participated in
discussions on how we as a
company can improve. I am
already looking forward to
the next ESG Day in 2022,
where we can demonstrate
our results.”
Inger-Marie Harvei, HSEQ Manager
ABOUT NEKKAR
121 122
NEKKAR ESG REPORT 2021 NEKKAR ESG REPORT 2021 STAKEHOLDERSABOUT NEKKAR
Investors/Board of Directors (BoD)
Nekkar’s investors and owners are primary
stakeholders and directly affect the company’s
priorities and strategic direction. Ensuring value
for shareholders is one of the main priorities for the
company.
Customers
Nekkar’s customers directly affect the company
economically and the company’s ability to offer
attractive products at acceptable cost is decisive
for customer retention. Furthermore, an increased
ESG awareness among customers is part of driving
Nekkar’s sustainability priorities.
Employees
Nekkar’s employees are directly affected by the
company’s internal policies and activities. The
company is greatly dependent on its employees and
the ability to attract and retain skilled talent.
Business partners/suppliers
Suppliers are important stakeholders for Nekkar and
are directly affected economically by the company.
Also, suppliers’ responsibility is indirectly affected
by Nekkar’s focus on responsible business practices
as well as the expectations placed on them by the
company.
Government/authorities
Nekkar is directly affected by government
regulations in the countries in which it operates, and
the company’s operating conditions is directly and
indirectly affected by regulatory authorities. As a
listed company, Nekkar is also bound by the Oslo
Stock Exchange’s regulations.
Civil society
Local communities are indirectly, socially,
environmentally and economically, affected by
Nekkar’s activities in terms of job creation and tax
contribution. Civil society is also environmentally
impacted by the company’s products.
Stakeholders
NEKKAR
Customers
Government/
authorities
Investors/Board
of Directors
Civil society
Employees
Business partners/
suppliers
123 1 2 4
NEKKAR ESG REPORT 2021 NEKKAR ESG REPORT 2021 STAKEHOLDERSSTAKEHOLDERS
Stakeholder group Topics mentioned Arena for dialogue
InvestorsBoD • Product innovation and development
• Environment and climate
• Regulations
• ESG report
• Direct communications
(emailsmeetings)
• 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
(emailsmeetings)
• Website
Employees • Good corporate governance
• Product innovation and development
• Climate and the environment
• Product lifetime (LCALCM)
• Supply chain management
• Compensationrenumeration
• 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 partnerssuppliers • Fair and equal treatment of suppliers
• Supply chain management
• Health and safety (HSE)
• Anti-corruption
• Working environment
• Competencerecruitment
• Climate and the environment
• Diversity equality and non-discrimination
• Product lifetime (LCALCM)
• Product innovation and development
• Annual report
• ESG report
• Newsletters
• Website
Governmentsauthorities • 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
Stakeholder dialogue
Nekkar aims to have an ongoing dialogue with key
stakeholder groups. A good dialogue strengthens
the company’s relationship with the society in
which it operates and its immediate surroundings.
Good stakeholder dialogue also ensures a strategic
approach to ESG reporting, and systematic
stakeholder dialogue is a fundamental objective of
the GRI Standards Management Approach.
In December 2021, key stakeholder groups including
employees, business partners/suppliers, customers
and investors/BoD members were invited to
participate in Teams interviews with representatives
from Nekkar. In the interviews, we asked about
general ESG topics as well as their perception of
the company’s approach to sustainability. Nekkar
has also conducted desktop research, for example
when it comes to the ESG priorities of relevant
governmental authorities. A summary of key topics
and arena of dialogue can be found in the table on
the followingpage.
The findings of the stakeholder dialogue were
structured for discussion with Nekkar’s internal ESG
workforce consisting of the company’s CEO, HSEQ
manager and business controller (the management
group) in January 2022.
125 126
NEKKAR ESG REPORT 2021
• Climate adaption • Supply chain control
• Diversity, equality and inclusion
• Occupational health & safety
• Human rights
• Anti-corruption
• Innovation & product
development
• Contribute to sustainable fish
farming
• Worker’s rights (incl.
Compensation/renumeration
• Recycling/circular economy
• Product lifetime
• CO
2
emissions
• Material use
• Working environment
• Recruitment/competence
development
REPORTING THEMES AND TOPICSNEKKAR ESG REPORT 2021 NEKKAR’S MATERIAL TOPICS
Nekkar conducted a materiality assessment in January 2022. The materiality assessment was based on
interviews and dialogues with employees, business partners and suppliers, customers, authorities and
investors and owners, and a summary can be found in the below materiality matrix:
In the next chapters, each of the suggested overarching sustainability topics and their relevance to Nekkar are
discussed in detail. This chapter includes reporting according to GRI 401 Employment, GRI 403 Occupational
Health and Safety, GRI 405 Diversity and Equal Opportunity, and GRI 205 Anti-Corruption.
These topics can be narrowed down to the following priority areas for Nekkar:
• Working environment (including equality and diversity)
• Health and safety
• Ethics and anti-corruption (including human rights)
• Environment (including product innovation)
Defining Nekkar’s material topics Reporting themes and topics
Materiality matrix
Low Moderate
Nekkar’s ability to impact
Importance to stakeholders
Low Moderate High
High
“Keeping a close dialogue with key stakeholder
groups as well as mapping out material topics are
important for Nekkar. By doing this, we get a better
understanding of our company’s direct and indirect
impact, and can implement sustainability measures
where needed.”
Anne-Line Aagedal, Business Controller and ESG responsible
127 128
NEKKAR ESG REPORT 2021 NEKKAR ESG REPORT 2021 REPORTING THEMES AND TOPICSREPORTING THEMES AND TOPICS
The company is operating according to the
Norwegian Working Environment Act and according
to local laws and regulations in other countries
where it is present. Nekkar has also developed its
own Employee Handbook where expectations for
the working environment is outlined specifically.
The Employee Handbook has been under revision in
2021 and the new version will be communicated to
all employees in the first half of 2022.
Due to the company’s size, Nekkar has not
maintained a Working Environment Committee
in Norway but has appointed a Health and Safety
representative which meets with the management
group on a regular basis. A number of the
companies’ engineers are members of NITO or
Tekna, and the company is also a member of the
Confederation of Norwegian Enterprise.
The CEO as well as the HSEQ Manager bears the
overall responsibility for ensuring a good working
environment in Nekkar, and each employee is
responsible for contributing to a happy and healthy
corporate culture.
Employee surveys
The working environment should form the foundation
for a meaningful work situation and increase
employee engagement. In August 2021, Nekkar
conducted an employee survey which goal was
to map out the working environment and areas of
improvement. Out of 54 employees, 44 completed
the survey (81.4 percent). A goal for 2022 is to
increase the response rate to at least 85 percent.
In the 2021 survey, employees were asked to rank
28 different statements relating to the working
environment (both physical and social) on a scale
from 1 (lowest) to 10 (highest). The results show
that the motivation indicator among employees is
at 77 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.
The statement which received the highest score
(9.0 on average) was “I feel respected, appreciated
and fairly treated at work”. Employees were
also satisfied with the communication within the
organisation (score 8.7) and their level of well-being
at work (score 8.5).
The statement with the overall lowest score (6.3 on
average) was: “I believe my salary is based on my
competence, experience, responsibility and effort”.
The company will focus more on communication
regarding compensation/renumeration in 2022.
Other statements with a lower score concerned job
management (6.8) and training and development
(6.8). The company does not actively promote
external training and competence development
today but is often sponsoring and facilitating for this
when inquired by employees.
Working environment
Employees are a key stakeholder group being directly affected by and having a
high impact on Nekkar’s operations and business activities. Attracting, developing,
motivating and retaining highly competent people is vital to the company’s future
business success.
Gender equality and diversity
Ensuring a diverse workforce is important to
Nekkar and the company has the direct ability
and responsibility to impact gender equality and
diversity in the workspace. Equal opportunities
should be offered to all employees, regardless of
their background. The company has a zero tolerance
for discrimination whether based on gender, age,
disabilities, political views, sexual orientation or
other.
In 2021, the total number of employees at Nekkar
was 62 where 82.3 percent of the workforce were
men and 17.7 percent women. To achieve this,
the company will consider different equality and
diversity initiatives as well as partnerships.
81%
Response rate
77%
Motivation indicator
“The company has a zero tolerance
for discrimination whether based
on gender, age, disabilities,
political views, sexual orientation
or other.”
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NEKKAR ESG REPORT 2021 NEKKAR ESG REPORT 2021
Statement on equality and non-discrimination
Based on the Norwegian Activity Duty for employers (Aktivitets- og redegjørelsesplikten, ARP), the company is
reporting the following employee data:
Permanent employees by region, gender, and payroll:
Location
No. of employees
2020
Payroll (MNOK)
2020
No. of employees
2021
Payroll (MNOK)
2021
Norway 48 43,496,514 53.3* 48,103,667
Women () () () ()
Men () () () ()
Singapore 2 Less than five of each gender 3 Less than five of each gender
Women - -
Men - -
US 1 Less than five of each gender 1 Less than five of each gender
Women - -
Men - -
Dubai 1 Less than five of each gender 2 Less than five of each gender
Women - -
Men - -
* The number of permanent employees are in this overview are excluding 3 long term hire-inns that received their salary from other
companies (CEO (Eyde mooring solution), CFO (Ernst & Young), engineer (advantek)
Guidelines for executive management compensation was approved by the general meeting in May 2021. A full
disclosure of executive management compensation can be found on page 148-153 and on Nekkar’s website.
Part-time employees, turnover, and parental leave:
2020 (as per 31.12) 2021 (as per 31.12)
Organisation Men Women Total Men Women Total
Number of permanent
employees
Temporarily hired
(project based)
Part time employees
Organisation total
Newly hired
Total number of newly hired
employees in
Newly hired employees in
Norway
Newly hired employees in the
rest of the world
Employee turnover
Number of employees who have
left the company
Parental leave
Number of employees on
parental leave
Number of weeks on parental
leave
REPORTING THEMES AND TOPICSREPORTING THEMES AND TOPICS
131 132
NEKKAR ESG REPORT 2021 NEKKAR ESG REPORT 2021
Breakdown of employees and board members by gender:
2020 (as per 31.12) 2021 (as per 31.12)
Men Women Total Men Women Total
Organisation total
Board of Directors
Executive level management
Breakdown of employees and board members by age:
2020 (as per 31.12) 2021 (as per 31.12)
Under 30 30-49 50+ Under 30 30-49 50+
Organisation total
Board of Directors
Executive level management
Goals and targets: Working environment
2021 goals Status 2022 goals
Facilitating personnel development
focusing on follow up of each
employee through a systematic use
ofdevelopment appraisals
In progress Employee survey
conducted in Syncrolift and
Nekkar with percent
responserate
Conduct employee surveys in all
of Nekkar KPI response rate at
least percent
Review relevant development
training programmes for
employees and improve
communication regarding this
New Improve communication regarding
compensationrenumeration
policies
New Increase the overall response
concerning job management from
to at least
New Explore initiatives and join
partnerships aiming at improving
equality and diversity in the
workplace
New Arrange another ESG Day
Further develop mission vision
and value statements following
the next ESG Day
REPORTING THEMES AND TOPICSREPORTING THEMES AND TOPICS
133 134
NEKKAR ESG REPORT 2021 NEKKAR ESG REPORT 2021
The company, its management and employees
shall at all times comply with applicable rules and
regulations in order to prevent accidents, injuries
and damage to people, assets or the environment.
“The company, its management
and employees shall at all times
comply with applicable rules
and regulations in order to
prevent accidents, injuries and
damage to people, assets or
the environment.”
Nekkar’s policies and guidelines regarding health
and safety are described in the company’s Health
and Safety Handbook to which all employees have
been onboarded. Shipyard Solutions has also been
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.
The CEO as well as the HSEQ Manager have the
overall responsibility for health and safety at
Nekkar, in addition to individual health and safety
representatives for each business unit. All 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
company’s health and safety guidelines, prevent
unsafe actions and otherwise promote good safety
behaviour.
In 2021, the company established a new Emergency
Response Plan, which includes information about
internal notification procedures, mobilising, 24/7
preparedness and communications. The Emergency
Response Plan also includes an Emergency
Response Team.
Risks and opportunities
Working at Nekkar could potentially involve health
and safety risks to employees and the risks differ
depending on whether employees are working in
one of the company’s office locations or onsite.
Therefore, employees receive training on work-
related hazards regularly, including fire safety.
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.
For employees doing production follow-up from
suppliers or onsite 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 hazards
arising from equipment use. Specific project risk
assessments are regularly carried out for the work
sites, which mainly relates to Shipyard Solutions’
projects. At Nekkar’s office locations, risks are
mainly associated with sedentary work.
In 2020 the company implemented precautionary
measures relating to the Covid-19 pandemic for all
business units, following recommendations from
national and local authorities. These has been
sustained for most of 2021. Measures include for
instance more frequent cleaning of our offices and
having employees work from home.
Health and safety are continuously discussed at
management level, and extra focus is put on this
Health and safety
Maintaining a safe and healthy working environment is critical to Nekkar and the
company’s stakeholders. Safe operations are at the core of our values and the
company continuously work to ensure that employees return home safely every day.
during the annual ESG Day (previously Green Day),
where the company actively promote a safety
culture. To minimise health and safety risks, the
company has taken a number of precautions. The
company has invested in ergonomic desks/chairs
at the office locations and employees working in
Syncrolift have access to health services, such as
massage/physiotherapy to minimise the risk of
ergonomic health issues. At the work sites, Safe Job
Analysis are carried out, as well as safety rounds
to identify any risk factors and ensure necessary
improvements.
Syncrolift conducted a safety round on-site in May
2021. During the safety round, employees were
asked to undertake a survey where they had to rank
several statements relating to health and safety. The
statements included topics such as indoor climate,
ergonomics and fire safety. Overall, the scores were
good, but some improvements can be made for fire
safety, light and noise at the offices.
All employees are required to use personal
protective equipment whenever necessary. Personal
protective equipment is site specific and determined
by the different risk factors on each site.
Although the product is still in development, the
company has in 2021 initiated a HSE process for the
Starfish cage. Tests are ongoing and registered in
the database and the HSE process will be completed
in 2022.
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. Suppliers
can register injuries and work-related incidents
through a system for non-conformities.
To follow up on the health and safety of
subcontractors, Nekkar is working to implement the
QMS system in Kristiansand, which is expected to be
completed in Q1 2022. Nekkar aims at increasing its
effort with respect to suppliers’ compliance with our
health and safety policies in the time to come.
Reporting irregularities
We continuously work towards our zero injuries
vision; however, it is of critical importance to have
full overview of any adverse event at Nekkar’s sites
to be able to work on prevention and ensure a
healthy and safe workplace.
Injuries are registered at site level and all employees
are encouraged to immediately report incidents
or dangerous occurrences. Injuries and incidents
areregistered through the HSE web portal at
Landax.no and in a mobile app, in addition to
immediate internal notification to the CEO, HSEQ
Manager or nearest line manager. Examples of
incidents to report includes:
• Near incidents/incidents, accidents, epidemic
disease at office location, during site work,
service or travelling
• 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
• Spill/release of products which require
notification to authorities and local response
In 2021, Nekkar had zero work incidents. The
absence due to illness in the reporting period was
1.88 percent.
REPORTING THEMES AND TOPICSREPORTING THEMES AND TOPICS
135 136
NEKKAR ESG REPORT 2021NEKKAR ESG REPORT 2021
Goals and targets: Health and safety
2021 goals Status 2022 goals
Re-establish Nekkar Emergency
Response Team
Completed The Nekkar
Emergency Response Team was
re-established in
Inform employees about the
Emergency Response Plan
and introduce the Emergency
Response Team
Arrange necessary training for key
functions
Further improve health and safety
processes and follow-up
In progress HSE process for
Starfish initiated
Complete HSE procedures for the
Starfish cage
Strengthen our ‘health and safety’
mindset and particularly promote
this during our annual ESG Day
Appoint a safety representative in
Kristiansand
Implement revised process for
follow-up of the health and safety of
subcontractors
In progress A new quality
system are in planning and will be
implemented during
Implement the new quality system
and communicate to employees
and subcontractors
New Review fire safety routines and
arrange annual training on all
locations
As a global company, Nekkar is both directly and
indirectly exposed to ethical risks throughout its
value chain. The company is present with offices in
4 countries, where 3 score 69 or lower according to
the Corruption Perception Index (CPI). The CPI index
scores and ranks countries/territories based on
how corrupt its public sector is perceived to be by
experts and business executives. The CPI scores for
the 4 countries where Nekkar is present are shown
in themap below:
Governance, ethics and
anti-corruption
For Nekkar, promoting and maintaining a high ethical standard is imperative.
Doing business with integrity and building a culture that prevents unethical
business practices is highly important to the company.
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.
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
(2021) 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.
Country Score
Norway 85
United Arab Emirates 69
United States of America 67
Singapore 48
REPORTING THEMES AND TOPICSREPORTING THEMES AND TOPICS
137 138
NEKKAR ESG REPORT 2021 NEKKAR ESG REPORT 2021
Main risks are considered to be related to Shipyard
Solutions’ activities as the company delivers projects
to countries with a heightened risk of corruption,
including China and Vietnam (the Far East), the
Middle East, Africa and South America. However,
based on the risk assessment carried out by the
company, risk exposure is considered to be limited.
The remainder of Nekkar’s operations takes place in
countries where the risk of corruption is considered
to be low.
Policies and guidelines
Our business should be conducted in a manner that
respects internationally recognized human and
labour rights. The company oppose from all forms of
discrimination, human trafficking, forced labour and
illicit forms of child labour in our operations or value
chain.
Nekkar is committed to follow internationally
recognized business standards and practices
and follows OECD’s guidelines for Multinational
Businesses. The company adheres to international
and national laws and regulations, including (but
not limited to) the Human Rights Act, the Money
Laundering Act, and the Penal Code with related
regulations. Furthermore, the company shall comply
with applicable laws and regulations in all countries
where it is present.
Our guidelines for ethics, anti-corruption and
conflict of interest are described in the company’s
Code of Conduct. The Code of Conduct addresses
important principles and sets clear rules and
expectations for ethical behaviour.
Communication and training on ethics
and anti-corruption
The company does not have an ethics committee as
of today, but the Management Group is responsible
for communication about and compliance with the
Code of Conduct. The Nekkar Code of Conduct is
shared with all employees as part of the onboarding
process, and employees are expected to read,
understand and comply with this. In 2021, the
company started collecting signatures from all
employees on the Code of Conduct, and this work
will be completed in Q1 2022.
Code of Conduct workshops 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
November 2021 during the annual ESG Day.
Business Partner Code of Conduct
Nekkar has developed a Business Partner Code of
Conduct, which is part of our standard terms and
conditions in contracts with business partners.
New business partners usually sign contracts
where our anti-corruption policies are stated, and
the company itself or a third party on our behalf
conducts risk assessments in relation to financial
and illicit activities for new suppliers, customers
and sales representatives. Shipyard Solutions also
uses a supplier evaluation questionnaire, which is
required to be filled in order to become an approved
supplier. The evaluation form includes questions
on sustainability, ethical standards, environmental
management and health and safety.
The company has in 2021 revised its procurement
routines and procedures for employees and the
management group.
Whistleblowing
All conditions, which give rise to ethical issues or
is considered a breach of the Code of Conductis
expected to be reported to an employee’s closest
line manager or to the HSEQ and registered, so
that necessary follow-up can be done, and suitable
measures implemented. Examples of concerns
related to Nekkar’s business practices that may be
reported include allegations such as:
• Criminal activities
• Violations of health, safety or the environment
• Infringements of Nekkar’s Code of Conduct
• Violation of generally accepted rules/standards
In 2021, the company started the process of
establishing an anonymous whistleblowing channel
through My Voice (Mitt Varsel). The whistleblowing
channel will be fully implemented in 2022, and
information and training provided to all employees
as well as on Nekkar’s external website.
There were zero confirmed incidents of corruption in
2021. Neither the company nor its employees faced
criminal actions related to corruption or illicit business
practices. No contracts with partners were terminated
or allowed to expire due to violations related to
corruption. The company is not aware of any ongoing
investigation or any legal actions pending.
Goals and targets: Governance, ethics and anti-corruption
2021 goals Status 2022 goals
Ensure regular information and
training on ethics and anti-
corruption for example through
townhall meetings
Completed Information and
training provided during the
annual ESG Day in November
KPI percent of employees that
have received training in ethics and
anti-corruption
Re-establish an anonymous whistle-
blowing channel for reporting
irregularities concerns
Close to complete
Whistleblowing channel
established This will be fully
implemented during Q
Inform and train employees in
when and how to use the external
whistleblowing channel
Publish information about the
whistleblowing channel on Nekkar’s
external website
Get employees to sign for having
read and understood the company’s
Code of Conduct
In progress percent of
employees have signed the Code
of Conduct as per
KPI percent of employees
having signed the Code of Conduct
in
Publish the Code of Conduct on
Nekkar’s external website
Follow-up on the Code of Conduct
for Business Partners making sure
that this is well known and complied
with by new business partners
In progress New business
partners usually sign contracts
where our anti-corruption policies
are stated but not the Code of
Conduct for Business Partners
Include the Code of Conduct for
Business Partners in procurement
processes
KPI percent of critical suppliers
or business partners having signed
the Business Partner Code of
Conduct
Publish the Business Partner Code
of Conduct on Nekkar’s external
website
New Revise procurement routines and
procedures for Nekkar’s employees
and management group
New Conduct human rights assessment
with all suppliers
REPORTING THEMES AND TOPICSREPORTING THEMES AND TOPICS
139 140
NEKKAR ESG REPORT 2021 NEKKAR ESG REPORT 2021
Environmental and
climate impact
Nekkar is committed to design and deliver
sustainable solutions for the marine and maritime
industries in Norway and abroad. The company
recognizes the ocean as a highly important resource
in terms of biodiversity, food, energy and value
creation in general, and takes several measures to
ensure that operations are conducted in accordance
with applicable environmental standards, limiting or
reducing our environmental footprint as much as
possible.
Sustainable product innovation
Nekkar aims to contribute to the sustainable use
and development of marine resources through its
innovative products. New business opportunities
focus on impact technology solutions combined
with high-end software solutions that will positively
contribute to increased sustainability. In our
digital solutions the focus is technology enabling
electrification and reduced energy consumption
in general, which thereby contributes to reduced
greenhouse gas emissions.
In 2021, Nekkar completed the development
of “Starfish”: a semi-closed fish cage designed
to improve fish welfare and reduce the lice and
waste problem associated with fish-farming.
The fish cage is manufactured by using light and
eco-friendly materials, where the inner canvas is
recyclable and made of materials that removes
the need for chemicals during cleaning. The goal
is to collect at least 90 percent of the waste and
develop environmentally friendly solutions for waste
management instead of exposing the sea water,
for example using dead fish or feed remains as a
fertiliser.
Several of Shipyard Solutions innovations
contributes to reducing unwanted emissions into
the sea. The ship lifts are designed to provide
better control than a traditional dock. In 2019 the
first closed system for collecting wastewater was
delivered, and in 2020 an upgraded version where
the wastewater is cleaned has been delivered.
Shipyard Solutions is also investigating solutions
for regenerating energy made during the lifting
operations into the subsequent transfer of the ship.
Climate accounting and emissions
reduction
In addition to designing and developing sustainable
and environmentally friendly products, reducing
emissions where we can, is important to the
company. Nekkar has a direct and indirect impact on
the environment and emissions are mainly related
to energy consumption at our offices, transport of
products / equipment and employee business travel.
Nekkar started climate accounting in 2020 and
is in the process of setting targets for reducing
energy consumption and GHG emissions from its
business operations. The climate accounting was
updated in 2021 using CEMAsys’ digital solution.
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.
Nekkar has limited emissions from sources that
are either owned or controlled by the company
As a manufacturing business, Nekkar’s business activities have both direct and
indirect impact on climate and the environment. The company’s business activities
are mainly related to the marine and maritime industries, which means that we
have both an impact and responsibility to ensure sustainable use of our oceans.
(Scope1emissions), and the emissions in Nekkar’s
scope 1 stems from company cars, amounting to 0.8
tonnes CO
2
.
The heating and ventilation of office buildings in
Norway and Singapore is the main source of indirect
emissions (Scope 2 emissions). Consumption
of electricity in own or rented premises and/
or buildings are measured using a market-based
approach. In 2021, Nekkar had a total electricity
consumption of 185.2 MWh, amounting to 2.6
tonnes CO
2
. In 2021, Shipyard Solutions moved into
new and modern premises in Vestby and Nekkar
also relocated its headquarter to new and more
environmentally friendly premises in Kristiansand,
which is likely to reduce this number.
The company’s largest source of indirect GHG
emissions (Scope 3) is through outsourced
global production, particularly in terms of steel
manufacturing and the transportation from
suppliers to the installation sites. The total number
of purchased steel for manufacturing in 2021 was
equal to emissions of 5 107.4 tonnes CO
2
. This
category stands for 98.7 percent of Nekkar’s total
emissions. This was not measured in 2020.
Nekkar’s total emissions connected to flights for
all countries was 61,5 tonnes CO
2
in 2021. The total
number of kilometres driven with private cars within
working hours was 37,215, which gave an emission
of 3.6 tonnes CO
2
. Although business travel was
significantly reduced due to the Covid-19 pandemic
in both 2020 and 2021, this is something that would
normally have a significant impact on the company’s
indirect GHG emissions.
In total, Nekkar’s emissions across scope 1, 2, and 3
amounted to 5 176 tonnes CO
2
in 2021. The emissions
data can be found in the table below. For a detailed
overview, please see the climate report on Nekkar’s
website.
Waste management, recycling and
reuse
Although waste from our in-house operations
is relatively limited, implementing good waste
management procedures (take-back schemes,
reuse, and recycling of products and equipment) is
important to the company.
Nekkar’s products are mainly made out of steel,
electro components, hydraulic and paint. Although
our products have a long lifetime (approximately
25 years), the company facilitate recycling and
reducing waste for our customers when using our
products. When products are upgraded the old
steel assemblies as well as wooden decking, old rail
systems, wire ropes, and hydraulic oil are scrapped
and recycled. Motors and wire sheaves are usually
refurbished and reinstalled.
Creating awareness among
employees and business partners
If the company are to meet its environmental
targets, employees need to be engaged in the
process. The company’s annual ESG Day is
important in this regard. Nekkar has also started a
project where we aim to have a closer cooperation
with our suppliers, increasing their awareness
around issues related to emissions and waste. The
company will in 2022 implement an environmental
policy which is to be shared with all relevant
stakeholders.
Annual key energy and climate performance indicators
Name Unit 2019
1
2020
2
2021 % change from
previous year
Scope emissions tCO
e -
Total emissions (sss) tCO
e -
na
1) Line indicates that historical data is not available.
2) The low number is due to limited data provided in 2020.
3) This figure reflect steel production related to Shipyard solutions project ordered with foreign subsuppliers.
REPORTING THEMES AND TOPICSREPORTING THEMES AND TOPICS
141 142
NEKKAR ESG REPORT 2021NEKKAR ESG REPORT 2021
Goals and targets: Environmental and climate impact
2021 goals Status 2022 goals
Introduce climate accounting on
both scope and
Completed The company has in
started climate accounting
on all three scopes by using
Cemasys’ software solution
Perform a third-party review of
climate accounting data
Arrange another “Green Day”
creative workshop for employees
Completed ESG Day arranged in
November and December
See goal under ‘Working
Environment’ Another ESG Day
will be arranged in
Further develop existing and
new products that can contribute
positively to the development in the
marine areas including completion
of the Starfish cage
In progress Nekkar has continued
the development of the Starfish
cage Skywalker and flex-trolleys
Product innovation is a continuous
target
Start mapping our activities
and how our products can help
with climate mitigationclimate
adaption as described by the EU
Taxonomy
Review material use and recycling of
Nekkar products
In progress Preliminary life
cycle analysis performed for
Skywalker The company is also
in dialogue with the supplier of
Starfishcanvas
Reuseresale of Venice transfer
system Starfish recycling
program and SkyWalker possible
green steel production
New Start preparing for ISO
certification for the entire
organisation in with a plan
to obtain such certification in
New Implement an environmental
policy including business travel
which is to be shared with all
relevant stakeholders
REPORTING THEMES AND TOPICSREPORTING THEMES AND TOPICS
143 144
NEKKAR ESG REPORT 2021 NEKKAR ESG REPORT 2021APPENDIX APPENDIX
GRI content index
GRI Standard
GRI 101: Foundation 2016
General Disclosures
Disclosure Page number(s)
205 Anti-corruption
GRI 3: Material Topics 2021 - Management of material topics
GRI 205: Anti-corruption
2016
- Operations assessed for risks related to corruption -
- Communication and training about anti-corruption policies and
procedures
- Confirmed incidents of corruption and actions taken
401 Employment
GRI 3: Material Topics 2021 - Management of material topics
GRI 401: Employment 2016
- New employee hires and employee turnover
- Benefits provided to full-time employees that are not provided to
temporary or part-time employees
-
- Parental leave
403 Occupational health and safety
GRI 3: Material Topics 2021 - Management of material topics
GRI 403: Occupational
Health and Safety 2018
- Occupational health and safety management system
- Hazard identification risk assessment and incident investigation
- Occupational health services
- Worker participation consultation and communication on
occupational health and safety
- Worker training on occupational health and safety
- Promotion of worker health
- Prevention and mitigation of occupational health and safety impacts
directly linked by business relationships
- Workers covered by an occupational health and safety management
system
- Work-related injuries
- Work-related ill health
405 Diversity and equal opportunity
GRI 3: Material Topics 2021 - Management of material topics
GRI 405: Diversity and
Equal Opportunity 2016
- Diversity of governance bodies and employees
- Ratio of basic salary and remuneration of women to men
GRI content index
GRI Standard
GRI 101: Foundation 2016
General Disclosures
Disclosure Page number(s)
GRI 102: General
Disclosures 2016
Organisational profile
- Name of the organisation
- Activities brands products and services
- Location of headquarters
- Location of operations -
- Ownership and legal form
- Markets served
- Scale of the organization -
- Information on employees and other workers -
- Supply chain
- Significant changes to the organization and its supply chain
- Precautionary Principle or approach
- External initiatives
- Membership of associations
Strategy
- Statement from senior decision-maker
- Ethics and integrity -
- Values principles standards and norms of behaviour -
- Mechanisms for advice and concerns about ethics -
Governance
- Governance structure -
- Executive-level responsibility for economic environmental and social
topics
- Consulting stakeholders on economic environmental and social topics -
- Composition of the highest governance body and its committees
- Identifying and managing economic environmental and social impacts -
Stakeholder engagement
- List of stakeholder groups
- Collective bargaining agreements
- Identifying and selecting stakeholders -
- Approach to stakeholder engagement
- Key topics and concerns raised
Reporting practice
- Entities included in the consolidated financial statements
- Defining report content and topic Boundaries
- List of material topics
- Restatements of information
- Changes in reporting
- Reporting period
- Date of most recent report
- Reporting cycle
- Contact point for questions regarding the report
- Claims of reporting in accordance with the GRI Standards
- GRI content index -
- External assurance
145
NEKKAR ESG REPORT 2021 CHAPTER TITLE
Disruptive
technologies,
sustainable
results
REMUNERATION REPORT 2021
146 1 4 7
NEKKAR ESG REPORT 2021 NEKKAR ESG REPORT 2021CHAPTER TITLE CHAPTER TITLE
1 Introduction/Statements 148
2 Overview | Financial performance in 2021 148
3 Remuneration | Board of directors 150
4 Remuneration | Executive Management 152
5 Remuneration of the Board and
Executive Management | Comparative overview 155
6 Compliance with the Remuneration Policy 155
7 Audit assurance report 156
Content
148 1 4 9
NEKKAR REMUNERATION REPORT 2021 NEKKAR REMUNERATION REPORT 2021
1 Introduction/Statements
2 Overview | Financial performance in 2021
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 2021 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 27 May
2021. (the “Guidelines”). The overall objective of
the remuneration is to attract, motivate and retain
qualified members of the Board and the Executive
Total revenues of the Nekkar Group amounted to
NOK 480 million in 2021, an increase of 33.5 percent
compared to 2020. Operational EBITDA
1
ended at
NOK 142.6 million in 2021 compared to NOK 71.4
million in 2020, equivalent to EBITDA-margins of
29.7 percent and 19.9 percent respectively.
Reported EBITDA was NOK 139.8 million in 2021, up
from NOK 77.4 million in 2020.
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 2017 – 2021
available on the Company’s website, www.nekkar.
com. All amounts are presented in NOK.
Pre-tax profit was NOK 132.5 million in 2021, up from
NOK 71.7 million the previous year. Profit after tax
(continued business) was NOK 111.6 million and NOK
70.8 million for 2021 and 2020 respectively.
The substantially improved profit was a result of
strong operating and financial performance in the
Shipyard Solutions business. During 2021, Shipyard
Solutions delivered five major shiplift projects
that had a combined contract value of more than
850 million, which underlines the high activity in
theperiod.
1) Operational EBITDA does not include accounting effects from FX hedging contracts not qualifiying for hedge accounting. In 2021, this
amounted to a loss of NOK 4.0 million compared to a gain of NOK 6 million in 2020.
150 151
NEKKAR REMUNERATION REPORT 2021 NEKKAR REMUNERATION REPORT 2021
3 Remuneration | Board of directors
3.2 Shareholding members of the Board
As of 31 December, the Board members held shares in Nekkar ASA as follows:
Name and position
Share program
subject to lock-up Oher shares Total no of shares
Market value year-
end NOK million
Trym Skeie
Marit Solberg
-
-
Gisle Rike
-
-
-
-
-
-
-
-
Ingunn Svegården
-
-
-
-
-
-
-
-
1) Trym Skeie holds 428 111 shares in person and 1 204 828 shares through Skeie Kappa Invest AS. Total shares controlled by Trym Skeie is 1
632 939 as per 31 December 2021. The Skeie familiy, and companies directly or indirectly controlled by them, holds 34 616 005 shares as
per 31 December 2021, representing 32.5 percent of total shares outstanding.
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 2021 there has been 14 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 27 May 2021, Marit
Solberg and Ingunn Svegården were re-elected as
board members for a period of two years while Trym
Skeie and Gisle Rike were not up for election.
The below table outlines the remuneration for
theBoard.
Name and position
NOK
Annual
fee
Audit
Committee
fees
Other
Benefits Pension
Extra-
ordinary
items
Total
remuneration
Trym Skeie
Chairman
( )
-
(-)
-
(-)
-
(-)
-
(-)
( )
Marit Solberg
Deputy Chairman
( )
-
(-)
-
(-)
-
(-)
-
(-)
( )
Gisle Rike
Board member
( )
-
(-)
-
(-)
-
(-)
-
(-)
( )
Ingunn Svegården
Board member
( )
-
(-)
-
(-)
-
(-)
-
(-)
( )
Total
( )
-
(-)
-
(-)
-
(-)
-
(-)
( )
1) The remuneration is based on a 12 month period between the ordinary annual general meeting. Marit Solberg and Ingunn Svegården
were elected as members of the Board in September 2019, hence the remuneration in 2019 is adjusted accordingly.
152 1 5 3
NEKKAR REMUNERATION REPORT 2021 NEKKAR REMUNERATION REPORT 2021
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 princples 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.
4.1 Remuneration composition
4.1.1 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.
4.1.2 PENSION CONTRIBUTION
The Company has established a defined contribuion
pension scheme in accordance with madatory law.
Members of the Executive Management team does
not have special agreements which includes early
reiterment plans or supplementary pension schems.
The defined contribuion plan includes 7 percent of
fixed base salary up to 7.1G and 25.1 percent of fixed
based salary ranging from 7.1G to 12G.
4.1.3 PERFORMANCE-RELATED CASH BONUS
Under the Company’s bonus scheme, the maxium
bonus is limited to 6 months fixed base salary. The
measurment 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 2021, a total cash bonus of
NOK 672 thousand (2020: NOK 1 333 thousand) was
paid to the Executive Management.
4.1.4 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
discounted price of 25 percent against a 2-3 year
lock-in period which prevents sale of the shares
within the period.
The Board deterimines the detailed allocations
within the limit, determined in a separate
authorisation approved by the annual general
meeting 27 May 2021. Distribution of shares to the
Board is made after conferring with the nomination
committee.
During 2021, a total of 165 871 (2020: 707 051)
shares were issued related to the share purchase
program.
4.1.5 TERMINATION AND SEVERANCE PAYMENTS
Members of the Executive Management has a notice
period of six months. The use of severence pay is
limited, however may 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.
4.1.6 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.
4.1.7 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 percent 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 2021, no incentive remuneration
was reclaimed.
154 155
NEKKAR REMUNERATION REPORT 2021 NEKKAR REMUNERATION REPORT 2021
4.2 Remuneration and shareholdings
4.2.1 REMUNERATION DEVELOPMENT 2021-2020
The development in the remuneration of the Executive Management is summarized in the table below.
Name and position
NOK thousand
Fixed base
salary
Other
benefits
Cash
bonus
Pension
cost
Severance
pay
Total remu-
neration
Proportion
Fixed
Preben Liltved
Interim CEO from
-
-
-
-
-
-
-
-
Kristoffer Lundeland
Interim CFO
-
-
-
-
-
-
-
-
Rolf-Atle Tomassen
EVP Shipyards Solutions
-
-
Mette Harv
EVP Aquaculture and
Renewables
-
-
Toril Eidesvik
CEO until
-
-
-
-
-
As illustrated, the total cash bonus paid to Executive Management amounted to NOK 672 thousand in 2021
which corresponds to ~40 percent of fixed base salary for Rolf-Atle Tomassen.The bonus targets included
both qantitative and qualitative targes. These targets include; sales & operation, financial targets (budget) and
organizational targets.
4.2.2 SHAREHOLDING EXECUTIVE MANAGEMENT
As of 31 December, the Executive Management held shares in Nekkar ASA as follows:
Name and position
Share program
subject to lock-up
Oher
shares
Total no
of shares
Market value year-
end NOK million
Preben Liltved
Interim CEO from
-
-
Kristoffer Lundeland
Interim CFO
-
-
-
-
-
-
-
-
Rolf-Atle Tomassen
EVP Shipyards Solutions
-
-
Mette Harv
EVP Aquaculture and
Renewables
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
summarized in the table below.
Name and position
NOK thousand
Act.
2021
2021
vs.
2020
Act.
2020
2020
vs
2019
Act.
2019
2019
vs.
2018
Act.
2018
2018
vs.
2017
Act.
2017
2017
vs.
2016
Preben Liltved
(Interim CEO from )
- - - - - - -
Kristoffer Lundeland
(Interim CFO from )
- - - - -
Rolf-Atle Tomassen (EVP)
- -
Mette Harv (EVP)
- - -
Toril Eidesvik
(former CEO -)
- - -
Leiv Kallestad
(former CFO -)
- - - - - -
Henrik Solberg-Johansen
(former CFO until )
- - - - - - - - -
Chairman of the Board
-
Board member
-
Revenues
Operational EBITDA
na
Profit before tax
na
Company employees
- -
Average remuneration
- - -
1) The remuneration is based on a 12 month period between the ordinary annual general meeting. Marit Solberg and Ingunn Svegården were elected
as members of the Board in September 2019, hence the remuneration in 2019 is adjusted accordingly.
6 Compliance with the Remuneration Policy
The remuneration of the Board and Executive Management for the financial year 2021 is consistent with the
framework provided by the remuneration guidelines, approved by the annual general meeting 27 May 2021.
156 1 5 7
NEKKAR REMUNERATION REPORT 2021 NEKKAR REMUNERATION REPORT 2021
Auditor assurance report
KPMG AS
Kanalveien 11
Postboks 4 Kristianborg
5822 Bergen
Telephone +47 45 40 40 63
Fax
Internet www.kpmg.no
Enterprise 935 174 627 MVA
KPMG AS, a Norwegian limited liability company and member firm of the KPMG network of independent member firms affiliated
with KPMG International Cooperative (“KPMG International”), a Swiss entity.
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
Skien
Sandefjord
Sandnessjøen
Stavanger
Stord
Straume
Tromsø
Trondheim
Tynset
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 2021 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 control
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. Our firm applies International Standard on
Quality Control 1 (ISQC 1) and accordingly maintains 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
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.
2
Bergen, 28 April 2022
KPMG AS
Knut Olav Karlsen
State Authorised Public Accountant
158 1 5 9
NEKKAR ANNUAL REPORT 2021 NEKKAR ANNUAL REPORT 2021STATEMENT ON COMPLIANCE
Statement on
compliance
Today, the Board of Directors and the CEO has reviewed and approved the 2021 Annual Report which includers the
Board of Directors’ report and the consolidated and separate financial statements related to Nekkar ASA as of 31
December 2021.
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 2021 have been prepared in accordance with IFRSs and IFRICs
as adopted by the European Union, IFRSs as issued by IASB, and additional Norwegian disclosure requirements
in the Norwegian Accounting Act
• 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 2021 has been prepared in accordance with the Norwegian
Accounting Act and Norwegian Accounting Standards
Kristiansand, 28 April 2022
The Board and Management of Nekkar ASA
Trym Skeie
Chairman
Gisle Rike
Director
Preben Liltved
Interim CEO
Ingunn Svegården
Director
Marit Solberg
Director
160
NEKKAR ESG REPORT 2021 CHAPTER TITLE
Contact Nekkar
Address: Andøyfaret 15
4623 Kristiansand, Norway
Email: info@nekkar.com
Web: nekkar.com