Akastor : ESG Report 2022

AKASTOR PORTFOLIO IN 2022

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Scope 3, including air travel from all portfolio companies and non-controlling companies are included using the GHG Protocol's investment-specific method. (See page 16 for further details).

TABLE OF CONTENTS

Message from the CEO 3

Company profile 5

Active ownership 7

Akastor's approach to ESG 8

Commitment to Environmental 11

Commitment to Social 18

Commitment to good Governance 22

Portfolio overview 24

Appendix, including TCFD report, consolidated ESG Figures, 34 CDP Report, Transparency Act Statement and GRI Report

This ESG report provides an account of the processes and structures Akastor has in place to support its commitment to ESG issues.

Photo, front page: Robert Hersvik

MESSAGE FROM THE CEO

Many have referred to 2022 as a global "annus horribilis". The global geopolitical security situation has severely worsened due to the Russian invasion of Ukraine. Furthermore, cost inflation has led to interests increasing and recession warnings. In combination, these factors have contributed to highly unstable markets as well as a great deal of uncertainty regarding short- and long-term market trends. However, it is also against this backdrop that we have seen an increased focus both on energy security and on the importance of oil and gas exploration as part of the future energy mix. I believe this focus has benefitted the Akastor portfolio companies, who largely provide services to the oil & gas industry-where they aim to provide clients with predictable services and state-of-the-art technology that support them in exploring oil and gas efficiently, in terms of costs and emissions.

Therefore, despite the uncertain geopolitical situation and market fundamentals in 2022, the Akastor portfolio companies delivered a solid year and continue to trend positively. Although we continue to expect activity to increase going forwards, driven by the positive market trends within oil service in general, this must be balanced against the uncertainty and instability that we expect will continue to impact markets globally in 2023.

In addition to solid performances from all of our portfolio companies, Akastor continues its journey to realize its assets above book value, improve our balance sheet and transition into a purer investment company. The divestment of our preference share holding in Odell Drilling Ltd. was an important milestone in 2022 and was driven by capital allocation priorities. This reduced debt and strengthened our balance sheet significantly. Towards the end of 2022, we also signed an agreement to sell Cool Sorption A/S. Lastly, at the time of writing this message, we have recently signed an agreement to sell AGR in return of cash and shares in ABL Group ASA, a transaction which we target to complete in Q2

2023. Our biggest investment, HMH, continues to develop positively and delivered good growth through the year, compared to its pro-forma performance in 2021. Moreover, we were very pleased to see that AKOFS Offshore was awarded a long-term contract from Petrobras also for the "Aker Wayfarer" and therefore will have all three vessels on long-term engagements for key clients.

During 2022 our portfolio companies continued their implementation of our ESG strategy and adopted a dual approach, in which they will use their core competence to continue to support oil and gas production with state-of-the-art technology, whilst simultaneously exploring new markets within non-oil industries and renewable energy. Akastor will be a part of the transition towards more energy-efficient solutions. We believe that this approach will meet sustainability requirements and help preserve and increase shareholder values.

Akastor is proud to have formally become a signatory to the UN Global Compact, and we also seek to align our operations with the principles of OECD Guidelines for Multinational Companies; moreover, Akastor supports the UN Sustainability Goals, we report our CO2 emissions to CDP and our ESG report describes our implementation of the Task Force on Climate-Related Financial Disclosures' (TCFD) and Global Reporting Initiative (GRI) recommendations.

Karl Erik Kjelstad, CEO

AKASTOR ESG VISION

ENVIRONMENTAL

GOVERNANCE

Akastor will be a part of the transition towards more energy-efficient solutions, and will use its role as an active, responsible owner to ensure that its portfolio companies implement strategies to reduce adverse impacts on the environment caused by their own and customers' operations.

SOCIAL

Akastor will provide equal opportunities to all employees, have a positive impact in local communities in which it operates and will ensure that its portfolio companies ensure safe, professional and healthy working conditions for their employees.

Akastor governance principles will be based on the highest industry standards and ensure full transparency and compliance with applicable laws. Long-term value will be created through good corporate governance in all our investments, and trusting our companies and managers with responsibility in return for accountability.

COMPANY PROFILE

Akastor ASA is an oil-services investment company with a global portfolio of industrial and financial holdings. The company has a flexible mandate for active ownership and long-term value creation. Akastor ASA and its portfolio companies are organized as independent standalone companies responsible for all aspects of their own operations. Aker Holding AS, which is owned by Aker ASA, is the largest shareholder of Akastor, with a shareholding of 36.7%. The Akastor shares are traded on the Oslo Stock Exchange under the ticker AKAST. In 2022, the Akastor group (consolidated subsidiaries only), had a revenue of NOK 1 059 million, a net capital employed at year end of NOK 4.6 billion and 412 employees (FTE, including contractors) worldwide. AKOFS Offshore had 348 FTE and HMH had 1983 FTE per year end 2022.

The Akastor headquarters are located at Fornebu, outside Oslo, Norway, and the business has a global presence. Thecorporate organization, employed by Akastor AS, consists of a team of 13 employees who manage the operations of the company through active management of its portfolio as well as assessing potential transactions and other value enhancing opportunities. Akastor has a range of strategic, operational and financial value-creating measures at its disposal, including operational improvements and organic growth, acquisitions and divestments, and financial measures.

AKASTOR'S VISION

Akastor is targeting to maximize value of its portfolio through active ownership and value generating transactions.

AKASTOR PORTFOLIO COMPOSITION

INDUSTRIAL INVESTMENTS

FINANCIAL INVESTMENTS

64% 1)

Multi-disciplinary engineering consultancy and software provider helping its clients address the energy challenges of today and tomorrow.

1)

2)

Economic interest | 100% legal ownership. Economic interest.

3)

Carve out from MHWirth in connection with merger with Baker Hughes SDS to form HMH.