Annual Report Astrup Fearnley

20 20 ANNUAL REPORT

www.astrupfearnley.com

OPERATIONS WITHIN THE ASTRUP FEARNLEY GROUP GLOBAL FOOTPRINT – LOCAL PRESENCE The operations within the Astrup Fearnley group can be broadly divided into three areas:

COUNTRIES

9

331

NATIONALITIES

YEARS OF HISTORY

16

HEADQUARTER

OSLO

2

EMPLOYEES

151

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Oslo

Stockholm

London

Tokyo New York

Paris

Beijing | Hong Kong | Shanghai Houston Mumbai

Offshore Rig Singapore

Santa Barbara

Offshore Supply Shipping Investment Banking | Direct Investments Energy Broking

Oslo

Beijing Hong Kong Houston

London Mumbai New York

Paris Santa Barbara Shanghai

Singapore Stockholm Tokyo

The Astrup Fearnley Global Network

Astrup Fearnley is represented with a global network of offices across Europe, North America and Asia. Our global presence allows us to be the “local” broker to clients all over the world.

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The operations within the Astrup Fearnley group can be broadly divided into three areas:

We will always remember Hans Rasmus as a low-key, great owner with visions and ambitions that have left eternal traces in all of us.

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Foto: Lars Elton / VG / NTB

In Memory of

Hans Rasmus Astrup 23.03.1939 - 23.04.2021 It was with great sorrow we received the sad news that Hans Rasmus Astrup had passed away.

His social commitment and generosity towards employees, friends and other close relatives was prominent throughout his life and work. He truly cared about employees and was known for his sociability.

Hans Rasmus Astrup was the fourth-generation owner of the family business that was founded by his great-great-grandfather, Thomas Fearnley in 1869. He took over the brokerage firm after his father’s death in 1972 and concentrated for a long time on the ship brokerage business. With the activities in Fearnleys, Fearnley Offshore Supply, Fearnley Offshore and Fearnley Securities, the brokerage business gradually became a world leader in its fields.

Hans Rasmus’ interest in art developed gradually, and in 1993 the Astrup Fearnley Museum was officially opened. Hans Rasmus Astrup is today considered a significant collector of international

contemporary art. He was honored and appointed Commander of the Order of St. Olav in 1998 for his valuable efforts for Norwegian art life and has also been appointed Commander of the Order of the British Empire (CBE).

Many of our employees are proud to work in a group that has built a significant collection of modern art and established a global leading brokerage business. Hans Rasmus has been an important cultural carrier in the company.

He was often focusing on the importance of being relevant and future oriented. This is something we will bring with us into future work and further development of Astrup Fearnley.

We have had the pleasure of having close contact and regular presence from Hans Rasmus until recently, and his commitment to the business lives on. The brokerage business has always been close to Hans Rasmus’ heart and we will continue to develop the firm in his spirit.

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Fearnleys

Fearnley Offshore Supply

6

Fearnley Securities

Fearnley Offshore

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Content Introduction - Astrup Fearnley Brokerage Divisions within the Astrup Fearnley Group .......................... 8 Message from The CEO ............................................................................ 10 Group Executive Advisory Committee ..................................................... 12 Astrup Fearnley Group .............................................................................. 14 Early Mover in Emerging Maritime and Energy Related Industries ..... 16 Business Principles - Our Values............................................................... 18 People and Culture.................................................................................... 20 Astrup Fearnley Museet............................................................................ 22 Fearnleys.............................................................................................................. 24 Fearnley Securities............................................................................................ 26 Fearnley Offshore Supply................................................................................ 28 Fearnley Offshore...............................................................................................30 Shared Services.................................................................................................. 32 ESG........................................................................................................................ 34 Financial Accounts Directors Report ........................................................................................ 40 Income Statement ..................................................................................... 45 Balance Sheet ............................................................................................ 46 Cash Flow Statement................................................................................. 48 Notes Consolidated................................................................................... 49 Notes Parent Company............................................................................. 63 Auditor’s Report......................................................................................... 74

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BROKERAGE DIVISIONS WITHIN THE ASTRUP FEARNLEY GROUP The brokerage and support areas within the Astrup Fearnley Group can be broadly divided into four divisions

Shipping Services

Offshore Services

Fearnleys

Fearnley Offshore Supply Fearnley Offshore

Oslo | London | Stockholm Tokyo | Beijing | Shanghai Hong Kong | Singapore Mumbai | Santa Barbara Chartering of Tankers, Bulk, LPG, LNG, RoRo and Car carriers.

Newbuildings, Sale and Purchase of second-hand vessels, Advisory, Research and Consultancy Services, Energy Broking

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Oslo | London | Houston | Singapore Chartering, newbuilding, Sale & Purchase of Drilling Rigs, Drillships, FPSO’s, Offshore Support Vessels, Renewables, Fishery and aquaculture.

Advisory, Valuations, Research and Consultancy Services

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Shared Services

Fearnley Securities Oslo | New York Debt Capital Markets (DCM), Equity Capital Markets (ECM), M&A. Equity and Credit Sales and Trading, Equity and Credit Research, Direct Investments in Real-Estate, and in Shipping and Offshore Vessels

Astrup Fearnley CODE ICT, digitalization and technology

Oslo

Astrup Fearnley Solutions Accounting, HR, Risk & Communications

Oslo

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MESSAGE FROM THE CEO Thea stress operations the Astrup Fearnley 2020 was test for within just about every company in almost every industry. As I reflect group can be broadly divided into three areas: on an unprecedented year, one thing is clear — we have all been impacted by Covid-19, both as professionals and private citizens. The global pandemic presented a crisis on a scale many of us have never experienced. From the very beginning of the pandemic, our focus was squarely upon two things: 1) Securing the well-being, health and safety of our employees worldwide, and 2) Steering the company successfully through this unprecedented crisis I am proud to report that we achieved both, thanks to a collective effort among all our employees and governing bodies.

2020 was anything but easy. The only way to get through such a year is by working together as a team.

Therefore, I would like to extend my heartfelt thanks to all our employees.

You have demonstrated resilience and shown great commitment in these unprecedented times.

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Astrup Fearnley’s revenues correlate with the general activity in the global economy, and particularly with market activities in the shipping, offshore, oil and energy related sectors, which are cyclical by nature. It is a key component of our corporate strategy to continuously explore ways and means to secure a robust income base and limit exposure to market fluctuations.

Broadly speaking, the market conditions for our core sectors were impacted in the first half of 2020 of the outbreak of Covid-19, and the uncertainties caused by the pandemic in global markets. Despite these unprecedented events, 2020 ended with another strong year for our shipbroking activities in Fearnleys.

Within financial services and investment banking, Fearnley Securities managed also to deliver positive results for the full year, as the second half of 2020 showed significantly more active market conditions, especially within renewables. Through a targeted strategic approach over the last years, Astrup Fearnley’s brokerage units were able to participate in numerous transactions in Norway, and abroad, within green, sustainable energy industries. During the year, we further developed our research product, to become industry leading within renewables - supporting our clients with unique intelligence about green, sustainable industries.

2020 was another challenging year for the offshore industry. Both owners of offshore support vessels and offshore drilling rigs experienced another year dominated by refinancings, restructurings, and Chapter-11 processes. Notwithstanding continuing market volatility and cyclical fluctuations, our fundamental belief in the offshore sector remains positive. Despite the challenging market environment, both Fearnley Offshore Supply and Fearnley Offshore were able to deliver positive results in 2020.

In parallel with the Group’s focus on renewables, our commitment to shipping and offshore remains strong and is a bedrock of Astrup Fearnley’s DNA. Our fundamental belief in maritime and energy related industries remains firm, and we will continue to develop our offering in these verticals – while maintaining and nurturing our strong culture, committed to relevance, integrity among employees and a team-based working environment. We will also continue to seek out opportunities to further offer our clients the benefit of the unique combined expertise and experience of the broader Astrup Fearnley Group.

2020 was anything but easy. The only way to get through such a year is by working together as a team.

Therefore, I would like to extend my heartfelt thanks to all our employees. You have demonstrated resilience and shown great commitment in these unprecedented times.

We enter 2021 with a robust balance sheet, deep customer relationships, a strong brand, and well-positioned businesses.

Thank you for your interest and trust in our firm. I welcome your thoughts.

Sincerely,

Even Matre Ellingsen CEO, Astrup Fearnley Group

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GROUP EXECUTIVE ADVISORY COMMITTEE The Group Executive Advisory Committee is an advisory body to the Group-CEO and consist of the Group-COO and the CEOs of the brokerage business units.

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Even Matre-Ellingsen CEO Astrup Fearnley Group

John Olav Harr COO Astrup Fearnley Group

Søren Greve CEO Fearnleys

Peter Wessel CEO Fearnley Securities

Harald Paulsen Løvik CEO Fearnley Offshore Supply

Knut Frøystad CEO Fearnley Offshore

Astrup Fearnley has long recognized the importance of corporate governance practices that help ensure an environment of effective leadership, oversight and strong accountability.

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ASTRUP FEARNLEY GROUP *

Hans Rasmus Astrup Foundation

100%

Astrup Fearnley AS

Shipping Services

Offshore Services

100%

Fearnleys AS

* High level ownership structure

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48,5%

Fearnley Offshore Supply AS

29%

Fearnley Offshore AS

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The Hans Rasmus Astrup Foundation was established by

Mr. Hans Rasmus Astrup in 2013.

The Foundation is an ideal foundation.

It aims to support cultural initiatives, including in particular the Astrup Fearnley Collection of Norwegian and international art that is at the disposal of the Astrup Fearnley Museet.

- Financial Investments - Art - Property - Forestry

Financial Services

Shared Services

100%

Fearnley Securities AS

100%

Astrup Fearnley Solutions AS

100%

Astrup Fearnley CODE AS

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EARLY MOVER IN EMERGING MARITIME AND ENERGY RELATED INDUSTRIES - 150 YEARS OF INNOVATION

More relevant tomorrow than today!

The Astrup Fearnley Group represents 150 years of history, growth and excellence in the areas of shipping, offshore and energy related services.

This legacy is created by dedicated employees and generations of the Astrup Fearnley Family.

TIMELINE KEY HISTORIC MILESTONES THROUGH 150 YEARS IN BUSINESS

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1869

1880s

1900s

1930s

Thomas Fearnley

Partnerships

Shipping Services

Innovation Focus

Fearnleys dates back to the year 1869 when its founder, Thomas Fearnley, established a shipbroking and agency business in Christiania, as the city of Oslo was known in those days.

In connection with its trading activities the company bought shares in vessels and chartered vessels. By 1881 the partnership of Fearnley & Eger established the Christiania Steamship Company.

In the beginning of the 1900s Fearnley & Eger became, more or less, a shipowning company and invested in ever larger units. In addition to these shipowning activities, the firm continued to engage in developing its offering in the area of shipping services and was engaged primarily in the area of dry cargo shipbroking.

As the tanker industry started to develop, Fearnleys became enthusiastically involved in this new field of endeavour. Later on, when the transportation of gas by sea became an important area of commerce, Fearnleys developed a broking department which specialized in this new commodity.

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2020 I TODAY Global Leader Today, The Astrup Fearnley Group is a leading, independent and global provider of brokerage, research, financial- and advisory services to investors and maritime companies worldwide. The Group has a strong global presence with 331 professionals in 9 countries.

1972

1970s

1980s

2013

Hans Rasmus Astrup

Offshore Services

Financial Services

Hans Rasmus Astrup Foundation

Hans Rasmus Astrup becomes the sole owner of Astrup Fearnley.

Always on the cutting edge of new trends, the Fearnley became involved in offshore rig and supply broking, coinciding with the onset of the development of the Norwegian continental shelf offshore oil fields.

Fearnley Offshore & Fearnley Offshore Supply was founded in 1973.

With an ever increased demand for growth capital and financial brokerage services for maritime companies, 1980s marked the birth of Astrup Fearnley’s financial services offering with the establishment of Fearnley Project Finance in 1981 and Fearnley Securities in 1987.

Ownership of the Astrup Fearnley Group transferred to the Hans Rasmus Astrup Foundation.

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A STORY WORTH TELLING BUSINESS PRINCIPLES - OUR VALUES Our business principles are of such fundamental importance for our business that they deserve to be described in more detail.

INTEGRITY At Astrup Fearnley we build and maintain trust by conducting every element of our business to the highest standards of integrity.

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RELEVANT

TEAM

At Astrup Fearnley we provide timely and valuable services by anticipating the rapidly changing needs of our clients and their markets.

At Astrup Fearnley we value extraordinary individual performance, but our proudest moments arise from the teamwork of our professionals for the benefit of our clients.

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People and Culture People and Culture 262 262 Men Men Average

Average age 40,3 age 40,3

331 331

79% 79%

68 68 Women Women Average

21% 21%

2,04% Average sickness absence 2,04% Average sickness absence

Average age 43,1 age 43,1

Our employees around the world Our employees around the world Oslo Oslo

Stockholm Stockholm

London London

Genova Tokyo

Paris

New York

Tokyo

Paris

New York

Beijing | Hong Kong | Shanghai Houston Houston

Beijing | Hong Kong | Shanghai Mumbai Mumbai

Santa Barbara Santa Barbara

Nationalities There are 16 different nationalities employed in the Astrup Fearnley Group.

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Singapore Singapore

2

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Our business principles Our business principles are of such fundamental importance for our business that they deserve to be described in more detail.

Our Peoples Environment INTEGRITY

RELEVANT

TEAM

to the highest standards of integrity.

needs of our clients and their markets.

moments arise from the teamwork of our professionals

ToAtcreate an unrivalled environment that excite, engage and encourage our talent Astrup Fearnley we build and At Astrup Fearnley we value At Astrup Fearnley we provide maintainto trust by conducting extraordinary individual timely and valuable services by teams flourish. every element of our business performance, but our proudest anticipating the rapidly changing

Excite

Engage

Professionals at Astrup Fearnley have a deep passion for their work. Enthusiasm, excitement and affection for what we do are at the very core of our company culture.

Professionals at Astrup Fearnley participate in competitive situations, get exposed to complex and intellectually engaging tasks, and are constantly encouraged to engage each other and themselves.

Pre tax profit

Revenues xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx

Culture & Recruitment 2017

92

2018

2019 2020

31 new employees were recruited xxxx to our group xxxx In 2020

92

19,5%

36

Encourage

36

92

of these are 92 women xxxx

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xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx

2017

Professionals at Astrup Fearnley give each other confidence and backing. Encouragement and support is an integral part of our team culture.

2018

95% 92

36

of Astrup Fearnley employees state that they are proud to work in the company

2019 2020

11,4% is the average turnover among employees

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ASTRUP FEARNLEY MUSEET Background Astrup Fearnley Museet was founded in 1993 and the institution has played a central role in the development of the contemporary art field in Norway.

In addition to presenting Norwegian art on a large scale, it was here that the Norwegian audience first had the opportunity to experience ambitious and relevant art projects from the international art scene. With this perspective, the museum has a greater awareness of contemporary art in Norway.

The museum was established by Hans Rasmus Astrup, who since the end of the 60’s built an extensive collection of international contemporary art.

The collection was managed by the museum, while Astrup continued to develop the collection.

The Collection The museum holds the extensive Astrup Fearnley Collection, which includes significant works by artists such as Matthew Barney, Paul Chan, Trisha Donnelly, Ida Ekblad, Matias Faldbakken, Robert Gober, Félix González-Torres, Rachel Harrison, Damien Hirst, Jeff Koons, Glenn Ligon, Bjarne Melgaard, Julie Mehretu, and Cindy Sherman. The museum presents changing exhibitions that both draw on the collection and new commissions by artists from all over the world.

The museum is characterized by its active and ambitious exhibition program, and is an independent, academic museum with a significant contribution to the public.

A relevant collection with perspective of eternity In recent decades, the museum has gone through several structural and organizational changes. In 2012 the museum moved into a new and extensive museum building located on Tjuvholmen, designed by the architect Renzo Piano.

The Hans Rasmus Astrup Foundation was established by Mr. Hans Rasmus Astrup in 2013. The Foundation is an ideal foundation. It aims to support cultural initiatives, including in particular the Astrup Fearnley Collection of Norwegian and international art that is at the disposal of the Astrup Fearnley Museum.

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Photo: Cornelius Poppe / NTB

Photo: Christian Øen Jeff Koons Michael Jackson and Bubbles 1988

Photo: Vegard Kleven Anselm Kiefers «Zweistromland/The High Priestess» 1989

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FEARNLEYS Shipbroking has been Astrup Fearnleys’ core business since 1869.

The company has extensive experience in all major shipping segments.

Whilst our heritage is Norwegian, today we pride ourselves as a truly global organization with 10 offices worldwide. Our infrastructure enables us to combine global reach with local presence and to serve our clients and stakeholders as well as attracting professionals from the global talent pool.

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Søren Greve I CEO Fearnleys

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Services Fearnleys have a broad footprint in the shipping industry with deep involvement in the Tankers, LPG, LNG, RoRo and Dry cargo markets. Our teams work persistently along the value chain from Chartering, Sale and Purchase and Newbuildings to cargo brokering of refined oil products through our wholly owned subsidiaries Libra Fearnley/Fearnoil. In addition our highly reputed Research department supports our brokers and clients with regular market reports as well as tailor made studies and presentations.

Fearnleys’ 151 years history has proven we are here for the long haul with a long-term commitment to our business and clients.

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FEARNLEY SECURITIES Fearnley Securities was established in 1987 and is an independent, research focused, and full-service investment bank and a member of the Oslo Stock Exchange. The idea behind the formation of an investment bank within the Astrup Fearnley umbrella was, and remains, to capitalize on the Group’s global brand and resources within maritime and energy related industries.

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Peter Wessel I CEO Fearnley Securities

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Services Fearnley Securities remains close to the Group’s heritage and core businesses.

From our offices in Oslo and New York we provide a full range of brokerage and investment banking services for investors and issuers world-wide.

At Fearnley Securities we constantly strive to anticipate the rapidly changing needs of our clients and the markets they operate in. We shall be professionally curious and proactively challenge accepted truths for the purpose of developing new and creative solutions for our clients.

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FEARNLEY OFFSHORE SUPPLY At Fearnley Offshore Supply we take pride in being agile and adaptable, delivering our clients’ every need on a 24/7 basis. As a pioneer amongst peers in the offshore space, with five decades of servicing the industry with integrity and professionalism, we have built a legacy we are proud to call Fearnley Offshore Supply. 2020 has been another challenging year for OSV Owners, however there is hope on the horizon as we foresee the market turning a corner in the year ahead. Renewables and aquaculture has seen another year of exponential growth and opportunities flourish for existing as well as new players.

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Harald Paulsen Løvik I CEO Fearnley Offshore Supply

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Services Our experienced team offers true global coverage having market experts with local presence in Oslo, London, Houston and Singapore, servicing the OSV, Renewables, as well as Fishery & Aquaculture industries. Fearnley Offshore Supply is a market leader in our field, offering complete services within chartering, newbuilding, sale and purchase, valuation services, advisory and market intelligence.

At Fearnley Offshore Supply we take pride in being agile and adaptable, delivering our clients’ every need on a 24/7 basis.

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FEARNLEY OFFSHORE Fearnley Offshore is a leading brokerage firm within the global offshore oil services sector. Since its inception in 1973, the Company has developed and delivered a full range of customized advisory, consulting, research and brokering services to the global offshore services sector.

Fearnley Offshore strives to be in the forefront of its markets, with a comprehensive global client base of offshore rig owners, oil companies, and offshore construction yards. Using its proprietary database combined with strong industrial knowledge, Fearnley Offshore provides in-depth market analysis and forecasting of coming market trends before they become obvious.

2020 was a challenging year for the offshore drilling industry, as we experienced another year dominated by refinancings, restructurings, and Chapter-11 processes.

Notwithstanding continuing market volatility and cyclical fluctuations, Fearnley Offshore’s fundamental belief in the offshore drilling industry remains positive. As we have done for the past 48 years, we stand firm and side-by-side with our close and long-standing clients through market cycles.

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Knut Frøystad I CEO Fearnley Offshore

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Services Fearnley Offshore assist its clients with a wide range of services, including sale and purchase of second-hand drilling and production units, employment chartering contracts, newbuilding contracts, project development, advisory services and market intelligence. With its in-house detailed and comprehensive market database, coupled with the always up to date market information, Fearnley Offshore provides updated market surveys, forecasts, studies, reports, and presentations tailor-made for specific projects and markets.

With nearly 200 years of combined experience, our team at Fearnley Offshore maintains an extensive range of prevailing knowledge in all aspects of the offshore industry.

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SHARED SERVICES CODE Astrup Fearnley CODE is Astrup Fearnley’s global competence center for digitalization and technology services. The company serves the Astrup Fearnley Group with services along the full digital value chain from procurement and data security, to the development of cutting edge proprietary digital solutions for our analysts, brokers and clients.

The goal of the Astrup Fearnley Global Shared Service Center is fourfold;

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SOLUTIONS Astrup Fearnley Solutions is Astrup Fearnley’s global shared service center and responsible for the execution and the handling of specific operational tasks, including Finance & Accounting, Human Resources, Governance Risk and Compliance, and Brand & Communication – adding value through economies of scale, specialization and quality.

• Ensure the highest possible quality and coordination of support functions and internal infrastructure • Ensure good risk and cost control • Capitalize on economies of scale • Develop motivating and future-oriented professional environments

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ESG E

S

G

Environment: Astrup Fearnley shall act responsibly toward reducing direct and indirect negative influences on the external environment.

We shall adhere to relevant international and local laws and standards, seeking to minimize our environmental impact, and we shall encourage all Astrup Fearnley companies to take a sustainable approach to their operations.

Social: Astrup Fearnley’s commitment to sustainability also underscores

the responsibility we have to our stakeholders — our clients, our owner, our employees and communities — to build long-term value by managing our firm in a responsible way. Astrup Fearnley is committed to providing a work environment that promotes equal opportunity, dignity and respect. In our recruitment efforts, we consciously seek to attract the most capable applicants, with no discrimination on the grounds of age, gender, sexual orientation, disability, race, nationality, political opinions, religion or ethnic background, or any other basis prohibited by law.

Governance: Our governance framework covers a broad range

of corporate practices as well as internal policies, standards, and compliance routines. Strong governance structures and management of risk and regulatory matters is considered a fundamental premise for Astrup Fearnleys commercial activities in all markets worldwide.

Compliance and risk management are deeply integrated with our day-to-day activities and strategic objectives.

Environmental, Social and Governance principles (ESG) underpin all operations in the Astrup Fearnley Group.

Accordingly, the Astrup Fearnley Group engages in several activities towards promoting sustainability.

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Sustainable Finance The needs of our clients will increasingly be defined by sustainable growth. Our global businesses drive innovation to support the transition to an inclusive, low-carbon economy.

Our Environment Protecting and caring for the environment is of great importance to the Astrup Fearnley Group.

Waste management and recycling forms a natural part of the Group’s internal ESG framework.

People and Culture Astrup Fearnley is a workplace where diversity is valued, and where every employee has the opportunity to develop their individual skills and talents.

Our Partners We endeavour to deal honestly, ethically, impartially, and fairly with our stakeholders. We encourage all our business partners to adhere to principles that are consistent with our own sustainable focus and commitment.

Our Soceity The employees and business units within the Astrup Fearnley Group has long traditions giving back to the communities where we live and work.

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PREPARING FOR A NEW BEGINNING After almost 30 years at Grev Wedels Plass 9, the Astrup Fearnley Group will in the summer of 2021 relocate to Dronning Eufemias gate 8, in Bjørvika.

The move is not only about moving into new, modern facilities in one of Oslo’s most vital and pulsating districts. Through carefully selected architecture and design of social zones and open spaces, it is as much about facilitating for cross company collaboration and communication, enabling a stronger culture of knowledge sharing and increased dialogue, as well as a stronger awareness of shared identity, as ONE TEAM.

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CONSOLIDATED FINANCIAL STATEMENTS 2020

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FINANCIAL ACCOUNTS

Directors’ Report........................................................................... 40 Income Statement........................................................................ 45 Balance Sheet................................................................................ 46 Cash Flow Statement.................................................................... 48 Notes Consolidated...................................................................... 49 Notes Parent Company................................................................ 63 Auditor’s Report............................................................................ 74

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DIRECTORS’ REPORT

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FINANCIAL ACCOUNTS

ASTRUP FEARNLEY AS DIRECTORS’ REPORT 2020

BUSINESS ACTIVITIES Astrup Fearnley AS (“Astrup Fearnley” or the “Company”) is engaged in advisory and brokerage activities within shipping, offshore and financial services. In addition, the Company has ownership and investments in art, real estate, forestry and financial instruments.

Astrup Fearnley AS is the Group’s parent company and maintain its head office in Oslo, Norway.

OBJECTIVES FOR THE OPERATION The Company’s main goal is to own and develop the brokerage firms within the Group as preferred, independent and research driven advisors and brokers for investors and companies involved in its core industries, such as shipping, offshore, oil and gas, aquaculture, renewable energy and real estate. The companies in the Group has a global approach to research, clients, and markets.

Astrup Fearnley has a strong focus on corporate governance, integrity, and high ethical standards. The Company operates in accordance with good business practice and has an open dialogue with regulatory authorities, industry organizations, official agencies, and other stakeholders. The Company’s board of directors and executive management seek to organize the business so that clients and the general public has confidence in the Company’s research, advise and decisions.

ENVIRONMENT The Company’s operations are not of a nature that gives rise to pollution of the external environment.

GENDER EQUALITY, DISCRIMINATION AND THE WORKING ENVIRONMENT The working environment in the Company is good and the general well-being in the workplace is satisfactory. Absence among employees due to illness is limited (2.04% on average for the Group), and no accidents or injuries were reported in 2020. The Company implemented comprehensive and strict preventive measures to protect its employees from Covid-19 during 2020.

Astrup Fearnley aims to be a workplace where there is equality between women and men. In its recruitment policy, the Company deliberately seeks to attract the most talented candidates, without discriminating on the basis of gender, ethnicity, religion or other factors.

The Astrup Fearnley Group has significantly increased its focus on HR in 2020 and established systems for mapping and following up matters covered by §26 of the Equality and Discrimination Act. At the end of the year, the Company had 13 employees, 4 of whom are women. The board consists of five men and two women. The Astrup Fearnley Group has approx. 331 employees of which 68 are women.

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FUTURE DEVELOPMENT In addition to the Company’s own efforts and development, Astrup Fearnley’s earnings are affected by the activity in the world economy in general, and in particular activity in shipping, oil / offshore and energyrelated industries.

Covid-19 became a significant factor for our employees, our businesses and clients in 2020. Despite a demanding humanitarian situation and challenging market picture, Astrup Fearnley experienced positive developments in 2020. Both the Groups’s ship brokerage and financial services businesses delivered satisfactory results. The offshore businesses performed satisfactorily through difficult market conditions in addition to the pandemic.

Targeted strategic work over time contributed to developing the organization in a positive direction.

Despite persistent volatility in global markets and cyclical fluctuations within the Group’s core industries, our basic beliefs in shipping, oil / offshore and energy-related industries remain strong. Astrup Fearnley has comparative advantages in these areas and continues its focus on the ocean industries.

Astrup Fearnley has a solid balance sheet and is well equipped to tackle market challenges. The Board therefore maintains its optimistic view on the Company’s development and opportunities both in 2021 and in the longer term.

FINANCIAL RISK AND INTERNAL CONTROL Financial risk in the Company consists primarily of market risk, credit risk, counterparty risk and settlement risk. Work with internal control, compliance and reporting are prioritized areas. The Group focuses on the implementation and maintenance of appropriate internal control routines as well as reliable reporting routines that ensure good monitoring of operations and compliance with regulatory requirements.

STATEMENT OF THE ANNUAL ACCOUNTS The result for the year for the parent company, Astrup Fearnley AS, shows a profit of NOK 341.8 million (NOK 5.6 million in 2019) which is proposed to be distributed as a dividend of NOK 200 million and the remainder transferred to other equity. Book equity amounted to NOK 1,734,666 as of 31.12.2020 (NOK 1,593,610 in 2019).

The Group’s result for 2020 shows a profit of NOK 654.5 million before tax and NOK 494.3 million after tax (loss of NOK 57.5 million before tax and NOK 46.3 million after tax in 2019 respectively).

The Group’s assets per. 31.12.2020 has a book value of NOK 3,186.5 million. The Group’s debt amounts to NOK 1,318.9 million and the Group’s book equity is NOK 1,867.7 million. The liquidity in the Group is considered good.

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Total cash flow from operations in the Group was NOK 308.8 million, while the operating profit for the Group amounted to NOK 638.5 million. The result of the total investment activities in the Group in 2020 gave a positive cash flow of NOK 521.7 million.

The Group has incurred expenses for research and development of support / research systems for the brokerage businesses.

GOING CONCERN In accordance with the Accounting Act § 3-3a, it is confirmed that the assumptions about continued operations are present and have been used as a basis for the preparation of the accounts. The Company’s financial position is good.

EVENTS AFTER THE BALANCE SHEET DATE The board has assessed whether the corona pandemic will have a significant financial effect in the time ahead, but it is challenging to say how large consequences this will have for the Group going forward.

The board believes that the annual accounts give a true and fair view of the Company’s assets and liabilities, financial position and results at the turn of the year, and is not aware of any company-specific events after the date of the financial statements that require specific discussion.

Oslo, May 11th, 2021

Jan Håkon Pettersen Chairman

Cecilie Astrup Board member

Anna Catharina Astrup Board member

Harald Moræus Hanssen Board member

Aage R. Bj. Figenschou Board member

Erik Bartnes Board member

Lars Jacob Bø Board member

Even Matre Ellingsen Chief Executive Officer

43

44

ASTRUP FEARNLEY I

ANNUAL REPORT 2020 I

FINANCIAL ACCOUNTS

Income Statement PARENT 2019

2020

0 7 958 156 49 749 57 863

0 -16 110 659 913 34 579 678 381

69 514 13 292 -78 873 73 982 77 914

67 173 3 228 -562 75 512 145 350

-20 051

533 031

figures in NOK 1.000

Note

2 3 6 4

OPERATING REVENUE AND OPERATING EXPENSES

GROUP 2020

2019

Revenue Gain/(loss) from sale of shares Gain/(loss) from sale of non-current assets Other operating revenue Total operating revenue

906 038 -4 134 663 794 83 810 1 649 507

854 028 6 071 5 346 96 458 961 903

Payroll and related costs Depreciation and amortisations Loss on receivables Other operating expenses Total operating expenses

709 876 26 593 58 274 466 1 010 993

698 311 22 622 1 313 303 305 1 025 551

638 514

-63 648

Income from investments Other financial items Change in fair value of financial assets Write-down of financial assets Financial items, net

2 510 10 540 2 951 0 16 001

1 882 13 792 -9 554 0 6 120

Profit on ordinary activities before taxation

654 515

-57 528

Income tax Ordinary result

160 235 494 280

-11 254 -46 273

PROFIT FOR THE FINANCIAL YEAR

494 280

-46 273

Minority's share of proft/(loss) Majority's share of profit/(loss)

21 312 472 968

16 467 -62 740

Transferred to other equity Total allocations and equity transfers

-494 280 -494 280

46 273 46 273

Operating profit/(loss)

FINANCIAL INCOME AND FINANCIAL EXPENSES 47 878 21 514 -15 646 -41 984 11 762

85 033 9 615 -1 534 -136 184 -43 071

-8 290

489 960

-13 891 5 602

148 177 341 783

5 602

341 783

7 5 8

14

45

Balance Sheet at December 31 PARENT

figures in NOK 1.000

2019

2020

Note

ASSETS

7 669 7 669

0 0

14

Deferred tax assets Total intangible assets

0 823 788 823 788

0 784 293 784 293

6 6

507 355 78 405 2 314 0 35 098 48 459 11 348 682 980

508 377 78 405 0 0 125 164 39 125 21 843 772 914

7 7 7 8 9 10

1 514 437

1 557 207

96 079 6 065 102 144

155 070 13 413 168 483

27 815 27 815

1 394 1 394

50 716

566 316

180 675

736 193

1 695 112

2 293 400

GROUP 2020

2019

0 0

9 567 9 567

Land, buildings and other property Fixtures and fittings Total tangible fixed assets

166 254 802 499 968 753

167 761 844 473 1 012 234

Investments in subsidiary companies Investments in associated companies Investments in limited partnerships Investments in shares Bonds Other receivables Capital paid to Fearnleys Pensjonskasse Total financial non-current assets

0 78 493 2 099 23 150 143 715 47 969 80 600 376 026

0 78 499 3 863 19 510 49 525 54 798 40 600 246 795

Total non-current assets

1 344 779

1 268 595

Current assets Intercompany receivables Other receivables Total receivables

0 496 970 496 970

0 306 222 306 222

8

Marketable shares Total current investments

63 843 63 843

70 369 70 369

15

Cash and cash equivalents

1 280 933

452 844

Total current assets

1 841 746

829 435

TOTAL ASSETS

3 186 525

2 098 030

Non-current assets

46

ASTRUP FEARNLEY I

ANNUAL REPORT 2020 I

FINANCIAL ACCOUNTS

Balance Sheet at December 31 PARENT

figures in NOK 1.000

2019

2020

Note

45 700 31 500 77 200

45 700 31 500 77 200

11 12

1 516 410 1 516 410

1 657 466 1 657 466

12

0

0

1 593 610

1 734 666

EQUITY

2020

2019

Shareholders' equity Share capital Share premium account Total paid-in capital

45 700 31 500 77 200

45 700 31 500 77 200

Other equity Total retained earnings

1 690 908 1 690 908

1 406 405 1 406 405

99 588

98 832

1 867 696

1 582 437

Non-current liabilities Pension obligations Deferred tax Other non-current liabilities Total non-current liabilities

596 123 014 1 503 125 112

580 0 1 546 2 126

Current liabilities Intercompany liabilities Current income taxes payable Other taxes and withholdings Proposed dividend Other current liabilities Total current liabilities

0 27 953 48 029 220 015 897 719 1 193 717

0 11 390 53 512 13 348 435 217 513 468

Total liabilities

1 318 829

515 593

TOTAL EQUITY AND LIABILITIES

3 186 525

2 098 030

Minority interests 12

GROUP

Total shareholders' equity

LIABILITIES

0 0 0 0

0 120 171 0 120 171

10 912 0 5 981 0 84 610 101 503

140 811 15 058 6 465 200 000 76 228 438 563

101 503

558 734

1 695 112

2 293 400

13 14

14

Oslo, May 11th, 2021

Jan Håkon Pettersen Chairman

Cecilie Astrup Board member

Anna Catharina Astrup Board member

Harald Moræus Hanssen Board member

Aage R. Bj. Figenschou Board member

Erik Bartnes Board member

Lars Jacob Bø Board member

Even Matre Ellingsen Chief Executive Officer

47

Cash flow statement PARENT 2019

2020

-8 290 -4 161 9 304 3 988 0 0 -7 614 24 468 28 666 -44 218 2 143

489 960 0 3 228 0 0 0 -660 188 26 421 -134 234 143 659 -131 153

figures in NOK 1.000

Note

CASH FLOW FROM OPERATIONS Profit/(loss) on ordinary activities before tax.

Taxes paid for the period Depreciation and amortisations Write-down on fixed assets Pension expenses without cash effect Effect of currency rate changes Gain/(loss) on sale of fixed assets and intangibles Items classified as investment or financing activities Changes in intercompany balances Changes in other current assets and other liabilities Net cash flow from operations

GROUP 2020

2019

654 515 -11 778 11 471 15 122 16 0 -663 794 23 625 0 279 620 308 797

-57 528 -17 952 18 634 3 988 8 522 -5 346 0 0 -74 472 -132 146

696 179 -3 890 161 525 -306 416 2 589 -28 298 521 689

911 -17 642 65 691 -4 400 0 -627 43 933

CASH FLOW FROM INVESTMENT ACTIVITIES 466 -3 675 67 942 -123 594 1 -3 864 -62 724

696 179 -1 022 154 114 -245 341 2 589 0 606 520

Inflows due to sale of fixed assets Outflows due to purchase of fixed assets Inflows due to sales of financial non-current assets Outflows due to purchase of financial non-current assets Inflows due to investments in financial non-current assets Outflows due to investments in financial non-current assets Net cash flow from investment activities

CASH FLOW FROM FINANCING ACTIVITIES

48

0 0 64 246 -46 630 0 17 617 0

0 0 47 878 -7 644 0 40 234 0

Outflow due to downpayment of non-current liabilities Dividend payments Payments in due to group contribution Payments out due to group contribution Paid-in-capital Net cash flow from financing activities Effects of currency rate changes on bank deposits, cash and equiv.

-43 -13 348 0 0 0 -13 391 10 994

-43 -26 235 0 0 0 -26 278 -3 700

-42 964 93 680

515 600 50 716

Net change in bank deposits, cash and equivalents Bank deposits, cash and equivalents at January 1

828 089 452 844

-118 192 571 036

50 716

566 316

Bank deposits, cash and equivalents at December 31

1 280 933

452 844

ASTRUP FEARNLEY I

Note 1

ANNUAL REPORT 2020 I

FINANCIAL ACCOUNTS

Accounting policies

The financial statements have been prepared in accordance with the Norwegian Accounting Act of 1998 and generally accepted accounting principles in Norway.

CONSILIDATION PRINCIPLES The consolidated financial statements consist of Astrup Fearnley AS and its subsidiaries, where Astrup Fearnley AS has a controlling interest through legal or actual control. The consolidated financial statements are prepared in accordance with uniform accounting policies for uniform transactions in all companies included in the consolidated financial statements. All material transactions and group inter-company balances are eliminated. Investments in companies where the group has significant influence (associate companies) are treated in accordance with the equity method in the consolidated financial statements. Significant influence normally exists when the group owns between 20 and 50 percent of the voting capital.

Shares in subsidiaries are eliminated in accordance with the acquisition method. This involves the acquired company’s assets and liabilities being assessed at fair value on the date of acquisition, and any value added is classified as goodwill.

For partially owned subsidiaries, only Astrup Fearnley AS’s share of the goodwill is included in the balance sheet.

VALUATION AND CLASSIFICATION OF ASSETS AND LIABILITIES Assets intended for permanent ownership or use in the business are classified as non-current assets.

Other assets are classified as current assets. Receivables due within one year are classified as current assets. The classification of current and non-current liabilities is based on the same criteria.

Current assets are valued at the lower of historical cost and fair value.

Fixed assets are carried at historical cost, but are written down to their recoverable amount if this is lower than the carrying amount and the decline is expected to be permanent. Fixed assets with a limited economic life are depreciated on a systematic basis in accordance with a reasonable depreciation schedule.

Other long-term liabilities, as well as short-term liabilities, are valued at nominal value.

FOREIGN CURRENCY All balance sheet items denominated in foreign currencies are translated into NOK at the exchange rate prevailing at the balance sheet date.

Currency forward contracts are valued in the balance sheet at fair value on the balance sheet date.

INTANGIBLE FIXED ASSETS Intangible assets that are acquired separately, are recognised at historical cost. Intangible assets acquired in a business combination, are recognised at historical cost when the criteria for balance sheet recognition have been met.

Intangible assets with a limited economic life are amortised on a systematic basis. Intangible assets are written down to the recoverable amount if the expected economic benefits are not covering the carrying amount and any remaining development costs.

49

SHARES IN JOINT VENTURES Shares in joint ventures are recognised according to the gross method. The portion of revenue, costs, assets and liabilities is incorporated on a per account basis into the financial statements. The amounts are specified for the main categories in the notes to the financial statements.

OTHER SHARES CLASSIFIED AS NON-CURRENT ASSETS Other non-current investments in shares and ingeneral and limited partnerships, in which the company does not have significant influence, are carried at cost. The investments are written down to fair value if a decline in the value is expected to be permanent. Dividends received from these companies are recognised as financial income.

BONDS CLASSIFIED AS NON-CURRENT ASSETS Bonds are carried at cost, corrected for premiums/discounts recognised in the profit and loss accounts.

Premium/discount at acquisition is amortised over the remaining time to maturity, or alternatively until the first interest rate adjustment. Bonds are written down to fair value if a decline in the value is expected to be permanent.

FINANCIAL INSTRUMENTS AND DERIVATIVES Financial instruments, including shares and bonds, which • are classified as current assets, • are included in a trading portfolio, and held with the intention to sell • are traded on a stock exchange, authorised market or equivalent regulated foreign market, and • have satisfactory diversity of ownership and liquidity are recognised at at the lower of average acquisition cost and fair value at the balance sheet date.

RECEIVABLES Trade receivables and other receivables are recognised at nominal value, less the accrual for expected losses of receivables. The accrual for losses is based on an individual assessment of each receivable.

CASH AND CASH EQUIVALENTS Cash and cash equivalents include cash, bank deposits and other monetary instruments with a maturity of less than three months at the date of purchase.

50

ASTRUP FEARNLEY I

ANNUAL REPORT 2020 I

FINANCIAL ACCOUNTS

PENSIONS The Group Astrup Fearnley decided to change from defined benefit plans to defined contribution plans as of March 1, 2015. Due to this change, The Group had two different pension plans in 2015.

Defined contribution plans Defined contribution plans are accounted for according to the matching principle. Contributions to the pension plan are recorded as expenses.

Defined Benefit plans (Pensions) Defined benefit plans are valued at the present value of accrued future pension benefits at the balance sheet date.

Pension plan assets are valued at their fair value.

The Group has set up a defined benefit scheme in a private pension fund to provide pension benefits for its employees.

The scheme provides entitlement to benefits based on future service from the commencement date of the scheme.

These benefits are principally dependent on an employees pension qualifying period, salary at retirement age and the size of benefits from the National Insurance Scheme.

Full retirement pension will amount to approximately 65% of the scheme pension-qualifying income (limited to 12G).

The scheme also includes entitlement to disability without policy earnings. The retirement age under the scheme is aged 67 years.

The Group may at any time make alterations to the terms and conditions of the pension scheme and undertake that they will inform the employees of any such changes. The benefits accruing under the scheme are funded obligations.”

All pension schemes are valued in accordance with the IFRS (IAS 19R). Changes in the pension obligations as a result of changes in the actuarial assumptions and variations between actual and anticipated return on pension funds, are recognised in the balance sheet immediately, through Other Equity.

Gains and losses related to closing of defined benefit plans, are recognised in profit or loss immediately. In the fiscal year 2015 all defined benefit plans were closed as of March 2015.”

REVENUE Revenue is recognised when it is earned, i.e. when the claim to remuneration arises. This occurs when the service is performed, as the work is being done. The revenue is recognised with the value of the remuneration at the time of transaction.

COST In principle, cost are recognised in the same period as the revenue to which they relate.

In instances where there is no clear connection between the expense and revenue, the apportionment is estimated.

Other exceptions to the matching criteria are disclosed where appropriate.

INCOME TAXES Tax expenses are matched with operating income before tax. Tax related to equity transactions e.g. group contribution, is recognised directly in equity.

Tax expense consists of current income tax expense and change in net deferred tax. The tax expense is allocated to ordinary income and the effect of extraordinary items in accordance with the respective taxable income. Deferred tax liabilities and deferred tax assets are presented net in the balance sheet.

51

Note 2

Sales revenue

Per area of operations:

2020

2019

Commissions Result from proprietary trading and market making Income from consultancy services Revenue

721 522 1 297 144 005 866 824

750 800 172 80 773 831 745

Gain/(loss) from sale of shares Gain/(loss) from sale of non-current assets Gain/(loss) from sale

-4 134 663 794 659 660

6 071 5 346 11 417

Administration fee Rental income Other income Other income

25 637 12 093 85 293 123 023

23 561 11 474 83 706 118 741

1 649 507

961 903

1 357 960 41 220 250 327 1 649 507

574 574 51 659 335 670 961 903

Total

Per geographic market: Norway EU Other Total

52

ASTRUP FEARNLEY I

Note 3

ANNUAL REPORT 2020 I

FINANCIAL ACCOUNTS

Payroll costs, number of employees, benefits, loans to employees etc.

2020

2019

616 936 56 016 29 352 7 572 709 876

596 546 60 764 31 682 9 319 698 311

331

345

Pensions in excess of the ordinary Salaries

Other benefits

Wages and salaries Social security tax Pension costs Other benefits Total Average number of employees during the year

Directors' remuneration General manager Board of directors

Loans to:

12 141 1 153

0 0

15 0

Loan

Guarantees

Employees, shareholders, members of the board and general assembly Related parties to shareholders, members of the board and general assembly

3027 0

0 0

Remuneration to auditor (Deloitte AS and their associates)

2020

2019

Statutory audit Other assurance services

1702 340

1656 182

53

Note 4

Operating costs

Operating costs by nature Rent ICT cost Representation and advertising Audit and other fees Communication, travel, insurance Other operating expenses Total

Note 5

2019 63 896

48 051 26 830 33 497 35 876 63 583 274 466

56 589 26 306 33 115 50 378 73 021 303 305

Other financial income/ other financial expensenses 2020

2019

8 156 787 8 943

11 363 656 12 019

172 10 269 10 441

7 545 257 7 802

Other interest expenses Total interest expenses

1 447 1 447

2 115 2 115

Currency losses Other financial expenses Total financial expenses

1 7 396 7 397

701 3 213 3 914

10 540

13 792

Interest income from cash and cash equivalents Other interest income Total interest income Currency gain Other financial income Total financial income

Financial items, net

54

2020 66 628

ASTRUP FEARNLEY I

Note 6

ANNUAL REPORT 2020 I

FINANCIAL ACCOUNTS

Property, plant and equipment Land and buildings

Fittings and fixtures

Total

Cost at 1 January

215 581

1 075 935

1 291 516

Additions, purchased Disposals Cost at 31 December

2 306 -204 217 683

1 584 -42 730 1 034 789

3 890 -42 934 1 252 472

48 855

216 976 17 888 799 925

265 831 17 888 968 753

3 594

7 877 15 122

11 471 15 122

50 years no depreciation/ linear

4-7 years no depreciation/ linear

Accumulated depreciation Accumulated write-down Balance at 31 December Current year amortisation charge Current year write-down charge Economic life Amortisation method

168 828

55

Note 7

Investments in subsidiaries and associated companies

Company

Consolidated (yes/no)

Registered office

Subsidiaries Astrup Fearnley Cap. Mark.

Fearnleys Fearnley Offshore Fearnley Offshore Supply Meraker Brug Krokstad Skov Glenalmond Estate F.H.Taylor County Fearnley & Eger Gironde Astrup Fearnley Solutions Astrup Fearnley Code

Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes

Oslo Oslo Oslo Oslo Meråker Fet Oslo Oslo Oslo Oslo Oslo Oslo

Ownership/ voting share

100,00 % 100,00 % 29,00 % 48,45 % 50,62 % 100,00 % 100,00 % 100,00 % 100,00 % 99,95 % 100,00 % 100,00 %

*) Result and equity is on a consolidated basis before group eliminations. See parent company for non-consolidated figures.

Subsidiaries of subsidiaries, and more Fearnley Securities Fearnley Securities Inc. Fearnley Business Management Fearnley Real Estate Astrup Fearnley Asset Management AS Fearnleys Japan Ltd. Fearnleys Asia (Singapore) Fearngas (Singapore) Fearnleys (Thailand) Ltd. Fearnleys UK shipbrokers Ltd. Rødskog Shipbrokers Ltd. Fearnleys Hong Kong Ltd. Libra Fearnley Energy AS Fearnoil Inc. Libra Fearnley Energy US, LLC Libra Fearnley Energy SARL Glenalmond Farm Ltd

Investments in associated companies Fearnley Advisors Property Management Norge Grifone Invest AB Total

Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes

Oslo New York Oslo Oslo Oslo Tokyo Singapore Singapore Bangkok London Hong Kong Hong Kong Oslo USA USA Paris Skottland

Number of shares Booked value Equity (100%) Result (100%) 5 000 78 405 247 189 6 069 450 47 1 438 705 499 41 6 454 6 346 78 493 255 081 13 120

100,00 % 100,00 % 100,00 % 100,00 % 100,00 % 100,00 % 100,00 % 100,00 % 51,00 % 100,00 % 100,00 % 100,00 % 100,00 % 100,00 % 100,00 % 100,00 % 100,00 %

Ownership 33,33 % 45,00 % 49,90 %

Investments in limited partnerships Rjukan Næringspark KS 7,8750 %

56

Ocean Scout DIS 1,0000 %

Net share 2 099

Capital not called 0

ASTRUP FEARNLEY I

Note 8

ANNUAL REPORT 2020 I

FINANCIAL ACCOUNTS

Investments in shares

Non-current assets Shares in Meraker Brug Other non-current shares Total

Current assets Market-based shares Total Change in fair value Booked value as of 31.12

Change in fair value of financial assets as of 31.12.2019 Change in fair value of sold shares Change in fair value of financial assets 31.12.2020 Change in fair value of financial assets in P&L 2018

Booked value

Market value

21 318 1 833 23 150

21 533 1 833 23 365

Booked value

Market value

54 100 54 100 9 743 63 843

63 843 63 843

-32 734 -39 526 9 743 2 951

Individual investments that is due to significant and permanent loss, are included in the stock table above. However, in valuation they are separated from the portfolio.

The investments in the non-current portfolio are recognised at fair value at the balance sheet date.

Note 9

Bonds

Non-current assets Bonds - bank Bonds - Industrial Total Change in fair value Booked value as of 31.12 Change in fair value of financial assets as of 31.12.2019 Change in fair value of financial assets 31.12.2020 Change in fair value of financial assets in P&L 2020

Currency

Nominal value

Booked value

Market value

NOK NOK

139 345 2 325 141 670

141 509 2 206 143 715 0 143 715

141 946 1 940 143 886

-7 -7 0

57

Note 10 Receivables; amounts due after more than one year

Other receivables Total

2020

2019

47 969 47 969

54 798 54 798

Note 11 Share capital and shareholder information The share capital in the company at 31 December 2016 consists of the following classes:

Shares Total

Owner structure Hans Rasmus Astrup Stiftelsen Hans Rasmus Astrup Stiftelsen Hans Rasmus Astrup Total shareholders

Share classes Class A Class B Class C

Number of shares 182 799 949 182 799 949

Nominal amount 0,25

Booked value 45 700 45 700

Number of shares 5 632 976 163 356 300 13 810 673 182 799 949

Ownership share 3,08 % 89,36 % 7,56 % 100 %

Voting share 1 0 0 1

All shares have the same dividend rights.

Note 12 Equity

58

Equity at 1 January

1 582 437

This year's change in equity: Profit for the financial year Proposed dividend Other changes Equity at 31 December

494 280 -220 015 10 994 1 867 696

ASTRUP FEARNLEY I

ANNUAL REPORT 2020 I

FINANCIAL ACCOUNTS

Note 13 Pension costs, assets and liabilities The Group Astrup Fearnley is obliged to provide pension benefits for its employees, and Astrup Fearnley fulfill these requirements.

The Group Astrup Fearnley decided to change from defined benefit plans to defined contribution plans as of March 1, 2015. Benefits obtained through the defined benefit plan are secured through paid-up policy issued according to applicable rules in Fearnleys Pensjonskasse.

Expensed amount regarding the defined contribution plan amounted to MNOK 31,1 (MNOK 33,6 in 2019) included employers fee and financial tax.

The pension plans covers a total of 260 persons as of 31.12.20.

59

Note 14 Income tax expense 2020

2019

654 515

-57 528

4 461 -666 -525 490 -3 367

0 7 114 6 580 3 980

Other Use of losses carried forward Group contributions

-52 133 -7 969

0 -20 619

Permanent differences Non-deductable expenses Non-taxable income

147 104 -41 444

105 031 -124 710

Positive changes in fair value of securities Negative changes in fair value of securities

1 238 -14 836

10 529 -29 225

-68

0

161 346

-98 849

Tax payable Tax reduction throgh loss carried forward and Group contributions Current income tax payable in the balance sheet

45 758 -17 804 27 954

459 10 930 11 390

Total temporary differences

539 820

-28 538

123 014

-9 567

45 758 -17 069 131 474 72 160 235

459 3 374 -15 165 78 -11 254

15 058 1 425 611 8 751 2 108 27 953

0 3 940 40 4 818 2 592 11 390

Profit before taxation Changes in temporary differences and losses carried forward Receivables Fixed assets Gain and loss account Other liabilities

Corrections in loss carried forward Tax base Calculation of current income tax payable in balance sheet:

Deferred tax liability/ (benefit) in the balance sheet Specification of income tax expense: Current income tax payable Other adjustments, changes in tax rules and rates, etc.

Changes in deferred tax Other effects Income tax Specification of current income tax payable: Astrup Fearnley AS Fearnleys (sub-group) Astrup Fearnley Capital Markets (sub-group) Fearnley Offshore (sub-group) Fearnley Offshore Supply (sub-group) Current income tax payable in the balance sheet

60

Nominal tax rate ( 22 % / 25% / abroad )

ASTRUP FEARNLEY I

ANNUAL REPORT 2020 I

FINANCIAL ACCOUNTS

Note 15 Cash and cash equivalents Bank deposits, cash etc. include restricted tax deduction funds with 15.985 (15.107).

The Group has restricted client deposits as of December 31 amounting to NOK 87 million, and NOK 288 of bank deposits are tied up as security in connection with share loans.

The Group has NOK 220 in simplified mortage in connection with overdraft credit.

Note 16 Contingent liabilities and events after the reporting

period - COVID 19 The Group is not aware of any events that have occurred subsequent to the balance-sheet date that would require adjustment to or disclosure in the financial statements.

Wheter COVID-19 will made a significant effect on the business in 2021 is difficult to forsee, and the Group is not able to perform a qualified assessment on how this may affect the revenue.

Note 17 Transactions with related parties Transactions between related parties in the group are made on marketbased business terms. Related parties are mainly identical with the companies listed in note 7. The extent of related party transactions are minor, and mainly conserns invoicing of rent and corporate services at market terms.

61

62

ASTRUP ASTRUP FEARNLEY FEARNLEY I I ANNUAL ANNUAL REPORT REPORT 2020 2020 I I FINANCIAL ACCOUNTS

NOTES TO PARENT FINANCIAL STATEMENTS 2020

63

Note 1

Accounting policies

The financial statements have been prepared in accordance with the Norwegian Accounting Act of 1998 and generally accepted accounting principles in Norway.

VALUATION AND CLASSIFICATION OF ASSETS AND LIABILITIES Assets intended for permanent ownership or use in the business are classified as non-current assets.

Other assets are classified as current assets. Receivables due within one year are classified as current assets. The classification of current and non-current liabilities is based on the same criteria.

Current assets are valued at the lower of historical cost and fair value.

Fixed assets are carried at historical cost, but are written down to their recoverable amount if this is lower than the carrying amount and the decline is expected to be permanent. Fixed assets with a limited economic life are depreciated on a systematic basis in accordance with a reasonable depreciation schedule.

Other long-term liabilities, as well as short-term liabilities, are valued at nominal value.

FOREIGN CURRENCY All balance sheet items denominated in foreign currencies are translated into NOK at the exchange rate prevailing at the balance sheet date.

Currency forward contracts are valued in the balance sheet at fair value on the balance sheet date.

INTANGIBLE FIXED ASSETS Intangible assets that are acquired separately, are recognised at historical cost. Intangible assets acquired in a business combination, are recognised at historical cost when the criteria for balance sheet recognition have been met.

Intangible assets with a limited economic life are amortised on a systematic basis. Intangible assets are written down to the recoverable amount if the expected economic benefits are not covering the carrying amount and any remaining development costs.

SHARES IN SUBSIDIARIES AND ASSOCIATES Subsidiaries and investments in associates are carried at cost. A write-down to fair value will be performed if the impairment is not considered to be temporary, and an impairment charge is deemed necessary according to generally accepted acccounting principles. Received dividends and group contributions are recognised as other financial income.

The same applies for investments in associates.

SHARES IN JOINT VENTURES Shares in joint ventures are recognised according to the gross method. The portion of revenue, costs, assets and liabilities is incorporated on a per account basis into the financial statements. The amounts are specified for the main categories in the notes to the financial statements.

64

ASTRUP FEARNLEY I

ANNUAL REPORT 2020 I

FINANCIAL ACCOUNTS

OTHER SHARES CLASSIFIED AS NON-CURRENT ASSETS Other non-current investments in shares and ingeneral and limited partnerships, in which the company does not have significant influence, are carried at cost. The investments are written down to fair value if a decline in the value is expected to be permanent. Dividends received from these companies are recognised as financial income.

BONDS CLASSIFIED AS NON-CURRENT ASSETS Bonds are carried at cost, corrected for premiums/discounts recognised in the profit and loss accounts.

Premium/discount at acquisition is amortised over the remaining time to maturity, or alternatively until the first interest rate adjustment. Bonds are written down to fair value if a decline in the value is expected to be permanent.

FINANCIAL INSTRUMENTS AND DERIVATIVES Financial instruments, including shares and bonds, which • are classified as current assets, • are included in a trading portfolio, and held with the intention to sell • are traded on a stock exchange, authorised market or equivalent regulated foreign market, and • have satisfactory diversity of ownership and liquidity are recognised at at the lower of average acquisition cost and fair value at the balance sheet date.

RECEIVABLES Trade receivables and other receivables are recognised at nominal value, less the accrual for expected losses of receivables. The accrual for losses is based on an individual assessment of each receivable.

CASH AND CASH EQUIVALENTS Cash and cash equivalents include cash, bank deposits and other monetary instruments with a maturity of less than three months at the date of purchase.

PENSIONS The Group Astrup Fearnley decided to change from defined benefit plans to defined contribution plans as of March 1, 2015. Due to this change, The Group had two different pension plans in 2015.

Defined contribution plans Defined contribution plans are accounted for according to the matching principle. Contributions to the pension plan are recorded as expenses.

65

Note 2

Sales revenue 2020

2019

Other operating revenue: Rental income

12 068

11 449

Administration fee Gain/(loss) from sale of shares Gain/ loss from sale of non-current assets Other income Total

22 483 -16 110 659 913 28 678 381

38 303 7 958 156 -3 57 863

Per geographic market: Norway EU Other Total

677 881 0 500 678 381

53 063 4 800 0 57 863

Note 3 Payroll costs, number of employees, benefits, loans to employees etc.

2020

2019

54 847 7 649 2 718 1 959 67 173

54 787 7 775 2 896 4 055 69 514

27

36

Salaries

Pensions

Other benefits

12 141 1 153

0 0

15 0

Loans to:

Loan

Guarantees

Employees, shareholders, members of the board and general assembly Related parties to shareholders, members of the board and general assembly Interest is charged and all loans are properly secured.

2 300 0

0 0

Remuneration to auditor (Deloitte AS and their associates)

2020

2019

247 45

172 20

Wages and salaries Social security tax Pension costs (see note 13) Other benefits Total Average number of employees during the year

Directors' remuneration General manager Board of directors

Statutory audit Other assurance services

66

ASTRUP FEARNLEY I

Note 4

ANNUAL REPORT 2020 I

FINANCIAL ACCOUNTS

Operating costs

Operating costs by nature

2020

2019

Rent

21 771

19 811

ICT cost

13 579

16 679

Representation and advertising

18 537

12 018

Audit and other fees Communication, travel, insurance Other operating expenses Total

12 787 3 494 5 344 75 512

16 210 4 311 4 953 73 982

Note 5

Other financial income/ other financial expensenses 2020

2019

Interest income from cash and cash equivalents

2 902

5 148

Interest intercompany

1 230

1 798

Other interest income Total interest income

787 4 919

755 7 701

Currency gain Dividend Total financial income

0 8 818 8 818

0 15 888 15 888

8 973 981

120 1 326 1 446

Other financial expenses Total financial expenses

3 141 3 141

629 629

Financial items, net

9 615

21 514

Interest expenses intercompany Other interest expenses Total interest expenses

67

Note 6

Property, plant and equipment Fittings and fixtures

Total

952 364

952 364

Cost at 1 January Additions, purchased

499

499

Disposals Cost at 31 December

-42 073 910 789

-42 073 910 789

Accumulated depreciation Accumulated write-down Balance at 31 December

126 496 0 784 293

126 496 0 784 293

3 228

3 228

Current year amortisation charge Economic life Amortisation method

Note 7

4-7 years no depr./ linear

Investments in subsidiaries and associated companies

Company

Booked value Profit/(loss) *)

Equity *)

Consolidated Registered (yes/no) office

Ownership/ voting share

Subsidiaries Astrup Fearnley Cap. Mark.

167 500

-310

206 423

YES

Oslo

100,00 %

Fearnleys Fearnley Offshore Fearnley Offshore Supply Meraker Brug Krokstad Skov Glenalmond Estate F.H.Taylor County Fearnley & Eger Gironde Astrup Fearnley CODE Astrup Fearnley Solutions Total Total based on owner-share

182 500 3 147 1 800 76 924 19 143 25 693 8 565 29 326 1 022 750 508 377

-23 805 21 524 7 192 500 152 -455 -108 -27 11 759 1 166 1 097 18 684 -558

106 901 12 233 3 942 147 385 2 343 22 518 673 689 40 721 2 174 1 829 547 830 464 313

YES YES YES YES YES YES YES YES YES YES YES

Oslo Oslo Oslo Meråker Fet Oslo Oslo Oslo Oslo Oslo Oslo

100,00 % 29,00 % 48,45 % 50,62 % 100,00 % 100,00 % 100,00 % 100,00 % 99,95 % 100,00 % 100,00 %

*) Profit/(loss) and equity is on a non-consolidated basis. Sub-Group will normally have added values.

Investments in associated companies Fearnley Advisors

Number of shares

Booked value

Equity (100%)

Result (100%)

Ownership

5 000

78 405

247 189

6 069

33,33 %

Shares in limited partnerships Ownershares in Skagerak Venture Capital 1 KS and Skagerak Venture Capital 1 GB KS was sold with a total gain of NOK 0,3 millions.

68

ASTRUP FEARNLEY I

Note 8

ANNUAL REPORT 2020 I

FINANCIAL ACCOUNTS

Investments in shares

Current assets

Number of shares

Booked value

Market value

100 000

2 000

466

5 000 000

928

928

2 928

1 394

OHT ASA SVC I AS Total Change in fair value of financial assets as of 31.12.2019 Change in provision related to sold shares Change in fair value of financial assets 31.12.2020 Change in fair value of financial assets in P&L 2020

-37 991 -37 991 -1 534 -1 534

Individual investments that is due to significant and permanent loss, are included in the stock table above. However, in valuation they are separated from the portfolio.

Note 9

Bonds

Non-current assets Bank bonds Total

Currency Nominal value NOK

Booked value

123 000

125 164

125 630

123 000

125 164

125 630

Change in fair value Booked value as of 31.12

Market value

0 125 164

Note 10 Receivables; amounts due after more than one year 2020

2019

Other receivables

39 125

48 459

Total

39 125

48 459

69

Note 11 Share capital and shareholder information The share capital in the company at 31 December 2020 consists of the following classes:

Number of shares

Nominal amount

Booked value

Shares

182 799 949

0,25

45 700

Total

182 799 949

Owner structure

Share classes Number of shares

45 700

Ownership share

Voting share

Shareholders as of 31 December: Hans Rasmus Astrup

Class A

5 632 976

3,08 %

50,85 %

Stiftelsen Hans Rasmus Astrup

Class B

163 356 300

89,36 %

49,15 %

Stiftelsen Hans Rasmus Astrup

Class C

13 810 673

7,56 %

0,00 %

182 799 949

100,00 %

100,00 %

Share capital

Share premium

Other equity

Total

45 700

31 500

1 516 410

1 593 610

-200 000

-200 000

341 783

341 783

Total shareholders All shares have the same dividend rights.

Note 12 Equity

Equity at 1 January This year's change in equity: Profit for the financial year Proposed dividend Other changes Equity at 31 December

70

45 700

31 500

-727

-727

1 657 466

1 734 666

ASTRUP FEARNLEY I

ANNUAL REPORT 2020 I

FINANCIAL ACCOUNTS

Note 13 Pension costs, assets and liabilities Astrup Fearnley is obliged to provide pension benefits for its employees, and Astrup Fearnley fulfill these requirements.

The company’s defined contribution plans are organized according to “Lov om innskuddspensjon” (Norwegian law).

Expensed payment in 2020 amounted to MNOK 3,1 (MNOK 3,3 in 2019) included employers fee.

The contribution plans covered a total of 14 persons as of December 31, 2020.

71

Note 14 Income tax expense

Profit before taxation

2020

2019

489 960

-8 290

Changes in temporary differences and losses carried forward Fixed assets Gain and loss account

-736

4 166

-525 667

6 348

Other Use of losses carried forward Group contributions

-52 133

0

-7 969

-20 619

Permanent differences Non-deductable expenses

176 082

85 309

Non-taxable income

-3 264

-101 871

Received dividend

-8 068

-15 888

3% taxable revenue on received dividend

242

477

Tax base

68 448

-50 368

Nominal tax rate ( 22 %)

15 058

-11 081

Tax Payable

15 058

0

Current tax payable

15 058

0

Tax payable in the balance sheet

15 058

0

Booked value fixed assets

7 189

13 853

Taxable value fixed assets

14 061

21 460

Temporary differences fixed assets

-6 871

-7 607

Current income tax payable in the balance sheet:

Calculation of deferred tax: Temporary differences

Gain and loss account Losses carried forward Other differences Net temporary differences

553 103

27 435

0

-52 133

0

-2 552

546 231

-34 857

120 171

-7 669

Nominal tax rate ( 22 %) Tax Payable Specification of income tax expense: Current income tax payable

72

15 058

19

Effect from group contributions

1 753

0

Other changes prior years

3 523

0

Changes in deferred tax

127 839

-13 910

Income tax

148 177

-13 891

ASTRUP FEARNLEY I

ANNUAL REPORT 2020 I

FINANCIAL ACCOUNTS

Note 15 Cash and cash equivalents Bank deposits, cash etc. include restricted tax deduction funds with 2.980 (2.947).

The Group has NOK 220 in simplified mortage in connection with overdraft credit registered at Astrup Fearnley AS.

Note 16 Contingent liabilities and events after the reporting

period - COVID 19 The Company is not aware of any events that have occurred subsequent to the balance-sheet date that would require adjustment to or disclosure in the financial statements.

Wheter COVID-19 will made a significant effect on the business in 2021 is difficult to forsee, and the company is no able to perform a qualified assessment on how this may effect the revenue.

Note 17 Transactions with related parties Transactions between related parties in the group are made on marketbased business terms. Related parties are mainly identical with the companies listed in note 7. The extent of related party transactions are minor, and mainly conserns invoicing of rent and corporate services at market terms.

73

Auditor’s Report

To the General Meeting of Astrup Fearnley AS

Deloitte AS Dronning Eufemias gate 14 Postboks 221 Sentrum NO-0103 OsloAS Deloitte Norway Dronning Eufemias gate 14 Postboks 221 Sentrum Tel: +47 23 27 Oslo 90 00 NO-0103 www.deloitte.no Norway

Tel: +47 23 27 90 00 www.deloitte.no

INDEPENDENT AUDITOR’S REPORT To the General Meeting of Astrup Fearnley AS

INDEPENDENT AUDITOR’S Report on the Audit of the REPORT Financial Statements Opinion We have audited the financial statements of Astrup Fearnley AS showing a profit of NOK 341 783 000 in the financial statements of the parent company andStatements profit of NOK 494 280 000 in the financial statements of the group. The Report on the Audit of the Financial financial Opinion statements comprise: auditedstatements the financial of AstrupAstrup Fearnley AS showing profit of NOK 341comprise 783 000the in the financial •We have The financial ofstatements the parent company Fearnley AS (theaCompany), which balance statements parent company andincome profit of NOK 494and 280cash 000flow in the financialfor statements of the group.

The sheet asofatthe 31 December 2020, the statement statement the year then ended, and notesstatements to the financial statements, including a summary of significant accounting policies, and financial comprise: •• The financial of statements ofcompany Astrup Fearnley and its AS subsidiaries (the Group), comprise the The consolidated financial statements the parent AstrupAS Fearnley (the Company), whichwhich comprise the balance balance at 31 December 2020, the income statement andflow cashstatement flow statement foryear the year ended, sheet assheet at 31as December 2020, the income statement and cash for the thenthen ended, and and notes to the financial statements, including a summary significantaccounting accountingpolicies, policies.and notes to the financial statements, including a summary ofof significant

• The consolidated financial statements of Astrup Fearnley AS and its subsidiaries (the Group), which comprise the In our opinion: balance sheet as at 31 December 2020, the income statement and cash flow statement for the year then ended, • The arestatements, prepared inincluding accordance with the law and regulations. and financial notes tostatements the financial a summary of significant accounting policies.

• The accompanying financial statements give a true and fair view of the financial position of the Company as at 31opinion: December 2020, and its financial performance and its cash flows for the year then ended in accordance with In our the Norwegian Accounting Act and accounting standards and practices generally accepted in Norway.

The accompanying financial statements are prepared accordance with the law regulations.

•• The consolidated financialinstatements give a true and and fair view of the financial position of the • Group The accompanying financial statements give a true and fair view of the theended Company as at 31 December 2020, and its financial performance and its cash financial flows forposition the year of then in as at 31 December 2020, and its financial performance its cashstandards flows for and the year thengenerally ended inaccepted accordance accordance with the Norwegian Accounting Act and and accounting practices in with the Norwegian Accounting Act and accounting standards and practices generally accepted in Norway.

Norway.

• The accompanying consolidated financial statements give a true and fair view of the financial position of the as at 31 December 2020, and its financial performance and its cash flows for the year then ended in BasisGroup for Opinion accordance with theinNorwegian Act and accounting standards and and practices generally accepted in We conducted our audit accordanceAccounting with laws, regulations, and auditing standards practices generally Norway. accepted in Norway, including International Standards on Auditing (ISAs). Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report.

Basis forindependent Opinion of the Company and the Group as required by laws and regulations, and we have fulfilled our We are We conducted our audit in accordance with laws, regulations, and auditing standards other ethical responsibilities in accordance with these requirements.

We believe that theand auditpractices evidencegenerally we have obtained appropriate to provide a basis for opinion. acceptedisinsufficient Norway, and including International Standards on our Auditing (ISAs). Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report.

Other We areinformation independent of the Company and the Group as required by laws and regulations, and we have fulfilled our Management is responsible forinthe other information. other information comprises in the annual other ethical responsibilities accordance with theseThe requirements.

We believe thatinformation the audit evidence we have report, except the financial statements and our auditor's thereon. obtained is sufficient and appropriate to provide a basisreport for our opinion.

Our opinion on the financial statements does not cover the other information and we do not express any form of Other information assurance conclusion thereon.for the other information. The other information comprises information in the annual Management is responsible

report, except the financial statements and our auditor's report thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider other information materially inconsistent with the statements or our Our opinion on thewhether financialthe statements does notiscover the other information andfinancial we do not express any form of knowledge obtained in the audit or otherwise appears to be materially misstated. assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated.

Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited (“DTTL”), its global network of member firms, and their related entities (collectively, the “Deloitte organization”). DTTL (also referred to as “Deloitte Global”) and each of its member firms and related entities are legally separate and independent entities, which cannot obligate or bind each other in respect of third parties. DTTL and each DTTL member firm and related entity is liable only for its own acts and omissions, and not those of each other. DTTL does not provide services to clients. Please see www.deloitte.no to learn more.

Registrert i Foretaksregisteret Medlemmer av Den norske Revisorforening Organisasjonsnummer: 980 211 282

© Deloitte AS

74

Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited (“DTTL”), its global network of member firms, and their related entities (collectively, the “Deloitte organization”). DTTL (also referred to as “Deloitte Global”) and each of its member firms and related entities are legally separate and independent entities, which cannot obligate or bind each other in respect of third parties. DTTL and each DTTL member firm and related entity is liable only for its own acts and omissions, and not those of each other. DTTL does not provide services to clients. Please see www.deloitte.no to learn more. © Deloitte AS

Registrert i Foretaksregisteret Medlemmer av Den norske Revisorforening Organisasjonsnummer: 980 211 282

ASTRUP FEARNLEY I

ANNUAL REPORT 2020 I

FINANCIAL ACCOUNTS

Page 2 Independent Auditor's Report Astrup Fearnley AS

If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Responsibilities of the Board of Directors and the Managing Director for the Financial Statements The Board of Directors and the Managing Director (Management) are responsible for the preparation in accordance with law and regulations, including a true and fair view of the financial statements in accordance with the Norwegian Accounting Act and accounting standards and practices generally accepted in Norway, and for such internal control as management determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, management is responsible for assessing the Company’s and the Group’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern. The financial statements use the going concern basis of accounting insofar as it is not likely that the enterprise will cease operations.

Auditor’s Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion.

Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with laws, regulations, and auditing standards and practices generally accepted in Norway, including ISAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

As part of an audit in accordance with laws, regulations, and auditing standards and practices generally accepted in Norway, including ISAs, we exercise professional judgment and maintain professional scepticism throughout the audit. We also: •

• • •

• •

identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error.

We design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company's or the Group's internal control. evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management. conclude on the appropriateness of management’s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company and the Group's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the Company and the Group to cease to continue as a going concern. evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves a true and fair view. obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the Group to express an opinion on the consolidated financial statements. We are responsible for the direction, supervision and performance of the group audit. We remain solely responsible for our audit opinion.

75

Page 3 Independent Auditor's Report Astrup Fearnley AS

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

Report on Other Legal and Regulatory Requirements Opinion on the Board of Directors’ report Based on our audit of the financial statements as described above, it is our opinion that the information presented in the Board of Directors’ report concerning the financial statements, the going concern assumption and the proposed allocation of the result is consistent with the financial statements and complies with the law and regulations.

Opinion on Registration and Documentation Based on our audit of the financial statements as described above, and control procedures we have considered necessary in accordance with the International Standard on Assurance Engagements (ISAE) 3000, Assurance Engagements Other than Audits or Reviews of Historical Financial Information, it is our opinion that management has fulfilled its duty to produce a proper and clearly set out registration and documentation of the Company’s accounting information in accordance with the law and bookkeeping standards and practices generally accepted in Norway.

Oslo, 11 May 2021 Deloitte AS Alf-Anton Eid State Authorised Public Accountant (Norway) Note: This translation from Norwegian has been prepared for information purposes only.

76

ASTRUP FEARNLEY I

ANNUAL REPORT 2020 I

FINANCIAL ACCOUNTS

77

OPERATIONS WITHIN THE OURASTRUP LOCATIONS FEARNLEY GROUP The operations within the Astrup Fearnley Astrup Fearnley group can be broadlyBeijing divided into three areas: Room 402-005, Building A Grev Wedels plass 9 No. 138, Andingmenwai Street P.O.Box 1158 Sentrum Dongcheng District, Beijing N-0151 Oslo, Norway China Office phone: +47 22 93 60 00 Office phone: +86 10 51588718 Fearnleys Houston Grev Wedels plass 9 One Riverway, Suite 1810 P.O.Box 1158 Sentrum Houston, TX 77056, U.S.A N-0151 Oslo, Norway Office phone: +1 713 629 7072 Office phone: +47 22 93 60 00

Paris 47 Bis, Avenue Hoche 75008 Paris France Main: +33 1 58 05 51 00

Fearnley Securities Grev Wedels plass 9 P.O.Box 1158 Sentrum N-0151 Oslo, Norway Office phone: +47 22 93 60 00

Shanghai Unit 1308-09, RuiJin Building 205 MaoMing Road(S.) Shanghai, P. R. China (200020) Office phone: +86 21 51130966

Fearnley Offshore Supply Grev Wedels plass 9 P.O.Box 1158 Sentrum N-0151 Oslo, Norway Office phone: +47 22 93 60 00 Fearnley Offshore Grev Wedels plass 9 P.O.Box 1158 Sentrum N-0151 Oslo, Norway Office phone: +47 22 93 60 00 Astrup Fearnley Code Grev Wedels plass 9 P.O.Box 1158 Sentrum N-0151 Oslo, Norway Office phone: +47 22 93 60 00 Astrup Fearnley Solutions Grev Wedels plass 9 P.O.Box 1158 Sentrum N-0151 Oslo, Norway Office phone: +47 22 93 60 00

New address from July 2021 for all companies located in Oslo; Dronning Eufemias gate 8, P.O.Box 1158 Sentrum N-0191 Oslo, Norway Office phone: +47 22 93 60 00

78

Hong Kong 16th Floor Beautiful Group Tower 74-77 Connaught Road Central Hong Kong Office phone: +852 2541 7020 Alt: +852 3500 4260 London Fearnleys Shipbrokers UK Ltd 17 Grosvenor Gardens, 4th floor SW1W 0BD Tankers: +44 121 393 4951 LNG: +44 127 396 3670 Mumbai Office No. 313, Third Floor, Commercial 1 Tower, A Wing Kohinoor City, Kirol Road; Off LBS Marg, Kurla West 400 070 Mumbai India Office phone: +91 22 6123 7900 New York 880 Third Avenue, 16th Floor New York, NY 10022 United States Office phone: +1 212 277-3600

Santa Barbara 735 State Street Santa Barbara, CA 93101 USA Main: +1 805 308 9900

Singapore 3 Killiney Road #04-06/07 Winsland House 1 Singapore 239519 Office phone: +65 6305 0988 Stockholm Narvavägen 7, 2 tr 114 60 Stockholm, Sweden Office phone: +46 700 90 12 76 Tokyo 12-1 Kyobashi 3-chome, Echo-Kyobashi Building 9th Floor Chuo-ku, Tokyo 104-0031, Japan Office phone: +81-3-6804-6120

ASTRUP FEARNLEY I

ANNUAL REPORT 2020

Oslo London

Stockholm

Tokyo

Paris New York

Beijing | Hong Kong | Shanghai

Mumbai

Houston

Singapore

Santa Barbara

Offshore Rig Offshore Supply Shipping Investment Banking | Direct Investments Energy Broking

Oslo

Beijing Hong Kong Houston

London Mumbai New York

Paris Santa Barbara Shanghai

Singapore Stockholm Tokyo

The Astrup Fearnley Global Network

79

Astrup Fearnley AS Grev Wedels Plass 9 | P.O.Box 1158 Sentrum | N-0151 Oslo | Norway | Phone: +47 22 93 60 00 | www.astrupfearnley.com