Nekkar ASA

Annual integrated report

2024

Disruptive technologies

— sustainable results

Photo: Saab

CEO letter 

Company highlights 

About Nekkar 

The Board of Directors 

The Board of Directors’ report 

Corporate governance 

Material topics 

Consolidated financial statements 

Parent company financial statements 

Auditors’ report 

Statement on compliance 

Appendices 

Remuneration report 

Nekkar is an industrial company builder

focused on ocean-based technology

with a diversified exposure to defence,

aquaculture, offshore energy and

maritime industries.

NEKKAR ANNUAL REPORT 2024 CEO LETTER

Growing to new

record levels

Nekkar delivered another year with record-high revenue of 624 MNOK, driven

by both organic growth and acquisitions. Consequently, we announced a NOK

2+ billion revenue ambition in 2027.

Nekkar is an industrial long-term owner of ocean-

based technology companies. The company invests

in and develops technology businesses within

sustainable oceans, robotics and intelligent logistics,

and digital solutions. With a 50-year industrial heritage

from Syncrolift, Nekkar applies an active buy-to-own

strategy to build long-term value. The group supports

empowered operating companies with a strong

balance sheet and reinvests strategically to ensure

profitability and sustainable growth. As a publicly

listed company, Nekkar has a proven track record of

shareholder value creation through disciplined M&A,

financial management, and capital allocation.

At year-end 2024, our portfolio consisted of five

companies: Syncrolift, Intellilift, Techano Oceanlift,

FiiZK and Globetech. The latter became part of

the Nekkar family in the autumn of 2024. We also

develop our own impact technology ventures,

such as SkyWalker, where we capitalise on key

competencies across the Nekkar group.

Syncrolift, which is a global market leader within

shiplifts and ship transfer systems, is Nekkar’s

biggest business and revenue contributor. Although

Syncrolift’s revenue showed a small decline in 2024,

primarily linked to loss of some tenders, the team

continues to impress me with their ability to deliver

according to strict customer demands. 2024 was no

different as Syncrolift successfully completed projects

in both India and United Arab Emirates, and delivered

a small increase in service revenue, resulting in a

solid EBITDA margin of 24 percent in 2024. Syncrolift

won strategically important contracts during 2024,

including important contracts to deliver shiplifts and

ship transfer systems for submarines in both Norway

and Germany plus an engineering design contract for

a shiplift and transfer system at a shipyard in Chile.

We currently live in a world with substantial

geopolitical uncertainty. Consequently, analyses show

that global defence and naval spending is expected

to grow in the coming years. Syncrolift is the market

leader in naval contracts and is uniquely positioned to

capitalise on growing naval industry investments. In

2024, more than 50% of Syncrolift’s revenue is related

to defense and naval projects, delivering shiplifts and

transfer systems used for the construction, repair, and

maintenance of naval vessels.

Investment levels in offshore energy continues to

be high, but the oil and gas industry is still under

pressure to improve operations and reduce its

environmental footprint. This creates opportunities

for Nekkar’s second oldest portfolio company,

Intellilift, which delivers industrial software solutions

that are focused on digitalising workflows through

automation and remotely controlled systems for

drilling and offshore load handling. Intellilift grew

its revenue by almost 30 percent in 2024, to NOK

44 million and an EBITDA-margin of 12 percent for

the full year. A key achievement was the successful

implementation of a drilling automation solution on

board the Transocean Norge drilling rig. This has

enabled simultaneous fully automated online drilling,

tripping, and offline stand-building operations, which

have gained international recognition. Intellilift were

subsequently awarded several new, drilling industry

contracts during 2024.

The challenging position in Nekkar’s 2024 financial

performance was Techano Oceanlift, which is a provider

of intelligent load handling systems, such as heave

compensated cranes and gangways, as well as live

fish transfer systems to offshore fish farms. The main

reason is well known: Soft margins on market entry

projects that were required to establish trust in the

NEKKAR ANNUAL REPORT 2024 CEO LETTER

company’s solution. In addition, there have been some

one-off cost for new/first deliveries. The company

doubled its revenue to NOK 64 million in 2024, but with

a weak EBITDA-margin of -16 percent. On the positive

side, Techano Oceanlift’s offshore crane deliveries

are progressing well, resulting in a successful factory

acceptance test of its first 70-tonnes crane in early

2025. This was followed by a new contract award

from the same shipyard in March 2025, for a second

150-tonnes crane, verifying the trust both the shipowner

and shipyard have in Techano Oceanlift’s solutions.

We also added a new company to our portfolio in

2024. In August, we completed the acquisition of

a 67 percent ownership share of fast-growing and

profitable maritime connectivity and digital service

provider Globetech. Final EV/EBITDA 2024 multiple

firmed up at attractive 5.5x. Globetech offers

complete solutions for onboard network infrastructure

including hardware, tailored solution architecture and

system integration for satellite communications, and

develops software and customised information and

communication technology solutions that focuses

on cybersecurity to ensure secure and continuous

operations. Globetech’s customers include shipowners

and ship management companies within the shipping

and offshore industries.

It is our view that Globetech fits perfectly within

Nekkar. Both companies operate in the maritime

and offshore industries, both use digitalization

and software as key enablers to achieve a higher

proportion of recurring revenue, and both deliver

strong EBITDA margins. In sum, Globetech

constitutes a solid platform for us, and the company’s

strong 2024 performance emphasised this.

Globetech delivered 2024 revenue of NOK 93 million,

up 30 percent year-on-year, and a strong EBITDA-

margin of 24 percent. The company was consolidated

into Nekkar from 15 August 2024.

Nekkar is also exposed to the aquaculture industry

through our associated company FiiZK, where we

have a 39 percent ownership share. FiiZK completed

the sale of two non-core business divisions during

the third quarter of 2024. The sales were part of a

streamlining where FiiZK will focus on unconventional

farming methods including closed and semi-closed

cages for fish farming. The sales provided substantial

positive one-off financial effects for FiiZK in 2024.

Another highlight for FiiZK was a breakthrough

contract to deliver two large, “Protectus” closed

fish cages to a Norway-based fish farmer. FiiZK is

experiencing significant market interest in closed

fish cage technology, particularly for post-smolt

production. Because growing post-smolt in a closed

cage environment, with protection against sea lice,

escapes and predator attacks as well as generally

increased fish welfare, enables fish farmers to release

a much more robust fish into its ocean net pens. In

addition, “Protectus” already meets all requirements

under the Norwegian authorities’ proposed new

“Miljøfleksordningen”-regulations. This could open up

further opportunities for the company.

As a result of the significant progress made in our

portfolio companies in recent years, we announced

new medium-term ambitions and our strategic

priorities in November 2024. The plan is to continue

the development and organic growth of Nekkar’s

current operating companies, and to develop a

strategically balanced Nekkar portfolio through M&A

activity. This will be underpinned by solid underlying

operations with focus on profitability, cash flow

generation and disciplined capital allocation.

Nekkar currently owns five companies. By 2027 the

company plans to increase this to 6-8 companies.

The ambition is to reach NOK 2+ billion in revenue in

2027. Revenue for 2024 for Nekkar’s four operating

companies and its associated company FiiZK

was NOK 838 million (including full year effect of

Globetech). The favourable outlook we currently see

in our portfolio companies’ market segments have

made me even more confident in realising this NOK

2+ billion revenue objective.

Finally, this is Nekkar’s second integrated report,

where our annual report and financial accounts

are integrated with our environmental, social and

governance (ESG) improvement efforts. I hope

you will take some time to study how sustainability

and profitability are interlinked in Nekkar and our

portfolio companies.

Yours sincerely,

Ole Falk Hansen

CEO of Nekkar

NEKKAR ANNUAL REPORT 2024 COMPANY HIGHLIGHTS 2024

Company

highlights 2024

REVENUE

NOK 624 MILLION

+8%

vs 2023

100%

of new suppliers screened

using social criteria

EBITDA

NOK 92 MILLION

-15%

vs 2023

46%

of Nekkar 2024 revenue was

towards defence

NEKKAR announced

ambition to reach NOK 2+

billion in revenue in 2027

Acquisition of GLOBETECH, a

maritime connectivity and digital

service provider

NOK ~350 million in new shiplift and ship

transfer system contracts, including new

service agreements, for SYNCROLIFT

Successful streamlining and turnaround

of aquaculture industry supplier FIIZK,

plus breakthrough contract for Protectus

closed fish cage

NEKKAR ANNUAL REPORT 2024 CHAPTER TITLE

About

Nekkar

↘

Nekkar is an industrial company

builder focused on ocean-based

technology. The company invests in

and develops technology businesses

within sustainable oceans, robotics

and intelligent logistics and digital

solutions.

With a 50-year industrial heritage from

Syncrolift, Nekkar applies an active buy-to-own

strategy to build long-term value. The group

supports empowered operating companies with

a strong balance sheet and reinvests strategically

to ensure profitability and sustainable growth.

As a publicly listed company, Nekkar has a

proven track record of shareholder value creation

through disciplined M&A, financial management,

and capital allocation.

Nekkar ASA is the holding company in the Nekkar

Group, which is headquartered in Kristiansand,

Norway. The company is listed on Oslo Stock

Exchange with the ticker code NKR.

For more information about Nekkar, visit our

website: www.nekkar.com.

NEKKAR ANNUAL REPORT 2024 ABOUT NEKKAR

UN Sustainable

Development Goals

Nekkar supports the UN’s Sustainable Development Goals (UN

SDGs). The company is implementing activities and initiatives

relating to four of the SDGs, where the company has the potential

to make the biggest contribution:

Nekkar promotes equal opportunities for employees regardless of their gender, age,

ethnic or cultural background. Nekkar’s employees should be treated with respect and the

company shall ensure a safe and healthy working environment for everyone.

Designing and adapting our products to foster innovation and the development of

sustainable technology is a key consideration in Nekkar’s product development. An example

is the wind turbine installation and service tool SkyWalker. This innovation has the potential

to increase efficiency and decrease the environmental footprint of installing and maintaining

wind turbines.

The ocean represents a highly significant resource in terms of food, energy and value

creation and has a high priority in our efforts to ensure a sustainable future. Nekkar’s

business operations are closely linked to the sea as our products are designed for the

maritime and marine industries. Our goal is to design and produce products that can

contribute positively to development in marine areas.

Nekkar aims to promote and maintain the highest ethical standards to create a trust-based

relationship with our stakeholders. The company shall comply with relevant laws and

regulations, act in an ethical, sustainable and socially responsible manner and otherwise

practice good corporate governance.

NEKKAR ANNUAL REPORT 2024 ABOUT NEKKAR

Nekkar has a

global presence

with projects all

over the world

NEKKAR ANNUAL REPORT 2024 CHAPTER TITLE

NEKKAR ANNUAL REPORT 2024 ABOUT NEKKAR

Locations

Nekkar comprises six businesses: Syncrolift, Intellilift, Techano Oceanlift, Globetech

(acquired in 2024), and our Impact Technology Ventures arm which includes the SkyWalker

project. Nekkar is also one of two leading shareholders of the associated company FiiZK.

Kristiansand (headquarter)

Intellilift, Techano Oceanlift,

Globetech, Impact Technology

Ventures

Singapore

Syncrolift

India

Syncrolift

Dubai

Syncrolift

Vestby

Syncrolift

Employees by location

7575

NEKKAR ANNUAL REPORT 2024 ABOUT NEKKAR

Based on alternative performance measures

2024 2023 2022 2021 2020 2019

ORDERS AND RESULTS (MNOK)

Order backlog 744 803 824 838 1 146 778

Order intake 473 478 277 113 701 396

Revenue 624 575 388 480 359 267

EBITDA 92 109 67 145 70 51

EBITDA margin % 14.8% 18.9% 17.4% 30.1% 19.5% 19.0%

BALANCE SHEET (MNOK)

Total assets 819 601 507 451 558 416

Total equity 489 427 351 316 203 234

Equity ratio % (total equity/total assets) 59.7% 71.1% 69.2% 70.1% 36.5% 56.1%

SHARE (NOK)

Share price 31 December 10.05 9.25 6.10 9.97 6.02 2.05

Basic earnings per share

0.82 0.78 0.30 1.04 -0.33 1.90

EMPLOYEES

No. of employees 31 December

129 92 73 62 54 50

Sick-leave rate % 3.7% 2.4% 3.4% 2.2% 1.6% 0.7%

1) As the IFRS regulations do not define order backlog/intake/ EBITDA the number should be considered as an APM

2) Basic earnings per share are based on net profit for the year attributable to ordinary equity holders of the parent company

3) 2022-2024 figures include hired in personnel

Key figures

624

REVENUE

MNOK

819

TOTAL ASSETS

MNOK

EBITDA

MNOK

489

TOTAL EQUITY

MNOK

14.8

EBITDA MARGIN

PERCENT

205

CASH POSITION

MNOK

129

NO. OF EMPLOYEES

31 DEC

3.7

SICK-LEAVE RATE

PERCENT

NEKKAR ANNUAL REPORT 2024 ABOUT NEKKAR

Membership assosiations

NEKKAR ANNUAL REPORT 2024 ABOUT NEKKAR

Portfolio

NEKKAR ANNUAL REPORT 2023

OPERATING COMPANIES

Techano Oceanlift

Techano Oceanlift is a leading innovator in the development

of advanced motion compensated load handling and lifting

equipment. Its cutting-edge solutions cater to the specific needs of

the offshore renewables, energy and aquaculture industries.

Globetech

Globetech provides ICT (information and communication

technology) infrastructure, connectivity and support services to the

global maritime sector. The company offers complete solutions for

onboard network infrastructure including hardware, tailored solution

architecture and system integration for satellite communications,

and develops software and customized ICT solutions that focuses on

cybersecurity to ensure secure and continuous operations.

Intellilift

The foundation of Intellilift’s business is superior engineering,

electrification, automation, and digitalisation competence with

heritage from “Drilling Bay” in Kristiansand, Norway. Intellilift

applies this competence across the Nekkar Group as well as to

external clients. Intellilift software also increases efficiency on

drilling rigs and reduces emissions through reduced drilling time.

Syncrolift



Syncrolift has been a significant player in the shipyard market for

more than five decades. The company invented the production

lines for building ships efficiently on assembly lines. It also invented

innovative solutions for heavy load handling of ships.

NEKKAR ANNUAL REPORT 2024 ABOUT NEKKAR

IMPACT TECHNOLOGY VENTURES

ASSOCIATED COMPANIES BELOW 50% OWNERSHIP

SkyWalker

Nekkar is developing the SkyWalker — a disruptive installation tool

and service based on offshore lifting systems that will significantly

reduce the cost and environmental footprint associated with wind

turbine installations and major component replacements.

FiiZK

FiiZK is an aquaculture industry supplier that specialises in

unconventional fish farming methods including closed and semi-

closed fish cages, with associated software, maintenance and

services To date, FiiZK has delivered more than 20 cages and

completed more than 70 production cycles, demonstrating strong

fish growth and no problems with lice and escapes.

NEKKAR ANNUAL REPORT 2024 ABOUT NEKKAR

Syncrolift

The safer choice

in shiplifts

NEKKAR ANNUAL REPORT 2024 ABOUT NEKKAR

Syncrolift has been a market leading player in the

shipyard market for more than five decades. It

invented the production lines for building ships

efficiently on assembly lines. The company also

invented innovative solutions for heavy load handling

of ships.

Since Syncrolift entered the shiplift market ten years

ago, the company have won more than 60 percent of

the shiplift and transfer market, a market share more

than twice that of number two in our business.

Syncrolift supplies the market’s safest and most

reliable shiplifts and always make sure to stay close

to customers worldwide.

Syncrolift recognise the significance of time and

cost efficiency for its customers. Regardless of their

location worldwide, customers can rely on having

a nearby Syncrolift service office, dedicated to

providing 24/7 support.

A RELIABLE DEFENCE SUPPLIER

With the above mentioned contract awards from

Thyssenkrupp and the Norwegian Defence Estate

Agency, Syncrolift further develops its position as a

supplier to a growing defence sector. Being the only

shiplift manufacturer with experience from providing

total solutions for submarine handling, including lifts

and transfer systems, Syncrolift is proud of its proven

naval legacy and will continue to build on its long

track record of successful naval projects.

SYNCROLIFT IN BRIEF

Head office Vestby, Norway

Manager Rolf-Atle Tomassen

Employees 54

KEY HIGHLIGHTS 2024

• Signed new contracts, both newbuild,

upgrades and service agreements,

worth approximately NOK 392 million,

demonstrating its global competitiveness.

Contracts include:

— Design of 5,000 t shiplift and transfer system

to ASMAR in Chile, plus option for equipment

delivery of systems

— Five-year maintenance contract of ship

transfer system at Indian Navy’s ship repair

yard in Karwar

— Package of ship transfer systems to Dubai

Maritime City

— Service agreement with Dubai Maritime City

for two shiplifts and transfer systems

— Contract award from Norwegian Defence

Estate Agency for delivery of a shiplift

— Contract award from Thyssenkrupp Marine

Systems to upgrade ship transfer system for

submarines

• Continued service revenue growth with NOK

92 million for the year, representing 19% of

total revenue

FINANCIAL FIGURES (MNOK) 2024 2023 2022

Revenue 491 515 383

EBITDA 119 132 93

EBITDA margin% 24.2% 25.6% 24.2%

Profit after tax 86 109 62

NEKKAR ANNUAL REPORT 2024 ABOUT NEKKAR

Intellilift

Digital performance

improvement

The foundation of Intellilift’s business is superior

engineering, electrification, automation, and

digitalisation competence with heritage from “Drilling

Bay” in Kristiansand, Norway. Intellilift applies this

competence across the Nekkar group as well as to

external clients.

Leading the way in data driven performance

improvement for the offshore energy and other

industries, including aquaculture, Syncrolift and the

renewables industry.

Automation and remote operations, including

robotisation, are key elements in Intellilft’s

technology. Intellilift enables its customers for the

digital transformation by use of Cloud solutions and

SaaS models.

INTELLILIFT IN BRIEF

Head office Kristiansand, Norway

Manager Stig Trydal

Employees 20

FINANCIAL FIGURES (MNOK) 2024 2023 2022

Revenue 44 34 22

EBITDA 5 6 4

EBITDA margin % 12.0% 18.3% 17.9%

Profit after tax 4 4 2

KEY HIGHLIGHTS 2024

• Successful start-up of operation of Inteli-

Automate system on board Transocean Norge

drilling rig, with public praise from Transocean

• Partnership agreement signed with

Salunda for safety application integration,

generating several smaller contracts

• Contract for and succesful installation of

control system for a Hanwha drillship in

South Korea, demonstrating Intellilift’s

integrator capacity

• NOK 10 million contract with undisclosed oil

company to remotely drill through digital

twin by use of Intellilift simulator

NEKKAR ANNUAL REPORT 2024 ABOUT NEKKAR

Techano Oceanlift

Smart offshore lifting

and load handling

Techano Oceanlift is a leading innovator in the

development of advanced motion compensated load

handling and lifting equipment. Its cutting-edge

solutions cater to the specific needs of the offshore

renewables, energy and aquaculture industries.

By harnessing the power of sensors, cameras, and

intelligent automation, Techano Oceanlift offers

unparalleled precision, efficiency, and safety.

The team consists of skilled engineers and industry

experts who collaborate to develop solutions

that optimise productivity, reduce downtime, and

enhance operational performance

TECHANO OCEANLIFT IN BRIEF

Head office Kristiansand, Norway

Manager Nils Vidar Stray

Employees 20

FINANCIAL FIGURES (MNOK) 2024 2023 2022

Revenue 64 30 -

EBITDA -10 1 -

EBITDA margin % -16% 4% -

Profit after tax -11 2 -

KEY HIGHLIGHTS 2024

• Solid progress on 70t offshore crane to

Sefine Shipyard, with successful factory

acceptance test completed in Q1 2025

• Successful factory acceptance test of

Safelift, 3D compensated lifting tool

• Standardized subsea crane series range

from 50 to 250 ton

• Developing new series of electrified subsea/

offshore cranes to meet increased demand

for subsea operations and construction and

able to regenerate power

NEKKAR ANNUAL REPORT 2024 ABOUT NEKKAR

Globetech

A trusted partner for

maritime digitalisation

Globetech AS is a leading provider of digital solutions

for vessels and the maritime industry, specializing

in IT infrastructure, connectivity, and cybersecurity.

Since its founding in 2011, the company has helped

shipowners and operators enhance efficiency,

compliance, and operational security. With a

dedicated focus on maritime IT and deep industry

expertise, Globetech is a trusted partner in driving

digital transformation, equipping its customers with

the technology and security needed to thrive in an

increasingly connected maritime environment.

GLOBETECH IN BRIEF

Head office Kristiansand, Norway

Manager Hans Eirik Onarheim

Employees 26

FINANCIAL FIGURES (MNOK) 2024 2023 2022

Revenue 93 71 57

EBITDA 22 11 13

EBITDA margin % 24% 15% 22%

Profit after tax 17 10 8

Globetech was acquired by Nekkar in August 2024, and its financial figures have been consolidated from that date onward.

For further details on Globetech’s consolidated figures, please refer to Note 1 – Operating Segments.

KEY HIGHLIGHTS 2024

• Nekkar acquired 67%, becoming the

majority shareholder.

• 30% YoY revenue growth with a 24% EBITDA

margin.

• Managing ~200 vessels, strengthening

visibility and recurring revenue.

NEKKAR ANNUAL REPORT 2024 ABOUT NEKKAR

Impact Technology

Ventures

Nekkar’s Impact Technology Ventures arm consists

of innovation projects where potentially disruptive

technologies and business models are developed

together with existing or potential customers and

other business partners.

The solutions under development are intended to

create value for both the development partners and

society as a whole. As such, the initiatives target

soft funding opportunities, such as grants and loans

from governmental institutions, to develop and

commercialise the technologies and solutions in

question.

Nekkar is developing the SkyWalker – a disruptive

installation tool based on technology that will

significantly reduce the cost and environmental

footprint associated with wind turbine installations

and major component replacements.

SkyWalker uses active-heave compensation derived

from offshore lifting systems, combined with digital

solutions that allow for remote-controlled and

automated lifting and installation solutions.

In 2021, Nekkar was awarded a NOK 21 million

grant from Innovation Norway to progress with

the SkyWalker, which culminated in the successful

development and testing of a downscaled model.

IMPACT TECHNOLOGY VENTURES IN BRIEF

Head office Kristiansand

Manager Mette Harv

Employees 5

SKYWALKER

Towards the end of 2023, a project consortium headed

by Nekkar was conditionally awarded a research

and innovation grant of NOK 75.2 million, in total,

through the Norwegian government’s Green Platform

Initiative. The consortium aims to develop a safe and

efficient solution for main component replacement

(MCR) on offshore wind turbines - thereby realizing

significant reductions in time, cost and loss of revenue

due to downtime. The SkyWalker project is currently

awaiting strategic partnerships to further advance the

technology and the go-to-market approach.

NEKKAR ANNUAL REPORT 2024 ABOUT NEKKAR

The Board of Directors

Håkon Andre Berg

Chair of the Board

Håkon Andre Berg (b. 1980) has been Director of the Board of Nekkar ASA since 2023. Until Q1 2025

he was CEO of Skeie Technology, and continues to represent Nekkar’s largest owner in his role as

Chair. Berg holds a M.Sc. from the Norwegian School of Economics and Business Administration. Berg

has various executive management and Board experiences mainly within aquaculture/seafood and

maritime/offshore/suppliers to oil and gas.

Berg holds no shares or share options in Nekkar ASA.

Trine Ingebjørg Ulla

Director of the Board

Trine Ingebjørg Ulla (b. 1961) has been Director of the Board of Nekkar ASA since 2023. She is a

Vice President at Equinor Renewables. Ulla holds a Master’s degree in Chemical Engineering from

the Norwegian University of Science and Technology. She has held several senior positions within

the Equinor Group and has more than 10 years of experience in offshore wind. Ulla also holds

directorships in several offshore wind joint ventures.

Ulla holds no shares or share options in Nekkar ASA.

Marit Solberg

Director of the Board

Marit Solberg (b. 1956) has been Director of the Board of Nekkar ASA since 2019. She has a long

career in senior management positions in the seafood industry, including eight years as COO Farming

in Mowi ASA. Solberg has a high level of technical and biological expertise within aquaculture and

holds a Master degree in Marine Microbiology from the University of Bergen (UiB). Solberg has

extensive Board experience.

As of 31 December 2024, Marit Solberg holds 150,804 shares and zero share options in Nekkar ASA.

NEKKAR ANNUAL REPORT 2024 ABOUT NEKKAR

Lars Carl Fabian Qvist

Director of the Board

Fabian Qvist (b. 1982) has been a director of Nekkar ASA since May 2024. Qvist is involved in the tech

and gaming sectors as a board member of Sisu Group, and as an advisor to the investment companies

Cagson AG and Molcap Invest AB. He holds a Master of Science in Economics and Business from

the Stockholm School of Economics. Qvist has a background in international investment banking,

corporate financial advisory, and private and public investments through roles in companies such as

Barclays Capital, Arctic Securities, Klein Group and through various board roles.

As of 31 December 2024, Qvist holds 543,435 shares through his holding company and 1,805,830

shares through related companies.

Bjørn-Erik Dale

Director of the Board

Bjørn-Erik Dale (b. 1982) joined the Board of Directors at Nekkar ASA the spring of 2024. He has

background from strategy consulting (Managing Partner at Arkwright Norway) and corporate finance

advisory (First Securities / Swedbank) and has served as Board Director and Chairman on behalf of

leading Norwegian industrial investors such as HitecVision PE, Equinor Ventures, Kongsberg Maritime

and Arendal Fossekompani. He is also co-founder and co-owner of several industrial technology

companies. Dale has a MSc. in Industrial Economics and Technology Management from the Norwegian

University of Science and Technology in Trondheim.

Dale holds no shares or share options in Nekkar ASA.

NEKKAR ANNUAL REPORT 2024 ABOUT NEKKAR

Management

Ole Falk Hansen

CEO

Ole Falk Hansen (b. 1983) joined Nekkar June 2022 after nearly five years as CEO in Beckman – a

market leading backpack company headquartered in Kristiansand, Norway, exporting to 20 countries.

Prior to this, Falk Hansen was CFO at MHWirth (now HMH), an international drilling technology

company, and at Aker Solutions, where he held the role as Head of Strategy and M&A for the drilling

business domain. Ole also has several years’ experience as a consultant with McKinsey & Company. He

holds a master’s degree in finance from the Norwegian School of Economics (NHH).

As of 31 December 2024, Falk Hansen holds 338,361 shares and zero share options in Nekkar ASA.

Mette Harv

Executive Vice President

Mette Harv (b. 1968) joined Nekkar (TTS Group) in April 2017 as Executive Vice President Energy

after eight years as Vice President Global Supply Chain & Logistics at National Oilwell Varco, Rig

Division. She has a proven track record from marine and offshore industry within finance, operations

and business development. Harv holds a degree in Economics and Business Administration from

Norwegian School of Economics (NHH).

As of 31 December 2024, Harv holds 284,791 shares and zero share options in Nekkar ASA.

Petter Brøvig

Head of Strategy

Petter joined Nekkar in 2022 after working with the company as an independent consultant. He has

broad experience in B2B software, strategy, and active ownership, with previous roles including VP

Strategy & Business Development at Telenor Group in Asia and Product Manager at Tapad in New

York. He holds an MSc from Imperial College London.

As of 31 December 2024, Brøvig holds 106,034 shares and zero share options in Nekkar ASA.

Marianne Voreland Ottosen

Head of Finance

Marianne Voreland Ottosen (b. 1982) joined Nekkar in April 2022, after four years as Vice President

of Finance at MHWirth (now HMH), where Ottosen spent a total of eight years. Previous experience

includes Compliance Manager at Aker Solutions and Manager at Deloitte within Audit & Advisory. She

holds a master’s degree in Accounting and auditing from the Norwegian School of Economics (NHH).

As of 31 December 2024, Ottosen holds 61,018 shares in Nekkar ASA.

NEKKAR ANNUAL REPORT 2024

Portfolio leads

ABOUT NEKKAR

Rolf-Atle Tomassen

Managing Director, Syncrolift

Rolf-Atle Tomassen (b. 1965) is a highly experienced manager who has been with Nekkar since 2003.

His previous experience includes, among other things, sales and marketing director at VINN Design

and managing director at MultiCraft AS. Tomassen has a bachelor with Honors degree in Mechanical

Engineering from University of Newcastle-upon-Tyne, Great Britain.

As of 31 December 2024, Tomassen holds 17,223 shares in Nekkar ASA.

Nils Vidar Stray

Managing Director, Techano Oceanlift

Nils Vidar Stray (b. 1963) has strong management experience from the offshore industry. He

has a proven track record within business development, change management, and supply chain

development, Stray holds an engineering and a business administration degree.

As of 31 December 2024, Stray holds 9,883 shares through Square Holding AS.

Stig Trydal

Managing Director, Intellilift

Stig Trydal (b. 1972) is one of the key founders of Intellilift. He has substantial experience from

National Oilwell Varco (NOV) where he has held leading positions in software and automation

departments.

As of 31 December 2024, Trydal holds 8,807 shares in Nekkar ASA.

Hans Eirik Onarheim

Managing Director, Globetech

Hans Eirik Onarheim (b. 1970) is the co-founder and CEO of Globetech, a position he has held since

the company was established in 2011. With a career in maritime IT dating back to 1998, he brings

extensive industry experience and a robust professional network to his role.

As of 31 December 2024, Onarheim holds 248,157 shares in Nekkar ASA.

NEKKAR ANNUAL REPORT 2024 THE BOARD OF DIRECTORS’ REPORT

The Board of

Directors’ report

Highlights 2024

• Revenue of NOK 624 million, up 8 percent

compared to 2023 (NOK 575 million).

• EBITDA of NOK 92 million, a decrease of 15

percent from the prior year (109).

• Order intake totaled NOK 474 million in 2024,

slightly down from NOK 478 million in 2023,

primarily driven by multiple contracts awarded to

Syncrolift.

• Order backlog of NOK 744 at year-end (803).

• Acquisition of Globetech, a supplier of

infrastructure, connectivity and support services

to the global maritime sector at an attractive

valuation level.

• Growth in group revenue from NOK 575 million

in 2023 to NOK 838 million (pro-forma incl.

Globetech and FiiZK) in 2024.

• Continued expansion of the Nekkar portfolio

according to communicated strategy with Globetech

acquired and FiiZK restructuring completed.

• Key contract wins for several operating

companies – FiiZK secured two major contracts

and Syncrolift awarded Haakonsvern shiplift and

transfer system project.

2027 Strategy and ambitions

Nekkar is a long-term owner of technology

companies within ocean-based industries. The

company invests along structural megatrends such as

sustainable oceans, robotics and intelligent logistics,

and digitalisation. With a 50-year industrial legacy

from Syncrolift, Nekkar applies an active buy-to-

own strategy and builds value through accretive and

profitable growth, strong cash flow, and disciplined

reinvestment.

Nekkar leverages its industrial platform — a

combination of in-house operational expertise,

market presence, and a strong partner network — to

support empowered and decentralised operating

companies. As a publicly listed company, Nekkar has

demonstrated consistent shareholder value creation

through strategic M&A, solid capital allocation, and

strong financial performance.

The foundation of Nekkar’s value creation lies in

the intersection of deep industrial expertise and

a long-term, owner’s mindset. These capabilities

enable the group to build strong companies and

drive sustainable value creation in selected industries

such as offshore energy, aquaculture, defence, and

renewables.

Nekkar’s 2027 strategy is built on four pillars:

investing along ocean-based megatrends, leveraging

its industrial platform, engaged ownership, and

driving value creation through profitable growth.

To deliver on this, the group focuses on continuous

improvement, solid underlying operations, and

building a balanced portfolio through proactive and

strategic deal flow.

By 2027, Nekkar targets a portfolio of 6–8 platform

companies with a strategic and balanced composition

of businesses of comparable size. The group aims to

generate 2+ billion NOK in revenues, underpinned by

a combination of strong organic growth in existing

companies and new investments. This represents

a significant transformation from today’s more

concentrated revenue base and positions the group

for long-term scalability and value creation.

NEKKAR ANNUAL REPORT 2024 THE BOARD OF DIRECTORS’ REPORT

BUSINESS OVERVIEW

Nekkar ASA is the holding company in the Nekkar

group, which is headquartered in Kristiansand,

Norway. The company is listed on the Oslo Stock

Exchange with the ticker code NKR. Nekkar consists

of four portfolio companies, one impact technology

venture, and one associated company:

• Syncrolift

• Intellilift

• Techano Oceanlift

• Globetech

Impact technology ventures:

• SkyWalker

Associated companies (below 50 percent ownership):

• FiiZK

Syncrolift

Syncrolift is a global leading provider of shipyard

solutions for safe, reliable and efficient ship docking.

Headquartered in Vestby, Norway, Syncrolift is

Nekkar’s main revenue and cash-generating business.

Syncrolift has local presence in important markets

through subsidiaries in the US, Singapore, India,

Australia and a sales/service office in Dubai.

Syncrolift is the global market leader for shiplifts

and transfer systems that are offered to repair and

newbuilding yards. It delivers turnkey and customised

solutions for shipyards and navy bases around the

world. The product range includes shiplifting systems

for launching and retrievals of vessels and transfer

systems for a fast and reliable way of moving vessels

around the yard. In addition, the company delivers

FastDocking

products for efficient operations during

docking and maintenance of vessels. As the global

market leader, Syncrolift has successfully increased

focus on the service and upgrade capabilities related

to the company’s installed base.

With the contract awards for the Haakonsvern

shiplift and transfer system and the upgrade of a

current ship transfer system from Thyssenkrupp

Marine Systems to be used for submarines, Syncrolift

continues to solidify its role as a supplier to a rapidly

growing defense industry. Syncrolift has a solid track

record of successful naval projects, including a 100%

market share for submarines historically. Its high

precision fluid bed transfer system is ideal for navy

vessel needs, providing a technological advantage.

Techano Oceanlift

Techano Oceanlift was acquired by Nekkar in March

2023. The company delivers intelligent lifting and

load handling systems for renewables, subsea

and aquaculture vessels. The team’s specialist

competence includes the development and

manufacturing of advanced load handling and lifting

equipment, including cranes, winches, fish crowding

systems, fish transfer systems, and offshore wind

load handling cranes.

2027 AMBITIONS TO REACH 2+ BN NOK IN REVENUES

Today Target portfolio

5 companies

→

Concentrated

revenue generation

Focus on profitability

6-8 platform companies

Strategic and balanced portfolio

with multiple companies of

comparable size

Solid underlying operations

2027*2024*2023

Syncrolift Existing portfolio

Other New investments

575

838

2 000+

*2024 and 2027 includes revenue from Globetech and FiiZK

NEKKAR ANNUAL REPORT 2024 THE BOARD OF DIRECTORS’ REPORT

KEY FIGURES, NEKKAR GROUP

MNOK 2024 2023 2022

Revenue 624 575 388

EBITDA 92 109 67

EBIT 81 101 57

EBITDA % 14.8% 18.9% 17.4%

Order intake 474 478 277

Order backlog 744 803 824

EPS (NOK) 0.82 0.78 0.30

624

Revenue MNOK

EBITDA MNOK

14.8%

EBITDA margin

Techano Oceanlift has developed a new series

of offshore/subsea cranes to meet the increased

demand for subsea operations and construction.

The cranes may be electrified, including the winch,

thereby enabling it to deliver regenerated power

back to the vessel.

Intellilift

Intellilift delivers industrial software solutions focused

on digitalising workflows through automation and

remotely-controlled systems for drilling and offshore

load handling. The company serves both external

customer and other companies in the Nekkar group.

Nekkar is the majority shareholder of Intellilift

with a 51 percent ownership share. The company

possesses unique competence within engineering,

electrification, digitalisation and automation. It

develops open software platforms for collection,

monitoring and control of data for numerous

industries. Collecting data from numerous different

sensors, will improve the real time operation as well

as enable remote operation and robotisation.

Intellilift’s business model is threefold – project

based, perpetual upfront software licenses and

SaaS revenue, depending on customer preferences.

Intellilift supports projects in Syncrolift and Techano

Oceanlift with controls and automation deliveries.

In recent years, Intellilift has established a joint

venture (JV) – named InteliWell – with Transocean

Inc. and global communication company Viasat Inc.

InteliWell has proven to accelerate the decrease

of drilling time through rig automation, and to

streamline the well construction processes through

developing new AI-driven processes and tools,

allowing operators to further improve the consistency

of their operations while reducing drilling costs

through more reliable and faster drilling operations.

Globetech

In 2024, Nekkar acquired a majority stake in

Globetech AS, a fast-growing and profitable provider

of maritime IT and digital services. The acquisition

aligns with Nekkar’s strategy to drive digitalisation

in ocean-based industries while strengthening its

portfolio with a company that has a strong track

record of recurring revenues and profitability. The

transaction was structured in two stages, with

Nekkar initially acquiring 67% of Globetech and

the remaining 33% set for acquisition in 2027. The

enterprise value was NOK 132 million, adjusted for

2024 results, corresponding to an EBITDA multiple

NEKKAR ANNUAL REPORT 2024 THE BOARD OF DIRECTORS’ REPORT

of 5.5x. The 2024 transaction was partly settled with

NOK 15 million in Nekkar shares, subject to a two-

year lock-up period, while the final transaction in

2027 will be based on a multiple of the company’s

EBITDA at that time.

Under Nekkar’s ownership, Globetech is positioned

as a leading niche provider of maritime IT solutions,

with a singular focus on vessel owners and

operators. The company scales through organic

growth expanding service offerings and increasing

the number of vessels under long-term managed

service agreements—while exploring inorganic

growth through strategic acquisitions. With a strong

emphasis on security and compliance, Globetech

is enhancing its cybersecurity capabilities to meet

evolving industry regulations and protect onboard

digital infrastructure.

Today, Globetech operates as a stand-alone platform

company within Nekkar, complementing the group’s

portfolio with its high proportion of recurring

revenues. The company serves approximately 200

vessels, combining hardware sales, installation

services, recurring service subscriptions, and

software licenses. The integration of Globetech

creates technology and commercial synergies across

Nekkar, particularly with Techano Oceanlift, while

strengthening the Group’s cybersecurity capabilities.

Globetech strengthens Nekkar’s position among

offshore vessel owners and operators, increases

recurring revenue, and enhances its cybersecurity

and digital service capabilities.

SkyWalker

Nekkar is developing a disruptive wind turbine

installation and service tool that could significantly

reduce the cost and environmental footprint

associated with wind turbine installations and

maintenance. The solution - called SkyWalker - uses

active heave compensation derived from offshore

lifting systems combined with digital solutions

that allows for remote-controlled and automated

solutions. Nekkar’s competence within electrification,

automation and digitalisation is being utilised to

develop this potentially gamechanging technology.

FiiZK (39 percent ownership)

FiiZK is an aquaculture industry supplier that

specialises in unconventional fish farming methods

including closed and semi-closed fish cages, with

associated software, maintenance and services.

To date, FiiZK has delivered more than 20 cages

and completed more than 70 production cycles,

demonstrating strong fish growth and no problems

with lice and escapes.

In 2024, FiiZK divested FiiZK Digital and the

majority of FiiZK Protection. The sales were part of a

streamlining of the company where FiiZK will focus

on closed and semi-closed cages. The two non-core

businesses were sold for an enterprise value of NOK

215 million.

As Nekkar is a minority shareholder, FiiZK’s financial

results are not consolidated into Nekkar’s accounts.

Instead, Nekkar’s proportion of FiiZK’s financial

results is recognized as financial income or expense

in the profit and loss statement. Nekkar has an option

to acquire the remaining shares in FiiZK.

PEOPLE AND ORGANISATION

The different businesses are managed by the

following executives:

• Syncrolift: Rolf-Atle Tomassen

• Techano Oceanlift: Nils Vidar Stray

• Intellilift: Stig Trydal

• SkyWalker: Mette Harv

• Globetech: Hans Eirik Onarheim

In Nekkar ASA, Marianne Voreland Ottosen is head

of finance and Petter Brøvig is head of strategy.

Together with Ole Falk Hansen, CEO, and Mette Harv,

they represent the management team of Nekkar

ASA.

EMPLOYEES

The total number of employees in the Nekkar group

was 129 at year-end 2024, compared to 92 at the end

of 2023. For Nekkar ASA, employee numbers were 10

and 17, respectively.

See Note 1 for further details on the operating

segments.

NEKKAR ANNUAL REPORT 2024 CHAPTER TITLE

The solid 2024 results increasingly

reflects contribution from Nekkar’s

growing and therefore more

diversified portfolio of companies.

Financial performance

PROFIT AND LOSS

Revenue for the Nekkar group was NOK 624 million

in 2024, an increase of 8 percent compared to 2023

(NOK 575 million). EBITDA was NOK 92 million in

2024, down from NOK 109 million in 2023, equivalent

to EBITDA margins of 14.8 percent and 18.9 percent

respectively.

EBIT was NOK 81 million in 2024, compared to NOK

101 million in 2023. Pre-tax profit was NOK 100 million

in 2024, down from NOK 109 million the previous

year. Profit after tax was NOK 86 million and NOK 83

million for 2024 and 2023 respectively.

The solid 2024 results increasingly reflects

contribution from Nekkar’s growing and therefore

more diversified portfolio of companies.

Order intake in 2024 was NOK 474 million compared

to NOK 478 million in 2023. Nekkar’s order backlog

was still strong at NOK 744 million (803) at year-end

2024.

Syncrolift

Syncrolift generated revenue of NOK 492 million in

2024 compared to NOK 515 million in 2023. EBITDA

was NOK 119 million in 2024, a slight decrease from

NOK 132 million in 2023. EBITDA margin came in

at 24 percent. Beyond delivering on its projects,

Syncrolift continues to see an increase in service and

aftermarket revenue.

Techano Oceanlift

Techano Oceanlift was acquired in March 2023.

The company delivered revenue of NOK 64 million

in 2024. EBITDA was NOK -10 million in 2024,

equivalent to an EBITDA margin of -16 percent.

Techano Oceanlift EBITDA margins continues to

reflect the company’s build-up phase.

Intellilift

Intellilift delivered revenues of NOK 44 million in

2024 compared to NOK 34 million in 2023. Some

of Intellilift’s revenue is internally generated as

Intellilift’s products and solutions are integrated

with other businesses of the group, e.g. deliveries

of control systems to Syncrolift. External revenue in

Intellilift amounted to NOK 29 million in 2024 equal

to 2023.

EBITDA in Intellilift was NOK 5 million in 2024

compared to NOK 6 million in 2023, equivalent to an

EBITDA margin of 12 percent and 18 % respectively.

Intellilift’s EBITDA-margin illustrates its nature as a

software driven business.

Globetech

Globetech, which was acquired during 2024,

delivered annualized pro-forma revenues of NOK 93

million in 2024 compared to NOK 71 million in 2023.

For actual consolidated revenue, please refer to Note

1 ‘Operating Segments’.

Annualized EBITDA in Globetech was NOK 22

million in 2024 compared to NOK 11 million in 2023,

equivalent to an EBITDA margin of 24 percent.

NEKKAR ANNUAL REPORT 2024 THE BOARD OF DIRECTORS’ REPORT

CONSOLIDATED STATEMENT OF FINANCIAL

POSITION

Total assets at the end of 2024 were NOK 819 million,

compared to NOK 601 million in 2023.

The net working capital (ref. definition of APMs)

was positive with NOK 57 million, compared to

positive with NOK 124 million at the end of 2023. The

group’s business practice may affect cash balances

substantially from time to time due to prepayments

(milestone payments) received from customers and

payments to suppliers in the newbuilding business of

Syncrolift, which are independent of when revenue

recognition occurs.

Nekkar had a strong total cash balance at NOK 205

million at the end of 2024 compared to NOK 194

million in 2023.

Nekkar group has an overdraft facility and a revolving

credit facility of in total NOK 200 million with Nordea.

No amounts have been drawn under these facilities

as of 31 December 2024. Additionally, guarantee and

currency facilities are established with Nordea and

DNB.

The reporting currency of Nekkar group is NOK

(Norwegian krone). Since significant portions of its

income and expenses are denominated in foreign

currencies, fluctuating foreign exchange rates may

affect the group’s operating results. To mitigate this

risk, the Nekkar group employs hedging instruments.

FX contracts are measured at fair value and recorded

as financial income or expenses in the profit and loss

statement, as they do not meet the criteria for hedge

accounting. For additional information, please refer

to the Accounting principles, section 2.9.

The consolidated accounts have been prepared in

accordance with the International Financial Reporting

Standards (IFRS) as adopted by the EU. The Board of

Directors affirms that the accounts provide a true and

fair view of the company’s financial position as of 31

December 2024. The Board of Directors is not aware

of any unreported events occurring subsequent to

the balance sheet date of 31 December 2024, which

may be material to the Nekkar group or to the annual

accounts of 2024. See Note 23 Subsequent events,

for further information.

SHARE CAPITAL

At the end of 2024, Nekkar ASA had a share capital

of NOK 11.817.982 divided into 107.427.112 shares at

0.11 each. The company held 4,035,531 own shares as

of 31 December 2024.

CASH FLOW

The reported cash flow on consolidated level from

operating activities was positive with NOK 141.5

million in 2024, compared to NOK 75.2 million in

2023. Positive operational cash flow in 2024 is driven

by solid results combined with a reduction in working

capital of NOK 64 million.

Consolidated cash flow from investment activities

was NOK -81.4 million in 2024 which mainly consists

of the investment in Globetech and acquisition and

expenditures related to fixed and intangible assets

(capitalised development costs). In 2023, the net cash

flow from investing activities was NOK -50.7 million.

In 2024, net cash flow from financing activities on the

consolidated level was NOK -49.4 million, compared

to NOK 11.5 million in 2023. The 2024 figure includes

acquisition of treasury shares of NOK 48.8 million.

Nekkar had a net cash position of NOK 205 million at

year-end 2024, of which NOK 20 million is held as a

deposit for FX-derivative exposures in DNB. Nekkar’s

net cash position at year-end 2023 was NOK 194.2

million.

The company or group had no net interest-bearing

debt as of 31 December 2024, but has available credit

facilities of in total NOK 200 million.

RESEARCH AND DEVELOPMENT

The research and development (R&D) activities

of Nekkar are closely linked to the strategy of

developing disruptive technologies that offer high

sustainability impact for ocean-based industries. R&D

initiatives have shown good progress during 2024.

The highlights are:

• Development of Techano crane series

• Development of walkway for personnel transfer

related to offshore wind operations on SOVs

(service operation vessels)

NEKKAR ANNUAL REPORT 2024 THE BOARD OF DIRECTORS’ REPORT

In 2024, net capitalised development costs amounted

to NOK 23 million (MNOK 15).

Received public grants from Innovation Norway and

SkatteFUNN are treated as a reduction of capitalised

development costs. This amounted to NOK 0.6

million in 2024.

As per 31 December 2024, capitalised development

costs in the consolidated balance sheet amounted to

NOK 64 million.

Cost from other development activities related

to customer specific projects, may in some cases

be charged to the profit and loss as an operating

expense.

ORDER BACKLOG

Nekkar’s order backlog at the end of 2024 was NOK

744 million, down from NOK 803 million at year-end

2023. This backlog is mainly related to newbuilding

projects in Syncrolift.

GOING CONCERN

As of 31 December 2024, the equity ratio at

consolidated level was 59.7 percent. There was no

interest-bearing debt on neither consolidated nor

Nekkar ASA level at year-end 2024.

The financial objective of the group is to have

sufficient cash reserves or credit lines available to

finance operations and investments on an ongoing

basis. The group’s cash position combined with

established credit facilities, guarantee and currency

facilities are considered sufficient to fund the existing

business plan at least mid-term.

In accordance with Section 3-3 of the Norwegian

Accounting Act, the Board of Directors confirms

that the financial statements have been prepared

based on the going concern assumption and that the

requirements are fulfilled.

Risk factors and risk management

The Nekkar group is exposed to various markets,

financial and operational risks and as experienced

from latter events, also political and health-oriented

risks.

The Board of Directors reviews operating reports

from management on a monthly basis. In addition to

the continuous risk mitigation, the Board of Directors

and management carry out specific risk analyses in

connection with major investments and contracts.

Specific risk areas or projects are continuously

monitored and assessed. The group has furthermore

implemented thorough procedures related to

contract approvals and authorisation matrixes.

Near term, the group is mainly exposed towards the

shipyard business, but as the new business areas

increase in importance and size, the group will be

exposed in other market segments as well. The

prevailing business strategy is planned to be funded

with cash flow from operations.

MARKET RISKS

There are a number of risks related to the market

development for Nekkar’s products and services.

Nekkar monitors these risks through its sales network

and by available information on relevant trends.

Syncrolift is the main business of the group.

The activity in the market is depending on the

construction and upgrade of navy bases and

shipyards, which is suitable for the Syncrolift® shiplift

systems and solutions.

Expected future demand for the current product

portfolio depends on the shipyards’ need to

implement more efficient production lines which

again depends on the general market activity.

Currently there are no signs long term that the

yard industry will reduce its focus on increased

productivity.

Syncrolift has a solid order backlog for its 2025

newbuilding business, and is also part of several

tender processes for new projects. It is also

positioned for accumulative success in acquiring

recurring service business. Scheduled deliveries for

the current project portfolio extend into 2025/2026.

SkyWalker, which represents the group’s impact

technology ventures, is a product development

project. For SkyWalker, the main risk factor is related

to commercialisation of the technology. Intellilift has

NEKKAR ANNUAL REPORT 2024 THE BOARD OF DIRECTORS’ REPORT

proven commercialised technology and the products

have been sold to both oil and gas related business

and the wind industry, while Techano Oceanlift’s

products are commercialised and have been sold

to customers in the offshore renewables, offshore

oil and gas, aquaculture and marine industries.

Globetech operates in a market with high demand,

positively impacted by increased digitalisation, and

the need for secure maritime IT solutions.

CLIMATE RISK

Nekkar develops digitalised impact technologies that

aim to unlock customer value, including reduction

of environmental footprint and CO2-emissions,

in numerous industries including renewables,

aquaculture, shipping and offshore energy. As

such, climate change represents both a risk and

an opportunity for Nekkar. Nekkar considers its

main climate risks to be associated with the global

ambition/implementation gap for the transition to

more renewable energy, as well as climate policy

and taxation changes that could limit or delay

the adoption of Nekkar’s new technologies that

are enablers to reduce the carbon footprint in the

industries the company operates. This applies to both

the renewables and aquaculture industries.

Nekkar’s exposure to the offshore energy industry

is limited today, but could grow in the coming years.

The offshore energy industry has been identified

as high risk by the Task Force on Climate-Related

Financial Disclosures, and the industry is under

pressure to reduce its emissions. Although the

Ukraine war and associated energy shortage in

Europe has resulted in heavy investments in the

offshore energy industry in the coming years, there is

a long term risk of declining investment in upstream

oil and gas. However, the software and technologies

that Nekkar deliver are capable of significantly

reducing drilling time and amount of personnel

required offshore, thereby substantially reducing

the carbon footprint associated with this type of

offshore operations. As such, climate-related risk also

represents an opportunity for Nekkar.

The energy transition may shorten the expected

useful lives of oil and gas related assets, which has

the potential to accelerate depreciation charges.

However, Nekkar is primarily a software supplier to

the offshore energy industry, which means that the

company does not expect assessment of effect on

useful lives to have significant accounting impact.

Another climate risk is the possible increase in the

frequency and intensity of extreme weather events.

As the large majority of Nekkar’s operations is based

in Norway, this expectation is not assessed to lead

to any effects on expected useful economic life of

property, plant and equipment. However, extreme

weather could result in delayed project progress, for

example for installation of shiplifts in parts of the

world that are more exposed to extreme weather.

This could potentially mean that revenue and margin

recognition could be delayed in such projects. Nekkar

has not experienced any delays caused by extreme

weather events during 2024.

Overall, it is Nekkar’s view that the company is

well positioned to profit from a stronger focus

on reducing emissions from the industries the

company operates within, and that there are more

positive business opportunities than negative risks

associated with stronger industry efforts on reducing

emissions and combating climate change. Nekkar

has considered the impact of climate change on

going concern. Effective assessment and analysis

of climate-related risks and opportunities is vital to

understand the potential impacts of climate-related

risks on asset valuations, revenue and investment

requirements.

FINANCIAL RISKS (SHORT TERM FINANCING)

The Nekkar group is exposed to credit, liquidity and

currency-related risks, and has adopted an active

approach to managing risk in the financial markets.

The aim of the group’s financial strategy is to be

sufficiently robust to withstand adverse conditions.

The financial risks related to credit, liquidity, and

currency are described below.

Credit risks represent potential financial losses

stemming from contractual partners’ failure to fulfil

their contractual obligations. Developments in the

part of the shipyard business applicable for Syncrolift

have historically resulted in only modest losses on

payments from customers.

With the understanding that substantial credit risks

can be present, Nekkar group has taken measures

to limit these risks through evaluating the financial

NEKKAR ANNUAL REPORT 2024 THE BOARD OF DIRECTORS’ REPORT

strength of its contract partners, restricting credit

and utilising mechanisms to secure payments, such

as letters of credit and prepayments. Nekkar works

continuously to limit its exposure to credit risks.

The liquidity risk is related to a situation in which

Nekkar group may be unable to meet short-term

financial demands and fulfil its obligations as they

fall due. In order to monitor liquidity risk, Nekkar

prepares, on regular basis, rolling cashflow forecasts

to predict liquidity requirements. The group’s overall

cash position is strong and evaluated to be sufficient

to fund the prevailing business plan in combination

with the credit, guarantee and currency facilities,

established with its bank relations.

The company will in addition to the operating cash

flow normally have access to capital markets for

further funding with the option to finance activities

through either equity or debt or a combination.

In order to manage currency risks, Nekkar’ policy

is to hedge significant currency exposures within a

24-month period. The hedging is performed based

on firm contracts for sale or purchase in currencies

other than the functional currency of the Nekkar

unit entering into the hedging contract. Hedging

contracts are measured at fair value and recorded as

financial income or expenses through the profit and

loss statement.

OPERATIONAL RISKS

Nekkar group’s newbuild business is primarily

organised through deliveries of completed projects.

The operational risks related to the project execution

are mainly deliveries from sub-suppliers, project

management, and customer related issues.

During the tender phase, projects undergo a

thorough risk evaluation in order to identify and

mitigate potential technical and commercial risks

in addition to an assessment of other potential

risk areas, and the level of contingency required.

Measures have been implemented to ensure that

projects are being satisfactorily assessed both

prior to signing the contracts and during execution

phase. The bid review process, where major risks are

evaluated before a binding offer is sent to potential

customers, is an essential part of the procedures.

Nekkar will continue to focus on improving its risk

monitoring and assessment tools, as well as its

project management tools.

GEOPOLITICAL RISK

The invasion of Ukraine by Russian continues to be

a driver of geopolitical risk, for example through

fluctuations in energy and raw material prices.

While Nekkar has no business activity in either Russia,

Ukraine, or Belarus, the company may be negatively

affected by increased raw material prices and

uncertainties in the market if the situation persists for

an extended period. In general, the business outlook

for Nekkar is positive, but it is difficult to predict

short, medium and long-term effects on all business

lines from a potential escalation of the war. However,

Syncrolift has a large number of navy customers.

Increased geopolitical risk often means increased

defense spending. As such, this also represent a

business opportunity for Nekkar.

NEKKAR ANNUAL REPORT 2024 THE BOARD OF DIRECTORS’ REPORT

In addition, following the end of 2024 there is a

global and escalating focus on protectionism,

particularly through using tariffs as a mechanism

to incentivize in-country production of goods and

services. While the developments here are rapidly

changing and final outcomes therefore unclear, this

could potentially negatively impact companies with a

large degree of revenues outside Norway.

CYBERSECURITY RISK

Nekkar recognises the evolving landscape of

information and cyber security, where increasingly

sophisticated cyber threats and digital crime models

pose risks to data security, including ransomware.

Risks include leaks of confidential data and malicious

alterations to critical business data. To prevent and

address such incidents, Nekkar has tools and measures

to proactively monitors threats, vulnerabilities,

and effectiveness of security controls, ensuring

continuously improvement and enhance defenses.

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.

The group’s ability to create value is dependent on

promoting and maintaining high ethical standards to

create a trust-based relationship with its employees,

owners, business partners, communities, and other

stakeholders.

Nekkar is dedicated to conducting its activities in an

ethical and responsible way; aiming at sustainable

development for employees, customers, investors,

and the communities in which it operates. Nekkar’s

policies for corporate social responsibility encompass

health and safety, business ethics, support for human

and employee rights and anti-corruption measures.

Nekkar is committed to OECD’s Guidelines for

Multinational Enterprises and contributing to the

improvement of international business standards

and practices, especially with regard to corruption,

labour relations and the global environment. Nekkar

operates in a manner that respects the human rights

as set out in the UN’s Universal Declaration of Human

Rights and the core conventions of the International

Labor Organization.

Nekkar releases its sixth ESG report this year, for the

second time fully integrated with the annual report.

The report is based on the 2021 Global Reporting

Initiative (GRI) Standard and Euronext guidance on

ESG reporting. The report also includes a section on

Nekkar’s adherance to the Norwegian Transparency

Act which requires companies to promote respect

for human rights and decent working conditions. A

report on human rights, in line with the Norwegian

Transparency Act, is included in this report (see

Business ethics and anti-corruption).

Nekkar gives high priority to creating a working

environment where employees thrive and develop as

humans and professionals. The company supports

its workers’ opportunities to exercise their employee

rights and to be organised through trade and

labour unions, and it facilitates annual meetings for

global employee representatives. Nekkar is also an

advocate for equal rights for all employees regardless

of gender, sexual orientation, disability, ethnicity,

religion or political orientation.

The Nekkar Code of Conduct describes Nekkar’s

ethical commitments and requirements to expected

behavior in areas such as anti-corruption and conflict

of interest. It sets expectations for personal conduct

and business practice.

The Code includes the most important ethical

principles and provides some references to more

detailed requirements for expected business and

personal conduct. The Code applies to the Nekkar

companies, Board members, management and

employees, including temporary personnel and

consultants or contractors that act on Nekkar’s

behalf. Nekkar has also developed a separate policy

applying to our subcontractors.

Nekkar has zero tolerance for corruption and

encourages its employees to report suspected

infringements.

QUALITY, HEALTH, SAFETY AND ENVIRONMENT (QHSE)

The Board of Directors believes that a proactive

QHSE policy is a precondition for the successful

development of a long-term sustainable and

profitable business to the benefit of customers,

employees, shareholders and all other stakeholders.

NEKKAR ANNUAL REPORT 2024 CHAPTER TITLE

Nekkar is dedicated to

conducting our activities in an

ethical and responsible way.

The Nekkar group therefore never compromises

on issues of quality and safety and has committed

itself to a zero-harm-and-fault policy. Nekkar always

operates with worker safety and environmental

sensitivity at the forefront and supports a company

culture characterised by strong day-to-day

compliance with high QHSE standards. Nekkar’s

QHSE ambitions are to cause no harm to people or to

the environment, to prevent accidents and damage

to property and to avoid faults and non-conformities

that may influence the quality of all deliveries.

The group comprises of companies and business

areas that differ in size, operate in different business

segments and face different legislative systems.

The Board of Directors advocates a consistent

QHSE policy at corporate level, and common QHSE

reporting procedures are applied.

The group also welcomes a general, global tendency

towards more stringent QHSE requirements from

customers, contributing to fair competition based on

quality, experience, efficiency and technology, with

no compromise on safety.

All employees are accountable for contributing to

their own health, safety and wellbeing as well as that

of their colleagues. Managers at all levels, however,

have a special responsibility to monitor and mitigate

any safety risks and to contribute to the improvement

of management systems and Nekkar’s QHSE

performance.

The skilled and dedicated workers of Nekkar are the

group’s most important success factors, and the

Board of Directors wishes to express its gratitude to

all employees for their contribution in 2024.

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 3.7 percent in

2024 (2.4 percent in 2023). Nekkar experienced zero

workplace incidents resulting in the need for medical

treatments in 2024 (two in 2023).

Nekkar continuously works towards ensuring a

healthy and motivating working environment for

its employees. Efforts are made to encourage joint

corporate culture based on the core values described

above.

ENVIRONMENT

Nekkar’s ambition is to avoid any negative impact

of its operations on the physical environment,

and measures are taken to ensure that operations

are conducted in accordance with applicable

environmental standards.

The use of products delivered by Nekkar represents

limited risks of environmental pollution. The group’s

operations are not regulated by any licenses

or regulatory orders. Nekkar conducts carbon

accounting on Scope 1 and 2, and a limited Scope 3

reporting, and has in 2024 worked on a project to

better document the environmental impact of the

group’s products. This project will continue in 2025.

For more information, please see page 56 of this

document.

EQUAL OPPORTUNITIES

Nekkar promotes a working environment that

offers equal rights, equal treatment and equal

opportunities to everyone regardless of gender,

religion, nationality, age, disabilities or the like. It is an

important goal that all employees experience equal

possibilities regarding their professional and personal

development.

NEKKAR ANNUAL REPORT 2024 THE BOARD OF DIRECTORS’ REPORT

Engineers make up the majority of Nekkar’s

workforce and represent a profession where

women historically have been underrepresented.

The challenge of attracting women to the field is

reflected by the fact that women constituted only 16

percent of the workforce in 2024 (2023: 15 percent).

Consequently, the Board of Directors considers it

important that Nekkar complies with a recruitment

policy where it is more attractive for women to join

the company.

Two out of Nekkar’s executive management team’s

four members are female. The Board of Directors of

Nekkar ASA consists of two women and three men.

Pursuant to the law prohibiting discrimination based

on disabilities (the Norwegian Equality and Anti-

Discrimination Act), Nekkar has made efforts, where

applicable, to locate operations and implement

office layout in a manner that enhances accessibility

for everybody, and make reasonable workplace

accommodations to meet the needs of employees

with hearing or sight impairments.

Board of Directors

The Board of Directors consists of Håkon André Berg

(Chair), Marit Solberg (Deputy Chair), Trine Ingebjørg

Ulla, Bjørn-Erik Dale, and Lars Carl Fabian Qvist.

At the Annual General Meeting held 30 May 2024,

Håkon Andre Berg, Bjørn-Erik Dale and Lars Carl

Fabian Qvist were elected for a period of two years.

Trine Ingebjørg Ulla and Marit Solberg were not up

for re-election.

Insurance for Board members and

management

Nekkar ASA has Directors’ and officers’ liability

insurance which includes the Board members and

management in Nekkar ASA and subsidiaries. The

liability limit is NOK 75 million.

Auditor

KPMG is the elected auditor for Nekkar ASA.

Board statement on corporate governance

The Nekkar Board of Directors adheres to good

corporate governance standards and uses the

Norwegian Code of Practice for Corporate

Governance as a guideline. A more detailed account

of the applicable principles for corporate governance

is provided as a separate Corporate Governance

section in the annual report. Resolutions from the

General Meetings are published on the company’s

website, www.nekkar.com.

Shareholder structure and limitation

The shares of Nekkar ASA are publicly traded at the

Oslo Stock Exchange, where the company trades

under the ticker code NKR. All shares are identified

by the owner’s name. As reflected in the company’s

Articles of Association, there are no restrictions

to voting, or to the transfer of share ownership,

nor are there any mechanisms in effect aimed at

preventing takeovers. Nekkar ASA has one class

of shares, and each share confers one vote at the

General Meeting. There is no specific representation –

neither individually nor jointly – for shares owned by

employees of Nekkar.

Capital structure

Nekkar group’s total equity at the end of 2024 was

NOK 489 million, of which NOK 419 million was

attributable to the majority, and NOK 70.0 million

was attributable to the non-controlling interests. The

equity to total assets ratio was 59.7 percent at the

end of 2024, compared to 71.1 percent in 2023. At

the end of 2024, the equity in Nekkar ASA was NOK

453.9 million, of which NOK 9.2 million was share

premium capital, NOK 11.8 million share capital and

NOK 433.3 million other equity. Comparable figures

from year end 2023 were NOK 440.5 million, NOK

9.2 million, NOK 11.8 million and NOK 419.6 million,

respectively.

Outlook

Syncrolift ended 2024 with an order backlog of NOK

666 million. Syncrolift is experiencing general high

tendering activity. The market situation for newbuild

projects within Syncrolift remains promising, but

NEKKAR ANNUAL REPORT 2024 THE BOARD OF DIRECTORS’ REPORT

Kristiansand, 29 April 2025

Board of Directors, Nekkar ASA

Håkon André Berg

Chair

Marit Solberg

Deputy Chair

Lars Carl Fabian Qvist

Director

Bjørn-Erik Dale

Director

Trine Ingebjørg Ulla

Director

investment decisions for newbuild projects may still

see some delays.

In 2019, Nekkar initiated a project to generate more

service revenues from Syncrolift’s extensive global

installed base of ship lifts and transfer systems. The

aging installed base provides a solid foundation for

both upgrades and replacements of existing systems.

This strategic effort has started to yield strong results.

In 2024, Syncrolift’s service revenue reached NOK 92

million, a small increase from 2023. Nekkar expects

this positive development to continue in 2025.

Intellilift continues to play important roles in

developing Syncrolift’s and Techano Oceanlift’s

digital platforms. Further, Intellilift’s new solutions

were installed on drilling rigs and operated

successfully in 2024. Such successful operations are

likely to open up further rig market opportunities, but

timing of additional awards is uncertain. Investments

in the oil and gas industry is currently at a high level

and is expected to remain high in the coming years.

This, coupled with a demand to reduce emissions

from oil and gas developments and production, could

result in increased demand for Intellilift’s products

and technologies.

Techano Oceanlift is exposed to the shipbuilding

market for the offshore energy industries. A potential

increase in newbuild offshore vessels could represent

opportunities for Techano Oceanlift. During 2024,

some new construction support vessels have been

ordered for delivery in 2026 and beyond. A key

focus for Techano Oceanlift in 2025 is to deliver a

150-tonnes crane to Sefine Shipyard. Subsequent

to year-end 2024, Techano Oceanlift won a new

EUR 7.5 million contract, which is a repeat order of

the previous 150-tonne crane award from Sefine

Shipyard. This further enhances Techano Oceanlift’s

visibility for 2025 and 2026.

Offshore aquaculture is another target market for

Techano Oceanlift. Although there is significant

potential for increased production and value creation

for offshore aquaculture, operational, technological,

and regulatory challenges must be overcome to

realise this potential.

For FiiZK, the aquaculture industry is seeing

increased pressure to improve both fish and fjord

welfare. FiiZK closed cage solutions improves this

by avoiding problems with sea lice and also enables

waste collection from the production process. There

is substantial market interest in closed cage solutions

from the aquaculture industry, particularly for post-

smolt production. In October 2024, FiiZK was awarded

a contract to deliver two large, closed fish cages

to an undisclosed Norway-based fish farmer. This

breakthrough award for its Protectus closed fish cage

is expected to generate further market opportunities.

The market outlook for the renewables industry

which Nekkar is targeting with its SkyWalker tool,

is promising with investment levels predicted

to grow substantially in the coming years and

decades. Increased pressure on profitability for

wind farm developers and operators could also

stimulate interest in more cost-efficient wind turbine

installation tools such as the SkyWalker. Market

feedback for SkyWalker as installation and major

component exchange tool for offshore wind turbines

remains very positive. However, the combination of

postponement of license awards for offshore wind on

the Norwegian continental shelf and the substantial

dropout rate of developers who have chosen not

to bid for licenses offshore Norway, has affected

potential customers’ sense of urgency when it comes

to investment decisions. The SkyWalker project is

therefore currently on hold until partnership solutions

are in place.

NEKKAR ANNUAL REPORT 2024 CORPORATE GOVERNANCE

The Board of Directors (“the Board”) of Nekkar ASA (“Nekkar” or the “Company” is

responsible for ensuring that the Company is organised, managed and controlled in an

appropriate and satisfactory manner in compliance with applicable laws and regulations.

Compliance with generally accepted corporate

governance guidelines is important because it

contributes to:

• reduced risk

• enhanced values in the best interests of all

stakeholders

• fair treatment of all stakeholders

• strengthened confidence and attractivity

• desired conduct

The Board considers compliance with generally

accepted corporate governance guidelines as an

important prerequisite for long-term value creation.

The Company strives to ensure that its internal

control mechanisms, organisation and management

structures comply with good corporate governance

principles.

Nekkar seeks to comply with the Norwegian

Code of Practice for Corporate Governance (the

“Corporate Governance Code” or “the Code”), last

revised on 14 October 2021, which is available at

the Norwegian Corporate Governance Committee’s

website www.nues.no. The principal purpose of the

Corporate Governance Code is to ensure (i) that

listed companies implement corporate governance

that clarifies the respective roles of shareholders,

the Board of Directors and executive management

more comprehensively than what is required by

legislation and (ii) effective management and control

over activities with the aim of securing the greatest

possible value creation over time in the best interest

of companies, shareholders, employees and other

parties concerned.

The following statement explains how Nekkar

addresses the 15 governance topics covered by the

Code.

Corporate governance

NEKKAR ANNUAL REPORT 2024 CORPORATE GOVERNANCE

1. Implementation and reporting on

corporate governance

The Board is aware of its responsibility for

implementation of internal procedures and

regulations to ensure that the company and its

subsidiaries (“the Group”) complies with applicable

principles for good corporate governance in line with

Norwegian and applicable international standards.

The Board actively adheres to this.

Good corporate governance is an integral part of the

decision-making process in matters dealt with by

the Board. Governing structures and controls help

to ensure that the policy is enacted upon. The work

of the Board is based on defined division of roles

and responsibilities between the shareholders, the

Board and management. Nekkar has implemented

a specific set of rules and procedures for the

Board, constituting the governance structure and

administrative procedures for their work.

According to Nekkar’s own evaluation, the company

deviates from the Corporate Governance Code on the

following points.

• Item 6: Nekkar deviates from the recommendation

to have all Board members present at the general

meeting as the company deemed it satisfactory

to require the presence of the chairperson of

the Board, the chairperson of the nomination

committee, the auditor, and the CEO. Nekkar also

deviates from the recommendation to establish

routines for appointment of an independent

person to chair the general meeting. In case

particular items on the agenda requires such

measures, the Board will consider appointing an

independent chairperson.

• Item 9: Nekkar does not have an audit committee.

Pursuant to Nekkar’s Articles of Association, the

complete Board serves as audit committee of

the company provided that the Board at all times

satisfies the requirements in the Norwegian Public

Limited Liability Act section 6-42. The Board

deems it sensible that all members are equally

informed about the accounting issues.

• Item 9: Nekkar does not have a remuneration

committee. Instead, the Board resolves matters

relating to compensation paid to the executive

personnel. As all Board members are independent

of the Company’s executive personnel, it is the

Board’s view that it is a suitable body to help

ensure a thorough and independent preparation

of matters relating to compensation paid to the

executive personnel.

• Item 14: Due to the unpredictable nature of a

takeover situation, the Company has decided

not to implement detailed guidelines on take-

over situations. In the event of a takeover, the

Board of Directors will consider the relevant

recommendations in the Corporate Governance

Code and whether a potential situation entails

that the recommendations in the Corporate

Governance Code can be complied with or not.

Corporate governance in Nekkar is subject to regular

reviews and discussions by the Board.

2. Business

Nekkar (OSE: NKR) is an industrial technology group

offering impact technologies combined with high-

end software solutions. The group combines 50

years’ heritage from the world’s number one shiplift

company, Syncrolift, with new investments into

sustainable, digitalised technology businesses that

aim to unlock customer-value within ocean-based

industries such as offshore energy, renewables,

aquaculture and shipyard solutions. The group’s

strategy is to leverage superior engineering,

electrification, automation, and digitalisation heritage

from offshore environments, to develop disruptive

technologies that can make high-growth industry

sectors more sustainable, productive, and profitable.

Nekkar is a public limited liability company organised

under the laws of Norway and subject to the

provisions of the Norwegian Public Limited Liability

Companies Act.

Nekkar’s objective is currently defined in the Articles

of Association as follows:

The company’s purpose is to engage in industrial

activities and related matters such as direct and

NEKKAR ANNUAL REPORT 2024 CORPORATE GOVERNANCE

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, business ethics and anti-

corruption, and environment and climate – that are

integrated with the Company’s business strategy,

and goals are each year defined to improve Nekkar’s

performance within these areas.

To discuss and evaluate goals, strategy and risk

profile, the Board conducts an annual two-day

strategy meeting, where the main purpose is to set

the long-term direction for the Company.

A further description of the Company’s operations,

goals, strategy, and risk profile is provided in

the group’s annual report, which shows how its

operations and strategies are aligned with objectives

defined in the Articles of Association.

3. Equity and dividends

The Company’s solidity is continuously assessed

based on its goals, strategies and risk profile. Total

assets at the end of 2024 were NOK 819 million and

the company’s equity was NOK 489 million, providing

an equity-to-assets ratio of 59.7 percent.

Nekkar aims to provide shareholders with a

competitive long-term return that reflects the risk

inherent in the Company’s operations. Based on

Nekkar’s capital structure and growth strategy,

shareholder return is expected to be realised

primarily through an increase in share value,

supplemented by a share buy-back program.

Dividends may also be considered, if and when

deemed appropriate.

Growth through acquisitions will be financed through

a balanced mix of equity and debt. The Annual

General Meeting determines the annual dividend

based on the Board’s proposal. For the 2024

financial year, the Board has not proposed a dividend

payment.

Furthermore, the shareholders have authorised the

Board to increase the share capital and repurchase the

Company’s own shares. Based on this authorisation,

the Board has renewed its share buy-back program

intended for defined corporate purposes, including

usage in mergers and acquisitions.

At the 2024 Annual General Meeting, the Board of

Directors was granted authorisation to increase the

Company’s share capital, including through private

placements and as consideration in connection with

acquisitions, mergers, or other strategic transactions.

This authorisation allows for deviation from existing

shareholders’ pre-emptive rights.

The General Meeting also authorised the Board to

issue shares to employees and Board members under

a share purchase program. In addition, the Board

has executed on a renewed mandate to repurchase

up to 10% of the Company’s share capital through

a share buy-back program, intended for defined

corporate purposes, including usage in mergers and

acquisitions.

All authorisations remain valid until the next Annual

General Meeting, and no later than 30 June 2025..

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.

NEKKAR ANNUAL REPORT 2024 CORPORATE GOVERNANCE

In situations where normal preferential rights shall be

deviated from, the Company’s Board is proposed to

prepare grounds for such a decision in accordance

with the Corporate Governance Code and shall

present these to the General Meeting. Own shares are

purchased through ordinary trade on the Oslo Stock

Exchange if applicable.

On 31 December 2024, the Company owned

4,035,531, own shares, of which the large majority

has been acquired in conjunction with its share buy-

back program.

5. Share and negotiability

All Nekkar shares carry equal rights and are

freely negotiable and the Company’s articles of

association do not contain any form of restriction on

negotiability.

6. General meetings

The interest of the Company’s shareholders is

exercised at the General Meeting (GM). The Annual

General Meeting is usually held end of May or

beginning of June. The meeting for 2025 is scheduled

for 28 May 2025.

The General Meetings deal with and decide on the

following matters:

• Adoption of income statement and balance sheet.

• Application of profit or coverage of deficit

pursuant to the adopted income statement and

balance sheet as well as distribution of dividends.

• Election of Board of Directors. The General

Meeting shall elect the Chair of the Board and the

Deputy Chair of the Board.

• Other issues pursuant to the provisions of the

Norwegian laws and Articles of Association are to

be treated by the General Meeting.

All shareholders with known address registered in

the Norwegian Central Securities Depository (VPS)

will receive an invitation to the General Meeting. The

invitation is sent at least three weeks prior to the

meeting. Other documents will be made available at

Nekkar’s website. A shareholder may request a print

of documents relating to matters to be dealt with at

the General Meeting.

The deadline for shareholders to give notice of their

intention to attend the meeting is two working days

prior to the meeting.

Shareholders who are unable to attend the General

Meeting may vote by proxy. The proxy form is

designed in such a way that voting instructions may

be given for each item on the agenda.

The Company’s Board chooses whether to hold

the general meeting as a physical meeting or as an

electronic meeting.

The chairperson of the Board, the chairperson of the

nomination committee, the auditor, and the CEO are

present at the General Meeting, in addition to other

Board members when appropriate. The chairperson

of the Board opens the General Meeting and is

normally elected to chair the meeting.

Nekkar has not deemed it necessary to require

the presence of all members of the Board at

the General Meeting. Nekkar also deviates from

the recommendation to establish routines for

appointment of an independent person to chair

the General Meeting. In case of particular items on

the agenda requiring such measures, the Board will

consider appointing an independent chairperson.

All shares carry an equal right to vote at General

Meetings. Resolutions at General Meetings are

normally passed by simple majority unless otherwise

is required by Norwegian law.

The minutes of the General Meeting are made

available on Nekkar’s website and published to the

Oslo stock exchange (www.newsweb.no).

7. Nomination committee

Pursuant to Nekkar’s Articles of Association, the

nomination committee shall consist of 2-3 members,

independent of the Board and management.

The committee nominates candidates to the Board

NEKKAR ANNUAL REPORT 2024 CORPORATE GOVERNANCE

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 Anne-Grete Ellingsen (Chair) and Ditlef de

Vibe. Both members are independent of the

major shareholders, the Board and the executive

management.

The members of the nomination committee are

elected by the General Meeting. According to the

Code, the General Meeting shall elect the Chair of the

nomination committee and set the guidelines for the

committee’s work.

Information regarding the committee members, the

procedures, as well as how input and proposals may

be submitted to the committee is published on the

Company’s website.

8. Board of Directors, composition and

independence

Pursuant to Nekkar’s Articles of Association, the

Company’s Board shall consist of three to five

members. The current Board consists of five

members elected by the General Meeting.

At the General Meeting held on 30 May 2024, the

shareholders elected the following members to the

Board:

NAME ELECTION PERIOD POSITION

Håkon André Berg 2024 – 2026 Chair

Bjørn-Erik Dale 2024 – 2026 Director

Lars Carl Fabian Qvist 2024 – 2026 Director

Not up for re-election:

Marit Solberg 2023 – 2025 Deputy Chair

Trine Ingebjørg Ulla 2023 – 2025 Director

Nekkar strives to ensure that the Board has a

composition necessary to safeguard the interest of

the shareholders. The Board consider its composition

to be diverse and competent with respect to

expertise, capacity and diversity adapted to the

Company’s objectives, main challenges and the

common interest of all shareholders. The Board

emphasises the importance of efficiency as a

collegial body. The Board consists of three men and

two women.

Håkon André Berg is the CEO of Skeie Technology

AS, which is the largest shareholder in Nekkar. Marit

Solberg, Trine Ingebjørg Ulla, Bjørn-Erik Dale and

Lars Carl Fabian Qvist are all independent of the

major shareholders and executive management. The

Board does not include executive management, and

the majority of the Board members are independent

of the Company’s executive personnel and material

business contacts.

The Directors of the Board are elected for a period

of two years. Please see the Annual Report for a

presentation of the Board members.

According to the Code, the Chairperson of the Board

should be elected by the General Meeting. This is also

stated in the Company’s Articles of Association.

Both Marit Solberg and Lars Carl Fabian Qvist own

shares in Nekkar. None of the Board members hold

any share options.

9. The work of the Board of Directors

The Board has the overall responsibility to oversee

the organisation, operation and management of

Nekkar, whilst the CEO is responsible for day-to-

day management. This means that the Board is

responsible for how to organise the Company’s

activities and establishing systems in order to ensure

that Nekkar operates in compliance with laws and

regulations, corporate governance guidelines and the

values stated in the company’s Code of Conduct.

NEKKAR ANNUAL REPORT 2024 CORPORATE GOVERNANCE

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, emphasising objectives, strategy, and

implementation of the company’s business plan in

particular. The rules and procedures for the Board

also state how the Board of Directors and executive

management shall handle agreements with related

parties, including whether an independent valuation

must be obtained. The Board should also present any

such agreements in their annual Directors’ report.

Further, If the chairperson of the Board is personally

involved in matters of a material character, the

Board’s consideration of such matters will be chaired

by another member of the Board.

The rules and procedures for the Board includes

instructions to ensure that the Company’s impact on

the economy, environment and people is managed

adequately. The rules and procedures describe

how the Board is responsible for reviewing and

approving the organisation’s purpose, value or

mission statements, strategies, policies and goals

related to sustainable development, and delegate

implementation of such matters to the Company’s

management. The procedures also include

stipulations to ensure that the Company has the

necessary due diligence and other processes in place

to identify and manage its impacts on the economy,

environment and people, and ensure that the

management of the Company engages with relevant

stakeholders to support these processes.

At least annually, the Board reviews the company’s

sustainability performance, including key

performance indicators and priorities going forward.

Pursuant to Nekkar’s Articles of Association, the

complete Board shall serve as audit committee of

the company provided that the Board at all times

satisfies the requirements in the Norwegian Public

Limited Liability Act section 6-42. The Board deems

it sensible that all members are equally informed

about the accounting issues.

The Board has considered but not established

a remuneration committee. Instead, the Board

resolves matters relating to compensation paid to

the executive personnel. As all Board members are

independent of the Company’s executive personnel,

it is the Board’s view that it is a suitable body to help

ensure a thorough and independent preparation

of matters relating to compensation paid to the

executive personnel. There are no other committees

established by the Board of Directors.

The Board assess the need for additional roles and

functions for the Board and its Directors on an annual

basis. The Board evaluates its own performance

and expertise on an annual basis, including its role

in overseeing the management of the company’s

impacts on the economy, environment and people. The

evaluation is submitted to the nomination committee.

10. Risk management and internal control

The Board focuses on ensuring adequate

organisation and supervision of Nekkar’s internal

control and overall risk management. On an annual

basis, the Board discusses and assesses the group’s

risk exposures, systems, routines, and internal control

to mitigate these risks. Internal control procedures,

limiting authorisations, organisational changes and

increased reporting are part of the improvements.

The Board’s work with internal control and applicable

systems encompasses the Company’s corporate

values, Code of Conduct and guidelines for Corporate

Social Responsibility.

Procedures and systems upholding uniform reporting

are prepared. Management prepares monthly

financial reports, which are submitted to, and

reviewed by the Board.

As part of ongoing risk management efforts, the

Board and management carry out specific risk

reviews of major investments and contracts.

As part of the annual budget and strategy process,

the Board and executive management conduct an

annual review to discuss and identify external and

internal opportunities and threats for the group.

In addition, the Board carries out a thorough review

of the Company’s financial status in the annual Board

NEKKAR ANNUAL REPORT 2024 CORPORATE GOVERNANCE

of Directors’ Report. This review also includes a

description of the main elements of the Company’s

HSE efforts with a corresponding action plan if

needed.

The Code of Conduct outlines Nekkar’s ethical

commitments and requirements to expected

behavior regarding issues such as anti-corruption

and conflict of interest. It sets standards for personal

conduct and business practice.

The Code of Conduct has been communicated to

all employees and implemented in order to ensure

that the Company’s ethical commitments and

requirements are reflected in all business behavior.

The Code of Conduct includes the most important

ethical principles and provides references to more

detailed requirements related to business and

personal conduct.

The Code of Conduct applies to all Nekkar group

companies, Board members, management and

employees, including temporary personnel and

consultants or contractors acting on behalf of Nekkar.

11. Remuneration of the Board of Directors

Remuneration of the Board is determined by the

General Meeting, based on recommendation from

the nomination committee. The recommendation

is normally linked to the Board members’

responsibilities, competence and time commitment,

taking the company’s size and complexity into

consideration. It also references the level of Board

remuneration in comparable, Norwegian stock

exchange listed companies. The remuneration is not

linked to the company’s performance. There is no

share option program for the Board of Directors but

they can take part in the company’s share purchase

program.

Members of the Board, including companies with

whom they are associated, are usually not given

separate assignments by Nekkar in addition to their

function as Directors. Such assignments will be based

on approval from the Board. There were no such

assignments in 2024.

12. Salary and other remuneration for

executive personnel

The Board determines the principles applicable to

the group’s policy for compensation of executive

management. The Board is directly responsible for

determining the CEO’s salary and other benefits. The

CEO is, in consultation with the chairperson of the

Board, responsible for determining the salary and

other benefits for the group’s other senior executives.

The guidelines for salaries and other remuneration

are communicated yearly to the General Meeting,

where so far, the Board has asked for the

endorsement of all sections of the declaration of the

determination of salaries and other remuneration of

leading employees, except the option program where

they have asked for approval. Executive management

remuneration consists of three main elements: salary,

bonus and equity-based instruments.

The Board’s view on management compensation is

that it should be competitive, simple and motivating,

but not above observed market levels, and help

ensure that the executive personnel and shareholders

have convergent interests. Bonuses are determined

according to specific targets set for each year.

Bonus schemes are limited to a portion of the salary,

increasing according to the position category up

to a maximum of 50 percent of base annual salary

unless special circumstances apply. Guidelines and

the annual remuneration report are presented in the

Annual Report.

13. Information and communication

Nekkar’s reporting and communication policy

is based on openness, taking into account the

requirement for equal treatment of all stakeholders in

the financial markets.

The Company has established guidelines for

reporting of financial and other information. The

purpose of these guidelines is to ensure that

NEKKAR ANNUAL REPORT 2024 CORPORATE GOVERNANCE

timely and correct information is made available to

shareholders and other stakeholders. A financial

calendar and other shareholder information,

including the investor relations policy, is available on

the Company’s website.

Any dividend proposals are presented in the meeting

call for the General Meeting. All information distributed

to the Company’s shareholders is simultaneously

published on the Company’s website and Oslo stock

exchange’s website (www.newsweb.no).

14. Take-overs

The Company’s Articles of Association do not include

defence mechanisms aimed towards take-over bids,

nor are any other obstacles implemented with the

objective of reducing the trade and/or transferability

of the company’s shares.

The shares are freely negotiable. Transparency and

equal treatment of the shareholders are fundamental

principles the company adheres to. No additional

principles have been established for how Nekkar will

or should act with respect to takeover bids, but the

Board intends to act in accordance with applicable

regulations as well as the general principles of

the stock market if such a situation should occur.

Furthermore, the Board will issue a statement to the

shareholders with an assessment of the bid and a

recommendation of whether to accept it or not.

15. Auditor

The external auditor is independent in relation to

Nekkar and elected by the Annual General Meeting.

The auditor’s fee is approved by the General

Meeting. The auditor conducts a minimum of two

meetings per year with the Board, and at least in

one of the meetings a part of the meeting is held

without management present. One of the meetings

is conducted in connection with the review of the

annual accounts, while the second meeting’s purpose

is to review the company’s internal control systems

and routines. The Board reviews the yearly audit plan

with the auditor together with identified weaknesses

and suggestions for improving the Company’s

internal control. In addition, the auditor is present in

the Board meetings as and when required. It has not

been deemed necessary by the Board to implement

additional guidelines regarding the use of the auditor

for services other than auditing.

NEKKAR ANNUAL REPORT 2024 CORPORATE GOVERNANCE

NEKKAR ANNUAL REPORT 2023 MATERIAL TOPICS

Priority areas for Nekkar

Business ethics and

anti-corruption

Emissions from

our operations

Health and safety

NEKKAR ANNUAL REPORT 2024 BUSINESS ETHICS AND ANTI-CORRUPTION

Business ethics and

anti-corruption

Doing business with integrity and building a culture that prevents

unethical business practices is highly important to us.

Materiality

As a global company, we are both directly and

indirectly exposed to ethical risks throughout our

value chain. Syncrolift’s projects constitutes the

highest risk, since the company delivers projects

to countries such as India and Vietnam (the Far

East), the Middle East, Africa and South America.

Significant risks include health and safety risks, illicit

labour practices, corruption risks, violation of IP

rights and data security breaches.

By establishing clear guidelines, conducting due

diligence and physical audits, communicating about

possible risks and expectations, and by providing

training in business ethics and anti-corruption, we

seek to positively impact this topic.

Production

(outsourced)

Sales

Design

Transport

Installation/

comissioning

Raw

materials

Intermediate

goods

Manufacturing

Service/

end-of-life

SaaS

revenue/

lifecycle

support

Policy commitment

Our business should be conducted in a manner

that respects internationally recognised human

and labour rights. We apply the precautionary

principle and are committed to follow internationally

recognised business standards and practices such as

the OECD’s guidelines for Multinational Enterprises.

We also adhere to international and national laws

and regulations, including (but not limited to) the

Human Rights Act, the Money Laundering Act, the

Transparency Act, and the Penal Code with related

regulations.

Our internal guidelines for ethics and anti-corruption

are described in the Code of Conduct, which has

been approved by our management and Board of

NEKKAR’S VALUE CHAIN

NEKKAR ANNUAL REPORT 2024 BUSINESS ETHICS AND ANTI-CORRUPTION

Directors. The Code of Conduct addresses important

principles and sets clear rules and expectations

for ethical behaviour for all our stakeholders and

ourselves, including respecting human rights and

conducting due diligence.

We have also developed a Business Partner Code

of Conduct, which is part of our standard terms and

conditions in contracts with suppliers and available

through our website. The Business Partner Code of

Conduct has been approved by the Board.

Countries where Nekkar are present and the associated corruption risk Score

Norway 81

Singapore 84

United States of America 65

United Arab Emirates 68

CORRUPTION

PERCEPTIONS

INDEX 2021

#cpi2021

www.transparency.org/cpi

This work from Transparency International (2021) is licensed under CC BY-ND 4.0

SCORE

0-9 10-19 20-29 30-39 40-49 50-59 60-69 70-79 80-89 90-100 No data

Very

Clean

Highly

Corrupt

The perceived levels of public sector

corruption in 180 countries/territories

around the world.

USA

Dubai

Singapore

Norway

Score

Highly

corupt

Very

clean

No data

This work from Transparency International

(2024) is licensed under CC BY-ND 4.0

CORRUPTION

PERCEPTIONS

INDEX 2021

#cpi2021

www.transparency.org/cpi

This work from Transparency International (2021) is licensed under CC BY-ND 4.0

SCORE

0-9 10-19 20-29 30-39 40-49 50-59 60-69 70-79 80-89 90-100 No data

Very

Clean

Highly

Corrupt

The perceived levels of public sector

corruption in 180 countries/territories

around the world.

Approach

The Management Group is responsible for

communicating and ensuring compliance with the Code

of Conduct. The Code of Conduct is shared with all

employees as part of the onboarding process. Members

of the Board are also obliged to read and comply with

the Code of Conduct.

Code of Conduct trainings are regularly held at all

business locations as well as workshops focused on

raising ethical awareness. Joint information meetings

are held whenever the Code of Conduct is updated.

NEKKAR ANNUAL REPORT 2024 BUSINESS ETHICS AND ANTI-CORRUPTION

Operations assessed for risks relating to corruption 2024 2023

No. of confirmed incidents of corruption 0 0

No. of criminal actions faced related to corruption or illicit business practices 0 0

No. of contracts with partners that were terminated or allowed to ex-pire due to

violations related to corruption 0 0

Communication on anti-corruption Total Europe America Asia

Permanent employees 100% 100% 100% 100%

Temporary employees 100% 100% N/A N/A

Board members 100% 100% N/A N/A

Clients 100% 100% 100% 100%

Suppliers of key components 100% 100% 100% 100%

Anti-corruption training* Total Europe America Asia

Permanent employees 100% 100% 100% 100%

Temporary employees 100% 100% N/A N/A

Full-time employees 100% 100% 100% 100%

Part-time employees 100% 100% N/A N/A

* Numbers from Syncrolift and Nekkar ASA only.

NEKKAR ANNUAL REPORT 2024 BUSINESS ETHICS AND ANTI-CORRUPTION

New business partners usually sign contracts where

our policies are stated, and we, or a third party on

our behalf, conduct risk assessments in relation

to financial and illicit activities for new suppliers,

customers, and sales representatives. Nekkar policies

are conveyed and agreed to through a supplier

screening process. We also ask for their financial

turnover. New clients are screened for risks regarding

payment issues.

We screen key suppliers. Syncrolift, as the largest

company in the group, has a live list of the 100 top

suppliers for standard components, made to order

equipment and system deliveries. The list of suppliers

is maintained with updated surveys following a

planned interval. The company uses a supplier

evaluation questionnaire, aiding the process of

becoming an approved supplier. The questionnaire

includes questions on sustainability, ethical

standards, environmental management and health

and safety. In 2024 the remaining Nekkar companies

have been building on the same methodology to

screen suppliers. In 2024 we performed 19 screenings

of new suppliers (six in 2023).

Human rights

Transparency Act reporting 2024

In 2022, Norway implemented the “Act relating to

enterprises’ transparency and work on fundamental

human rights and decent working conditions”, more

commonly known as the Transparency Act.

The purpose of the Act is to promote respect for

fundamental human rights and decent working

conditions in connection with the production of

goods and the provision of services, and to ensure

the general public access to information regarding

how enterprises address adverse impacts on

fundamental human rights and decent working

conditions.

At Nekkar, we oppose from all forms of discrimination,

human trafficking, forced labour and child labour,

and expect that our business partners and suppliers

act in compliance with applicable laws internationally

recognised compliance standards, as described in our

Code of Conduct for Business Partners.

We are aware that we operate in geographical areas

where the potential risk of child labour, unequal

pay conditions, forced labour or health and safety

deviations are higher. To reduce this risk, we began a

due diligence process in 2022 to identify and assess

actual and potential adverse impacts on fundamental

human rights and decent working conditions that we

could either have caused or contributed to.

In the 2024 due diligence process we have listed

all our suppliers and mapped them out by country

of operation and industry. We also looked closer

at our suppliers’ own guidelines and routines

regarding business ethics, as reported through our

Supplier Evaluation Questionnaire, and made sure

that suppliers agreed to our Code of Conduct for

Business Partners.

We frequently communicate our expectations to

suppliers, carry out non-disclosed evaluations, and

ask for more information where needed. We also

carry out physical audits of selected suppliers as part

of our continuous screening / due diligence process.

In 2024, all new key suppliers were screened using

social criteria as part of the supplier approvement

process.

We have not registered any negative impact from

the related topics in our value chain, including human

rights breaches. We aim to further strengthen our

work related to human rights and supplier due

diligence in 2025.

Nekkar has developed a Business

Partner Code of Conduct, which

is part of our standard terms and

conditions in contracts with business

partners.

↘

NEKKAR ANNUAL REPORT 2024 BUSINESS ETHICS AND ANTI-CORRUPTION

WHISTLEBLOWING / REPORTING

All conditions, which give rise to ethical issues or

considered a breach of the Code of Conduct shall

be reported to an employee’s closest line manager

or to the HSEQ manager and registered, so that

necessary follow-up and suitable measures can be

implemented. Employees can also seek advice from

their management on how to implement Nekkar’s

policies and practices for responsible conduct if

unsure. Critical concerns shall be reported to the

Board. Examples of concerns that may be reported

include:

• Criminal activities

• Violations of health, safety or the environment

• Infringements of Nekkar’s Code of Conduct

• Violation of generally accepted rules/standards

In 2022, we fully implemented the anonymous

whistleblowing channel (My Voice / Mitt Varsel).

Information about the channel was published on

our website for external users and employees were

informed and trained on when and how to use it

during 2023.

Supplier social assessment 2024

No. of suppliers assessed for social impacts 3

No. of suppliers identified as having significant actual and potential negative social impacts 0

% of suppliers identified as having significant actual and potential negative social im-pacts with which

improvements were agreed upon as a result of the assessment 0

ADDRESSING GRIEVANCES

We are committed to provide for or cooperate

in the remediation of negative impacts that

we identify we have caused or contributed to.

Grievance mechanisms have been established to

enable stakeholders to raise concerns about, and

seek remedy for, our potential and actual negative

impacts. Employees have been involved in the

design, review, operation and improvement of the

grievance mechanisms. We have not registered

any incidents of negative impacts in the reporting

period and have therefore not instituted processes

to remediate negative impacts or tracked the

effectiveness of the grievance mechanism.

There were no significant instances of non-compliance

with laws and regulations in 2024, and we did not

receive any fines for non-compliance with laws and

regulations. There are no ongoing investigations or

legal actions pending, and the Board has not received

any reports of critical concern.

NEKKAR ANNUAL REPORT 2024 EMISSIONS FROM OWN OPERATIONS

Emissions from

own operations

We aim to contribute to the sustainable use and development of

marine resources through our innovative products and reduce our

own emissions where we can.

Materiality

Nekkar provides equipment for the maritime

and marine industries. Both the production and

use of these products can negatively impact the

environment. Our goal is therefore to continuously

improve our products and thereby have a positive

impact on this topic.

Policy commitment

We acknowledge the important challenges that

the world is facing in terms of climate change and

environmental pollution. We aim to contribute to the

sustainable use and development of marine resources

through our innovative products and reduce our own

emissions where we can.

Nekkar has developed environmental guidelines which

are outlined in the company’s internal health and safety

handbook. Syncrolift has established an environmental

policy, which is communicated to employees,

contractors, and suppliers and is available through our

website: www.nekkar.com.

Approach

In 2024, we worked on a project to develop

Environmental Product Declarations (EPD’s) for each

of our products, to map their impact and implement

improvement measures. This will not only benefit

Nekkar but will also make it easier for our customers

to choose the greener solution. The EPD project will

continue in 2025.

We aim to increase our supplier’s awareness on

issues related to emissions. In our Supplier Evaluation

Questionnaire, we ask whether suppliers have a

documented Environmental Management system,

environmental certificates, environmental impact

assessments, and about the risk management of

chemicals and other substances, to track their efforts.

We started carbon accounting in 2020 (base year),

which was updated in 2021,2022 and 2023 using

CEMAsys’ digital solution. Up until 2022, the carbon

accounting comprised the following organisational

units: Aquaculture, Intellilift, Syncrolift, and

Renewables. The CO2 emissions report is impacted

by restructuring in Nekkar. From 2023, Aquaculture

was no longer included in our carbon accounting

while Techano Oceanlift was added and in 2024

Globetech was included.

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 ANNUAL REPORT 2024 EMISSIONS FROM OWN OPERATIONS

Performance

In total, our emissions across Scope 1, 2, and 3

amounted to 2,444.5tCO2e in 2024, down from

3,298.2 tCO2e in the previous reporting period.

This change is largely due to variations in steel

consumption, travel patterns and organisational

changes. Nekkar is still in the process of mapping

its carbon footprint, and this should be taken into

account when comparing 2024 emissions with

historical numbers.

SCOPE 1:

We have limited emissions from sources that are

owned or controlled by the company (Scope 1

emissions). Our Scope 1 emissions stems from the

use of company cars, amounting to 0.9 tCO2e in the

reporting period.

The office building in Kristiansand is BREEAM-certified, constructed from cross-laminated timber, and

equipped with solar panels on the roof.

Nekkar has developed environmental

guidelines which are outlined in the

company’s internal health and safety

handbook.

↘

NEKKAR ANNUAL REPORT 2024 EMISSIONS FROM OWN OPERATIONS

SCOPE 2:

The heating and ventilation of office buildings in

Norway and Singapore is the main source of our

indirect emissions (Scope 2 emissions). Consumption

of electricity in own or rented premises and/or

buildings are measured using an operational control

approach.

In 2024, we had a total electricity consumption of

284.6 MWh, which gave total Scope 2 emissions

of 2.7 tCO2e (location-based). Total market-based

Scope 2 GHG emissions was 170.0 tCO2e in the

reporting period.

SCOPE 3:

Scope 3 (indirect GHG emissions) accounts for

the majority (99.9 percent) of our total emissions.

The main source of Scope 3 emissions stems

from outsourced global production, particularly

steel manufacturing, and the transportation from

suppliers to the installation sites. Purchased steel for

manufacturing amounted to 2,241.3 CO2e in 2024, a

decrease compared to 2023.

Nekkar ASA’s emissions from Scope 3, Business

Travel, was 197.1 tCO2e in 2024 up from 152.4 tCO2e

in 2023. The total number of kilometres driven

by private cars within working hours (employee

commuting) was 25,260.0, which gave an emission of

1.6 tCO2e.

Key energy and climate performance indicators Unit 2024 2023 2022

Scope 1 + 2 emissions (tCO2e) tCO

e 3.5 3.3 4.2

Total emissions (s1 + s2 + s3) tCO2e) tCO

e 2,443.5 3,298.2 1,689.7

Total energy scope 1 + 2 (MWh) MWh 288.5 219.6 245.0

Market-based GHG emissions Unit 2024 2023 2022

Electricity total (Scope 2) with market-based calculations tCO

e 170.0 107.9 97.1

Scope 2 total with market-based electricity calucations tCO

e 170.0 107.9 97.1

Scope 1+2+3 total with market-based electricity calculations tCO

e 2,610.8 3,404.0 1,783.9

NEKKAR ANNUAL REPORT 2024 EMISSIONS FROM OWN OPERATIONS

ANNUAL ENERGY CONSUMPTION SCOPE 1 & 2

MWh MWh

2022 2023 2024

3.9

5.1

4.3

Scope 1

239.9

215.3

284.6

100

150

200

250

300

Scope 2

NEKKAR ANNUAL REPORT 2024 HEALTH AND SAFETY

Health and

safety

Safe operations are at the core of our values, and we continuously

work to ensure that employees return home safely every day.

Materiality

Maintaining a safe and healthy working environment

is critical to Nekkar and our stakeholders. We can

have an actual or potential positive impact on

occupational health and safety by establishing

health and safety guidelines, conducting risk

assessments, implementing reporting procedures,

and by providing communication and training to

employees about health and safety risks. We can also

positively impact this topic by ensuring access to and

appropriate use of health and safety gear.

Working at Nekkar could potentially involve different

health and safety risks depending on whether

employees are working in one of the company’s office

locations or on site. For employees doing production

follow-up from suppliers or on site inspections and

installation supervision, there are work hazards that

require special attention, including lifting, working at

heights, working with scaffolding, dropped objects,

trapping, entanglement, burns and other risks arising

from hazard-intensive tools used in manufacturing

processes. At Nekkar’s office locations, risks are

mainly associated with sedentary work.

Policy commitment

Everyone working in or on behalf of Nekkar shall

always comply with applicable rules and regulations

to prevent accidents, injuries and damage to people,

assets, and the environment. We adhere to the

Norwegian Working Environment Act and local laws

and regulations in other countries where we are

present. Policies and guidelines regarding health

and safety are described in the Employee Handbook

and the Health and Safety Handbook to which all

employees have been onboarded. Syncrolift is

certified according to ISO 45001 Occupational Health

and Safety, which is an international standard aiming

to improve employee safety, reducing workplace

risks, and creating better and safer working

conditions.

NEKKAR ANNUAL REPORT 2024 HEALTH AND SAFETY

Occupational health and safety management system 2024 2023

% of employees that are covered by the occupational health and safety

management system 100 100

% of workers who are not employees that are covered by the occupational health

and safety management system 100 100

Approach

Health and safety are continuously discussed at

management level, and the CEO/General Manager as

well as the HSEQ Manager in each company have the

overall responsibility for health and safety, in addition

to individual health and safety representatives for

each business unit. Managers have a particular

responsibility to monitor and mitigate any safety

risks and report conditions that may impact quality,

safety, the environment, or assets. Employees have

a duty to follow the health and safety guidelines,

prevent unsafe actions and otherwise promote good

safety behaviour. Due to our company’s size, we have

not maintained a Working Environment Committee,

but we have appointed a Health and Safety

representative which meets with the management

group on a regular basis, and we have also appointed

a safety representative in Kristiansand.

We have established an Emergency Response Plan,

which includes information about internal notification

procedures, mobilising, 24/7 preparedness and

communications and an Emergency Response Team.

We actively promote a safety culture. Employees

receive training on work-related hazards regularly,

including fire safety, which continues to a prioritised

area. In addition to reviewing our company’s fire

safety guidelines, we arrange fire drills. Service

personnel undergo on-the-job-training guided by

experienced co-workers upon hiring and also attend

specific health and safety trainings organised by

clients to receive work permits before entering a

work site. Employees also receive information about

when and how to use personal protective equipment.

Personal protective equipment is site specific and

determined by the different risk factors on each site.

Everyone working in or on behalf

of Nekkar shall always comply with

applicable rules and regulations

to prevent accidents, injuries and

damage to people, assets, and the

environment.

↘

To minimise health and safety risks, we have taken

a number of precautions, including the investment

in ergonomic desks / chairs at our office locations.

Specific project risk assessments are regularly carried

out for the work sites,. At the work sites, Safe Job

Analyses are carried out, as well as safety rounds

to identify any risk factors and ensure necessary

improvements.

Syncrolift conducts safety rounds at our premises in

Vestby on a regular basis. During the safety round

employees are asked to undertake a survey where

they have to rank several statements relating to

health and safety, which include topics such as indoor

climate, ergonomics, and fire safety.

NEKKAR ANNUAL REPORT 2024

HEALTH AND SAFETY

Work-related injuries 2024

WORKERS WHO ARE

NOT EMPLOYEES EMPLOYEES

No. of fatalities as a result of work-related injuries 0 0

No. of cases of recordable work-related injuries 0 0

Work-related ill health 2024

WORKERS WHO ARE

NOT EMPLOYEES EMPLOYEES

No. of fatalities as a result of work-related ill health 0 0

No. of cases of recordable work-related ill health 0 0

EMPLOYEE WELLBEING

Equally important as to ensure a physically safe

working environment is the focus on mental health

in the workplace. In addition to regular development

talks, we conduct employee surveys annually to

map employee wellbeing. In the survey, employees

are asked to rank different statements relating to

the working environment on a scale from 1 (lowest)

to 10 (highest). The 2024 employee survey had an

70 percent response rate, and the results show that

the motivation indicator among employees is at 78

percent on average. This percentage is based on

a ranking of the following: tasks, responsibilities,

feedback, relationship to leaders/management,

competence/professional development, collegial

support, cooperation and mastering of tasks.

SUPPLIERS, BUSINESS PARTNERS AND

SUBCONTRACTORS

Health and safety requirements for our suppliers have

until now followed the legislation and standards in the

supplier’s home country. Today, all our key suppliers

must fill out a “Supplier Evaluation Questionnaire”

(SEQ) where we ask about the suppliers’ occupational

health and management system. Key suppliers

working for Nekkar shall have their own occupational

health and management system and must report

injuries and work-related incidents. To follow up on the

health and safety of subcontractors, we are working to

implement an occupational health and management

system in Kristiansand.

REPORTING IRREGULARITIES

It is of critical importance to have full overview of

any adverse event at our sites to be able to work on

prevention and improvement. Injuries are registered

at site level and employees have a duty to report

incidents or dangerous occurrences. Injuries and

incidents are registered through the health and

safety web portal at Landax.no or in a mobile app,

in addition to immediate internal notification to

the CEO, HSEQ Manager or nearest line manager.

Examples of incidents that shall be reported include:

• Near incidents / incidents and accidents

• Influence of damage/hazardous conditions

• Breaches of health and safety regulations

• Missing or evacuation of personnel

• Security breaches or criminal acts towards Nekkar

and employees

• Chemical spills which require notification to

authorities and local response

NEKKAR ANNUAL REPORT 2024 SUSTAINABILITY PRIORITIES 2025

In 2024, our company remained committed to advancing sustainability across our operations.

While we were initially preparing to report in alignment with the Corporate Sustainability

Reporting Directive (CSRD), recent developments – specifically the introduction of the EU

Omnibus Directive – have temporarily adjusted our reporting obligations.

Despite this potential change in regulatory scope, we continue to view sustainability as a

strategic priority. The temporary exemption does not reduce our ambition – it simply provides

an opportunity to continue strengthening our sustainability practices with greater agility and

internal alignment. Our objective is to ensure long-term value creation for all stakeholders –

balancing business performance with environmental and social responsibility.

Sustainability priorities 2025

NEKKAR ANNUAL REPORT 2024 CONSOLIDATED FINANCIAL STATEMENTS

NEKKAR PER 31 DECEMBER 2024

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 and goodwill 

Note  Subsidiaries 

Note  Trade and other receivables 

Note  Equity accounted investments 

Note  Assets pledged as security and guarantees 

Note  Share capital and shareholder information 

Note  Tax 

Note  Earnings per share 

Note  Other operating expenses 

Note  Related parties 

Note  Derivatives 

Note  Financial items and foreign currency gainslosses 

Note  Provisions and other accruals 

Note  Financial risk management 

Note  Business combination 

Note  Non controlling interest (NCI) 

Note  Contingent liabilities  Material disputes 

Note  Subsequent events 

NEKKAR ANNUAL REPORT 2024 CONSOLIDATED FINANCIAL STATEMENTS | NEKKAR

Consolidated statement of comprehensive income

For the year ended 31 December

Amounts in NOK 1000 Notes 2024 2023

OPERATING REVENUE

Sales revenue 2 623 508 575 086

Total revenue 623 508 575 086

OPERATING EXPENSES

Material, goods and services 333 722 304 493

Personnel costs 4,5 146 455 113 812

Losses on accounts receivable 23 700 6 604

Depreciation of fixed and intangible assets 6,7 11 616 7 685

Other operation expenses 4.15 50 400 41 420

Total Operating Expenses 542 892 474 014

Operating profit / (loss) 80 615 101 073

FINANCIAL INCOME AND EXPENSES

Financial income 18 27 288 24 099

Financial expense 18 42 563 8 825

Share of net profit (loss) from equity-accounted investees 18 34 451 -7 083

Net finance 19 176 8 191

Profit/loss before tax 99 791 109 264

Income tax expense 13 13 920 25 955

Profit for the period 85 872 83 309

OTHER COMPREHENSIVE INCOME

Items that may be reclassified subsequently to profit or loss

Foreign currency differences for foreign operations - -

Total comprehensive income for the period 85 872 83 309

Attributable to equity holders of the company 82 670 81 243

Attributable to non-controlling interests 22 3 202 2 066

Earnings per share (NOK) 14 0.82 0.78

Diluted earnings per share (NOK) 14 0.82 0.78

NEKKAR ANNUAL REPORT 2024 CONSOLIDATED FINANCIAL STATEMENTS

Consolidated statement of financial position

For the year ended 31 December

Amounts in NOK 1000 Notes 2024 2023

ASSETS

NON-CURRENT ASSETS

Deferred tax assets 13 216 -

Goodwill 7 106 132 17 050

Other intangible assets 7 96 238 50 234

Property, plant and equipment 6 10 113 9 188

Equity-accounted investees 10 82 163 47 712

Other financial assets 1 884 1 155

Right of use assets 6 14 524 13 541

Total non-current assets 311 270 138 881

CURRENT ASSETS

Inventories 3 17 991 11 861

Trade receivables 2,9,23 151 819 85 270

Other receivables 9 14 409 6 387

Accrued non-invoiced production 2 118 136 144 007

Derivative financial instruments 17 - 20 144

Cash and cash equivalents 11 204 937 194 162

Total current assets 507 292 461 831

Total assets 818 563 600 711

NEKKAR ANNUAL REPORT 2024 CONSOLIDATED FINANCIAL STATEMENTS | NEKKAR

Consolidated statement of financial position

For the year ended 31 December

Amounts in NOK 1000 Notes 2024 2023

EQUITY AND LIABILTIES

EQUITY

Issued share capital 12 11 817 11 817

Treasury shares 12 -444 -153

Share premium 12 9 206 9 206

Other equity 12 397 994 383 528

Shareholders equity 418 574 404 398

Non-controlling interest 22 70 026 22 548

Total equity 488 599 426 945

NON-CURRENT LIABILITIES

Deferred tax 13 36 981 17 859

Lease liabilities 6 9 083 9 087

Non-current provision 21 33 767 -

Total non-current liabilities 79 831 26 946

CURRENT LIABILITIES

Trade payables 45 080 57 242

Income tax payable 13 4 944 1 512

Social Security and Employee taxes 11 684 7 973

Prepayment from customers 2 74 629 39 002

Derivative financial instruments 17 11 037 -

Current lease liabilties 6 6 039 4 276

Other current liabilities 19, 23 96 720 36 815

Total current liabilities 250 133 146 820

Total liabilities 329 964 173 766

Total equity and liabilities 818 563 600 711

Håkon André Berg

Chair of the Board

Marit Solberg

Director

Ole Falk Hansen

CEO

Trine Ingebjørg Ulla

Director

Bjørn-Erik Dale

Director

Lars Carl Fabian Qvist

Director

Kristiansand, 29 April 2025

The Board and Management of Nekkar ASA

NEKKAR ANNUAL REPORT 2024 CONSOLIDATED FINANCIAL STATEMENTS

Consolidated statement of changes in equity

For the year ended 31 December

Amounts in NOK 1000 Note

capital

Treasury

premium

Other

equity

Share-

holders

equity

Non-

controlling

interests

Total

equity

Equity as of 1.1.2023 11 746 -1 5 919 313 215 330 878 20 090 350 968

Total comprehensive income - - - 81 243 81 243 2 066 83 309

New Shares Issued 12 71 3 287 - 3 359 - 3 359

Treasury shares (purchase) 12 - -152 - -11 144 -11 296 - -11 296

Acquisitions new subsidiaries 21.22 - - - - - 297 297

Other changes - - - 215 215 94 309

Equity as of 31.12.2023 11 817 -153 9 206 383 529 404 398 22 547 426 945

Equity as of 1.1.2024 11 817 -153 9 206 383 529 404 398 22 547 426 945

Total comprehensive income - - - 82 670 82 670 3 202 85 872

Treasury shares (purchase) 12 - -529 - -47 943 -48 472 - -48 472

Treasury shares (sale) 12 238 15 101 15 339 - 15 339

Currency translation differences - - - 25 25 127 152

Acquisitions new subsidiaries 21.22 - - - - - 42 762 42 762

Put liability booked against Equity 21 - - - -33 767 -33 767 - -33 767

Correction previous year - - - -330 -329 97 -232

Equity effect of group

contribution (minority interest)

- - - -1 290 -1 290 1 290 -

Equity as of 31.12.2024 11 817 -444 9 206 397 994 418 574 70 026 488 599

NEKKAR ANNUAL REPORT 2024 CONSOLIDATED FINANCIAL STATEMENTS | NEKKAR

Consolidated statement of cash flow

For the year ended 31 December

Amounts in NOK 1000 Notes 2024 2023

CASH FLOW FROM OPERATING ACTIVITIES

Profit (loss) before tax 99 791 109 264

Adjustments for:

Depreciation / impairment 6, 7 11 616 7 685

Net interest cost (income) 18 11 674 6 647

Other Financial items 18 -18 325 -12 662

Share of net profit (loss) from Equity-accounted investees 10 -34 451 7 083

Income tax paid 13 172 -

Interest paid 18 -11 674 -6 647

Interest received 18 18 325 12 662

Changes in:

Inventories 3 -3 364 -9 545

Trade receivables 9 -53 430 21 605

Trade payables -14 763 11 349

Accrued, non-invoiced production 27 457 -30 391

Other receivables and other payables 108 522 -38 472

Net cash flow from operating activities 141 550 75 155

CASH FLOW FROM INVESTMENT ACTIVITIES

Acquisition and expenditures of fixed/intangible assets 6, 7 -25 121 -19 240

Investment in subsidiaries 8 -56 299 -2 733

Investment i associated company 10 - -28 763

Net cash flow from investment activities -81 420 -50 736

CASH FLOW FROM FINANCING ACTIVITIES

Proceeds from issuance of share capital - 3 010

Acquisition of treasury shares 12 -48 779 -11 009

Share-program employees 4 318 -

Payment of lease liabilities -4 894 -3 539

Net cash flow from financing activities -49 355 -11 538

Net change in cash and cash equivalents 10 775 12 881

Cash and cash equivalents at the end of the period 204 937 194 162

Cash flow attributable to non-controlling interests 2 001 -3 727

NEKKAR ANNUAL REPORT 2024 CONSOLIDATED FINANCIAL STATEMENTS

Accounting principles

1. General information

1.1 REPORTING ENTITY

Nekkar ASA (“Nekkar”) is a public company

incorporated and domiciled in Norway. The company

is listed on the Oslo Stock Exchange where the shares

are publicly traded.

The registered head office is located at Lumberveien

27 in Kristiansand, Norway.

As per 31 December 2024 Nekkar holds subsidiaries

in Norway, USA, Singapore, India and Australia.

Nekkar is an industrial company builder focused on

ocean-based technology. The company invests in and

develops technology businesses within sustainable

oceans, robotics & intelligent logistics and digital

solutions. With a 50-year industrial heritage from

Syncrolift, Nekkar applies an active buy-to-own

strategy to build long-term value. The group

supports empowered operating companies with

a strong balance sheet and reinvests strategically

to ensure profitability and sustainable growth. As

a publicly listed company, Nekkar has a proven

track record of shareholder value creation through

disciplined M&A, financial management, and capital

allocation.

Further details on the group’s principal activities

and its subsidiaries can be found in Note 1 and the

Directors’ Report.

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 2025 have not been applied in preparing

these consolidated financial statements.

The consolidated financial statements of the group

for the year ended 31 December 2024 were approved

by the Board of Directors on 29 April 2025.

The consolidated financial statements were prepared

based on uniform accounting principles for similar

transactions and events under similar circumstances.

The consolidated financial statements are presented

in NOK. Financial information is presented and

rounded to the nearest thousands, except were

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

The accounting policies adopted are consistent with

those of the previous financial year.

b) Current versus non-current classification

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

NEKKAR ANNUAL REPORT 2024 CONSOLIDATED FINANCIAL STATEMENTS | NEKKAR

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

financial position date.

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 can 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

are 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

(legal entities). The Board of directors monitors the

operating results of its entity separately to make

decisions about resource allocation and assess

performance. Performance is evaluated based on

profit or loss in the different legal entities and is

measured consistently with profit or loss in the

consolidated financial statements. However, some

of the group’s financing connected to group cash

pool (including finance costs and finance income)

is managed at group level and is not allocated to

operating segments.

Group support functions from the parent company

along with technology ventures 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

NEKKAR ANNUAL REPORT 2024 CONSOLIDATED FINANCIAL STATEMENTS

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 a 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 a cost less than any amortization and

impairment losses. Internally generated intangible

assets are recognized as capitalized development

costs.

Intangible assets are written down and adjustment is

made to amortization if the asset has been impaired

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 are

recognized as an asset based on their 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 (10 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).

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

development projects are recognized as a reduction

of capitalized costs.

Government grants

Government grants are recognized when it is

reasonably certain that the company will meet

the conditions stipulated for the grants and that

the grants will be received. Tax credits related to

development projects are classified as government

grants if they ultimately are settled with cash.

Grants relating to intangible assets are deducted

from the carrying amount of the asset and

recognized in profit or loss as a reduction of the

depreciation charge over the lifetime of the assets.

2.7 BUSINESS COMBINATIONS AND GOODWILL

When acquiring a business, financial assets and

liabilities are recognized at fair value in the group

opening 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

if the initial accounting at the acquisition date was

NEKKAR ANNUAL REPORT 2024 CONSOLIDATED FINANCIAL STATEMENTS | NEKKAR

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 than any accumulated impairment losses. For

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.

Subsidiaries

Subsidiaries encompass all entities over which the

group wields control. Control is established when the

group possesses the authority to direct the financial

and operational strategies of an entity, thereby

reaping benefits from its endeavors. Control is

typically deemed to be present when the group holds

more than 50 percent of the voting shares.

Associated companies

Associated companies are entities where the Group

has significant influence but not control. Significant

influence is assumed to exist when the Group has

between 20 percent to 50 percent of the voting

rights in a company. The consolidated financial

statements include the Group’s share of the profits/

losses from associated companies are accounted for

using the equity method, from the date significant

influence was achieved.

2.8 FINANCIAL INSTRUMENTS

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 recognized at transaction

price. For subsequent measurement the transaction

price is not adjusted for significant financing

component as customer payment for goods or

services is expected within a year or less.

Expected credit loss is passed on both macro-

economic and entity specific factors. The group

engage in further judgement for trade receivables

not paid when due. The group don’t use a provision

matrix as allowed under IFRS 9.

Contract assets (trade receivable)

Contract assets, which mainly satisfy performance

obligations not yet invoiced, are 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 rates, which may impact operating

results. To mitigate this risk, the group utilizes

financial derivatives to hedge contractual income

and costs in foreign currencies. Additionally, certain

contracts include pricing mechanisms that qualify as

embedded derivatives under IFRS 9.

Fair value hedging

The group uses financial derivatives to hedge

foreign currency risk. These derivatives are

initially recognized at fair value and subsequently

remeasured at fair value. Attributable transaction

costs are recognized in profit or loss as incurred.

If a hedge does not meet the criteria for hedge

accounting, the derivative is carried at fair value

through profit or loss as financial income or expense.

Embedded derivatives

Embedded derivatives are separated from the host

contract and measured at fair value through profit

or loss as financial income or expense. if they meet

NEKKAR ANNUAL REPORT 2024 CONSOLIDATED FINANCIAL STATEMENTS

the criteria in IFRS 9. If the host contract is a financial

instrument measured at fair value through profit or

loss, the embedded derivative is not separated.

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.

Nekkar has applied the following practical

expedients:

• 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 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). The 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 as 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

as net in the consolidated financial statement.

2.13 FINANCIAL LIABILITIES

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 de-recognizes 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, except 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

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.

Deferred tax assets or liability are 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

NEKKAR ANNUAL REPORT 2024 CONSOLIDATED FINANCIAL STATEMENTS | NEKKAR

payments to insurance companies or pension funds.

As of 31 December 2024, Nekkar has only defined

contribution plans.

2.16 REVENUE RECOGNITION

A five-step process is applied before revenue can be

recognized.

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, steps 2 and 5 were

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 regarding identifying 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 section 5 below. It

could be argued that there could be more than one

performance obligation in some of the contracts, but

those potential additional performance obligations

identified have been assessed immaterially.

3. Transaction price

Revenue from construction contracts includes

original contract amount and approved variation

orders. For contracts where multiple performance

obligations are identified, a stand-alone selling price

is identified to each of the performance obligations.

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.

NEKKAR ANNUAL REPORT 2024 CONSOLIDATED FINANCIAL STATEMENTS

Nature and timing of satisfaction of Type of contract performance obligation Revenue recognition under IFRS 15 Construction Long-term construction contracts with After a thorough analysis of the criteria for “over contracts a typical duration of 18-48 months from time” revenue recognition the main issue relating contracts are signed, to the projects are to timing of revenue recognition was Nekkar’s (Engineer-to-closed. These projects are engineer-to-order enforceable right to payment for the performance order) projects, which deliver highly customized completed to date in a situation with termination turnkey systems for shipyards around the by the customer for other reasons than Nekkar’s world. The projects are highly specialized failure to perform as promised (termination by systems for each individual project, with no convenience). alternative use for the company, and where each project is considered one performance Nekkar has assessed the right to payment to obligation.date from a legal point of view. The result of the contract review is that the relevant contract either For the performance obligations identified in includes a termination by convenience clause the contracts, it is assessed that control will be that is in favor of the group, or that general legal transferred to the customer over time as the basis in the relevant jurisdiction is in favor of the items are constructed. 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. Upgrade contracts Long-term upgrade contracts with a typical The analysis of the criteria for “over time” revenue (Engineer-to-duration of 12-24 months from contracts are recognition for these types of contracts is linked order) signed, to the projects are closed. These to Nekkar’s performance enhancing an asset that projects are engineer-to-order projects, the customer controls as the asset is enhanced or which deliver upgrades of existing shiplift upgraded. systems with highly customized turnkey systems for shipyards around the world. The Nekkar has assessed that the customer controls projects are highly specialized systems for the asset throughout the upgrade. The asset each individual project, with no alternative use is in operation throughout most of the project for the company, that the customer controls phase and all installation will happen on throughout the project phase and where customer premises. As such the customer has each project is considered one performance physical control of the asset including control obligation.over functional and operational structures. Legal ownership of the work performed is also For the performance obligations identified in transferred to the customer as the work is carried the contracts, it is assessed that control will be out. Based on this it is the company’s assessment transferred to the customer over time as the that revenue recognition over time is correct for items are constructed. these contracts.Measure of progress is based on cost incurred relative to the total expected cost to satisfy the performance obligation.

NEKKAR ANNUAL REPORT 2024 CONSOLIDATED FINANCIAL STATEMENTS | NEKKAR

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 obligations are

satisfied at a point in time, IAS 2, Inventory, sets up

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 as net in the consolidated

statement of financial position.

Onerous contracts

The full loss is recognized immediately if contracts

are forecast to be lossmaking. The full loss includes

all relevant contract costs.

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 assets or

cash-generating unit’s (CGU) fair value less costs of

disposal and its value in use. A 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.

Nature and timing of satisfaction of Type of contract performance obligation Revenue recognition under IFRS 15 Construction Long-term construction contracts with “Point-in-time” revenue recognition where contracts a typical duration of 18-48 months from revenue is recognized when the goods are (Alternative user) contracts are signed, to the projects are delivered and have been accepted by the closed. These projects are engineer-to-order customer at their premises.projects, which deliver 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.Service- and after The company delivers service-based business, Revenue from contracts with customers for other sales contractswhere work is done on the customers’ ser-vices is recognized over-time using a cost equipment. These deliveries are man-hour progress meth-od or is recognized over-time based and considered over-time deliveries. as manhours and materials are delivered to the Spare parts as part of the service delivery customer.are recognized upon delivery. The lead time from order to completed customer delivery is Revenue from contracts with customers for normally less than three months. after sales are recognized at point-in-time upon delivery. For after-sales contracts, in which there are sales of components etc, revenue is recognized upon delivery.

NEKKAR ANNUAL REPORT 2024 CONSOLIDATED FINANCIAL STATEMENTS

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

considers 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 are 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 as 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 financial

statements. Significant contingent liabilities are

disclosed, except for contingent liabilities that are

unlikely to be incurred.

Liabilities are recognized unless a reliable estimate

can be made. If no reliable estimate can be made, the

group accounts for the liability as a contingent liability.

3. Financial risk management

3.1 FINANCIAL RISK FACTORS

The group’s activities involve 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. Risk management

principles were established 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.

NEKKAR ANNUAL REPORT 2024 CONSOLIDATED FINANCIAL STATEMENTS | NEKKAR

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.

There are several 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.

Further description of the group’s market risk can be

found in the Directors’ report.

a) Currency risk

The group operates worldwide 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 2024, 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 and undrawn credit facilities.

c) Price risk

The group is exposed to fluctuations in market

prices in the operational areas related to contracts,

including changes in market prices for raw materials

and equipment and development in wages. These

risks are to the extent possible managed in the

bid processes by locking in committed prices from

vendors as a basis for offers to customers, or by

striving to place purchase orders to vendors as

soon as possible after contract signing or through

escalation clauses with customers.

NEKKAR ANNUAL REPORT 2024 CONSOLIDATED FINANCIAL STATEMENTS

Furthermore, the majority of Nekkar’s long-term

service contracts with customers have built-in

clauses that ensure annual inflation adjustments that

correspond to recognized consumer price indices or

similar. Nekkar also has internal processes in place to

effectively manage price risk, including mandatory

internal controls and safeguarding processes for

tenders and contracts.

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:

0-3 3-6 >6 (NOK months months months 1000) Total Not dueoverdueoverdueoverdue31.12.2024 151 819 60 062 73 367 7 399 10 99231.12.2023 85 269 45 962 15 214 5 983 18 110

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

receivable relate to independent customers who have

no previous history of failing to fulfill their obligations

to the group. Invoicing is largely done in accordance

with milestone-based progress in each project.

The above table is presented net of bad debt

provisions. As per 31 December 2024, a provision

NOK 23 million is included due to uncertainty for

payment in three projects. Hence, the gross amount

of accounts receivables > 6 months overdue is NOK

34 million.

Additional information on accounts receivable is

available in Note 9.

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 2024, the group’s credit facilities

include a guarantee and derivatives facility of NOK

350 million, an overdraft facility of NOK 100 million

and a revolving credit facility of NOK 100 million.

All facilities are with Nordea. As per 31 December

2024, the group had drawn NOK 284 million of the

guarantee facility. No amount has been drawn on the

overdraft and the revolving credit facility.

The group is continuously focusing on efficient

management of working capital to optimize cash

flow from operations. The group has established

a joint cash pool arrangement. 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.

NEKKAR ANNUAL REPORT 2024 CONSOLIDATED FINANCIAL STATEMENTS | NEKKAR

The table below gives an overview of the structure of maturity of the group’s financial obligations:

CLIMATE RISK

Nekkar develops digitalized impact technologies that

aim to unlock customer value, including reduction

of environmental footprint and CO2-emissions, in

numerous industries including renewables, aquaculture,

shipping and offshore energy. As such, climate change

represents both a risk and an opportunity for Nekkar.

Nekkar considers its main climate risks to be associated

with the global ambition/implementation gap for

the transition to more renewable energy, as well as

climate policy and taxation changes that could limit

or delay the adoption of Nekkar’s new technologies

that are enablers to reduce the carbon footprint in the

industries the company operates. This applies to both

the renewables and aquaculture industries.

Nekkar’s exposure to the oil and gas industry is limited

today but could grow in the coming years. The offshore

energy industry has been identified as high risk by the

Task Force on Climate-Related Financial Disclosures,

and the industry is under pressure to reduce its

emissions. Although the Ukraine war and associated

Remaining period: Amounts in NOK 1000 < 6 months 6-12 months 1-5 years > 5 years Total2024Long-term financial obligations: Interest-bearing non-current liabilities - - - -Current financial obligations:Embedded derivatives 2 981 2 981FX-derivatives 5 661 1 104 1 291 - 8 056Prepayments from customers 74 629 - - - 74 629Accounts payable and other current liabilities 158 428 - - - 158 428Total financial obligations 238 718 1 104 4 272 - 244 0942023Long-term financial obligations:Interest-bearing non-current liabilities - - - - -Current financial obligations:FX-derivatives - - - - -Prepayments from customers 39 002 - - - 39 002Accounts payable and other current liabilities 103 542 - - - 103 542Total financial obligations 142 544 - - - 142 544

energy shortage in Europe is likely to result in heavy

investments in the offshore energy industry in the

coming years, there is a long-term risk of declining

investment in upstream oil and gas. However, the

software and technologies that Nekkar delivers are

capable of significantly reducing drilling time and

amount of personnel required offshore, thereby

substantially reducing the carbon footprint associated

with this type of offshore operations. As such, climate-

related risks also represent an opportunity for Nekkar.

The energy transition may shorten the expected useful

lives of oil and gas-related assets, which can accelerate

depreciation charges. However, Nekkar is primarily a

software supplier to the oil and gas industry, which

means that the company does not expect assessment

of the effect on useful lives to have significant

accounting impact.

Another climate risk is the increase in the frequency

and intensity of extreme weather events. As the large

majority of Nekkar’s operations in based in Norway,

NEKKAR ANNUAL REPORT 2024 CONSOLIDATED FINANCIAL STATEMENTS

this expectation is not assessed to lead to any effects

on expected useful economic life of property, plant and

equipment. However, extreme weather could result in

delayed project progress, for example for installation

of shiplifts in parts of the world that are more exposed

to extreme weather. This could potentially mean that

revenue and margin recognition could be delayed in

such projects. Nekkar has not experienced any delays

caused by extreme weather events during 2024.

Overall, it is Nekkar’s view that the company is well

positioned to profit from a stronger focus on reducing

emissions from the industries the company operates

within, and that there are more positive business

opportunities than negative risks associated with

stronger industry efforts on reducing emissions and

combating climate change.

Nekkar has considered the impact of climate change

on going concern. Effective assessment and analysis

of climate-related risks and opportunities is vital to

understand the potential impacts of climate-related

risks on asset valuations, revenue and investment

requirements. For 2024, Nekkar has therefore defined

an objective to conduct a detailed climate risk analysis

and set carbon footprint reduction goals for the

company.

OPERATIONAL RISK

Operational risk is the risk of direct or indirect losses

because of a whole range of causes related to the

group’s processes, personnel, technology and

infrastructure, as well as external factors besides

credit risk, market risk and liquidity risk that follow

from laws, rules and generally accepted principles

for business conduct. Operational risk arises in all 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 projects implementation.

This further includes operational and financial

qualification of major sub-suppliers to reduce project

completion risk.

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 avoiding 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.

3.2 ESTIMATION OF FAIR VALUE

The fair value of financial instruments traded in an

active market is based on the market value on the

balance sheet date. The group has no 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.

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.

NEKKAR ANNUAL REPORT 2024 CONSOLIDATED FINANCIAL STATEMENTS | NEKKAR

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 for mitigating the customers’ 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’s value and company profit will be

compensated by the initial contract holder.

• Business combination – management has

identified customer relations as the only

intangible assets in the business combination

in 2024. This assessment is subject to use of

judgement by management.

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 2024 is

included below and in respective notes:

• Impairment test of intangible assets: 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 of which

has an inherent uncertainty. The percentage

of completion method requires that the group

prepare reliable estimates for future costs for

each project.

• Warranty liability: The group customarily offers

a warranty period of one or three years on its

delivered products. Management estimates

accruals for future guaranteed commitments

based on information from historical guaranteed

claims, together with updated information on

the quality of recent deliveries. Factors that may

affect estimated obligations include the outcome

of productivity and quality initiatives, reference

prices and labor costs.

• Business combination: There is estimation

uncertainty in estimating the fair value of

customer relations acquired in business

combination. Key assumptions are future

earnings from current customers, churn rate and

contributory asset charges.

• Business combinations: There is estimation

uncertainty in estimating the fair value of the

recognized put liability. Key assumptions are

forecasted profitability in 2027.

NEKKAR ANNUAL REPORT 2024 CONSOLIDATED FINANCIAL STATEMENTS

Note 1 Operating segments

Amounts in NOK 1000

The segments structure in Nekkar are as follows:

Consist ofSyncrolift: The Syncrolift segment includes shiplifts, docking/transfer systems and related service activity for shipyards. The main operating entity in this segment is Syncrolift AS with its head office in Vestby, Norway. Syncrolift also has local presence in important markets through subsidiaries in the US, India and in Singapore alongside a sales/service office in Dubai and Australia.Syncrolift is the global market leader for shiplifts and transfer systems offered to repair and newbuilding yards. They deliver turnkey and customized solutions to commercial yards 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.Intellilift The foundation of Intellilift’s business is superior engineering, electrification, automation, and digitalisation competence with heritage from “Drilling Bay” in Kristiansand, Norway. Intellilift applies this competence across the Nekkar Group as well as to external clients. Intellilift software also increases efficiency on drilling rigs and reduces emissions through reduced drilling time. Collecting data from numerous different sensors, will improve the real time operation as well as enable remote operation and robotization. Intellilift’s business model is threefold – project based, perpetual upfront software licenses and software as service licenses, depending on customer preferences. Techano Techano Oceanlift specializes in advanced load handling and lifting equipment for the aquaculture and Oceanliftoffshore energy industry, with products such as cranes, gangways, and fish transfer systems. Techano Oceanlift has a strong base of engineering expertise. Its cutting-edge solutions cater to the specific needs of the offshore renewables, energy and aquaculture industries.Globetech In 2024, Globetech marks a new addition to Nekkar’s business portfolie. The acquisition was finalised at August 15 2024. The company provides ICT (information and communication technology) infrastructure, connectivity and support services to the global maritime sector. Globetech offers complete solutions for onboard network infrastructure including hardware, tailored solution architecture and system integration for satellite communications, and develops software and customized ICT solutions that focuses on cybersecurity to ensure secure and continuous operations.Other The “Other” segment includes group functions in the parent company, the advancement of impact technology ventures including SkyWalker, the investment in FiiZK and group eliminations. FiiZK, is an entity that delivers closed cage systems for fish farmers. FiiZK has significant experience and track record in delivering closed cages that avoids sea lice, prevents escape and enables collection of sludge. As of 31 December 2024 the book value of FiiZK was MNOK 82.2.The SkyWalker project, is a ground-breaking wind turbine installation and service technology tool suitable for onshore and offshore wind. Capitalised development costs of SkyWalker amounted to NOK 3.3 million in 2024.Development costs related to SkyWalker are partly funded by external contributions from Innovation Norway, Norges forskningsråd and SkattefunnChange in The change in segments from 2023 corresponds to the acquisition of Globetech AS in 2024.segments

NEKKAR ANNUAL REPORT 2024 CONSOLIDATED FINANCIAL STATEMENTS | NEKKAR

Techano Other/Syncrolift Intellilift Oceanlift GlobetechElim Total2024External revenue 491 061 29 241 63 514 37 892 1 799 623 508 Internal revenue 779 14 508 - - 7 795 23 082 Total revenue 491 840 43 750 63 514 37 892 9 594 646 590 Intergroup eliminations -779 -14 508 - - -7 795 -23 082 Consolidated revenue 491 061 29 241 63 514 37 892 1 799 623 508 Earnings before depreciation, finance and tax (EBITDA) 119 008 5 271 -9 956 9 661 -31 752 92 231 Depreciation/amortisation 2 262 1 394 547 1 130 6 283 11 616 Operating profit/(loss) 116 745 3 878 -10 503 8 531 -38 035 80 615 Net finance -7 647 -396 -3 168 320 30 067 19 176 Segment profit/(loss) before tax 109 098 3 481 -13 671 8 851 -7 968 99 791 Income tax expense 23 311 -189 -2 741 1 955 -8 416 13 920 Profit (loss) for the period after tax 85 788 3 670 -10 930 6 896 448 85 872 This year’s capital expenditures 3 380 4 494 11 638 - 3 351 22 862 2023External revenue 515 204 29 125 30 336 - 422 575 086 Internal revenue 290 4 729 - - 9 395 14 414 Total revenue 515 494 33 854 30 336 - 9 816 589 500 Intergroup eliminations -290 -4 729 - - -9 395 -14 414 Consolidated revenue 515 204 29 125 30 336 - 422 575 086 Earnings before depreciation, finance and tax (EBITDA) 131 863 6 184 1 075 - -30 365 108 758 Depreciation/amortisation 1 814 1 512 97 - 4 261 7 685 Operating profit/(loss) 130 049 4 672 978 - -34 626 101 073 Net finance 10 708 135 1 498 - -4 150 8 191 Segment profit/(loss) before tax 140 757 4 807 2 476 - -38 776 109 264 Income tax expense 31 551 1 056 282 - -6 934 25 955 Profit (loss) for the period after tax 109 206 3 751 2 194 - -31 842 83 309 This year’s capital expenditures 1 115 553 6 354 - 10 645 18 667

NEKKAR ANNUAL REPORT 2024 CONSOLIDATED FINANCIAL STATEMENTS

Capital expenditure

Capital expenditure is net amount of money spent on aquiring or maintaining assets and grants recived.

Information about geographical areas

The activity are primarily distributed in the following regions:

Revenue 2024 2023Europa 65 305 61 636Turkey 59 600 24 630Asia/Australia/NZ 87 924 45 484 North America 3 352 3 662 UAE 143 828 95 476 Africa 24 009 12 842 USA 107 259 147 662 South America 26 980 4 803 India 62 421 177 556 Norway 42 560 1 335 Other 269 -Total revenue 623 508 575 086

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 2024 Syncrolift has two customers that each accounted for more than 10% of the consolidated revenue.

These customers generated revenue of MNOK 98 and MNOK 130 respectively. In 2023 the revenue from the

same customers was MNOK 122 and MNOK 94 respectively.

NEKKAR ANNUAL REPORT 2024 CONSOLIDATED FINANCIAL STATEMENTS | NEKKAR

Note 2 Revenue

Amounts in NOK 1000

Revenue streams

Description of revenue streams are presented under “Accounting principles” in section 2.20.

2024 2023Revenue from construction contracts recognized over time 500 243 515 502 Revenue from construction contracts recognized point in time - - Sale of spareparts 60 454 50 002 Revenue from service contracts 56 822 9 161 Other operating revenue 5 990 422 Total revenue 623 508 575 087 Contract balances2024 2023Trade receivable 151 819 85 269 Contract assets 118 036 144 007 Contract liabilitites 69 729 39 002

Customer contract assets relate to consideration for work completed, but not yetinvoiced at the reporting date.

The contract assets are transferred to trade receivables when the right to payment become unconditional,

which usually occurs when invoices are issued to the customers. 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 liablilities reported on the balance sheet

as of 2023 has all been recognized as revenue in 2024.

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:

2024 2023Contracted revenue projects and long-term service contracts 1 859 947 1 821 048 Accumulated Revenue recognised per 31 December 1 171 201 1 017 562 Aggregated amount of the transaction price allocated to unsatisfied performance obligation 688 746 803 486

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.

Service contracts has been entered into for a period of up 20 years. The typical service agreement is 1-3 years.

NEKKAR ANNUAL REPORT 2024 CONSOLIDATED FINANCIAL STATEMENTS

Note 4 Payroll expenses and employee information

Amounts in NOK 1000

Payroll expenses 2024 2023Salaries 113 065 89 764Employer's social security contribution 18 620 13 725Pension cost 8 940 6 197Other benefits 5 829 4 126Total payroll expenses continued operations 146 455 113 812 Number of employees at the end of the year 129 92

1)Board remunerations2024 2023Håkon Andre Berg Board member since 06.2023 347 - Marit Solberg Board member since 10.2019 347 347Trine Ulla Board member since 06.2023 347 - Lars Carl Fabian Qvist Board member since 06.2024 - -Bjørn-Erik Dale Board member since 06.2024 - -Trym Skeie Board member since 06.2008 - 05.2024 550 5502)Gisle Rike Board member since 06.2015 - 05.2024 347 347Ingunn Svegården Board member since 10.2019 - 05.2023 - 347Total 1 938 1 591

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 2024, the reported remuneration is related to the remuneration paid in 2024 based on the amounts determined by

the Board at the Annual General Meeting for 2023.

2) Gisle Rike represents Rasmussengruppen and the board fee was 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 comprised of the following members: Anne Grethe Ellingsen (Chairman) and Leif

Haukom. The nomination committee remuneration paid in 2024 was TNOK 67 for the chairman and TNOK 40 for

the member, a total of TNOK 107.

Note 3 Inventories

Amounts in NOK 1000

2024 2023Spareparts 15 811 8 996 Work in progress 2 657 3 341 Obsolescence -476 -476 Total inventories 17 991 11 861

NEKKAR ANNUAL REPORT 2024 CONSOLIDATED FINANCIAL STATEMENTS | NEKKAR

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 % of base salary for the CEO and other

executives. Bonus payments reported in 2024 is based on the evaluation of the relevant performance criteria

for the fiscal year ending 31.12.2023. Bonus payments are based on individual employment contracts. A

bonus provision of MNOK 3,0 is included in other current liabilities per 31.12.2024 for the CEO and other

executives based on the 2024 targets. The final bonus payment was approved in Q1 2025.

Senior executives have notice six months, and severance pay periods of up to six months. Reference is made to

remuneration report for further details.

Remuneration and other benefits for the CEO and other senior executives

employed during 2024

Amounts in NOK 1000

Base Other Bonus Pension Name PositionsalarybenefitspaidcostOle Falk Hansen CEO 3 366 19 1 630 210Rolf-Atle Tomassen EVP Shipyard Solutions 2 569 17 800 210Mette Harv EVP Aquaculture & Renewables 1 923 17 752 211Petter Brøvig Head of strategy 1 235 16 290 152Marianne Voreland Ottosen Head of finance 1 375 17 330 188

Remunerations Taxable remunerationOther benefits Board remuneration, car, group life insurance, phone, newspaper, etc.Bonus paid Bonus paid to employee in current year

Remuneration of Auditor 2024 2023Statutory audit 1 904 1 847Other attestation services 27 11Other non-audit service 11 -Total 1 942 1 858

NEKKAR ANNUAL REPORT 2024 CONSOLIDATED FINANCIAL STATEMENTS

Note 5 Pensions

Amounts in NOK 1000

The Group have established pension plans in accordance with local practice and law regulations. In general

Nekkar has set up defined contribution plans for all employees. Annual contribution paid during the year is

expensed when incurred.

Reference is made to the remuneration report for further details.

2024 2023Total pension cost Insured Uninsured Total Insured Uninsured Total+ Defined contribution plan 8 940 - 8 940 6 197 - 6 197 = Total pension cost 8 940 - 8 940 6 197 - 6 197 - of which recognised as payroll cost 8 940 8 940 6 197 6 197 - of which recognised as finance cost - - - - - -

NEKKAR ANNUAL REPORT 2024 CONSOLIDATED FINANCIAL STATEMENTS | NEKKAR

Note 6 Fixed assets

Amounts in NOK 1000

Right-of-use Furniture, office- assetequipment, etc. Total2023 Financial yearBook value as of 1.1. 4 409 9 809 14 219 Additions 12 043 1 906 13 949 Disposals - - - Depreciation, amortization and impairments -2 911 -2 528 -5 439 Book value as of 31.12.2023 13 541 9 188 22 727 Acquisition cost 31.12. 20 472 40 368 66 341 Accumulated depreciation and impairments as of 31.12. -6 931 -31 181 -43 611 Book value as of 31.12.2023 13 541 9 188 22 727 2024 Financial yearBook value as of 1.1. 13 541 9 188 22 727 Additions 5 658 1 224 6 883 Acquisitions - 2 640 2 640 Disposals - -354 -354 Depreciation, amortization and impairments -4 675 -2 585 -7 261 Book value as of 31.12.2024 14 524 10 113 24 635 Acquisition cost 31.12. 26 130 43 878 70 009 Accumulated depreciation and impairments as of 31.12. -11 606 -33 766 -45 372 Book value as of 31.12.2024 14 524 10 113 24 635 1)Undiscounted lease liabilities and maturity of cash outflows Lease payments 2025 5 669 Lease payments 2026-2027 7 340 Lease payment 2028 --- 3 192 Total undiscounted lease liabilities at 31.12.2024 16 200

1) The lease liability does not included the 5 yr option period for the offices in Syncrolift. When calculating the Right-of-use asset, a

discount rate of 6.26% is applied.

NEKKAR ANNUAL REPORT 2024 CONSOLIDATED FINANCIAL STATEMENTS

Note 7 Intangible assets and goodwill

Amounts in NOK 1000

Brand name, Customer patents, Development Technology portfoliolicences etccostsassets Goodwill TotalAs of 31.12.2023Acquisition cost 31.12. - 10,899 47,594 3,300 17,050 78,844 Accumulated depreciation and amortization as of 31.12. - -6,205 -3,786 -1,568 - -11,559 Book value as of 31.12.2023 - 4,694 43,807 1,732 17,050 67,284 2024 Financial yearBook value 1.1. - 4,694 43,807 1,732 17,050 67,284 Additions - - 23,224 - - 23,224 Government grants - - -657 - - -657 Acquisitions 27,700 155 - 89,082 116,937 Depreciation and amortization -923 -665 -2,500 -330 - -4,418 Book value as of 31.12.2024 26,777 4,184 63,875 1,402 106,132 202,370 Useful life (years) 10 years 5-10 years 5-10 years 10 years Infinite As of 31.12.2024Acquisition cost 31.12. 27,700 11,054 70,162 3,300 106,132 218,348 Accumulated depreciation and amortization as of 31.12. -923 -6,870 -6,286 -1,898 - -15,977 Book value as of 31.12.2024 26,777 4,184 63,876 1,402 106,132 202,370

Total capitalised development cost amount to MNOK 23.2 in 2024, allocated across several key projects. MNOK

7.2 is related to the crane series under development in Techano Oceanlift. MNOK 5.3 relates to a SOV package

including a gangway and 3D compensated crane. MNOK 3.8 is attributed to Inteliwell and Robotoc driller

projects within Intellilift. MNOK 3.2 is invested in the SkyWalker solutions for major componant replacement in

offshore wind. In Syncrolift, MNOK 3.2 is capitalised for development of the Flex Trolley, Wire rope system and

Flexpad. Total government grants received on these projects amounts to MNOK 0.6 in 2024.

Technology assets relates to the acquisitions of Intellilift AS in 2019.

NEKKAR ANNUAL REPORT 2024 CONSOLIDATED FINANCIAL STATEMENTS | NEKKAR

Allocation of goodwill and impairment assessment

Recognised goodwill relates to the acquisition of Intellilift which amounts to MNOK 16.6, the Techano Oceanlift

acqusition in March 2023 of MNOK 0,4 and the Globetech acquisition in August 2024, totaling to MNOK 89,1,

resulting in a combined value of MNOK 106.1 as of 31 December 2024. The goodwill related to Globetech is

attributable to the strategic value of the company’s market position, which is well-positioned for growth driven

by global trends in ship digitalization and cybersecurity demands. Additionally, the goodwill reflects the value of

the highly skilled and experienced workforce, with specialized market insights that support Nekkar ASA’s future

growth objectives. The goodwill related to Intellilift and Techano Oceanlift includes the value of employees with

special skills and expected synergies with the existing business of Nekkar. These intangible assets do not fulfil

the recognition criteria under IAS 38 and are therefore not recognized separately. Reference is made to note 21

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 January 2025.

Goodwill is tested for impairment by groups of cash generating units (CGU) and Globetech, Intellilift and Techano

Oceanlift is assessed as separate CGUs. As of 31 December 2024, the recoverable amount of the CGUs has been

determined based on a value in use calculation using cash flow projections from the 2025 budget and a total

forecast period of 5 years. The pre-tax discount rate applied to the cash flow projections is 15.7% 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 recognised as per 31 December 2024. 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 recognised

goodwill. However, management believes that only a significant change in the assumptions used will lead to an

impairment.

2024 2023Goodwill Globetech 89 082 Goodwill Techano Oceanlift 406 406 Goodwill Intellilift 16 644 16 644 Total goodwill 106 132 17 050

Development costs

The Group performed its impairment assessment in January 2025. 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 recognised as per 31

December 2024.

NEKKAR ANNUAL REPORT 2024 CONSOLIDATED FINANCIAL STATEMENTS

Note 8 Subsidiaries

The following subsidiaries are basis for the consolidated accounts 31.12.24:

Acquisition Voting Local Functional Share capital Subsidiary of Nekkar ASA Registered officeyear Ownershipsharecurrencycurrencyin local currencySyncrolift AS Vestby Norway 1994 100% 100% NOK NOK 1 045 000 Nekkar Invest AS Kristiansand Norway 2018 100% 100% NOK NOK 60 000 Nekkar SkyWalker Onshore AS Kristiansand Norway 2022 100% 100% NOK NOK 30 000 Techano Oceanlift AS Kristiansand Norway 2023 90% 90% NOK NOK 505 051 Globetech AS Kristiansand Norway 2024 67% 67% NOK NOK 663 790

Acquisition Voting Local Functional Share capital Subsidiary of Syncrolift AS Registered officeyear Ownershipsharecurrencycurrencyin local currencySyncrolift Inc USA 2019 100% 100% USD USD - Syncrolift South East Asia Singapore 2019 100% 100% SGD SGD - Syncrolift Private Ltd India 2023 80% 80% INR INR 5 000 000 Syncrolift Australia PTY LTD Australia 2023 100% 100% AUD AUD -

Acquisition Voting Local Functional Share capital Subsidiary of Nekkar Invest AS Registered officeyear Ownershipsharecurrencycurrencyin local currencyIntellilift AS Kristiansand Norway 2019 51% 51% NOK NOK 101 321

Acquisition Owner-Voting Local Functional Share capital 1)shareSubsidiary of Intellilift AS Registered officeyearshipcurrencycurrencyin local currencyIntellirob AS Kristiansand Norway 2019 100% 100% NOK NOK 30 000

1) Represents Intellilift AS’ share.

NEKKAR ANNUAL REPORT 2024 CONSOLIDATED FINANCIAL STATEMENTS | NEKKAR

Note 9 Trade and other receivables

Amounts in NOK 1000

Trade receivables 2024 2023Trade receivables 174 852 104 841Loss provisions -23 033 -19 571Net trade receivables 151 819 85 270 Trade receivables (gross) per currency: 2024 2023EUR 57 236 21 044USD 99 300 69 673NOK 15 486 12 806SGD 2 831 1 317Total 174 852 104 841

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 2024 2023VAT 285 2 239 Prepayments 6 947 2 543 Other receivables 7 177 1 604 Sum other short-term receivables 14 410 6 387

For accrued, not invoiced revenue, see Note 2 Revenue

For receivables relating to derivatives and hedge accounting, see Note 17 Derivatives

NEKKAR ANNUAL REPORT 2024 CONSOLIDATED FINANCIAL STATEMENTS

Note 10 Equity accounted investments

Amounts in NOK 1000

Equity-accounted investments include associated companies of Nekkar and are defined as related parties.

Associated companies are entities where the Group has significant influence, but not control. Significant

influence is assumed to exist when the Group has between 20 percent to 50 percent of the voting rights in a

company. Set out below is the associated company owned by the group per 31.12.2024.

Affiliated comapany of Nekkar ASA Registered office Acquisition year Ownership Voting shareFiizk Topco AS Trondheim, Norway 2024 39% 39%Equity accounted investments Fiizk Topco AS TotalOpening balance 1.1.2024 46 681 46 681 Share of profit/loss 34 451 34 451 1)Closing balance 31.12.2024 81 132 81 132

1) Included in the balance sheet as of 31.12.2024 is goodwill of NOK 29,6 million.

FiiZK is the market’s leading supplier of large-scale closed cage systems for post-smolt production at sea. Since

2014, FiiZK has delivered over 20 closed containment systems—by far the most in the world—to aquaculture

customers in Norway and internationally.

In 2024, FiiZK divested FiiZK Digital and FiiZK Protection, completing the restructuring and streamlining process

initiated in 2023. Moving forward, FiiZK will focus on innovative aquaculture solutions, including closed and

semi-closed cage systems for fish farming, along with associated software, maintenance, and services.

As part of the Shareholder Agreement for FiiZK Topco AS, Nekkar has a right, but no obligation, to acquire all

the shares in FiiZK Topco AS from the other shareholders. The call option may be exercised from 14-28 June

2024, and may be postponed yearly, whereby 14-28 June 2026 shall be the last possible Exercise Period. The

purchase price shall be determined as the fair value at the time the call option is exercised

Fiizk Topco AS Dec 2024 Non-current assets 106 023 Current assets 89 753 Non-current liabilities 19 021 Current liabilities 62 532 Net assets 114 222 Revenue from sales 158 571 Other revenue 110 316 Net profit for the year 84 792

The table above shows figures that appear in the financial statements of FiiZK Topco AS. Only minor

adjustments have been made to the numbers for IFRS purposes in Nekkar’s group reporting.

NEKKAR ANNUAL REPORT 2024 CONSOLIDATED FINANCIAL STATEMENTS | NEKKAR

Note 11 Assets pledged as security and guarantees

Amounts in NOK 1000

Nekkar ASA has no interest bearing debt, however certain facilities with Nordea Norge ASA are established.

Nekkar has the following credit facilities through its facilitators:2024 2023Limit Drawn Limit DrawnGuarantee limit for Group (Nordea) 290 000 283 968 290 000 164 363 Overdraft facility (Nordea) 100 000 - 100 000 - Revolving Credit facility (Nordea) 100 000 - 100 000 -

The finance agreements include pledges of plant and machinery, inventory and accounts receivables in Nekkar

ASA and Syncrolift AS.

The guarantee limit is utilized by Syncrolift AS, Techano Oceanlift AS and Intellilift AS and cover payment

guarantee, performance bonds, advance payment bonds and tax guarantees.

Under the credit facilities the financial covenants are a debt ratio based on net debt/EBITDA and an equity ratio

based on equity/total assets.

• The company’s debt ratio shall not exceed 2,5 times the EBITDA and is calculated from the consolidated total

interest bearing debt to the consolidated EBITDA.

• Equity ratio shall not be lower than 35 %, calculated from the consolidated total equity to consolidated total

assets.

The covenants also include a term related to Nekkar maintaining its 100 % ownership in Syncrolift AS. The

covenants are monitored on a regular basis to ensure compliance with the credit agreements which are tested

and reported on a quarterly basis. Nekkar was in compliance with its covenants as of December 31, 2024.

For the above mentioned facilities the following assets have been pledged as collateral to Nordea:

Assets pledged as collateral for secured debt: 2024 2023Account/Group receivables 139 979 77 588 Inventory/Work in progress, including non-invoiced production 73 659 151 706 Property, plant and equipment 8 214 9 068 Assets pledged as collateral * 221 853 238 362

* Assets pledged as collateral includes Nekkar ASA andSyncrolift 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.

A MNOK 20 bank deposit in DnB is in addition restricted and serves as collateral for derivative facilities with DnB.

Nekkar has provided the following self-guarantees on behalf of wholly owned subsidiaries and related parties as

of December 31.

2024 2023Self-guarantees related to the framework agreement with Tryg on behalf of FiiZK Topco AS 107 514 0

NEKKAR ANNUAL REPORT 2024 CONSOLIDATED FINANCIAL STATEMENTS

Note 12 Share capital and shareholder information

Amounts in NOK

Date Number of shares Nominal value Share capital31.12.2024 107 427 112 0.11 11 817 31.12.2023 107 427 112 0.11 11 817

There were no changes in share capital in 2024. In 2023 there was an increase in share capital of NOK 71 146 and

an increase in share premium of NOK 3 287 354. The capital increase was related to a share purchase program

where 646 778 shares were issued.

Dividends paid and proposed: 2024 2023Dividend declared and paid during the year: per share - -Dividend proposed: per share - -Repayment of issued equity: NOK per share - -

Share capital Treasury shares: Number of sharesTreasury shares as of 01.01.2023 6 632 1(NOK 1 000)Purchase/(sale) of treasury shares 2023 1 392 333 153Purchase of treasury shares 2024 4 804 327 528Treasury shares as of 31.12.2023 1 398 965 154Use of treasury shares employee share program -685 211 -75Use of treasury shares in the Globetech acquisition -1 482 550 -163Treasury shares as of 31.12.2024 4 035 531 444

The share buy-back program is executed in accordance with the authorization granted to the Board of Directors

by the Annual General Meeting of Nekkar held on May 30, 2024. The program will be used for corporate

purposes in accordance with the above-mentioned authorization.

Nekkar currently holds 4,035,531 of its own shares, representing 3.8 percent of the company’s total shares.

The total transaction value for the purchased treasury shares in 2024 amounted to NOK 48.8 million

NEKKAR ANNUAL REPORT 2024 CONSOLIDATED FINANCIAL STATEMENTS | NEKKAR

4)Principal shareholders of Nekkar ASA as of 31.12.2024: Number of shares Ownership Voting shareShareholder1, 2, 3)Skeie Teknologi AS 31 475 823 29.3% 30.4%Nordnet Pensionsförsäkring AB 5 326 408 5.0% 5.2%Mp Pensjon Pk 5 037 753 4.7% 4.9%Tigerstaden AS 5 000 000 4.7% 4.8%Nekkar ASA 4 035 531 3.8% -Hatle AS 3 492 567 3.3% 3.4%Avanza Pension 2 560 865 2.4% 2.5%Seb Cmu/Secfin Pooled Account 1 999 628 1.9% 1.9%Banco Inversis SA 1 831 755 1.7% 1.8%Skeie Consultants AS 1 507 243 1.4% 1.5%Alandsbanken Nordiska Smabolag Placeringsfond 1 500 000 1.4% 1.5%Itlution AS 1 475 261 1.4% 1.4%Dyvi Invest AS 1 225 000 1.1% 1.2%Skeie Kappa Invest AS 1 204 828 1.1% 1.2%Patronia AS 1 127 429 1.0% 1.1%Wieco Invest AS 939 047 0.9% 0.9%Vinterstua AS 922 628 0.9% 0.9%Larsén Martin Olof Brage *Isk* 785 480 0.7% 0.8%Ubs Switzerland Ag (Ex Cs Ch Ag) Projekt Ssm 750 000 0.7% 0.7%Jæderen AS 710 411 0.7% 0.7%Total, 20 largest shareholders 72 907 657 67.9% 66.6%own shares 4 035 531 3.8% 0.0%Total other 34 519 455 32.1% 33.4%Total 107 427 112 100.0% 100.0%

1) Shares owned or controlled by the Skeie family, and companies directly or indirectly controlled by them, holds 34 739 461 shares

representing 32,3% of total shares.

2) Shares owned or controlled by Bjarne Skeie, and companies directly or indirectly controlled by him, holds 1 507 243 shares representing

1,4% of total shares.

3) Trym Skeie holds 513 287 shares in person and 1 204 828 through Skeie Kappa Invest AS. Total shares owned or controlled by Trym

Skeie, and companies directly or indirectly controlled by him, is 1 718 115, representning 1,6% of total shares .

4) Voting portion are calculated after eliminating shares held by Nekkar ASA

100

NEKKAR ANNUAL REPORT 2024 CONSOLIDATED FINANCIAL STATEMENTS

Shares, share options and convertion rights owned or controlled by Board members, Group executives and

their relatives:

Shares31.12.2024 31.12.2023 31.12.2022BoardMarit Solberg 150 804 127 140 96 809 1)Lars Carl Fabian Qvist 543 435Group Executives2)Ole Falk Hansen 338 361 296 601 200 311 Marianne Voreland Ottosen 61 018 19258Rolf-Atle Tomassen 17 223 3 303 3 303 3)Petter Brøvig 106 034 96 290Mette Harv 284 791 249 991 198 765

1) Lars Carl Fabian Qvist holds 543 435 shares through Qvist Holding AS. He also holds 1 805 830 shares through related companies

2) Ole Falk Hansen holds 296 601 shares through OFH Invest AS

3) Petter Brøvig holds 96 290 shares through Pimlico AS

30 May 2024, the Annual General Meeting adopted a resolution to give the Board general authority to issue a

maximum of 21 485 422 shares against cash or non-monetary redemption, including merger related activities

to acquisitions of business or assets within the same or corresponding business sector as the company. This

authorization is valid until the next Annual General Meeting and latest on 30 June 2025. No shares have been issued

on the basis of this authorization in 2024.

30 May 2024, the Annual General Meeting adopted a resolution to give the Board authority to issue a maximum

of 2 820 058 shares against cash redemption for the benefit of the company’s executive management and board

members. This authorization is valid until the next Annual General Meeting and latest on 30 June 2025.

30 May 2024, the Annual General Meeting adopted a resolution to give the Board authority to buy own shares of up

to 10% of the face value of the share capital of the company. The board decides aquisition method, at a price between

1 to 25 NOK. This authorization is valid until the next Annual General Meeting and latest on 30 June 2025. Under this

authorization, 3,340,370 shares were repurchased in 2024, at a total cost of NOK 34,137,956. Additionally, before the

2024 General Meeting, Nekkar repurchased 1,500,110 shares under the previous authorization (which expired on May

30, 2024) for a total of NOK 14,641,044. In total, Nekkar ASA has repurchased 4,840,480 shares, amounting to NOK

48,779,000.

101

NEKKAR ANNUAL REPORT 2024 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 asset of MNOK 0.2 (2023: MNOK 0) have been recognised as per 31 December 2024.

Intellilift AS and Globetech AS, which is held 51% and 67% respectively by Nekkar ASA, 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 is 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 over income tax treatments

Deferred tax liabilities and deferred tax assets are netted if the Group has a legal right to offset deferred

tax assets against deferred taxes in the balance sheet, and if the deferred taxes are owed to the same tax

authorities.

Income tax expense: 2024 2023Payable tax on profit 2 169 1 512 *)Change in deferred tax11 751 24 443 Tax expense on continued operations 13 920 25 955

Reconciliation of the effective tax rate 2024 2023Profit before tax 99 791 109 264 Expected income tax according to income tax rate in Norway (22%) 21 954 24 038 Permanent differences -7 187 550 Adjustment in tax in prior years -847 1 367 Tax expense in the profit and loss statement 13 920 25 955 Payable tax including witholding taxes 2 169 1 512Effective tax rate 13.9% 23.8%Origin of tax expense payable: 2024 2023Norway 2 169 1 512

102

NEKKAR ANNUAL REPORT 2024 CONSOLIDATED FINANCIAL STATEMENTS

Tax payable in the balance sheet 2024 2023Tax payable 2 169 1 512 Tax payable on profits pre acquisition Globetech 2 775 - Total tax payable in balance sheet at year end 4 944 1 512 Deferred tax assets: 2024 2023Fixed assets 165 165 Intangible assets -5 725 -43 Projects under construction -52 828 -47 248 Current assets 5 172 4 410 Other temporary differences / provisions 3 254 728 Other items 2 428 -3 023 Tax losses to be carried forward 10 770 27 152 Gross deferred tax -36 765 -17 859 - Unrecognised tax losses - - Net recognised deferred tax -36 765 -17 859

Deferred tax movement Balance at Recognized in Acquisition of Balance at specification FY24January 1stprofit and loss Other changessubsidiariesDecember 31stFixed assets 165 -35 - 35 165 Intangible assets -43 412 - -6 094 -5 725 Projects under construction -47 248 -5 580 - - -52 828 Current assets 4 410 751 - 11 5 172 Derivatives - - - - - Provisions 728 2 525 - - 3 254 Other items -3 023 6 558 -1 107 - 2 428 Tax losses to be carried forward 27 152 -16 381 - - 10 770 Gross deferred tax -17 859 -11 751 -1 107 -6 048 -36 765

103

NEKKAR ANNUAL REPORT 2024 CONSOLIDATED FINANCIAL STATEMENTS | NEKKAR

Note 14 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.

2024 2023Net profit attributable to ordinary equity holders of the parent from total operations 85 872 83 309 Weighted average of issued shares excluding own shares 105 182 106 226 Earnings per share - total (NOK per share) 0.82 0.78

Diluted earnings per share:

There are no diluted effects in 2024.

Share structure 2024 2023Issued number of shares 107 427 112 107 427 112 Own shares 4 035 531 1 398 965

Note 15 Other operating expenses

Amounts in NOK 1000

2024 2023Premises and office expenses 2 676 2 557 IT costs 9 523 5 147 Marketing and travel expenses 19 359 16 497 Consultancy and external services 13 166 12 720 Other expenses 5 675 4 499 Total other operating expenses 50 400 41 420

104

NEKKAR ANNUAL REPORT 2024 CONSOLIDATED FINANCIAL STATEMENTS

Note 16 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), board members (Note 12) 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 2024. 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 2024, the Group

has not recorded any impairment of receivables relating to the amounts owned by related parties (2023: MNOK 0).

Nekkar has entered into a lease agreement for headquarter offices effective from April 2023 with Lumber

Teknopark AS, which is ultimately owned 51 % by Skeiegruppen AS. The contract term is 5 year and 6 months

starting from April 2023, with an additonal five-year option.

Total lease payments in 2024 was MNOK 3,2 (2023 MNOK 2).

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 are included in Note 12.

Note 17 Derivatives

Amounts in NOK 1000

2024 2023Net Net market market Forward currency contracts - Market values Assets Liabilitiesvalue Assets LiabilitiesvalueForward currency contracts - effective hedging contracts - - - - - - Forward currency contracts - ineffective hedging contracts - 1)included in other liabilities/assets 377 -8 432 -8 056 20 623 -482 20 141 Forward currency contracts - market value 377 -8 432 -8 056 20 623 -482 20 141

1) FX contracts designed for hedging, but do not qualify for hedge accounting.

Total Total MTM MTM Maturity distribution of currency contracts and MTM:valuesvaluesWithin 3 months -3 730 7 716> 3 months, < 6 months -1 931 2 524> 6 months, < 9 months -251 2 920> 9 months, < 12 months -853 3 954> 12 months, < 24 months -1 291 3 026> 24 Months 0 0Total -8 056 20 141

105

NEKKAR ANNUAL REPORT 2024 CONSOLIDATED FINANCIAL STATEMENTS | NEKKAR

Nominal value currency contracts, original currency 2024 2023Amounts in CUR 1000 Sold Bought Sold BoughtNOK - 219 154 - 294 975 USD 14 800 - 22 600 -EUR 5 000 - 4 100 -SGD - - - -

Other balance sheets effects 2024 2023FV of firm commitment, classified as other receivable - -FV of firm commitment, classified as other short term debt - -Capitalised cost relating to prolonging of effective hedge relationship, classified as other receivables - -

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 20.

Changes to fair value that meet the criteria of an effective fair value hedge is recognized in the financial

statement with a corresponding change in fair value of the assets or liabilities that are being hedged or the

FV of the firm commitment.The ineffective portion of the recognized hedge relationships is recognized in P&L

together with the changes in value of derivatives. In 2024, a loss of 8 million is recognized in the consolidated

statement of comprehensive income under Other losses / (gains) related to FX contracts not qualifying for

hedge accounting. In 2023, this amounted to a gain of MNOK 20.

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.

Syncrolift AS has embedded derivatives associated with a contract containing currency clauses. These

derivatives are measured at fair value, with changes recognized in profit or loss under financial items. As of

December 31, 2024, the fair value of the embedded derivatives was MNOK -2.9 (2023: MNOK 0).

For additional information on foreign currency and appurtenant risks, please refer to Accounting principles, and

see section 2.8 and 3.1.

106

NEKKAR ANNUAL REPORT 2024 CONSOLIDATED FINANCIAL STATEMENTS

Note 18 Financial items and foreign currency gains/losses

Amounts in NOK 10002024 2023Interest income 18 325 12 662 Agio 8 942 6 847 Other financial income 21 4 590 Financial income 27 288 24 099 Interest expenses 11 674 6 647 Other financial expenses 2 830 2 178 Fair value changes of ineffective FX 28 059 - Financial expenses 42 563 8 825 Share of profit in equity accounted investments 34 451 -7 083 Net finance 19 176 8 191

107

NEKKAR ANNUAL REPORT 2024 CONSOLIDATED FINANCIAL STATEMENTS | NEKKAR

Note 19 Provisions and other accruals

Amounts in NOK 1000

2024 2023Accrued wages and salaries 9 715 10 625 Accrued holiday pay 12 075 8 084 Provision for warranty 14 789 3 310 Contract liabilities 30 547 8 614 Other accrued expenses 19 546 6 182 Other provisions for liabilities 10 050 - Total provisions and other accruals 96 720 36 815

Provision for warrantyDEVELOPMENT OF SIGNIFICANT PROVISIONS 2024 2023Balance as of 1 January 3 310 7 929 New provision 17 941 1 490 Provision utilized (1 162) (2 688)Provision reversed (5 300) (3 421)Balance as of December 31 14 789 3 310

A warranty provision is recognized for expected claims on installations delivered during the year. A total warranty

provision of MNOK 14,7 have been recognized as per 31 December 2024. The provision is related to Syncrolift AS.

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.

Other provisions for liabilities relate to the aqcuisition of Globetech, which includes an estimated price adjustment

based on the 2024 results of the company. The final adjustment will be determined based on Globetech AS’s

approved financial statements for the fiscal year 2024.

108

NEKKAR ANNUAL REPORT 2024 CONSOLIDATED FINANCIAL STATEMENTS

Note 20 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

2.15.

Risks associated with the underlying estimates of the recognized values and financial risk management is

described in Accounting Principles, ref section 3.

Financial derivative contracts Financial derivative Loans, not designated for hedging / contracts designated cash and Classification of financial assetsineffective hedgesfor hedgingreceivables Total2024Non current financial assets:Other receivables - - 1 884 1 884 Financial current assets:Trade receivables - - 151 819 151 819 Other current receivables - - 14 409 14 409 Accrued, non-invoiced production - - 118 136 118 136 1)Derivatives - - - - Cash and cash equivalents - - 204 937 204 937 Total financial assets - - 491 185 491 185 2023Non current financial assets:Other receivables - - 1 155 1 155 Financial current assets:Trade receivables - - 85 270 85 270 Other current receivables - - 6 387 6 387 Accrued, non-invoiced production - - 144 007 144 007 1)Derivatives 20 144 - - 20 144 Cash and cash equivalents - 0 194 162 194 162 Total financial assets 20 144 - 430 981 451 125

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.

109

NEKKAR ANNUAL REPORT 2024 CONSOLIDATED FINANCIAL STATEMENTS | NEKKAR

Financial derivative Financial derivative Other contracts not designated for contracts designated financial Classification of financial liabilities:hedging / ineffective hedgesfor hedgingliabilities Total2024Non-current financial liabilitiesInterest-bearing non-current debt - - - - Current financial liabilitiesFirst year instalment of non-current debt - - - - Interest-bearing current liabilities - - - - Prepayments from customers - - 74 629 74 629 1)Derivatives 11 037 - - 11 037 Accounts payable and other short-term liabilities - - 158 428 158 428 Total financial liabilities 11 037 - 233 057 244 094 2023Non-current financial liabilitiesInterest-bearing non-current debt - - - - Current financial liabilitiesFirst year instalment of non-current debt - - - - Interest-bearing current liabilities - - - - Prepayments from customers - - 39 002 39 002 1)Derivatives - - - - Accounts payable and other short-term liabilities - - 103 542 103 542 Total financial liabilities - - 142 544 142 544

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.

2024 2023Overall Level 1 Level 2 Level 3 Overall Level 1 Level 2 Level 3Assets measured at fair valueForeign exchange contracts - non-hedging Foreign exchange contracts - hedging - - - - - - - - -Liabilities measured at fair value Foreign exchange contracts - hedging - - - - - - - - -Foreign exchange contracts - non-hedging - 11 037- -20 144 11 037 -- 20 144- - ---

110

NEKKAR ANNUAL REPORT 2024 CONSOLIDATED FINANCIAL STATEMENTS

Note 21 Business combination

Amounts in NOK 1000

Acquisition and divestments in 2024

On August 15 2024, Nekkar acquired 67 per cent of the shares in maritime connectivity and digital service

provider Globetech AS. Globetech provides ICT (information and communication technology) infrastructure,

connectivity and support services to the global maritime sector. The company offers complete solutions for

onboard network infrastructure including hardware, tailored solution architecture and system integration for

satellite communications, and develops software and customized ICT solutions that focuses on cybersecurity

to ensure secure and continuous operations. The total consideration was MNOK 86,8 million for 67 % of the

shares, paid through a combination of MNOK 66,4 in cash, NOK 10,4 in consideration shares and an estimated

cash consideration adjustment to be made in 2025 of MNOK 10. The company was consolidated from the date of

aquisition and acquisition analysis gave rise to goodwill of MNOK 89,1.

In 2028, Nekkar will acquire the remaining 33 percent of outstanding shares in Globetech. The consideration will

be settled in cash based on a multiple of achieved EBITDA in 2027. Nekkar has recognised a provision of NOK 33.8

million related to the put options held by the minority shareholders. This amount represent the estimated fair value

of the expected consideration for the remaining ownership interest to be exercised in 2028.

Purchase price

The following table summarizes the acquisition date fair value of each major class of consideration transferred

Consideration shares in Nekkar ASA 10 416 Cash consideration 66 354 Estimated cash consideration adjustment in FY25 based on FY24 achived results 10 050 Total consideration (67%) 86 820 1)Non-controlling interest (33%) 42 762 Equity value at acqusition (100%) 129 582

1) Nekkar has chosen to measure the non-controlling interest in Globetech at fair value, consistent with the approach applied in previous

acquisitions. A simplified method has been applied by extrapolating the fair value per share paid by Nekkar, without applying a control

premium or discount for lack of control. Consequently, goodwill is calculated on a 100% basis (full goodwill method), which includes the

portion attributable to the non-controlling interest.

The fair value of identifiable assets and liabilities is based on a purchase allocation. The following table

summarizes the recognised amounts of assets acquired and liabilities assumed at the date of acquisition.

Liabilities:1)Customer relationships 27 700 Technology 155 Deferred tax assets 46 Fixed assets 967 Accounts receivables 13 119 Inventories 2 766 Other current assets 3 654 Cash and cash equivalents 10 056

2) As part of the purchase price allocation, customer relationships was identified and valued as a separate intangible assets. The fair value

have been determined using a multi-period excess earnings method (MEEM), which requires management to make assumptions regarding

expected churn rates, contribution margins, discount rates and useful life. These inputs are subject to estimation uncertainty and changes

in assumptions may affect the carrying amount of the customer relationships.

111

NEKKAR ANNUAL REPORT 2024 CONSOLIDATED FINANCIAL STATEMENTS | NEKKAR

Assets:Deferred tax (8 869)Accounts payables (2 495)Public duties (374)Other current liabilities (6 223)Total identifiable net assets 40 502 Goodwill 89 081 Cash and cash equivalents in acquired business 10 056 1)Total cash outflow from acquisition of business 56 298 1) Does not include estimated cash consideration adjustment of MNOK 10 to be made in 2025

Revenue and profit or loss of the acquiree and combined entity

Since the date of acquisition, Globetech AS has contributed MNOK 37.9 to the Group’s revenue and MNOK 9.8

to profit before taxes. Had the acquisition taken place at the beginning of 2024, the Group’s revenue and profit

before taxes for the year would have been MNOK 92.8 and MNOK 22.3, respectively

Acquisition and divestments in 2023

In March, Nekkar strengthened its presence within renewables and aquaculture through the acquisition of 90,1% of

the total shares of Techano Oceanlift based in Kristiansand, Norway. The acquisition was financed in cash and the

purchase consideration consisted of a cash payment of MNOK 2,7.

Techano Oceanlift’s specialist competence includes the development and manufacturing of advanced load

handling and lifting equipment, including cranes, winches, fish crowding systems, fish transfer systems, and

offshore wind load handling cranes.

The Techano Oceanlift team proved during the second quarter that it will be a valuable addition to Nekkar. First,

the company was awarded a EUR 4 million contract to deliver an offshore crane to a newbuild cable-lay support

vessel (CLSV) that Sefine Shipyard is building for Norwegian shipowner Agalas. Under the contract, Techano

Oceanlift will deliver a 70-tonnes offshore crane capable of performing both subsea installation and removal

operations plus topside 3Dcompensated lifting operations in conjunction with wind farm developments and

operations. Secondly, Techano Oceanlift demonstrated its ability to deliver when the company in June successfully

completed delivery and commissioning of the new and upgraded live fish transfer system provided to SalMar Aker

Ocean’s fish farm, Offshore Farm 1.

In December 2023, Techano Oceanlift was awarded an additional newbuild contract for a 170t crane to Sefine

Shipyard for a contract value of EUR 6.5 million.

Opening balance Techano Oceanlift AS - 28.03.2023Goodwill 407 Other current assets 3 Cash 3 018 Total assets 3 428 Account payables 44 Public duties 51 Other current liabilities 333 Equity non controlling interest 297 Equity 2 703 Total liabilities 3 428

There was no result during the period from 01.01 until the acquisition.

112

NEKKAR ANNUAL REPORT 2024 CONSOLIDATED FINANCIAL STATEMENTS

Note 22 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 includes goodwill and technology

assets arising from the PPA, total amount of MNOK 134.

2024Techano Syncrolift Number presented on 100% basisOceanlift AS Intellilift AS Globetech ASPvt. Ltd. TotalNon current assets 18 396 41 123 117 251 80 176 850 Current assets, excluding cash 82 222 19 293 17 649 5 037 124 202 Cash and cash equivalents -33 495 2 148 22 407 733 -8 207 Non current liabilities - 309 5 891 - 6 199 Current liabilities -59 660 -13 462 -14 938 -4 166 -92 226 Net assets 7 464 49 410 148 260 1 684 206 819 Revenue 63 514 43 750 37 892 4 393 86 035 Profit after tax -10 930 3 677 6 896 1 016 659 Other comprehensive income (OCI) - - - - - Total comprehensive income -10 930 3 677 6 896 1 016 659 -NCI percentage 10 % 49 % 33 % 20 %Net assets attributable to NCI 739 24 211 48 926 337 74 213 Profit after tax allocated to NCI -1 082 1 802 2 276 203 3 202 OCI allocated to NCI - - - - -

2023Number presented on 100% basis Techano Intellilift AS TotalOceanlift ASNon current assets 7 554 38 431 45 985 Current assets, excluding cash 22 152 14 937 37 089 Cash and cash equivalents -6 550 939 -5 611 Non current liabilities - -381 -381 Current liabilities -17 969 -8 972 -26 942 Net assets 5 186 44 954 50 140 Revenue 30 336 33 854 64 190 Profit after tax 2 020 3 807 5 828 Other comprehensive income (OCI) - - - Total comprehensive income 2 020 3 807 5 828 NCI percentage 10% 49% -Net assets attributable to NCI 513 22 028 22 541 Profit after tax allocated to NCI 200 1 866 2 066 OCI allocated to NCI - - -

113

NEKKAR ANNUAL REPORT 2024 CONSOLIDATED FINANCIAL STATEMENTS | NEKKAR

Note 23 Contingent liabilities / Material disputes

Regular claims

Regular claims are 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.

Syncrolift project claim

Syncrolift has finalized and delivered a shiplift and transfer system to a shipyard in South America in June

2022. The final 10 % milestone invoice (MNOK 14.7) has not been paid by the customer, as the customer claim

a project delay. Syncrolift has made a provision of 50% (MNOK 7,4) of outstanding amount in relation to this

claim. Syncrolift still expect part of part of the payment to be recieved as no contractual right to hold back the

payment has been found.

Note 24 Subsequent events

Events regarding Nekkar are as follows:

11 March 2025 – Nekkar’s subsidiary Techano Oceanlift was awarded a contract by Sefine Shipyard to deliver a

150-tonnes offshore crane for a construction support vessel built for Agalas, Eidesvik, and Reach Subsea. The

scope includes engineering, manufacturing, and commissioning. The contract value is approximately EUR 7.5

million.

22 April 2025 – Techano Oceanlift was awarded a contract by Hercules Supply AS to deliver a 70-tonnes

knuckle boom crane for a newbuild Multi-Purpose Supply Vessel at Fujian Mawei Shipyard. The crane will

feature an active heave compensated winch, Intellilift’s control and motion compensation systems, and the

detachable Safelift tool. Delivery is scheduled for July 2026.

114

NEKKAR ANNUAL REPORT 2024 PARENT COMPANY FINANCIAL STATEMENTS

114

NEKKAR ANNUAL REPORT 2024 PARENT COMPANY FINANCIAL STATEMENTS

NEKKAR ASA PER 31 DECEMBER 2024

Parent company

financial statements

Profit and loss 

Balance sheet 

Equity 

Cash flow 

Accounting principles 

NOTES

Note  Related parties 

Note  Personnel costs number of employees remunerations loans to employees etc 

Note  Pensions 

Note  Tangible and intangible assets 

Note  Other operating costs 

Note  Financial items and exchange rate gainslosses 

Note  Tax 

Note  Subsidiaries and associated companies 

Note  Trade and other receivables 

Note  Assets pledged as security and guarantees 

Note  Cash and cash equivalents 

Note  Share capital and shareholder information 

Note  Subsequent events 

NEKKAR ANNUAL REPORT 2024 PARENT COMPANY FINANCIAL STATEMENTS | NEKKAR ASA

115

Statement of profit and loss

For the year ended 31 December

Amounts in NOK 1000 Notes 2024 2023

OPERATING INCOME

Intra-Group operating income 2 645 4 413

Operating income 1 799 422

Group service fee from subsidiaries 1 5 150 4 981

Total revenue 9 594 9 816

OPERATING COSTS

Personnel cost 2, 3 28 224 34 990

Capitalised personel cost 2 -1 870 -9 100

Depreciation on tangible fixed assets 4 971 1 037

Other operating costs 5 19 602 17 274

Total operating costs 46 927 44 200

Operating profit/-loss -37 333 -34 384

FINANCIAL INCOME AND EXPENSES

Income from investments in subsidiaries 99 176 161 489

Interest income 7 508 6 128

Other financial income 372 4 957

Interest expenses 8 685 5 853

Other financial expenses 2 125 2 042

Net finance 6 96 246 164 679

Profit before tax 58 913 130 295

Tax expense 7 13 646 -5 235

Profit for the period 45 267 135 530

Transferred to other equity 45 267 135 530

116

NEKKAR ANNUAL REPORT 2024 PARENT COMPANY FINANCIAL STATEMENTS

Balance sheet

For the year ended 31 December

Amounts in NOK 1000 Notes 2024 2023

ASSETS

NON-CURRENT ASSETS

INTANGIBLE ASSETS

Deferred tax assets 7 9 360 21 738

Intangible assets 4 12 040 8 405

Fixed assets 4 3 364 4 285

Investments in subsidiaries 8 335 828 249 008

Investments in associated companies 8 53 763 53 763

Other receivables 6 1 106 878

Total non-current assets 415 462 338 078

CURRENT ASSETS

Trade receivables 9 396 527

Intra-group account receivable 1 12 453 16 789

Other receivables 9 3 725 1 589

Other intra-group receivables 1 103 852 100 000

Cash and cash equivalents 11 103 099 160 547

Total current assets 223 525 279 452

Total assets 638 988 617 530

117

NEKKAR ANNUAL REPORT 2024 PARENT COMPANY FINANCIAL STATEMENTS | NEKKAR ASA

Balance sheet

For the year ended 31 December

Amounts in NOK 1000 Notes 2024 2023

EQUITY AND LIABILITIES

EQUITY

Issued share capital 13 11 817 11 817

Treasury shares 13 -444 -153

Share premium 13 9 206 9 206

Total paid up equity 20 579 20 870

RETAINED EARNINGS

Other equity 433 284 419 627

Total retained earnings 433 284 419 627

Total equity 453 864 440 497

CURRENT LIABILITIES

Trade payables 4 785 3 761

Intra-group trade payables 1 997 255

Social Security and employee taxes 1 719 1 974

Other intra-group liabilities 1 160 469 161 657

Other current liabilities 10 17 154 9 386

Total current liabilities 185 124 177 033

Total liabilities 185 124 177 033

Total equity and liabilities 638 988 617 530

118

NEKKAR ANNUAL REPORT 2024 PARENT COMPANY FINANCIAL STATEMENTS

Statement of change in equity

For the year ended 31 December

Amounts in NOK 1000 Share capital Treasury shares Share premium Other equity Total

Equity as of 1.1.2023 11 746 -1 5 919 295 240 312 904

New share issued 71 - 3 287 - 3 359

Change in treasury shares - -152 - -11 162 -11 314

Net profit for the year - - - 135 548 135 548

Equity as of 31.12.2023 11 817 -153 9 206 419 627 440 497

Equity as of 1.1.2024 11 817 -153 9 206 419 627 440 497

Change in treasury shares - -291 - -32 843 -33 133

Correction previous year - - - 1 233 1 233

Net profit for the year - - - 45 267 45 267

Equity as of 31.12.2024 11 817 -444 9 206 433 284 453 864

119

NEKKAR ANNUAL REPORT 2024 PARENT COMPANY FINANCIAL STATEMENTS | NEKKAR ASA

Statement of cash flow

For the year ended 31 December

Amounts in NOK 1000 Notes 2024 2023

CASH FLOW FROM OPERATING ACTIVITIES

Net profit before tax 58 913 130 295

Paid tax 7 0 0

Depreciation 4 971 1 037

Net interest received 6 0 -275

Change in current receivables and current liabilities -2 176 -112 450

Net cash flow from operating activities 57 707 18 607

CASHFLOW FROM INVESTMENTS

Investment i associated company 8 -66 354 -25 000

Transaction costs related to investments 8 0 -3 763

Investments in subsidiaries 8 0 -2 733

Expenditures of tangible and intangible assets 4 -3 685 -11 805

Net cashflow from investments -70 039 -43 301

CASHFLOW FROM FINANCING

Proceeds from issuance of share capital 7 0 3 359

Net change overdraft facility / cash pool 12 -1 188 20 446

Treasury shares purchase 13 -48 779 -11 009

Share program employee 4 851 0

Net interest paid 6 275

Net cashflow from financing -45 116 13 071

EFFECTS OF EXCHANGE-RATE FLUCTUATIONS ON CASH AND CASH EQUIVALENTS

Net change in cash and cash equivalents -57 448 -11 623

Cash and cash equivalents (opening balance) 160 547 172 168

Cash and cash equivalents (closing balance) 103 100 160 547

This consists of:

Bank and cash pool deposits 103 100 160 547

120

NEKKAR ANNUAL REPORT 2024 PARENT COMPANY FINANCIAL STATEMENTS

The financial statements have been prepared in

accordance with The Norwegian Accounting Act and

generally accepted accounting principles in Norway.

Subsidiaries, associated companies

Subsidiaries and associates are valuated at cost,

less any impairment losses. Impairment losses

are reversed if the reason for the impairment

loss disappears in a later period. Dividends,

group contributions and other distributions from

subsidiaries are 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 is 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

121

NEKKAR ANNUAL REPORT 2024 PARENT COMPANY FINANCIAL STATEMENTS | NEKKAR ASA

Taxes

The tax expense in the profit and loss accounts

consists of the current tax payable and changes to

deferred tax. Deferred tax/tax assets are calculated

on all differences between the book value and

tax value of assets and liabilities. Deferred tax is

calculated as 22 % 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 at year-end which are basis for

revaluation of balance sheet items are:

Currency rate 2024 2023

EUR 11.80 11.24

USD 11.35 10.17

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 or

less.

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.

122

NEKKAR ANNUAL REPORT 2024 PARENT COMPANY FINANCIAL STATEMENTS

Note 1 Related parties

Amounts in NOK 1000

Subsidiaries (Note 8), members of the Board (Note 2) and members of the senior executive group are

considered as related parties. Nekkar ASA is involved in various transactions with associated companies where

all transactions are based on normal course of business and at arms length prices.

2024 2023

SALES, ROYALTIES, SALES FEES, GROUP FEE:

Subsidiaries, group fees 5 150 4 150

RECEIVABLES

Subsidiaries, group fees 12 453 16 789

Other short term receivables

103 852 100 000

CURRENT LIABILITIES

Accounts payable to subsidiaries 997 255

Other short term payables to subsidiaries

160 469 161 657

1) MNOK 99 of other short term receivables per 31.12.2024 is related to group contribution from Syncrolift AS.

2) Other short term payables to subsidiaries share of cash within the global cash pool (MNOK 160.5).

123

NEKKAR ANNUAL REPORT 2024 PARENT COMPANY FINANCIAL STATEMENTS | NEKKAR ASA

Note 2 Personnel costs, number of employees, remunerations, loans to

employees etc.

Amounts in NOK 1000

Payroll expense: 2024 2023

Salaries 19 710 27 024

Employer's social security contribution 3 823 4 108

Pension costs 1 895 1 892

Other benefits 2 796 1 966

Total payroll expenses 28 224 34 990

1) Payroll expenses of MNOK 1.9 has been capitalized as Development costs in 2024 (Note 4)

Number of average full-time employees 10 17

Board remunerations

2024 2023

Håkon Andre Berg Board member since 06.2023 347 -

Marit Solberg Board member since 10.2019 347 347

Trine Ulla Board member since 06.2023 347 -

Fabian Qvist Board member since 06.2024 - -

Bjørn-Erik Dale Board member since 06.2024 - -

Trym Skeie Board member since 06.2008 - 05.2024 550 550

Gisle Rike

Board member since 06.2015 - 05.2024 347 347

Ingunn Svegården Board member since 10.2019 - 05.2023 - 347

Total 1 938 1 590

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 2024, the reported remuneration is related to the remuneration paid in 2024 based on the amounts determined by

the Board at the Annual General Meeting for 2023. “

2) Gisle Rike represented Rasmussengruppen AS and the board fee was 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 2024 was TNOK 67 for the chairman and TNOK 40 for the

member, a total of TNOK 107.

124

NEKKAR ANNUAL REPORT 2024 PARENT COMPANY FINANCIAL STATEMENTS

Statement regarding the stipulation of remuneration and other benefits for the CEO and

other executives

Regarding Group management, Nekkar ASA’s remuneration policy is designed to offer competitive terms,

ensuring alignment with the company’s status as a publicly listed company with an international focus.