2023 Audit Report

ThisisSoiltech

Soiltechisaninnovativetechnologycompanyspecializingin thetreatment,recyclingandresponsiblehandlingof contaminatedwaterandsolidindustrialwastestreamsat site.OurtechnologiesenablecostsavingsandlowerCO2 emissionsthroughwastereduction,wasterecoveryand reuse.Soiltechoperatesworld-wide,withitsheadofficeat ForusinSandnes,Norway.

Soiltechisonafantasticjourney,andIamproudto bepartofit.Wedevelopandoperateinnovative technologiesneededforsustainabletreatment, handling,treatment,andrecyclingofwaste.Our solutionscontributetoreducedcarbonemissionsinaworldwithgrowingenergydemands.

Weseeanincreaseddemandacrossourfull technologyportfolio,duetothededicatedSoiltech teamandfocusondeliveringinnovativesolutions andstrongoperations.Iamverypleasedthatwe onceagaincandelivergoodsafetyresultswithno losttimeincidentsin2023.Wearegettinggreat feedbackfromourclientswhenitcomestoour operationalperformance,thankstoourcommitted personnelonlocationandonshoresupportteam. ThispositivefeedbackisimportantforSoiltechas operationalexcellenceisakeyfactorforour continuedsuccess.

Wereachedamilestonein2023withrevenues exceeding200millionkronerforthefirsttime.It tookustenyearstogettothefirst100millionand onlytwoyearstodoublethat.Duringlastyear,the numberofemployeesincreasedfrom72to125, addin

Fortunately,ourrecruitmentcampaignsattracthuge interestfromqualifiedpersonnel.Wecontinueto focusoncontinuousimprovement,withtraining,

competenceenhancement,andtechnology innovationaskeyareas.

Ourinternationaloperationsaregrowing,whilethe NorthSeamarketcontinuetobeverystrongfor Soiltech.In2023,internationaloperations accountedfor27%ofourrevenuescomparedto 16%in2022.Goingforward,Iexpectthatour internationalactivitieswillcontinuetoincrease,as weseetighteningregulationsfordischargingwater toseaandfurtherdemandsfordecarbonization.

andeffectivetechnologies,andwewillleverageoff ourstrongpositionintheNorthSeatogainmarket shareglobally.Thereareabout500mobilerigs worldwide,constitutingthemarketforSoiltech.We arecurrentlyon25oftheserigs,sothereisabig untappedpotential.

Financially,wearerunningasolidbusiness.With growinginvestmentsinequipmentandpersonnel, capitaldisciplineandagoodfinancestructureis important.Iamgladtosaythatwefeelstrong supportfromourbanksandowners,whichhave provideduswiththerequiredcapitaltofinanceour growth.AtsomepointalistingofSoiltechonOslo StockExchangewillbeanaturalstepinorderto secureadditionalequityfinancingandprovidea marketplacefortradingoftheSoiltechshare.

JanErikTveteraas,CEO

BoardofDirectorsreport2023

Natureofbusinessandlocation

Establishedin2011,Soiltechisaninnovativetechnologycompanyspecializinginthetreatment,recyclingand responsiblehandlingofcontaminatedwaterandsolidwasteatsite.Ourtechnologiesenablecostsavingsand lowerCO2emissionsthroughwastereduction,wasterecoveryandreuse.

Soiltech(theGroup)consistsoftheParentCompanySoiltechAS(theCompany)andthesubsidiariesSoiltech OffshoreServicesASandSorbwaterTechnologyAS.

In2023,theGrouphadoperationsinNorway,theUnitedKingdom,theNetherlands,Mexico,Colombia, Mauritania,Lebanon,Cyprus,DenmarkandAbuDhabi.TheGroups Norway.

Highlightsin2023

January:SoiltechASandWellExpertiseASenteredintoaframeagreementfortheprovisionofdrilling wastemanagementondrillingprojectsmanagedbyWellExpertiseAS.Thecontracthasadurationof5 years.

February:Soiltechwasawardedalong-termframecontractwithEquinorfortheprovisionofoffshore wasteservices.Thecontractwaseffectivefromend2022.Includingextensionoptionsthecontracthasa durationuntil2034

February:SoiltechwasawardeditsfirstcontractinMexicoforthetreatmentofcontaminatedwater onboardadrillingvesselforaleadingoperator

May:SoiltechwasawardeditsfirstcontracttreatingfluidfrompipecleaningonanoilrefineryinEurope. Itisanewandinterestingapplicationofourtechnologieswhichcouldhavegreatpotential.

June:SoiltechwasawardeditsfirstcontractinLebanonwithTransoceanforprovidingsloptreatmentand cuttingshandlingservicesonboardthesemi-submersiblerigTransoceanBarents.

Inaddition,Soiltechsecuredseveralcontractextensions

Significantinvestmentsweremadethroughouttheyeartobuildcapacityformeetingtheanticipated increaseindrillingactivityanddemandforthetechnologies

Eventsafteryear-end

ContractwithEquinorforcuttingshandlingservicesonOsebergSør,withestimatedstartupinQ12024.

ContractwithWellExpertisefortreatingcontaminatedwater(STT)onamobilerigintheNorthSea,with estimatedstartupinQ22024.

TheGroup

Asfrom2023theGrouphaschangeditsfinancialreportingfromNGAAPtoIFRS.Thechangehasbeen implementedretrospectivelyusing01.01.2022asthedateoftransition.Theeffectsofthetransitionarelimited andarenotconsideredtohaveamaterialimpactonthefigurespresentedintheannualreport,seenote26in theconsolidatedfinancialstatement.

Theactivityhasbeenhighthroughouttheyearandthesuccesscanbeattributedtoanincreasingdemandforthe Group theircarbonemissions.Therevenuegrowthyearonyearwas28.5%.Thegrossmarginwas41%andEBITDAfrom operationswasMNOK51in2023,comparedtoMNOK45in2022.

ProfitbeforetaxwasMNOK32.Asof31.12.23,thebasisforacontingentliabilityassumedinconnectionwiththe Sorbwatertransactionwasnotfulfilled.Therefore,againofMNOK15wasrecognizedandgoodwillofMNOK5.1 wasimpaired,resultinginanetgainofMNOK9.9.ThenetprofitofMNOK27istransferredtootherequity.Total assetsatyear-endamountedtoMNOK351(MNOK270).

ThecashflowfromoperatingactivitiesreachedMNOK37,whilecashflowfrominvestingactivitieswasMNOK-64 duetoourcapacityexpansioninitiatives.FollowinganetcontributionofMNOK15fromfinancingactivities,the netcashflowforthefullyearof2023stoodatMNOK-12.ThecashpositiononDecember31,2023wasMNOK27 andtheequityratioremainedsolidat49%(53%).Inthemiddleof2023Soiltechenteredalong-termloanfacility withSandnesSparebank.The7-yearloanfacilityisMNOK73andcomesinadditiontotheexistingfacilityof MNOK75.

ParentCompany

NetprofitofMNOK26istransferredtootherequity.Totalassetsatyear-endamountedtoMNOK358(MNOK 277).Theequityratioremainedsolidat48%(52%).

Operations

TheGroupsawanincreaseinoperationsin2023,withhigheractivityacrossthefulltechnologyportfolio.During theyear,wehadupto25sloptreatmentoperationsandtwocuttinghandlingprojectsongoing.Inaddition,the Groupperformedcleaningandswarfremovaljobs.Internationaloperationsareincreasing.During2023,the Grouphadoperationsin10countriesandinternationalrevenuesaccountedfor27%oftotalrevenues. Therewerenooperationalorcommercialdowntimein2023.

Riskmanagementandinternalcontrol

TheGroupcategorizesitsprimaryrisksintocommercial,operational,complianceandlegal,financialandIT-and cyberrelatedrisks.TheGrouphasevaluatedtheoverallclimaterisktobelow.Climaterelatedmattersarenot expectedtocriticallyeffectassets,provisions,orfuturecashflows.Furtherdetailscanalsobefoundinnote18 and19intheconsolidatedfinancialstatements.

Commercialrisksincludesuchrisksasmacroindicators,suppliers,partners,competitors,andtechnology. OperationalrisksincludetechnicalandoperationalstatusandperformanceofitsequipmentaswellasHSEQ. Complianceandlegalrisksincludethemanagementsystem,certificationsaswellascontractual,legal,and regulatoryunderstandingandcompliance.Financialriskincludesqualityincontinuousreportingandinternal controls,properfinancingandfinancingsources,forecastingandliquiditymanagementaswellasfinancialrisk managementrelatedtointerestrates,foreignexchange,creditrisksandtaxrisks.ITandcyberrisksincludethe Group

TheGroup reviews,reporting,forecastingandothermitigatingmeasures.WhiletheCompanyoperatesinacyclicalindustry, itsclientbasehoweverconsistsofsolidandcredit-worthyenergyanddrillingcompanies.Duringtheyear,the Grouphasfocusedoncontinuousimprovementintrainingandcompetencerequirements,technicaland operationalsafetyaswellasplanningandforecasting.

TheGrouphasasolidbalancesheetandhadnotradelossesin2023.Anewbankfacilitywassecuredduringthe yearandasolidcashpositionwasmaintained.

Climaterisk

Climateriskisdefinedasthemeasureofvulnerabilitytoclimate-relatedimpactsthatmayhavefinancial consequences,orthatmayaffectvariousaspectsoffinancialperformance.Thoseconsequencescouldbe reducingtheuncertaintyofthatoutcomeisbusinesscritical.

Theoverallfocusregardingtheexternalenvironmentistoprovideknowledgetothemarketaboutour technologies,whichhelpthecustomerreducingtheiremissions.Overall,thiswillresultinareductionin emissionsthatbenefitsthesociety.AmainSoiltechfocusareaistoreducethenumberoftruckstolowerthe mobilizationsandloadthetruckasfullaspossible.

TheGroup iesareenergyefficienttechnologiesthatcontributetowastereduction,wasterecovery andreuse.Assuchwearecontributingtoresponsibleresourcemanagementandreducedemissionsthroughthe energytransition.Asemissionsanddischargeregulationsaretightenedglobally,theGrouptechnologiesmay playanincreasinglyimportantroleintheoil&gasindustry.

LiabilityInsurance(DirectorsandOfficers)

TheCompanyhasinplaceaDirectors&OfficersliabilityinsurancethatcoversDirectorsoftheBoardand executivemanagement.ThelimitofthecoverageisMNOK50.

Research&Development

TheGrouphasastrongfocusoninnovationsbutdoesnotundertakespecificresearch&developmentactivities assuch.However,theGroupiscontinuouslyfocusingonimprovingexistingtechnologiesanddevelopingnew solutions,basedonexperiencefromoperationsandmarketneeds.

HumanResources,DiversityandGovernance

TheGrouphad125employeesatend2023comparedto94end2022.Theboardperceivesthattheworking environmentandthegeneralwell-beingintheworkplaceasgood.Thiswasconfirmedinthe2023organizational survey.

TheGroupdiversityisexemplifiedbythefactthatitsemployeescomefrommultiplecountries.The fieldpersonnelconsistofmen.TheGrouphasincorporatedguidelinesaimingtoensurethatthereisno discriminationbasedongenderornationality.TheGroupworkssystematicallywithrecruitment,salaryand workingconditions,andpromotionanddevelopmentopportunities.Themanagementteamconsistof3women and4men.Theboardhasfivemembers,allofwhomaremen.OneboardmemberisemployedasCOOinthe Company.TheCompanyisinprocessofmakingnecessarychangestotheboardtomeetthegenderrequirements byendof2024.

HSEQ

AfitforpurposemanagementsystemandrobustHSEQperformanceisfundamentaltotheGroup.TheCompany isrecertifiedaccordingtoISO9001(Quality),ISO14001(Environment)andISO45001(WorkingEnvironment). TheGrouprequestsandreceivescontinuousfeedbackfromitsclients,inanefforttomeasurequalityand continuousimprovement.Ahighdegreeofrepeatclientsisanadditionalqualityparameterthatismonitored. TheGrouphadasickleaveof2.4%in2023.Theboardperceivestheworkingenvironmentandthegeneralwellbeingintheworkplaceasgood.

Soiltechhasazero-accidentphilosophywhenitcomestoincidentsandspillsandstrivesonacontinuousbasisto reducetheimpactofitsactivitiesontheexternalenvironment.TheHSEperformancein2023wasgood,withno losttimeincidents(LTIs).InternalcontrolinSoiltechisensuredinaccordancewithourpoliciesandprocedures, andreinforcedbasedontheorganizationalstructure,competence,andauthoritymatrixaswellassegregationof duties.

Sustainability(ESG)

TheGroupwilllistentostakeholdersandcontinuetoshapeourbusinessinasustainabledirection.We withintheGrouptofurtherdevelopourtechnologies,towardsagreenerfuture.Wewillconductourbusinessin asociallyresponsiblemannerconsistentwiththeUNGuidingPrinciplesonBusinessandHumanRightsandthe TenPrinciplesoftheUNGlobalCompact.

Werespectallinternationallyrecognizedhumanrights,includingthoseembeddedintheUniversalDeclarationof HumanRights,theUNConventiononEconomic,SocialandCulturalRights,theUNConventiononCiviland PoliticalRightsandtheILODeclarationonFundamentalPrinciplesandRightsatWork.Theserightsinclude,but arenotlimitedto,thefreedomofassociationandtherighttobargain,andtherighttofreedomfromforced labor,childlaborordiscriminationinworkinglife.WealsorespectcurrentstandardsinInternational HumanitarianLawincludingtheTransparencyActwhichaimstoreducetheriskofhumanrightsviolations,avoid modernslavery,andensuredecentworkingconditions.StatementofTransparencyactcanbefoundon www.soiltech.no.

Outlook

Theoutlookispositive.Soiltech'smarket-leadingtechnologiesforwastereduction,recovery,andreusecontinue togainmomentumandmarketshare.Thetotalmarketforwastetreatmentisgrowing,asenvironmental restrictionsfordischargingcontaminatedwatertightenworld-wide.Goinginto2024,Q1typicallyhasalower activityduetothewinterseason.For2024asawhole,weforeseeacontinuedstrengtheninginthemarket, whichisalsoexpectedfor2025.

TheBoardemphasizesthatanyforward-lookingstatementscontainedinthisreportcoulddependonfactors beyonditscontrolandaresubjecttorisksanduncertainties.Accordingly,actualresultsmaydiffermaterially.

Goingconcernassumption

havebeenpreparedonthebasisofgoingconcernassumptionref.IAS1.

Shareholdersandsharecapital

Attheendof2023Soiltechhad87shareholders.The10largestshareholdersowned75.5%ofthecompany. Foreignownershipwas32.4%.Asatend2023,SoiltechhadanissuedsharecapitalofNOK740543and7405430 outstandingshares,eachwithanominalvalueofNOK0.10andcarryingequalvotingrights.

Dividend

SoiltechhasnotpaidanydividendtodateandtheBoarddoesnotproposetopaydividendfor2023.Soiltechisa growthcompany,andweareaimingatacontinuedgrowth,basedonasolidfinancialposition.Ourplanistotake advantageofmarketopportunitiesandreinvestthegeneratedcashinprofitableprojectsandenhancedservice capacity.Anyfuturedividendwillbeevaluatedonthisbasis.

Eventsafteryear-end

AsfarastheBoardisaware,therehavebeennosignificanteventssinceyear-endwhichwouldimpactthe financialpositionandprofitsoftheGroupotherthanthosementionedunderEventsafteryear-endabove.

Sandnes,March15,2024

TheboardofdirectorsofSoiltechAS

GunnarWintherEliassen

ChairmanoftheBoard

CarstenBrückner MemberoftheBoard

OlafSkrivervik MemberoftheBoard

GlennÅsland MemberoftheBoard

EirikFlatebø MemberoftheBoard

JanErikTveteraas ChiefExecutiveOfficer

GunnarWintherEliassen Chairmanogtheboard

EirikFlatebø Boardmember

DennisAlberding Deputyboardmember

OlafSkrivervik Boardmember

GlennÅsland Boardmember

Dr.CarstenBrückner Boardmember

GunnarWintherEliassen ChairmanoftheBoard

CarstenBrückner MemberoftheBoard

Sandnes,March15,2024

TheboardofdirectorsofSoiltechAS

OlafSkrivervik MemberoftheBoard

GlennÅsland MemberoftheBoard

EirikFlatebø MemberoftheBoard

JanErikTveteraas ChiefExecutiveOfficer

Note1Generalinformation

SoiltechAS(the'Company')isalimitedcompanydomiciledinNorway.TheregisteredofficeoftheCompanyis Koppholen25,4313,Sandnes,Norway.

TheCompanyisaninnovativetechnologycompanyspecializinginthetreatment,recyclingandresponsible handlingofcontaminatedwaterandsolidindustrialwastestreamsonsite.TheCompanyislistedontheNOTCin Oslowithtickercode'SOIL'.Theconsolidatedfinancialstatementscomprisethefinancialstatementsofthe Companyanditssubsidiaries(togetherreferredtoasthe'Group').

Theconsolidatedfinancialstatementsfortheyearended31December2023wereapprovedandauthorizedfor issueinaccordancewitharesolutionoftheboardofdirectorson19thofMarch2024.

TheGrouppresentsconsolidatedfinancialstatementsinaccordancewithIFRS®AccountingStandard*forthe firsttime.Inpreviousyears,theconsolidatedfinancialstatementswerepreparedinaccordancewithNorwegian GenerallyAcceptedAccountingPrinciples(NGAAP).DateoftransitiontoIFRSis1January2022andall comparativefigureshavebeenrestatedaccordingly.Referenceismadetonote26fordetailsontheeffectsofthe transition.

Note2Summaryofgeneralaccountingpolicies

Thegeneralaccountingpoliciesappliedinthepreparationoftheseconsolidatedfinancialstatementsaresetout below.Specificaccountingpoliciesrelatedtotheindividualareasinthefinancialstatementsaredescribedinthe relevantnotes.

Basisforpreparation

TheconsolidatedfinancialstatementshavebeenpreparedinaccordancewiththeIFRSasadoptedbythe(EU) andadditionaldisclosurerequirementsintheNorwegianAccountingActaseffectiveof31December2023.The consolidatedfinancialstatementsarepresentedinNorwegianKroner(NOK)andhavebeenroundedtothe nearestthousandunlessotherwisestated.Asaresultofroundingadjustments,amountsandpercentagesmay notadduptothetotal.Thefinancialstatementsarepreparedonagoingconcernbasis.

Accountingestimatesandjudgements

Itemsinthefinancialstatementsaretoavaryingdegreeaffectedbyestimatesandassumptionsmadeby management,referenceismadetotherelevantnotesfortheaffecteditems.Estimateswithamaterialimpacton thefinancialstatements,combinedwithasignificantestimationuncertainty,comprisethefollowing: -Recognitionofdeferredtaxasset(note8).

Segmentinformation

GiventheuniformnatureoftheGroup'sservicesandthecentralizedmanagementfromitsheadofficeinNorway, theentireGroupisconsideredasasingleoperatingsegmentforinternalreportingpurposes.

Foreigncurrencytranslation

ThecompanieswithintheGroupprimarilyuseNOKastheirfunctionalcurrency.Forconsolidationpurposes,the translatedusingtheclosingrateatthebalancesheetdate.Incomeandexpensesforeachincomestatementare translatedusingtheyearlyaverageexchangerate.

NewandamendedIFRSstandardsnotyetadopted

Ofnewstandardsandinterpretationsthatarenotmandatoryforthecurrentreportingperiod,noneareexpected tohaveamaterialimpactontheentityinthecurrentorfuturereportingperiodsandonforeseeablefuture transactions.

Note3Revenues

Overalldescriptionofcontractswithcustomers

TheGroup'srevenuemainlyderivesfromthesaleofservicesrelatedtotreatmentofcontaminatedwater(i.e. slop),cuttingshandling,cleaningservicesandotherrelatedservices,forcustomerswithintheoil&gasindustry. Thekeyelementoftheservicedeliveriesisthedeploymentandsupervisionoftreatmentandhandling equipmentatthecustomer'ssite,tomeetthespecificpurificationtargetsdefinedinthecontracts

Thecontractconsiderationiscomposedmainlyofagreeddailyratesforequipmentandpersonnel,respectively, andreimbursementofcostsplusamarkup.Ratesvarydependingonwhethertheequipmentisinactiveuse duringongoingoperationsorinstandby,forexamplewhentheequipmentisonlocationbutnotinOperation. Typically,thecontractdeliveriesfollowtheoperationontherig.However,allcontractscanbeterminatedbythe customerwithoutcauseonashortnotice,withonlycompletionofexistingworkorder.

Costsofmobilizationanddemobilizationofequipmentandpersonnelarenormallyrecoveredthroughtheagreed dailyrates,exceptforsomecontracts,wheretheyarereimbursedseparately.Suchreimbursementis,however, generallynotmaterialinrelationtothetotalcontractconsideration.Considerationisnormallyinvoicedmonthly, basedonactualdeliveries.

Accountingpolicies

Thecontractsareconsideredtoconsistofonlyoneperformanceobligation,whichissatisfiedovertime.Progress ismeasuredonthebasisofthetimetheSloptreatmentunit(STT)isavailabletoservicethecustomer.Inpractice, revenuebasedondailyratesarethusrecognizedwiththeamountthattheCompanyhasarighttoinvoice.Asa practicalsimplificationbasedonmateriality,anyfeesassociatedwithmobilizationanddemobilizationare recognizedlinearlyovertheperiodoftherelatedcontract.

Costofmobilizationisconsideredtobecosttofulfilacontractandarerecognizedasanassetwhenincurred.The assetissubsequentlyamortizedoverthecontractperiod,ascostofmaterialsandpersonnelexpenses.

Revenuesbyproductcategory

*Otherrevenueisrevenuefromcuttingshandling,cleaningservices,swarfhandlingandassociatedservices.

Revenuesbygeography

*InternationalrevenuecomesmainlyfromUK,Netherlands,AbuDhabiandothercountries.

Coststofulfilthecustomercontracts

Note4Personnelexpenses

Accountingpolicies

Personnelcostsareexpensedastheemployeesearntherighttothepaymentofwagesforhoursworked. Paymentstodefinedcontributionpensionplanareexpensedovertheperiodinwhichtheemployeesearnthe righttothedeposit.

Pensions

TheGroup followthestipulationsintheNorwegianMandatoryOccupationalPensionsAct.TheGroup'spensionscheme adherestotherequirements,assetintheAct.

Specificationofpersonnelexpenses

*Otherpersonnelexpensesincludeexpensesrelatingshare-basedpaymenttransactions.Refertonote24for furtherdetails.

Numberofemployees

Note5Depreciationandamortisation

Specificationofdepreciationandamortisation

Note6Otheroperatingexpenses

Specificationofotheroperatingexpenses

Note7Financialitems

Note8Incometax

Accountingpolicies

TheGroupconsistsofcompaniessubjecttoordinarycorporatetaxationinNorway,andwithinthesametax groupwithrespecttooffsettingofdeferredtax.Incometaxisthereforerecognizedonthebasisofageneral applicationofIAS12withouttheneedforfurtherjudgmentsorpoliciesofsignificance.

Basisforrecognitionofdeferredtaxassets

DeferredtaxassetsarerecognizedwhenitisprobablethattheGroupwillhaveasufficientprofitfortaxpurposes insubsequentperiodstoutilizethetaxasset.TheGrouprecognizepreviouslyunrecognizeddeferredtaxassetsto theextentithasbecomeprobablethattheGroupcanutilizethedeferredtaxasset.Similarly,theGroupwill reduceadeferredtaxassettotheextentthattheGroupnolongerregardsitasprobablethatitcanutilizethe deferredtaxasset.Deferredtaxanddeferredtaxassetsaremeasuredbasedontheexpectedfuturetaxrates applicabletothecompaniesintheGroupwheretemporarydifferenceshavearisenbasedontaxrates(andtax laws)thathavebeenenactedorsubstantivelyenactedbytheendofthereportingperiod.Deferredtaxand deferredtaxassetsarerecognizedattheirnominalvalueandclassifiedasnon-currentasset(non-current liabilities)intheconsolidatedstatementoffinancialposition.

Specificationofincometaxexpense

Reconciliationoftaxexpensewithtaxcalculatedatnominalrate

PermanentdifferencescomemainlyfromreversalofcontingentliabilityMNOK15andimpairmentofgoodwill MNOK-5,withanetimpactMNOK10andataximpactofMNOK2.2.Forfurtherinformationseenote9.

Specificationofdeferredtaxliabilitiesandassets2023

(amountsinNOK1000)

Business combinationOther31/12/2022 Fixedassets-11710-38170-15370-17064

01/01/2022ProfitorlossOCI

Customercontracts000000 Other0-173000-173

Totaldeferredtaxliabilities-11710-39900-15370-17237

Reclassbetweendeferredtax liabilitiesandassets

6012396401537589817412

Non-recognizeddeferredtaxassets-20025000-175

Netdeferredtaxliabilities-589900058980 Fixedassets000000

Taxlossescarriedforward0-1759025770024011 Other601215780108308673

Totaldeferredtaxassets6012-181026853032684 -6012-39640-1537-5898-17411

Reclassbetweendeferredtax liabilitiesandassets

Non-recognizeddeferredtaxassets000000 Netdeferredtaxassets0-4145025316-589815272

TaxlossescarriedforwardarefromoperationsinNorwayandcanbecarriedforwardindefinitely.Seenote22for furtherdetailsonthebusinesscombinationwithSorbwater.

Note9Intangibleassets

Accountingpolicies

Intangibleassetsmainlycomprisegoodwilloriginatingfrompreviousacquisitions.Goodwillisnotdepreciatedbut isinsteadsubjecttoannualimpairmenttesting.Otherintangibleassetsincludepatentsandsoftwarewhichare recognisedinaccordancewiththecostmethodanddepreciatedovertheirexpectedeconomiclifetime.

Specificationofintangibleassets

Impairmenttesting

AgoodwillofMNOK5.0wasrecognizedinconnectionwiththeacquisitionofSorbwaterin2022.Seenote22for furtherdetails.However,theexpectedsynergiesfromtheSorbwaterpatentedbiodegradablechemicalsare delayedandthebusinessplanhasthereforebeenrevised.Sincethetimingoftherealizationofsuchsynergiesis uncertain,thegoodwillhasbeenimpairedinfull.Thedelayinsynergiesalsoresultedincertainthresholdsunder theSPAareuncertaintobemet.Consequently,thecontingentconsiderationofMNOK15thatwasrecognizedas partoftheconsiderationhasbeenreversedandrecognizedasothergainin2023.

Note10Property,plant&equipment

Accountingpolicies

Property,plant&equipmentconsistsofsloptreatmentunits,equipmentforcuttingshandling,cleaningservices andswarfremoval,skipsandvariousotherequipment.Property,plant&equipmentarerecognizedin accordancewiththecostmethodanddepreciatedovertheirexpectedeconomiclifetime.

Note11Leases

Accountingpolicies

TheGroupisprimarilyinvolvedinleaseagreementsasalessee.Allleaseagreementsarerecognizedin accordancewithIFRS16,withtheexceptionof: -Leaseagreementswithashorterdurationthan12months

-LeasesofassetswithacostpricebelowNOK50000

Paymentsrelatingtosuchleasesarerecognizedasoperatingexpenseswhendue.TheGroupdoeshowevernot havemanysuchagreementsandtheannualexpenseisthereforeimmaterial.

Right-of-useassetsarerecognizedinaccordancewiththecostmethodanddepreciatedovertheleaseterm,or expectedeconomiclifetime,dependingonwhetherapurchaseoptionisexpectedtobeexercised.

OveralldescriptionoftheleasesoftheGroup

TheGroupprimarilyleasespremisesandsloptreatmentunits(STT).Forpremises,theleasetermisusually between3and10years,whileforsloptreatmentunitsbetween4and7years.ForSTTunitsitisexpectedthat thepurchaseoptionisexercisedandassuchtheassetisdepreciatedovertheexpectedeconomiclifetime.

Assumptionsandjudgmentsapplicabletonewleases

In2023,theGroupenteredintoanewleaseagreementforitsheadofficeinSandnes.Theleaseperiodis5years with5yearsoptiontoextend.Theleaseliabilityiscalculatedbasedontheleasetermincludingtheoptionperiod. AnewleaseagreementwasalsoenteredintofortheGrouppremisesinBergen,withaleaseperiodof3years. Thediscountrateusedinthenewleasecalculationis7,24%.

TheGrouphasleasedadditionalSTTunitstobedeliveredinQ22024.Thepresentvalueoftheleaseliabilitywill berecognisedoncommencementofthelease.

Specificationofright-of-useassets

Specificationofleaseliabilities

Note12Otherassetsandliabilities

Othernon-currentassets

Othercurrentassets

Othercurrentliabilities

Note13Tradereceivables

Accountingpolicies

Tradereceivablesarerecognizedatanamountequaltothetransactionprice,lessprovisionsforexpectedcredit losses.TheGroupappliesthesimplifiedapproachtomeasuringexpectedcreditlosseswhichusesalifetime expectedlossallowanceforalltradereceivables.

Specificationoftradereceivables

Specificationofcreditlossrecognizedinprofitorloss

Note14Cashandcashequivalents

Accountingpolicies

Cashandcashequivalentscomprisemostlyordinarybankdeposits.Thestatementofcashflowsispreparedusing theindirectmethod.Interestincomeandexpensesarepresentedasinvestingandfinancingactivities, respectively.

Restrictedcash

Note15Borrowings

Accountingpolicies

Borrowingsareinitiallyrecognizedatfairvalue,includingtransactioncostsdirectlyattributabletothe transaction,andaresubsequentlymeasuredatamortizedcost.Therehasnotbeenanymaterialtransactioncost duringtheyear.

Covenants

TheloanfacilitywithSandnesSparebankenteredin2023hasthefollowingcovenants: -NIBD/EBITDA<4 -Bookequity>30% -Approvalfrombankifdividend/groupcontribution

Thecompanyisnotinbreachwithanyofthecovenantsabove.

Specificationofborrowings31.12.2023

Specificationofborrowings31.12.2022

Contractualpaymentsonborrowings31.12.2023

Contractualpaymentsonborrowings31.12.2022

Forloanswithfloatinginterestrates,theamountsabovearecalculatedusingthecurrentinterestrateperthe relevantyearend.

Carryingamountofassetspledgedassecurity

Note16Financialderivatives

Accountingpolicies

Financialderivativesconsistofcurrencyforwardcontracts.Althoughthecontractsareheldforhedgingpurposes, theGroupdoesnotapplyhedgeaccounting.Theforwardcontractsaremeasuredatfairvaluethroughprofitor loss.Gainsandlossesarepresentedasfinancialincomeorexpense,respectively.Currencyforwardcontractsare measuredatlevel2inthefairvaluehierarchy,asthepresentvalueoffuturecashflowsisbasedontheforward exchangeratesatthebalancesheetdate.

Currencyforwardcontracts

AcurrencyforwardcontractofMUSD0.74wasenteredintoinrelationtothesaleofcertainequipmenttoKuwait in2014,intheGroup subjecttosignificantuncertainty.Theforwardcontracthasbeenrolledforwardmultipletimespendingafinal outcome,andthecurrentcontractmaturesat04.03.2024.AtyearendtheliabilitywasMNOK3.7.Thisisincluded inthestatementoffinancialpositionunderOthercurrentliabilities.

Note17Financialinstruments

CurrentFinancialassetspercategory

Financialliabilitiespercategory

Fairvalue

Foritemsmeasuredatamortizedcost,carryingamountisconsideredtobeareasonableapproximationtofair value.

Note18Financialriskandcapitalmanagement

Thepoliciesformanagementofcapitalandfinancialriskaimtosupportthecurrentstrategyandtarget ofmaintainingahighrateofgrowthanddevelopingprospectivebusinessopportunities.TheGroup structureshallberobustenoughtomaintainthedesiredfreedomofactionandutilizegrowthopportunities, basedonstrictassessmentsrelatingtotheallocationofcapital.TheGroupdebtfinancingconsistofbankand leasingfinancing.TheloancovenantstowhichtheGroupissubjectplayakeyroleinhowcapitalismanagedand allocated,tomaintainalowfinancingriskandfinancialflexibility.Seenote15borrowingsforfurtherdetailson

Marketrisk

TheGroup'sexposuretofinancialmarketriskismainlyrelatedtointerestratesonexternalfinancingandvarious formsofcurrencyrisks.TheGrouphasadiversifiedclientlistandevaluateschangesinpricingstructurecontract bycontract,aspartofitsmitigationprocesstocoverforincreasedinterestcost.TheGrouphasnotenteredinto anyinterestswapagreements.

Currencyrisk

TheGrouphasNorwegiankroner(NOK)asitsbasecurrency.However,throughitsoperationsoutsideNorway, theGroupisexposedtofluctuationsincertainexchangerates,mainlyEuro(EUR),BritishPound(GBP)and

Americandollar(USD).TheGroupalsohascurrencyriskslinkedtobothbalancesheetmonetaryitemsand investmentsinforeigncountries.Thetablesbelowshowend.AstheGroupdoesnotapplyhedgeaccounting,theimpactonprofit/lossandequitywillbethesame regardlessofthedirectionoftheexchangeratechange.

Currencyexposure31.12.2023

Currencyexposure31.12.2022

Interestraterisk

TheCompanyloanandleasingagreementshavefloatinginterestratesbasedonNIBORaccordingtothefinancial strategy,seeNote15borrowings,andistherebyinfluencedbychangesintheinterestmarket.Achangeof increaseof1percentagepointinNIBORmeansachangeinyearlynetinterestexpensesofapproximatelyMNOK 1.5.

Creditrisk

Assetsthatmaygiverisetocreditriskcomprisemainlytradereceivablesandbankdeposits.Forthelatter,the counterpartiesaremainlybanksestablishedintheNordiccountries,whichindicatesthatthecreditriskshouldbe regardedasnegligible.Tradereceivablesarecharacterizedbyaconcentrationinthecustomerbase,intermsof countryandindustry.Thecustomers,however,areprimarilylargecompanieswithhighcreditratings,andthe agreedpaymenttermsinthecontractstypicallyensurethatanyoverdueamountsarekeptatlowlevel.Thus, creditlosseshavehistoricallybeeninsignificant.

Liquidityrisk

Asatyear-end,theGroup'sportfolioofloansandloanfacilitiesiswelldiversifiedbothwithregardstomaturity profileandlenders.InJune2023theCompanyentereda7-yearloanfacilityofMNOK73withSandnes Sparebank.TogetherwithanexistingloanfacilityofMNOK75withSandnesSparebank,thefacilitiestotalMNOK 148.TheunusedportionofthecreditfacilitieswasMNOK55.3asat31.12.2023.

Summaryofcontractualmaturities31.12.2023

Note19Climaterisk

TheGrouphasevaluatedtheoverallclimaterisktobelow.Climaterelatedmattersarenotexpectedtocritically effectassets,provisions,orfuturecashflows.TheanalysisisbasedontheTaskForceonClimate-relatedFinancial Disclosures(TCFD)framework.TheGrouphasevaluatedthephysicalrisk,theriskassociatedwithtransitionintoa lowcarboncommunityandtheliabilityrisktowardstheGroup.Theopportunitiesareconsideredtoexceedthe risksidentifiedfortheGroup.

Soiltechs

Note20Sharecapitalandshareholderinformation

Sharecapitalandownershipstructure

Thesharecapitaloftheparentcompany,SoiltechAS,amountstoNOK740543asof31December2023,and consistsofatotalof7,405,430ordinaryshares,eachwithanominalvalueofNOK0.1.

IncludedinOthershareholdersare5000sharesownedbyboardmemberOlafSkrivervik. Foreignownershipwas32,4%atyear-end2023(2022:32,4%)

Note21Earningspershare

*Moreinformationonoptionsinnote24

Note22Groupcompositionandsubsidiaries

Accountingpolicies

Theconsolidatedfinancialstatementscompriseofallsubsidiariescontrolledbytheparententity.Subsidiariesare fullyconsolidatedfromthedateonwhichcontrolistransferredtotheGroup.Likewise,theyaredeconsolidated fromthedatethatcontrolceases.

ChangesinthecompositionoftheGroup

ThesubsidiarySorbwaterTechnologyASwasacquiredbySoiltechASon2September2022,andwere consolidatedfromthisdateforward(ref.furtherdetailsbelow).ThecompositionoftheGroupisotherwise unchangedintheperiodspresentedinthesefinancialstatements.

Subsidiariesasof31.12.2023

AcquisitionofSorbwaterTechnologyASin2022

On2ndofSeptember2022theGroupacquired100%ofthesharesinSorbwaterTechnologyAS.Sorbwaterhas industryleadingexpertisewithinbio-degradablechemistry.Thedeferredtaxassetisrecognizedinfullasitis probablethattheGroupwillhavesufficientfuturetaxableprofitstorealizecarryforwardunusedtaxlosses, throughgroupcontributionsbetweentheGroupcompanies.ApartoftheconsiderationforSorbwater, amountingtoMNOK15,wascontingentonmeetingcertainsalestargetsinthefuture.Atthetimeofacquisition, theCompanyassessedmeetingthesesalestargetsashighlyprobable.Theentirecontingentconsiderationwas thereforerecognizedasaliabilityandpresentedasothernon-currentliabilitiesinthestatementoffinancial position.Withreferencetonote9,theexpectedsynergiesfromtheSorbwaterpatented,biodegradable chemicalsaredelayed,andthebusinessplanhasthereforebeenrevised.Consequently,thecontingentpartof theconsiderationhasbeenrecognizedasothergainin2023.

Detailsofthefairvalueofidentifiableassetsandliabilitiesacquiredpurchaseconsiderationandgoodwillareas follows:

Note23RemunerationtoseniorexecutivesandBoardofDirectors

ThepreviousCEOStigH.ChristiansenresignedfromhispositioninApril2023.Noseverancepaymentwasmade. Atthesametime,JanErikTveteraaswasappointedasnewCEO.IftheCompanyterminatestheCEO employment,theExecutiveshallbeentitledtoseverancepayforaperiodof12monthsaftertheexpiryofthe agreednoticeperiod.

GunnarWintherEliassenwaselectedasnewChairmanoftheboardinDecember2023.Thepreviousexecutive chairmanJanErikTveteraasresignedfromtheboardinDecember2023,continuinginhisroleasCEO.Robert HvideMacLeodresignedfromtheboardinDecember2023.Noremunerationhasbeenpaidtothegeneral manageranddirectorsinsubsidiaries.TheCompanyhasnotprovidedloansorcollateraltoexecutivesor membersoftheboard.

GrantedoptionstoseniorexecutivesandBoardofDirectors

*RobertHvideMacLeodresignedfromtheboardinDecember2023.

Note24Share-basedpaymenttransactions

Accountingpolicies

TheGrouphasalong-termshare-basedincentiveplanforkeypersonnelandboardmembers.Thetermofthe planimpliesthatitisrecognisedasanequity-settledshare-basedpaymenttransactioninaccordancewithIFRS2. Associatedobligationstopaysocialsecuritytaxarerecognisedascash-settledshare-basedpaymenttransactions.

Long-termshare-basedincentiveplan

Thestrikepriceoftheoptionsissetatthemarketpriceatgrantdate.Grantedoptionsaredistributedoverthree equaltrancheswithvestingperiodof1-3years.Alloutstandingoptionsmustbeexercisedwithin5yearsfromthe grantdate.Grantedoptionsaremeasuredatfairvalueatthegrantdate,whichisdeterminedusingtheBlackScholesoptionpricingmodel.Companyusesathird-partycompanyforthiscalculation.

Summaryofgrantedoptionsintheperiod

Riskfreeinterestrate

Historicalvolatility

Expectedlifetimeoftheoption(years)

Shareprice

Averageoptionvalue(NOK)

Movementinoutstandingshareoptions

Asat1January

Grantedduringtheyear

Exercisedduringtheyear

Forfeitedduringtheyear

Expiredduringtheyear

Asat31December

Vestedandexercisableat31December

AverageexercisepriceNumberofoptions

Note25Eventsafterthereportingperiod

Therearenoeventsotherthanbusinessactivitiesintheordinarycourseofbusinessafterthebalancesheetdate ofanadjustingornon-adjustingnature.

Note26TransitionfromNGAAPtoIFRS

InconnectionwiththetransitiontoIFRS,themanagementhascarriedoutathoroughreviewoftheGroup's businessanditsaccountingpoliciescurrentlyappliedunderNGAAP.Althoughthetransitionrequireschangesin thetreatmentofoperatingleasesandgoodwill,theoverallconclusionhasbeenthatthetransitionhasalimited impactonthefinancialreportingoftheGroup.Furtherdetailsofthemostsignificantchangespertransitiondate andyear-end2022areexplainedinnotestothereconciliationsbelow.

Effectoftransitiononstatementofcomprehensiveincomefor2022

(amountsinNOK1000)

Note26A-D

Note26ATradereceivablesandtradepayables

Inordertoachieveamorecorrectclassificationinthebalancesheet,theGrouphasdecidedtoreclassify receivablesrelatingtoearned,notinvoicedrevenuefromothercurrentassetstotradereceivables. Correspondingly,theprovisionfortradepayablesforwhichnoinvoicehasbeenreceivedhasalsobeen reclassifiedfromothercurrentliabilitiestotradepayables.

Note26BLeasing

Foroperatingleases,theleasepaymentshavebeenexpensedcontinuouslyunderNGAAP.AsIFRSdoesnot distinguishbetweenoperatingandfinancialleases,allleasesarerecognizedinthebalancesheetasright-of-use assetsandleaseliabilities.Thetransitionadjustmentsrelateexclusivelytotherentalofofficepremises.Forthese leases,theGrouphasdecidedtorecognizetheright-of-useassetswithacarryingamountasifIFRS16hadbeen appliedsincecommencementdate.Adiscountrateof4,6%hasbeenappliedwhencalculatingtheliabilityforthe officeleases.

Summaryofadjustmentsforofficeleases

Note26CReclassificationsrelatingtofinanceleases

InpreviousreportingunderNGAAP,theGroup'sliabilitiesrelatingtofinancialleaseshavebeenpresented togetherwithordinarybankloansinthebalancesheet.StartingfromthetransitiontoIFRS,thesearepresented separatelyasleaseliabilitiesinthebalancesheet.

Asofend2022,theGrouphadenteredintoseveralleaseagreementsfortheleaseofSTTunitsunder construction,butnotyethandedovertotheGroup.PreviousbalancesheetspreparedunderNGAAP,included assetsandliabilitiescorrespondingtotheaccruedpaymentsfromthebanktothemanufacturerofthe equipment.AnadjustmentofMNOK12,4isthereforemadetobothright-of-useassetsandleaseliabilitiessince IFRSdoesnotpermitrecognitionoftheseitemsuntilthedateofcommencementofthelease.

Note26DAcquisitionofSorbwaterTechnologyASin2022

InSeptember2022,theCompanyacquiredSorbwaterTechnologyAS.Priortothis;theCompanyhasnotbeen involvedinanybusinesscombinationsthatcouldbeeligibleforaretrospectiveapplicationofIFRS3.When accountingfortheacquisitionofSorbwaterTechnologyASunderNGAAP,allassessmentsandassumptionswere madeinlightofapossiblefuturetransitiontoIFRS.Asaresult,thedifferenceswerelimitedtothoseareaswhere NGAAPprohibitstheuseofIFRSsolutions.TheseareascompriseamortizationofgoodwillunderNGAAP,aswell asthetreatmentoftransactioncosts.WhiletransactioncostsarealwaysrecognizedasexpensesunderIFRS,they aretreatedaspartoftheconsiderationunderNGAAP,whichinpracticeleadstoincreasedgoodwill.

Summaryofadjustmentforgoodwill

GunnarWintherEliassen ChairmanoftheBoard

CarstenBrückner MemberoftheBoard

Sandnes,March15,2024

TheboardofdirectorsofSoiltechAS

OlafSkrivervik MemberoftheBoard

GlennÅsland MemberoftheBoard

EirikFlatebø MemberoftheBoard

JanErikTveteraas ChiefExecutiveOfficer

NOTESTOTHEFINANCIALSTATEMENTS

Note1Generalinformation

SoiltechAS(the'Company')isalimitedcompanydomiciledinNorway.TheregisteredofficeoftheCompanyis Koppholen25,4313,Sandnes,Norway.TheCompanyisaninnovativetechnologycompanyspecializinginthe treatment,recyclingandresponsiblehandlingofcontaminatedwaterandsolidindustrialwastestreamsatsite. TheCompanyislistedontheNOTCinOslowithtickercode'SOIL'.Thefinancialstatementsfortheyearended31 December2023wereapprovedandauthorizedforissueinaccordancewitharesolutionoftheboardofdirectors on19thofMarch2024.

Note2Summaryofgeneralaccountingpolicies

Thegeneralaccountingpoliciesappliedinthepreparationofthefinancialstatementsaresetoutbelow.Specific accountingpoliciesrelatedtotheindividualareasinthefinancialstatementsaredescribedintherelevantnotes.

Basisforpreparation

ThefinancialstatementhasbeenpreparedinaccordancewithNorwegianAccountingActandassociated regulations,aswellasGenerallyAcceptedAccountingPrinciples(GAAP)inNorway.Thefinancialstatementis presentedinNorwegianKroner(NOK)andhavebeenroundedtothenearestthousandunlessotherwisestated. Asaresultofroundingadjustments,amountsandpercentagesmaynotadduptothetotal.

Thefinancialstatementsarepreparedonagoingconcernbasis.

Currency

Transactionsinforeigncurrenciesaretranslatedattherateapplicableonthetransactiondate.Monetaryitemsin aforeigncurrencyaretranslatedintoNOKusingtheclosingrateatthebalancesheetdate.

Thecashflowanalysis

Thecashflowanalysishasbeenpreparedaccordingtotheindirectmethod.

Note3Revenues

Revenuerecognition

Overalldescriptionofcontractswithcustomers

TheGroup'srevenuemainlyderivefromthesaleofservicesrelatedtotreatmentofcontaminatedwater(i.e. slop),cuttingshandling,cleaningservicesandotherrelatedservices,forcustomerswithintheoil&gasindustry. Thekeyelementoftheservicedeliveriesisthedeploymentandsupervisionoftreatmentandhandling equipmentatthecustomer'ssite.Thecontractconsiderationiscomposedmainlyofagreeddailyratesfor equipmentandpersonnel,respectively,andreimbursementofcostsplusamarkup.Ratesvarydependingon whethertheequipmentisinactiveuseduringongoingoperationsorinstandby,forexamplewhenthe equipmentisonlocationbutnotinoperation.Costsofmobilizationanddemobilizationofequipmentand personnelarenormallyrecoveredthroughtheagreeddailyrates,exceptforsomecontracts,wheretheyare reimbursedseparately.Suchreimbursementare,however,generallynotmaterialinrelationtothetotalcontract consideration.Considerationisnormallyinvoicedmonthly,basedonactualdeliveries.

Accountingpolicies

Thecontractsareconsideredtoconsistofonlyoneperformanceobligation,whichissatisfiedovertime.Progress ismeasuredonthebasisofthetimetheSTTunitisavailabletoservicethecustomer.Inpractice,revenuebased ondailyratesarethusrecognizedwiththeamountthattheCompanyhasarighttoinvoice.Asapractical simplificationbasedonmateriality,anyfeesassociatedwithmobilizationanddemobilizationarerecognized linearlyovertheperiodofthecontracttheyrelateto.Costofmobilizationisconsideredtobecosttofulfila contractandarerecognizedasanassetwhenincurred.Theassetissubsequentlyamortizedoverthecontract period,ascostofmaterialsandpersonnelexpenses.

Revenuesbygeography

Revenuesfrommajorcustomers

Coststofulfilthecustomercontracts

Note4Personnelexpense&remunerationtoseniorexecutivesandboardofdirectors

Accountingpolicies

Personnelcostsareexpensedastheemployeesearntherighttothepaymentofwagesforhoursworked. Paymentstodefinedcontributionpensionareexpensedovertheperiodinwhichtheemployeesearntherightto thedeposit.

Pensions

followthestipulationsintheNorwegianMandatoryOccupationalPensionsAct.TheGroup'spensionscheme adherestotherequirements,assetintheAct.

Specificationofpersonnelexpenses

*Otherpersonnelexpensesincludeexpensesrelatedtoshare-basedpaymenttransactions.Pleaserefertonotes forConsolidationfinancialstatementforfurtherdetails.

Numberofemployees

Remunerationtoseniorexecutivesandboardofdirectors

ThepreviousCEOStigH.ChristiansenresignedfromhispositionApril2023.Noseverancepaymentwasmade. ThenewCEOJanErikTveteraasstartedinApril2023.

GunnarWintherEliassenwaselectedasnewChairmanoftheboardinDecember2023.ThepreviousChairmanof theboardJanErikTveteraascontinuesasCEO.DirectorRobertHvideMacLeodresignedfromboardinDecember 2023.

Note5Depreciationandamortisation

Specificationofdepreciationandamortisation

Note6Otheroperatingexpenses

Specificationofotheroperatingexpenses

Specificationofauditorsremuneration

Note7Relatedparties

Accountingpolicies

IntheParentcompany,thesubsidiariesandinvestmentsinanyassociatedcompanyarevaluedatcost.The investmentisvaluedatthecostoftheshares,lessanyimpairmentlosses.Animpairmentlossisrecognizedifthe impairmentisnotconsideredtemporary,inaccordancewithgenerallyacceptedaccountingprinciples. Impairmentlossesarereversedifthereasonfortheimpairmentlossisrectifiedinalaterperiod.

Dividends,Groupcontributionsandotherdistributionsfromsubsidiariesarerecognizedinthesameyearasthey arerecognizedinthefinancialstatementoftheprovider.Ifdividends/groupcontributionexceedswithheld profitsaftertheacquisitiondate,theexcessamountrepresentsrepaymentofinvestedcapital,andthe distributionwillbedeductedfromtherecordedvalueoftheacquisitioninthebalancesheetfortheparent company.

Subsidiaries

TheexpectedsynergiesfromtheSorbwaterpatentedbiodegradablechemicalsaredelayedandthebusinessplan hasthereforebeenrevised.ThedelayinsynergieshasresultedincertainthresholdsundertheSPAareuncertain tobemet.Consequently,thecontingentconsiderationofMNOK15thatwasrecognizedaspartofthe considerationhasbeenreversedandrecognizedasothergainin2023.Asaconsequenceofthis,awritedownof theinvestmentinSorbwaterTechnologyASofMNOK9.2hasbeenmade.Thiswritedownisreflectedunder financialexpenses.

Outstandingbalanceswithgroupcompanies

Note8Financialitems

Note9Incometax

Accountingpolicies

Thetaxexpenseconsistsofthetaxpayableandchangestodeferredtax.Deferredtax/taxassetsarecalculatedon alldifferencesbetweenthebookvalueandtaxvalueofassetsandliabilities,withtheexceptionof:temporary differenceslinkedtogoodwillthatarenottaxdeductible.Temporarydifferences,bothpositiveandnegative, whichwillorarelikelytoreverseinthesameperiod,arerecordedasanetamount.

Deferredtaxassetsarerecognisedwhenitisprobablethatthecompanywillhaveasufficientprofitfortax purposesinsubsequentperiodstoutilizethetaxasset.Thecompaniesrecognizepreviouslyunrecognized deferredtaxassetstotheextentithasbecomeprobablethatthecompanycanutilizethedeferredtaxasset. Similarly,thecompanywillreduceadeferredtaxassettotheextentthatthecompanynolongerregardsitas probablethatitcanutilizethedeferredtaxasset.Deferredtaxanddeferredtaxassetsaremeasuredonthebasis oftheexpectedfuturetaxratesapplicabletothecompaniesintheGroupwheretemporarydifferenceshave arisenbasedontaxrates(andtaxlaws)thathavebeenenactedorsubstantivelyenactedbytheendofthe reportingperiod.Deferredtaxanddeferredtaxassetsarerecognizedattheirnominalvalueandclassifiedasnoncurrentassetinvestments(non-currentliabilities)inthebalancesheet.

Temporarydifferencesrelatedto:

AgroupcontributionisgiventosubsidiarycompanySorbwaterTechnologyASthatwillutilizethisagainstitsloss carryforward.

Note10Intangibleassets Accountingpolicies

Intangibleassetsmainlycomprisegoodwilloriginatingfrompreviousacquisitions.Goodwillisnotdepreciatedbut isinsteadsubjecttoannualimpairmenttesting.Otherintangibleassetsincludepatentsandsoftwarewhichare recognisedinaccordancewiththecostmethodanddepreciatedovertheirexpectedeconomiclifetime.

Note11Property,plant&equipment

Accountingpolicies

Property,plant&equipmentconsistsofsloptreatmentunits,equipmentforcuttingshandlingandswarfremoval, skipsandvariousotherequipment.Property,plant&equipmentarerecognizedinaccordancewiththecost methodanddepreciatedovertheirexpectedeconomiclifetime.

Note12Leases

Accountingpolicies

TheCompanyleasescertainoperatingequipmentwhichinturnisleasedtoourcustomers.TheCompanyhas substantiallyalltherisksandrewardsofownershipandtheleasesareclassifiedasfinancialleases.Financial leasesarecapitalizedattheinceptionoftheleaseatthelowerofthefairvalueoftheleasedassetorthepresent valueofthefutureminimumleasepayments.Eachleasepaymentisallocatedbetweenthecorresponding financialleaseliabilityandfinancechargestoachieveaconstantrateontheliabilityoutstanding.

theStatementofProfitandLoss.Thedepreciationpolicyforassetsheldunderfinancialleasesisconsistentwith thatforownedassetsandisdepreciatedoverestimatedeconomiclife.

Overalldescriptionoftheleasesoftheparentcompany

Theparentcompanyprimarilyleasessloptreatmentunits(STT).Forsloptreatmentunits(STT),theleasetermis usuallybetween4and7years.

Specificationofright-of-useassets

Specificationofleaseliabilities

Contractualpaymentsonleases

Note13Otherassetsandliabilities

Accountingpolicies

Non-currentassetsareassetsintendedforlong-termownershiporuse.Allotherassetsarecurrentassets. Receivablesthatfalldueforpaymentwithinoneyearshallnotbeclassifiedasnon-currentassets.Similarcriteria applytoliabilities. Othercurrentassetsarerecordedinthebalancesheetatnominalvaluelessprovisionsforexpectedcreditlosses.

Othernon-currentassets

Othercurrentassets

Othernon-currentliabilities

Note14Tradereceivables

Accountingpolicies

Tradereceivablesarerecognizedatanamountequaltothetransactionprice,lessprovisionsforexpectedcredit losses.TheGroupappliesthesimplifiedapproachtomeasuringexpectedcreditlosseswhichusesalifetime expectedlossallowanceforalltradereceivables.

Note15Cashandcashequivalents

Accountingpolicies

Cashandcashequivalentscomprisemostlyordinarybankdeposits.Thestatementofcashflowsispreparedusing theindirectmethod.Interestincomeandexpensesarepresentedasinvestingandfinancingactivities, respectively.

Restrictedcash

Note16Borrowings

Accountingpolicies

Borrowingsareinitiallyrecognizedatfairvalue,includingtransactioncostsdirectlyattributabletothe transaction,andaresubsequentlymeasuredatamortizedcost.

Covenants

TheloanfacilitywithSandnesSparebankenteredin2023hasthefollowingcovenants: -NIBD/EBITDA>4 -Bookequity>30%

-Approvalfrombankifdividend/groupcontribution

Specificationofborrowings31.12.2023

Specificationofborrowings31.12.2022

Contractualpaymentsonborrowings31.12.2023

Forloanswithfloatinginterestrates,theamountsabovearecalculatedusingthecurrentinterestrateperthe relevantyearend.

Carryingamountofassetspledgedassecurity

Note17Sharecapitalandshareholderinformation

Sharecapitalandownershipstructure

Thesharecapitaloftheparentcompany,SoiltechAS,amountstoNOK740543asof31December2023,and consistsofatotalof7,405,430ordinaryshares,eachwithanominalvalueofNOK0.1.

Shareholdersasof31.12.2023

ShareholdersNumberofshares

Ownership interest

WinthershallDEATechnologyVenturesGmbH106782014,4%

HildrAS74743010,1%

WellexASbyGlennÅsland 74743010,1%

KnattenIASbyJanErikTveteraas7003259,5%

CarnegieInvestmentBankAB5609807,6%

SkagenkaienInvesteringAS5413807,3%

TveteraasInvestAS5217107,0%

DNBBankASA3457904,7%

PimaASbyEirikFlatebø 2028302,7%

HavnebaseEiendomAS1584702,1%

ZetlitzCapitalAS1020301,4%

TucanHoldingAS1005601,4%

CampoEiendomAS830001,1%

ForteTrønder 798001,1% Ryder780001,1%

Top15shareholders603755582%

Other136787518%

Total7405430100%

IncludedinOthershareholdersare5000sharesownedbyboardmemberOlafSkrivervik.Foreignownershipwas 32,4%atyear-end2023(2022:32,4%)

Note18Financialriskandcapitalmanagement

Seeinformationinconsolidatedfinancialstatement.

Note19Climaterisk

Seeinformationinconsolidatedfinancialstatement.

Note20RemunerationtoseniorexecutivesandBoardofDirectors

Seeinformationinconsolidatedfinancialstatement.

Note21Share-basedpaymenttransactions

Seeinformationinconsolidatedfinancialstatement.

Note22Eventsafterthereportingperiod

Therearenoeventsotherthanbusinessactivityintheordinarycourseofbusinessafterthebalancesheetdateof anadjustingornon-adjustingnature.

TotheGeneralMeetingofSoiltechAS

IndependentAuditor’sReport

Opinion

WehaveauditedthefinancialstatementsofSoiltechAS,whichcomprise: thefinancialstatementsoftheparentcompanySoiltechAS(theCompany),whichcomprisethe balancesheetasat31December2023,thestatementofprofitandloss,thestatementofchanges inequityandstatementofcashflowsfortheyearthenended,andnotestothefinancial statements,includingasummaryofsignificantaccountingpolicies,and theconsolidatedfinancialstatementsofSoiltechASanditssubsidiaries(theGroup),which comprisethestatementoffinancialpositionasat31December2023,thestatementof comprehensiveincome,statementofchangesinequityandstatementofcashflowsfortheyear thenended,andnotestothefinancialstatements,includingmaterialaccountingpolicyinformation.

Inouropinion

thefinancialstatementscomplywithapplicablestatutoryrequirements, thefinancialstatementsgiveatrueandfairviewofthefinancialpositionoftheCompanyasat31 December2023,anditsfinancialperformanceanditscashflowsfortheyearthenendedin accordancewiththeNorwegianAccountingActandaccountingstandardsandpracticesgenerally acceptedinNorway,and theconsolidatedfinancialstatementsgiveatrueandfairviewofthefinancialpositionoftheGroup asat31December2023,anditsfinancialperformanceanditscashflowsfortheyearthenended inaccordancewithIFRSAccountingStandardsasadoptedbytheEU.

BasisforOpinion

WeconductedourauditinaccordancewithInternationalStandardsonAuditing(ISAs).Ourresponsibilities underthosestandardsarefurtherdescribedintheAuditor’sResponsibilitiesfortheAuditoftheFinancial Statementssectionofourreport.WeareindependentoftheCompanyandtheGroupasrequiredby relevantlawsandregulationsinNorwayandtheInternationalEthicsStandardsBoardforAccountants’ InternationalCodeofEthicsforProfessionalAccountants(includingInternationalIndependenceStandards) (IESBACode),andwehavefulfilledourotherethicalresponsibilitiesinaccordancewiththese requirements.Webelievethattheauditevidencewehaveobtainedissufficientandappropriatetoprovide abasisforouropinion.

OtherInformation

TheBoardofDirectorsandtheManagingDirector(management)areresponsiblefortheinformationinthe BoardofDirectors’reportandtheotherinformationaccompanyingthefinancialstatements.Theother informationcomprisesinformationintheannualreport,butdoesnotincludethefinancialstatementsand ourauditor’sreportthereon.Ouropiniononthefinancialstatementsdoesnotcovertheinformationinthe BoardofDirectors’reportnortheotherinformationaccompanyingthefinancialstatements.

Inconnectionwithourauditofthefinancialstatements,ourresponsibilityistoreadtheBoardofDirectors’ reportandtheotherinformationaccompanyingthefinancialstatements.Thepurposeistoconsiderifthere ismaterialinconsistencybetweentheBoardofDirectors’reportandtheotherinformationaccompanying thefinancialstatementsandthefinancialstatementsorourknowledgeobtainedintheaudit,orwhetherthe BoardofDirectors’reportandtheotherinformationaccompanyingthefinancialstatementsotherwise appeartobemateriallymisstated.WearerequiredtoreportifthereisamaterialmisstatementintheBoard

PricewaterhouseCoopersAS,Kanalsletta8,Postboks8017,NO-4068Stavanger T:02316,org.no.:987009713MVA,www.pwc.no Statsautoriserterevisorer,medlemmeravDennorskeRevisorforeningogautorisertregnskapsførerselskap

ofDirectors’reportortheotherinformationaccompanyingthefinancialstatements.Wehavenothingto reportinthisregard.

Basedonourknowledgeobtainedintheaudit,itisouropinionthattheBoardofDirectors’report isconsistentwiththefinancialstatementsand containstheinformationrequiredbyapplicablestatutoryrequirements.

ResponsibilitiesofManagementfortheFinancialStatements

ManagementisresponsibleforthepreparationoffinancialstatementsoftheCompanythatgiveatrueand fairviewinaccordancewiththeNorwegianAccountingActandaccountingstandardsandpractices generallyacceptedinNorway,andforthepreparationoftheconsolidatedfinancialstatementsoftheGroup thatgiveatrueandfairviewinaccordancewithIFRSAccountingStandardsasadoptedbytheEU. Managementisresponsibleforsuchinternalcontrolasmanagementdeterminesisnecessarytoenablethe preparationoffinancialstatementsthatarefreefrommaterialmisstatement,whetherduetofraudorerror.

Inpreparingthefinancialstatements,managementisresponsibleforassessingtheCompany’sandthe Group’sabilitytocontinueasagoingconcern,disclosing,asapplicable,mattersrelatedtogoingconcern. ThefinancialstatementsoftheCompanyusethegoingconcernbasisofaccountinginsofarasitisnotlikely thattheenterprisewillceaseoperations.TheconsolidatedfinancialstatementsoftheGroupusethegoing concernbasisofaccountingunlessmanagementeitherintendstoliquidatetheGrouportocease operations,orhasnorealisticalternativebuttodoso.

Auditor’sResponsibilitiesfortheAuditoftheFinancialStatements

Ourobjectivesaretoobtainreasonableassuranceaboutwhetherthefinancialstatementsasawholeare freefrommaterialmisstatement,whetherduetofraudorerror,andtoissueanauditor’sreportthatincludes ouropinion.Reasonableassuranceisahighlevelofassurance,butisnotaguaranteethatanaudit conductedinaccordancewithISAswillalwaysdetectamaterialmisstatementwhenitexists.Misstatements canarisefromfraudorerrorandareconsideredmaterialif,individuallyorinaggregate,theycould reasonablybeexpectedtoinfluencetheeconomicdecisionsofuserstakenonthebasisofthesefinancial statements.ForfurtherdescriptionofAuditor’sResponsibilitiesfortheAuditoftheFinancialStatements referenceismadeto:https://revisorforeningen.no/revisjonsberetninger

Stavanger,15March2024

PricewaterhouseCoopersAS

RoyHenrikHeggelund StateAuthorisedPublicAccountant (Thisdocumentissignedelectronically)