Notes

Note 1 Basis of preparations

The Småkraft Group comprises of Småkraft AS and the consolidated subsidiaries (Småkraft Group or the Group). Småkraft’s head office is located in Bergen, with local offices in Harstad, Stjørdal, Dale in Sunnfjord, Førde, Hamar and Sandnes in Norway and Gävle in Sweden. The Group employs 34 people. Småkraft is a supplier of renewable energy based on small scale hydro power plants situated in Norway and Sweden.

The interim financial statements for the first half-year 2026, ending 30 June 2026, were prepared in accordance with IAS 34 Interim Financial Reporting. The interim financial statements need to be read together with the annual financial statements with notes for 2025 prepared in accordance with IFRS. If not stated here the accounting principles in this interim report follows the accounting principles described in the notes to the annual financial statements 2025.

These condensed consolidated interim financial statements will be subject to a limited review.

The Board of Directors and the CEO authorised these interim IFRS financial statements for issue on 26 August 2026.

Note 2 Transactions and events in 1H 2026

Acquisitions

The Group has not acquired any power plant owning companies during 1H 2026

Construction activity

Through 1H 2026 Småkraft AS has closed one construction project adding 9 GWh in production capacity.

As per 30 June 2026 – there were ongoing construction of 14 power plants by external service providers, which will increase Småkraft group’s annual production capacity by 246 GWh. Completion of these constructions are scheduled up until end of 2027.

Note 3 Power revenues and other income

Sale of electric energy
The revenues originate from the generation of hydropower.

Other green revenues
Guarantees of Origin and EL certificate schemes are market-based support schemes. In this system, producers of renewable electricity receive one certificate per MWh of electricity they produce for a period of up to 15 years.

Disaggregation of revenues by Price area
		Unaudited	Unaudited	Audited
Amounts in EUR thousand		1H 2026	1H 2025	FY 2025
Price area NO 1	Norway	2,531	1,464	3,434
Price area NO 2	Norway	12,676	6,815	17,211
Price area NO 3	Norway	14,480	3,817	9,495
Price area NO 4	Norway	3,439	339	1,025
Price area NO 5	Norway	15,570	8,669	16,886
Price area SE 2	Sweden	945	210	506
Price area SE 3	Sweden	1,993	1,591	2,482
Other green revenue		1,230	1,669	1,866
Power revenues		52,864	24,575	52,904

Note 4 Financial result

Amounts in EUR thousand	1H 2026	1H 2025	FY 2025
Financial income
	Unaudited	Unaudited	Audited
Interest income	296	552	2,166
Other financial income	294	21	54
Total	590	573	2,220
Financial expenses
	Unaudited	Unaudited	Audited
Amounts in EUR thousand	1H 2026	1H 2025	FY 2025
Interest expense	9,725	9,217	18,373
Other financial expenses	674	713	1,350
Total	10,399	9,930	19,723

Note 5 Financial instruments

Amounts in EUR thousand	30.06.2026	30.06.2025	31.12.2025
The group holds the following financial instruments:
	Unaudited	Unaudited	Audited
Financial assets
Long term receivables	12,765	10,620	11,097
Trade receivables	6,641	2,648	5,257
Other receivables	2,562	7,560	3,095
Derivatives (long-term)	0	1,753	888
Derivatives (short-term)	1,298	847	1,946
Cash and cash equivalents	45,962	23,979	33,397
	Unaudited	Unaudited	Audited
Amounts in EUR thousand	30.06.2026	30.06.2025	31.12.2025
Financial liabilities
Convertible debt	5,720	19,693	-
Debt to financial institutions	299,066	231,549	243,600
Bond debt	74,500	124,500	124,500
USPP bond debt	120,000	120,000	120,000
Other non-current liabilities	71	197	133
Trade and other payables*	17,767	9,345	16,894
Derivatives (long-term)	1,259	11	-
Derivatives (short-term)	1,800	6,005	2,708
*excluding non-financial liabilities

Amounts in EUR thousand	30.06.2026	30.06.2025	31.12.2025
Trade receivables
	Unaudited	Unaudited	Audited
Trade receivables, invoiced	881	106	804
Earned revenue, not invoiced	5,760	2,541	4,453
Sum	6,641	2,648	5,257

Amounts in EUR thousand	30.06.2026	30.06.2025	31.12.2025
Borrowings
	Unaudited	Unaudited	Audited
Ingoing balance	488,119	468,869	468,869
Repayments/downpayments*	-4,978	-2,931	-5,914
New debt*	4,675	4,809	14,963
Debt from purchased subsidiaries	-	2,522	8,887
Shareholder loan draw down	5,546	19,524	-
Net capitalized transactions costs related to borrowings	-321	-173	-280
Capitalised loan expenses/ fees/ commissions	488	446	886
Capitalized construction loan interest	289	483	1,149
Currency exchange rate changes	3,573	-110	-442
Outgoing balance	497,389	493,439	488,119
*) The Group has had a refinancing of facilities totalling EUR 66,8 mill and NOK 39 mill in 1H 2026. The refinancing resulted in extinguished existing debt and obtaining new facility. In the table, the refinancing is shown net as it had not cash effect. Unamortised borrowing costs relating to old debt was expensed in 1H 2026 and amounts to EUR 34k.

Amounts in EUR thousand	Currency	30.06.2026	30.06.2025	31.12.2025
Lenders
		Unaudited	Unaudited	Audited
Banks	NOK	80,296	58,041	74,450
Banks	EUR	218,770	173,508	171,139
Bond debt2	EUR	-	50,000	50,000
Bond debt3	EUR	74,500	74,500	74,500
USPP 1 bond	EUR	80,000	80,000	80,000
USPP 2 bond	EUR	40,000	40,000	40,000
Other debt	NOK	21	20	20
Capitalised loan expenses/ fees/ commissions	NOK	-1,918	-2,322	-1,989
Total external financing		491,669	473,747	488,119
Convertible debt from owners	EUR	5,720	19,693	-
Total financing		497,389	493,440	488,119
Total long term debt		279,043	410,463	413,407
Total short term debt		218,346	82,977	74,713

Amounts in EUR thousand	Carrying amount as of 30.06.2026	1 year	2 years	3 years	4 years	>5 years
Maturity profile for financial liabilities
The table shows undiscounted cash flows for each interval and shows both payments of principal and interests.
Total	497,389	235,343	61,058	92,258	46,687	122,735
Amounts in EUR thousand	Carrying amount as of 31.12.2025	1 year	2 years	3 years	4 years	>5 years
Total	488,119	93,877	215,395	94,248	5,518	131,031
Amounts in EUR thousand	Carrying amount as of 30.06.2025	1 year	2 years	3 years	4 years	>5 years
Total	493,439	81,510	201,550	20,255	93,471	135,738

Amounts in EUR thousand	Energy derivatives	Interest rate swaps	Currency derivatives	Total
Derivatives
	30.06.2026
Opening balance (net)	2,173	634	-2,682	126
Additions/sale	-	-	-	-
Fair value changes	-6,870	22	2,264	-4,584
Cash settlement	2,667	-	-	2,667
Currency translation differences	155	30	-155	30
Sum	-1,874	686	-573	-1,761
Balance sheet items
Non-current asset	-	-0	0	0
Current Asset	-	686	612	1,298
Total asset	-	686	612	1,298
Non-current liabilities	75	-	1,185	1,259
Current liabilities	1,800	-	0	1,800
Total liability	1,874	-	1,185	3,059
Sum	-1,874	686	-573	-1,761
	31.12.2025
Amounts in EUR thousand	Energy derivatives	Interest rate swaps	Currency derivatives	Total
Opening balance (net)	1,038	1,116	-3,635	-1,480
Additions/sale	-	-	-	-
Fair value changes	-7,134	-482	948	-6,668
Cash settlement	8,285	-	-	8,285
Currency translation differences	-16	1	5	-11
Sum	2,173	634	-2,682	126
Balance sheet items
Non-current asset	284	577	26	888
Current Asset	1,889	57	-	1,946
Total asset	2,173	634	26	2,834
Non-current liabilities	-	-	-0	-0
Current liabilities	-	-	2,708	2,708
Total liability	-	-	2,708	2,708
Sum	2,173	634	-2,682	126

Note 6 Intangible assets and property, plant and equipment

Amounts in EUR thousand	Intangible assets	Property, plant and equipment	Total
Carrying Amount 01.01.2025	222,887	552,353	775,241
Additions	2,478	36,837	39,316
Acquisition of subsidiaries	23,475	19,190	42,666
Depreciations and amortization	-4,096	-16,797	-20,894
Impairment change	-1,202	97	-1,106
Currency translation differences	-1,122	-2,655	-3,777
Carrying Amount as of 31.12.2025	242,421	589,025	831,446
Additions	1,659	9,305	10,963
Acquisition of subsidiaries	-	-	-
Depreciations and amortization	-2,723	-9,360	-12,083
Impairment change	-1,500	-344	-1,844
Currency translation differences	11,445	27,736	39,181
Carrying Amount as of 30.06.2026	251,301	616,363	867,663

Contractual obligations

Signed share purchase and new-build contracts as per 30 June 2026 have remaining obligations of EUR 74 million, whereof EUR 70 million is due within 12 months.

The owners of Småkraft AS have committed to contribute further EUR 34 million in equity related to these contracts prior to closing and delivery of the relevant construction projects. The remaining funding requirement is expected to be covered by external financing.

First half of 2026Småkraft Group