Bulk Infrastructure Group AS

CHAPTER

Annual Report 2023

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Annual Report 2023

BULK INFRASTRUCTURE GROUP AS / LETTER FROM THE CEO AND EXECUTIVE CHAIR

The past year has once again shown us how fast things

can change in our business environment. It also showed

the importance of a strong foundation enabling companies

to take advantage of the opportunities this represents. Bulk

Infrastructure has been a trusted infrastructure partner for

more than 15 years.

In 2023 our systematic approach of building a solid

infrastructure platform really paid off. We were able to

leverage and execute on our platform across all business

areas and truly capitalize on the foundation we have spent

the last years building.

The rise of artificial intelligence has triggered an

exponential increase in the need for robust and scalable

data center solutions. We are pleased to report that Bulk

Infrastructure has not only recognized this demand but has

proactively responded by enhancing and expanding our

infrastructure capabilities. This has allowed us to meet the

evolving needs of businesses and organizations seeking

reliable and high-performance data center solutions. In

2023 we sold out all of our built capacity at our locations in

Norway and we are prepared to take on the rising demand

going forward.

Our industrial real estate team demonstrated remarkable

agility, responding swiftly to the dynamic demands of

the market. The team’s ability to execute with speed

Executing in a new reality

and flexibility has allowed us to capitalize on emerging

opportunities in the industrial sector. We have successfully

delivered high-quality industrial spaces that meet the

evolving needs of our clients, contributing significantly to

our overall success this year.

Our fiber team has been at the forefront of overseeing large

digital infrastructure projects for some of the world’s most

renowned and demanding customers. The complexity of

digital infrastructure projects requires precision, expertise,

and a relentless commitment to excellence. Our fiber

team’s proven track record in project management and

execution has positioned Bulk Infrastructure as a trusted

partner in the digital realm.

While the company has taken leaps and develop a lot in

the past year, we still have sustainability and sustainable

business at the core of our operations. Sustainability is not

just a checkbox on our agenda—it is an integral part of our

identity and a guiding principle in every decision we make.

Our Bulk-team based on respect, creative power and

passion is the foundation we are built on. As we reflect on

our successes in 2023, we look ahead with enthusiasm

and a sense of responsibility. Bulk Infrastructure is poised

for growth, innovation, and leadership in the Nordic

infrastructure space as we continue our journey forward.

In 2023 our systematic approach of

building a solid infrastructure platform

really paid off. We were able to leverage

and execute on our platform across all

business areas and truly capitalize on

the foundation we have spent the last

years building.

Jon Gravråk

CEO

Peder Nærbø

Founder and Executive Chair

Photo credit: InterGlobix Magazine

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Responsibility statement

Auditor’s report

Group presentation

Bulk Infrastructure Holding is a leading

provider of sustainable digital infrastructure in

the Nordics. We believe in the value creation

opportunity of enabling our digital society to be

fully sustainable

The Group consists of three business areas that develop

successfully with an increasing degree of autonomy,

and a Group Management that explores future business

opportunities as well as supporting the business areas.

All of Bulk’s business areas have an impact on the

environment, on society and are confronted with

governance issues. It is a fundamental part of the Bulk

culture to accelerate the positive impact and reduce any

potential negative effects.

The topic of this annual report is Sustainability as a

Business. Transparency is necessary, especially when

areas in need of improvement are exposed.

In 2022 Bulk upgraded the group’s ESG framework

(Environmental, Social and Governance). Previously, the

framework was concentrated on environmental impact.

Now, social impact and governance issues have been

included. Please visit bulk.no/sustainability for more

information.

A company’s financing also needs to be sustainable. In a

challenging financial market, Bulk Infrastructure Group AS

succeeded to issue a new senior unsecured green bond of

NOK 500 million. The net proceeds from the bond will be

utilized in accordance with the green bond framework.

Bulk is not perfect. By exposing our imperfections,

you may help us getting closer.

Annual Report 2023

BULK INFRASTRUCTURE GROUP AS / GROUP PRESENTATION

Key gures (Consolidated)

(Figures in NOK million)

2023 2022 %

Revenue 396.8 284.4 40%

Revenue property sales 15.3 -8.3 284%

Revenue fiber sales 52.0 - 100%

Total revenues 464.1 276.1 68%

EBITDA 131.7 -42.8 408%

Fair value change on investment property -176.6 369.2 52%

Profit for the year -415.8 -442.5 6%

Assets 9,813.0 7,974 23%

- Investment property 4,169.1 4,628 -10%

- Property, plant and equipment 3,210.5 2,339 37%

Equity ratio (%) 41% 44% 15%

Number of employees 89 81 10%

Financial highlights

Throughout the year, Bulk has achived a

significant growth in signed annual recurring

revenue within the Data Center business.

We are already observing parts of this effect

through the growth in this year’s revenue

excluding asset sales, which increased by 40

per cent compared to last year. We expect to

see the full potential of revenue growth as a

result of these signings in the coming years.

As a company with substantial exposure to

investment property our financial results are

influenced by macro changes in the capital

market. In particular increasing interest rates

and higher inflation have led to increasing

yields in the Nordic real estate market, thus

negatively influencing fair market value of our

investment property in 2023, as well as 2022.

The decrease in investment property is due to

the investment properties held for sale as of

year end 2023, amounting to approximately

NOK 670 million.

Bulk Industrier AS (51.7%)

BGO King HoldCo Sarl (21.9%)

Geveran Trading Company Ltd. (11.3%)

Other (15.1%)

Ownership structure

Bulk Infrastructure Group AS is owned by Bulk Infrastructure Holding AS, which has the

following ownership structure:

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Annual Report 2023

BULK INFRASTRUCTURE GROUP AS / BULK DATA CENTERS

In 2023, Bulk Data Centers affirmed its position

as one of the leading digital infrastructure players

in the Nordic region, leveraging renewable energy

and the right locations to power a scalable,

sustainable platform that includes state-of-

the-art colocation solutions. The expanding

development of Artificial Intelligence (AI)

technologies has triggered a significant surge in

demand for the services, positioning Bulk Data

Centers for success in the forthcoming years.

With three large scale data centers located in Oslo (Bulk

Data Center OS-IX), Kristiansand (Bulk Data Center N01)

and Esbjerg (Bulk Data Center DK01), Bulk provides for

the data center needs of public and private sectors across

Europe.

Operational Excellence

Throughout the year, Bulk Data Centers have focused on

enhancing the operational efficiencies and expanding the

infrastructure to meet the escalating demand. The data

centers are designed to exceed industry standards for

energy efficiency, operational reliability, and security.

In May a US Global Investment Manager relocated to the

N01 Datacenter campus in under 10 week, exceeding the

customer’s expectations with its unique customer-based

approach. The company was constrained by their existing

data center site in NY and London as a result of their

increasing requirements for high density GPU and CPU-

based hardware. The ability to scale up their operations to

meet these growing demands played an important role in

why they relocated to the N01 datacenter campus.

Bulk Data Centers and CTS Nordics joined forces this

year to expand the world’s largest renewable-powered

data center campus. CTS Nordics AS, the leading Nordic

design and build contractor for sustainable data centers,

was selected to further develop Bulk’s N01 Datacenter

campus in Kristiansand, Norway. The campus currently has

Bulk Data Centers

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Auditor’s report

Annual Report 2023

BULK INFRASTRUCTURE GROUP AS / BULK DATA CENTERS

available capacity in excess of 100MW, is in the process of

adding an additional 300MW, and has potential to grow to a

1 GW campus.

Moreover, Bulk Data Center secured Taiga Cloud with

Ardent Data Centers (part of Northern Data AG) to launch

their European Service from the N01 Datacenter campus.

In September the new 12 MW data center went live on

N01 datacenter campus and is fully contracted with a

combination of new and existing customers. The design for

high density power and cooling solutions to meet growing

market demand was also developed. 2023 also marked the

start of the new 42 MW data center incorporating the new

design principles. The new expansion of additional 42 MW

of IT capacity will be online within the next 18 months.

The OS-IX facility located in Oslo also saw a lot of progress

during 2023 by securing local and international customers

including hyperscale and building a foundation for new and

existing business opportunities going into 2024.

The Bulk Data Center team is growing and hired a new

Partner Director this year focused on building strategic

relationship with strong partners including Nvidia and

OEM’s.

Sustainability and Renewable Energy

Sustainability is at the core of the business model. By

harnessing the power of renewable energy sources,

Bulk Data Centers have significantly reduced the carbon

footprint, aligning with global efforts to combat climate

change. This approach has not only benefited the

environment but also provided a competitive edge, as

clients increasingly prioritize green solutions in their data

storage and processing needs.

Bulk Data Centers aims to minimize the environmental

impact and seek solutions together with renowned partners

and research groups for heat reuse from our data centers

enabling other industries to develop.

This includes:

• SINTEF Digital

• SINTEF Energy Research

• The University of Oslo

• NORCE Norwegian Research Centre

• NIBIO Norwegian Institute of Bioeconomy Research

Market Demand and Growth

The exponential growth in AI development has been a

major catalyst for the increased demand for our data center

solutions. AI technologies require substantial computational

power and data storage capabilities, both of which are

hallmarks of the service offerings. The ability to provide

scalable solutions has made Bulk Data Centers a go-to

provider for companies at the forefront of AI research and

development, ensuring that the team are well-positioned

to capture further market share as this sector continues to

evolve.

Looking Forward

As we look to the future, the strategic focus will remain on

expanding the infrastructure and customer base, enhancing

our sustainability initiatives, and exploring innovative

technologies to further improve our service offerings. The

digital transformation journey is accelerating, and with the

robust platform, Bulk Data Centers are uniquely positioned

to support the growing needs of the global economy.

Bulk Data Centers are committed to investing in the

development of the facilities and services to ensure that we

continue to offer some of the best data center solutions in

the Nordic region.

The Bulk Data Centers business area stands on the brink

of an exciting new era. With a solid foundation built on

sustainability, innovation, and operational excellence, we

are poised for growth in the years to come. The journey this

far has been an exciting one, but the path ahead promises

even greater achievements as we continue to support the

digital infrastructure needs of a rapidly advancing world.

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Bulk Fiber Networks

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Auditor’s report

Annual Report 2023

BULK INFRASTRUCTURE GROUP AS / BULK FIBER NETWORKS

Bulk Fiber Networks

While 2022 was the year completing construction,

2023 was the first year fully operational with

live traffic on all systems. Bulk Fiber Networks

continues to manifest its position as a Nordic

expert for global players. Several existing

customers acquired additional capacity in the

network and new customers have signed for long

term agreements to further grow their presence

in the Nordic region.

The growing recognition of the vital role that digital

infrastructure plays in the Nordics underscore the need

to improve the diversity and capacity of fiber routes to the

global market. Bulk Fiber Networks plays an instrumental

role for the necessary long-haul fiber backbone connection

for the Nordics, enabling large scale data processing.

Our systems consist of more than 10,000 kilometers of

new-built subsea and terrestrial fiber cable systems. Bulk

Fiber Networks has five systems in operation or under

development:

• Havfrue: Trans-Atlantic system connecting US and

Denmark with branches to Ireland and Norway

• Havhingsten: Subsea system linking the UK and

Ireland with Denmark

• Havsil: Express route from N01 campus Kristiansand

to DK01, Esbjerg, which includes the shortest subsea

cable between Norway and Denmark and a unique

terrestrial route across Denmark.

• Inter-city Ring: Connecting Oslo, Kristiansand,

Stavanger and Bergen

• Leif Erikson: Subsea system connecting Canada into

the Nordics

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Annual Report 2023

BULK INFRASTRUCTURE GROUP AS / BULK FIBER NETWORKS

“Gateways into Norway”

The Fiber Network-team’s commitment to connecting the

Nordic region with a robust backbone fiber infrastructure

is underlined by their focus on solving for a healthy carrier

community. In 2023, BFN completed the third fiber route for

N01 Data Center Campus, securing even further resilience

for the data center. The landing of a new third-party fiber

system into Bulk premises in both OS-IX and N01 Data

Center also enhanced the position of the sites as the

main “gateways into Norway” for customers worldwide.

This dedication ensures that Bulk Data Center customers

have the flexibility to scale their capacity in a competitive

landscape with a variety of carriers, which allows them a

global reach from all Bulk data centers-powered by local

renewable energy sources.

Bulk Fiber Networks maintained 100% up-time for all

Telehousing services through the full year of 2023 and

continue to focus on fine-tuning the operational model to

ensure world-class customer service level.

Sustainable operations

The global market for fiber capacity continues to grow,

driven by increased demand for network resilience, higher

volumes and diversity, fueled by the explosive growth from

AI and focus on security for critical applications.

Recognizing the need to create new fiber routes to areas

with a surplus of renewable energy, Bulk Fiber Networks

has taken the lead in investigating a potential cable

connection between Norway and Canada, known as the

Leif Erikson system. This cable system would significantly

enhance data processing efficiency by shifting compute-

loads to more efficient northern locations and at the same

time give regional and remote communities high-capacity

connectivity.

A requirement for all suppliers selected by Bulk is that their

operations are run sustainably. Bulk takes pride in our

efforts to reduce environmental impact when fiber routes

are planned both subsea and on land.

Bulk’s Fiber Networks unlocks the Nordic region’s

sustainable data centers for customers globally. High-

capacity and diverse fiber networks ensure that global

customers no longer need to rely on local data centers

Bulk takes pride in

our efforts to reduce

environmental impact

when fiber routes are

planned both subsea

and on land.

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Annual Report 2023

BULK INFRASTRUCTURE GROUP AS / BULK INDUSTRIAL REAL ESTATE

Bulk Industrial Real Estate

Bulk Industrial Real Estate (BIRE) aims to be

the Nordics’ leading real estate developer of

warehousing, logistics and industrial buildings,

offering superior locations with strategic

locations and sustainable logistics solutions. In

a rapidly changing market, BIRE continues to

deliver new projects and securing key contracts.

In 2023 BIRE completed Bulk Wood, a new innovation

project exploring more sustainable building concept for

BIRE’s warehouse- and logistics buildings. The Bulk Wood-

module is based on BIRE’s standardized warehouse-

module, yet with specifications that give the finished

building up to 50 percent lower carbon footprint than an

equivalent reference warehouse building. Bulk Wood

replaces the steel support structure with glulam (glued

laminated timber). The goal is that this will eventually

become part of the established standard module.

BIRE signed a key contract with MEKO, one of the leading

automotive spare-parts chains in the northern Europe, at

Bulk Park Vestby. The new facility will unify MEKO’s goods

handling in Norway and is expected to provide improved

service and accessibility for customers. The approximately

32,000-square-foot warehouse will be handed over in

February 2025 and is scheduled to be fully operational by

the end of 2025.

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Auditor’s report

Annual Report 2023

BULK INFRASTRUCTURE GROUP AS / BULK INDUSTRIAL REAL ESTATE

Other key highlights in 2023

• Jernholmen 49 in Denmark: Total rebuild of existing

office building to new headquarter for global logistics

company

• Namron III in Vestby: New building and completion

of third and final building stage for Namron/

Elektroimportøren

• Bulk Park Lindeberg: Rebuild of the Farex-property

for tenant Tamek

Landbank with potential

BIRE’s strategic landbank contains more than 700,000 sqm

of owned land, as well as options for an additional 700,000

sqm of land, all located in highly attractive logistics areas.

Throughout the year, Bulk has strengthened its ability to

effectively rezone and regulate land in the existing land

bank, as well as the ability to identify and obtain new land

areas for the land bank. Bulk strives to maintain excellent

communication and cooperation with the local communities

where Bulk has activities.

Sustainable operations

All BIRE projects with a size above 5,000 sqm are from

2021 BREEAM-NOR certified and equipped with roof solar

panels as part of our standard offering. All larger new builds

are designed to meet energy classification A. Bulk has

through 2023 increased the solar production capacity to a

total of 4.6 MWp in 2023, contributing to a total production

of 2.6 GWh of renewable energy through the year. With

additional solar panels ordered to be installed during 2024

and 2025, we will have a total installed capacity of more

than 9 MWp and an estimated annual production of approx.

7.4 GWh.

Sustainability is a key focus area for BIRE, impacting all

aspects of decision making. Bulk aims to minimize the

environmental impact when developing and managing

properties.

BIRE currently use two internationally recognized

environmental certifications for the industrial properties:

BREEAM in Norway and Sweden, and DGNB in Denmark.

This year Bulk also completed its first fossil free

construction site at Bulk Park Vestby. Bulk Industrial Real

Estate aims to implement fossil-free construction sites on

all our future construction projects.

Through planning, Bulk is reducing its environmental

impact through achieving the most efficient utilization

of existing plots. Planning includes the performance of

ecological surveys, mapping historical landmarks, the

impact on water quality and more.

Bulk aims to minimize

the environmental impact

when developing and

managing properties.

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Annual Report 2023

BULK INFRASTRUCTURE GROUP AS / BOARD OF DIRECTORS REPORT 2023

Business description

Bulk Infrastructure Group AS is a leading provider of

sustainable digital infrastructure in the Nordics. We are an

industrial investor, developer and operator of industrial real

estate, data centers and dark fiber networks. We believe in

the value creation opportunity of enabling our digital society

to be fully sustainable. Hence our vision: Racing to bring

sustainable infrastructure to a global audience.

Our three Business Areas

Bulk Industrial Real Estate is a Nordic real estate

developer and owner, specializing in industrial buildings,

large modern warehouses, cross-dock terminals and

logistics parks. We seek to be the preferred partner for

our customers, offering prime locations, state-of-the-

art facilities and sustainable solutions. The business

area was established in 2006 and has demonstrated a

significant ability to develop industrial properties for a

large and diversified portfolio of customers. In 2023 we

have completed more than 50 development projects since

establishment, summing up to more than 500,000 square

meters of high quality, flexible and energy efficient facilities.

We also own a considerable portfolio of yielding properties,

and a vast plot bank, allowing us to take part in value creation

in all phases of real estate development and ownership.

Bulk Data Centers is an industrial developer and operator

of data centers and data center services across the

Nordics. Bulk has a portfolio of assets, capabilities and

partners to serve any data center customer requirement

in a fast, secure, cost efficient and sustainable way. We

operate scalable facilities, we continue to add new sites

to our portfolio, and we have access to strategically

located land. We have in-house expertise in data center

design, engineering and operations that combined with our

industrial real estate development experience and dark

fiber network deployments allow us to shape the full value

chain of the data processing infrastructure. We can serve

customers in dedicated hyperscale facilities and customers

in need of server racks in a Colo environment.

Bulk Fiber Networks owns and controls dark fiber

infrastructure with the purpose of enabling the Nordics

for large scale data processing. Our fiber infrastructure

is modern with high capacity including both subsea and

terrestrial systems. We offer dark fiber, telehousing and

cable landing facilities to carriers, large scale data center

customers and others that want to produce bandwidth

services on top of our infrastructure. Bulk considers itself

an infrastructure provider within fiber, being a partner

rather than a competitor to traditional carriers. Bulk

has available thousands of km of dark fiber, including

both intercontinental, North European and intra-Nordic

infrastructure that connects main European markets as

well as the US. We continue to explore new subsea and

terrestrial fiber routes that could be strategic enablers for

the data center growth in the Nordics.

Investment criteria

• Sustainability: Target opportunities that enable or

deliver a fundamentally more sustainable global

society

• Infrastructure: Invest in infrastructure that is critical for

the global, modern society

• Long term perspective and Scalable: Ability and

willingness to invest with an industrial mindset with

patience and focus on scalability from the start

• Nordic: Bulk Leverage the Nordic region’s favorable

business climate, sustainable power sources and

political stability

The investment criteria are set to ensure a mindset and

focus to support the Group’s long-term vision. The Group

has a strong capital reallocation capability that makes it

robust to fundamental changes in market dynamics.

The Group´s headquarter is in the city of Oslo in Norway.

2023 in short

Our financial results are a consolidation of different

business models within our three Business Areas. Some

of these business models represent financial results that

can vary substantially from one financial reporting period

to another despite limited variability in the underlying

business. The primary reasons for such fluctuations are a)

sales of Industrial Real Estate projects, and b) difference

between timing of cash flow and revenue recognition for

customer contracts within our Fiber Networks business

in IFRS reports, due to the business model of selling

Indefeasible Rights of Use (IRU). Please also see note 2.

However, as our projects are finalized, and the volume of

customer contracts grows, the underlying recurring revenue

is increasing at a steady pace. The effect of one-offs as

mentioned above, will have less impact on our financials as

the overall revenue is higher.

Total revenues of NOK 464.1 million compared to NOK

276.1 million last year.

Industrial Real Estate: The Group signed five contracts

in 2023, of which two were renewals for existing tenants,

and the others were with new tenants. One of the new

signings was at Bulk Wood, the fully integrated engineering

and sustainability initiative with the purpose of replacing

steel with wood. Bulk Wood was handed over at the end

of 2023. The second signing allows the development of

a plot in Hanekleiva, which was acquired by Bulk in the

third quarter of 2023. The third new signing was at one of

Bulk’s existing plots in Vestby. The Jernholmen project in

Denmark was successfully handed over to the tenant. Six

more roof top solar systems have been completed in 2023.

The accumulated effect on Bulk’s roof top solar systems is

now more than 2,000 MWp. Leman II and DSV in Vestby,

and Lettbutikk in Enebakk received their final BREEAM-

NOR certificates. All projects achieved the certification

“Very Good.

Board of Directors Report 2023

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Auditor’s report

Annual Report 2023

BULK INFRASTRUCTURE GROUP AS / BOARD OF DIRECTORS REPORT 2023

Data Centers: In 2023, the Data Center business

unit experienced significant growth, with total revenue

increasing by 36% and signed annual recurring revenue

by 169% compared to 2022. We observed a significant

increase in our IT capacity in 2023, with megawatts sold

tripling from 7 to 21 and continue to experience consistent

interest and demand from existing and new customers.

The 12MW fully contracted forth data center at N01

Campus went live in Q3 2023, with the first customer

deployed. In Q1 2024 the facility has seen one of Bulk’s

largest customer deployment (to date). Subsequently,

investment has been committed for the fifth facility of

42MW IT capacity, designed for AI and HPC workloads

- installation of the steel struts and shell is progressing.

When complete the campus will be close to 60MW IT

capacity. Simultaneously, construction is in progress for

three new data halls at our OS-IX facility, totaling more than

5MW IT capacity. The expansion is positioned to effectively

address the demand from regional and international cloud

and enterprise companies for our Oslo site. In addition,

we have signed additional grid connection for 30MW at our

DK01 campus in Esbjerg, Denmark and have secured the

purchase of 173,000sqm of additional land. Planning for

site development, including the construction of supporting

power stations, is underway.

Fiber Networks: The last branch of the Havfrue cable

system landed successfully in Ireland in the end of

2022 and was ready for service in Q1 2023. A customer

exercised an option for the cable system on the Irish

branch, of which the first part of the transaction was

completed in Q1, and the second part was finalized in the

end of Q4 2023. The Group acquired the remaining part

of the Havhingsten cable system in 2023. Fiber Networks

is a co-builder of the system. The subsea cable system

connects Denmark, the United Kingdom and Ireland and

has been ready for service since Q1 2022.

Group development: Bulk Infrastructure and/or relevant

subsidiaries have transitioned from ISO 27001:2013 to

27001:2022 during the year. In addition, the data center in

Denmark was certified for the first time under ISO 22301 in

2023.

Group financing: Bulk Infrastructure Group AS completed

a new senior unsecured green bond issue of NOK 1,250

million, with a 4.5 year tenor. The bond is listed on Oslo

Børs as of October 2023. The net proceeds from the bond

issue will be used in accordance with the green bond

framework, including repurchasing approximately NOK 413

million in the outstanding bond ISIN NO0010865876.

Following the current security situation in Europe, Bulk has

increased its security activities concerning sub-sea and

terrestrial fiber cables in general.

Going concern

In accordance with Section 3-3a of the Norwegian

Accounting Act, we hereby confirm the assumption of going

concern. The assumption is based on year-end 2023 status

and The Group’s long-term strategic forecasts for the years

ahead. The Group has a solid financial position.

Future development

Industrial Real Estate - The demand for new and modern

industrial properties remains strong and we expect stable

demand going forward. The Group has in 2023 signed two

new lease agreements for existing properties, in addition to

one new project already delivered in the end of 2023, and

two new projects to be handed over in 2024 and beginning

of 2025. Bulk is also involved in zoning and development

of new industrial real estate locations, both alone and

in partnerships. Bulk In-dustrial Real Estates’ strategic

landbank contains more than 700 000 sqm of owned land,

as well as options for an additional 700 000 sqm of land, all

located in highly attractive logistics areas. Throughout the

year, Bulk has strengthened its ability to effectively rezone

and regulate land in the existing land bank, as well as the

ability to identify and obtain new land areas for the land

bank. Bulk strives to maintain excellent communication and

cooperation with the local communities where Bulk has

activities. The company is in a dispute with the municipality

of Køge in Denmark regarding development of a plot

acquired in 2020. The outcome of the dis-pute is uncertain,

and no provision has been made as of year end 2023.

Data Centers - The Nordic data center market is

experiencing notable growth and expansion in capacity

with big projects such as the well-publicized Google data

center in Norway. Fueled by increasing demand for AI/

HPC data processing and storage infrastructure, our prime

focus remains on cultivating a strong pipeline for all our

sites. We will continue to take a proactive approach to

meet market demand. In Denmark, our strategy will give

top priority to expanding the DK01 campus. Our specific

plan involves expanding the DK01 data center to cater

for the rising demand from Europe, effectively positioning

it as another site to reinforce our capabilities in AI and

high-performance computing. This will complement our

current operations at N01, strengthening our presence and

activities across the Nordic region. Having attained Nvidia

Preferred Partner status for our data centers, we are in

close collaboration with Nvidia and other OEM partners to

ensure the adaptability of our data centers to forthcoming

technologies. This effort strengthens our ability to fulfil the

increasing demand for high-density IT resources. We are

in the process of certifying for the EU Code of Conduct

for Energy Efficiency in Data Centers, demonstrating our

commitment to sustainability. Our data center in Denmark

was certified in February 2024 and the Norwegian

data centers are in progress. This certification aligns

us with green EU taxonomy requirements for reporting

purposes. To maintain our momentum, we are committed

to increasing our data center team through strategic

appointments across leadership, business development,

technical, and operational roles.

Fiber networks – The strong growth in data processing

and storage drives the demand for new investments in

underlying fiber infrastructure, including both subsea and

terrestrial systems. Bulk is well positioned as a leading

provider of large capacity transport fiber, both going into

the Nordics and within the Nordics. The Havfrue System,

connecting the US and the Nordics is fully operational

between the US, Norway, Denmark and Ireland, of which

the Irish branch was ready for service in Q1 2023. The

Havsil System is the shortest route connecting Norway

with continental Europe. The capacity of the Havsil

System more than doubles the total capacity existing

PAGE 11 BROWSE SEARCH

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Executive Chair

Group presentation

Bulk Data Centers

Bulk Fiber Networks

Bulk Industrial Real Estate

Board of Directors Report 2023

Consolidated nancial

statements

Parent company nancial

statements

Responsibility statement

Auditor’s report

Annual Report 2023

BULK INFRASTRUCTURE GROUP AS / BOARD OF DIRECTORS REPORT 2023

over any other subsea system connecting into Norway,

providing almost “unlimited” capacity for the years to come.

The Norwegian Inter-City Ring is fully completed and

operational. The Group acquired the remaining part of the

Havhingsten cable system in 2023. Fiber Networks is a co-

builder of the system. The subsea cable system connects

Denmark, the United Kingdom and Ireland and has been

ready for service since Q1 2022. We continue to explore

opportunities for new fiber network developments being

strategic enablers for the international data center market.

The underlying recurring revenue growth across our fiber

networks portfolio is positive.

There should not be placed undue reliance on these

forward-looking statements as they reflect current views

about future events and are, by their nature, subject to

significant risks and uncertainties because they relate to

events and depend on circumstances that may occur in the

future.

Report on the annual accounts

Total income for The Group was NOK 464.1 million

compared to NOK 276.1 million last year. The increase

of NOK 187.9 million relates to increased rental income

in Industrial Real Estate and revenue from sales within

Data Centers. In addition, a one-off gain on sale of

fiber infrastructure. NOK 231.0 million of total income is

generated from Industrial Real Estate in 2023, compared

to NOK 145.4 million last year. Data Centers generated a

total income of NOK 162.8 million in 2023, compared to

NOK 119.0 million in 2022. In the Fiber Networks area,

we gained an income of NOK 70.9 million compared to

NOK 11.8 million in 2022. The increase is mainly due to

the gain from sale of IRU contracts, treated as a financial

lease. The Group’s operating loss was NOK 186.7 million

in 2023 compared to a loss of NOK 502.4 million last year,

while the annual net loss was NOK 415.8 million in 2023, a

decrease from NOK 442.5 million in 2022.

Industrial Real Estate contributed with a loss for the year

of NOK 198.4 million in 2023, compared to a loss of NOK

330.8 million last year. The increase is mainly driven by

increased rental income, partly offset by the negative fair

value on the investment property portfolio amounting to

NOK 176.6 million, compared to a negative fair value of

NOK 369.2 million in 2022. The negative fair value in 2023

is mainly a result of demanding economic times of rapidly

increasing interest rates and higher inflation, causing

yielding properties and development plots to decrease in

value. However, signings of new projects have resulted in

less negative fair value than we saw in 2022.

Total current assets were NOK 1,347.9 million as of

December 31, 2023 compared to NOK 411.2 million as of

December 31, 2022. In addition, assets classified as held

for sale amounts to NOK 673.0 million as of December 31,

2023 compared to NOK 144.2 million last year.

Total cash was NOK 1,026.4 million as of December 31,

2023 compared to NOK 224.5 million as of December 31,

2022.

Cashflow from operations were positive with NOK 223.7

million in 2023 compared to negative NOK 27.9 million in

2022. The increase is mainly related to an improvement in

profit and loss, and a positive change in trade and other

payables driven by high activity in our data center projects.

Further, the deviation between the operating profit and

the cashflow from operations is due to a relatively large

depreciation and impairment cost, as well as the fair value

on investment properties. Cashflow from investments in

2023 is negative with NOK 1,165.7 million, of which NOK

338.5 million is related to purchase and improvement in

investment property and NOK 1,056.7 million is related

to purchase of fixed assets, mainly in the data center and

fiber segment. Cashflow from financing is positive with

NOK 1,744.0 million in 2023, mainly related to proceeds

from borrowings of NOK 1,602.7 million and share issue

of NOK 928.1 million, partly offset by finance cost of NOK

343.1 million.

The Group’s total liabilities amounted to NOK 5,790.6

million as of December 31, 2023, compared to NOK

4,477.9 million as of December 31, 2022. The increase

is mainly due to increased borrowings related to ongoing

construction projects and investment property, and

issuance of a new green bond. The short-term portion of

borrowings is NOK 1,327.9 million as of December 31,

2023, an increase of NOK 588.2 million compared to last

year. One of the bond loans are due in October 2024. NOK

177.3 million of the short-term portion of borrowings is

related to construction loans, which will be refinanced upon

finalization of the construction projects. The remaining

loans are in the process of refinancing prior to maturity

in 2024. The Group continuously monitors the Groups

installments and expiration of the debt and prepares plans

to be able to meet its obligations.

Other financial and interest costs amounted to NOK 347.5

million in 2023 compared to NOK 171.1 million in 2022.

The Group monitors its financial cost and is continuously

working on financial structure.

Total assets at the end of the year amounted to NOK

9,813.0 million compared to NOK 7,974.2 million last year.

The equity-to-assets ratio as of December 31, 2023 was

41.0%, which is down from 43.8% in December 31, 2022.

The Group’s financial position is strong.

Research and development

The Group has invested resources and know-how into

research and development during 2023. Our largest

research investment relates to standardized high-capacity

data center designs that offer low cost of ownership, strong

operational standards, sustainable solutions and short time

to market for development. The objective is to benefit from

the R&D project by being the fastest provider to deliver

high quality and large data center capacity to the Nordic

market going forward.

Financial risk

The Group is exposed to the following types of risk:

Liquidity risk - The Group is focusing on having

sufficient liquidity to meet all its obligations, including the

new investments that are ongoing. The Group intends

to maintain a reasonable amount of liquidity to meet

unforeseen obligations. The Group continuously monitors

PAGE 12 BROWSE SEARCH

Letter from the CEO and

Executive Chair

Group presentation

Bulk Data Centers

Bulk Fiber Networks

Bulk Industrial Real Estate

Board of Directors Report 2023

Consolidated nancial

statements

Parent company nancial

statements

Responsibility statement

Auditor’s report

Annual Report 2023

BULK INFRASTRUCTURE GROUP AS / BOARD OF DIRECTORS REPORT 2023

the liquidity and has a long-term liquidity forecast in place.

Interest risk - The Group has loans with a number of

financial institutions, all with long-term repayment plans.

The Group is exposed to changes in NIBOR interest rates

and SWAP interest. The distribution of fixed and floating

interest rates was 14/86 by the end of the period.

Credit risk - The Group’s warehouse and distribution

properties are characterized by high standards, good

locations, long lease agreements and reliable tenants. The

Group’s tenants normally pay quarterly and in advance.

The lease agreements usually require an additional form

of collateral or security. Within Data Centers, the portfolio

is diversified, limiting the effect of credit risk towards each

single customer. There were no material credit losses in

2023.

Currency Exchange risk – The Group is increasingly

exposed to both cost and revenue in different currencies

due to growth in international assets and customers.

Processes and tools to manage these up and down-side

risks are being developed in line with increased exposure.

Market risk

The transaction market for commercial properties

The Group is experiencing an uncertainty related to the

transaction market for commercial real estate. This is

driven by changes in fundamental macroeconomic factors,

hereunder interest rates, consumer price index and

yield expectations. The Group is currently set up to take

advantage of potential investment opportunities and is

following the market to identify these.

Rental Market for warehouses and logistic buildings

The Group is exposed to the risk of changes in lease

and rental prices in the market. The Group has several

long-term lease agreements in place. As several other

companies, the weighted average lease term for tenants

was 8,2 years as of December 31,2023 compared to 8.3

years in the previous year. The lease agreements provide

The Group with fixed and predictable revenues throughout

the contract period. Most lease agreements are adjusted

annually 100% in line with the consumer price index. The

rate of vacancy in the groups properties is 2.1% as of

December 31, 2023, compared to 0.7% as of December

31, 2022.

Demand for data center services and Fiber networks

The macro drivers for large scale demand for digital Nordic

infrastructure are healthy and suggest strong market

growth long term. The timing of such large-scale demand

asset by asset is difficult to predict and hence exposes the

Group to short term uncertainty on capacity development

and utilization. Risk is managed by strong focus on our

time to market capability that allows for better matching of

capacity build-out and verified demand as well as discipline

in build-up of fixed cost in early stages of new asset

operations.

Climate-related risk

As several other companies, Bulk is exposed to climate-

related risks and climate change could have a range of

potential impacts on Bulk’s business. Through a climate

analysis based on recommendations of the Task Force on

Climate-related Financial Disclosures (TCFD), we have

identified increasing temperatures and extreme weather

events as key risks to our physical assets. In addition to

the physical risks, there are also increasing legislative

regulations at both the national and EU levels that have an

impact on our operations.

Transitional risks, such as energy and land use regulations,

are the short- and medium-term climate-related risks that

are identified to have the greatest impact on Bulk. Location

has been one of the key elements in our sustainability

framework from the beginning, of which availability of

renewable energy and further plans for development in the

area are among the main decision criteria.

As climate changes and temperatures continue to rise,

Bulk’s assets may face increased challenges in maintaining

optimal operational conditions. Extreme weather events

such as downpours and storms can lead to power outages,

flooding, and other disruptions to operations. In a long

term-scenario, we need to adapt our strategies to account

for these changing conditions, such as implementing

more advanced cooling systems, increase the resilience

of building infrastructure, and keep the focus on right

locations as our key assessment in site development.

Through our analysis we have not identified risks which

imply that any of our assets have decreased in value as a

result of climate-related conditions. The useful life of our

assets is also unchanged.

Changes in regulations on land-use will be implemented in

the short- and medium-term, such as national regulations

based on the global biodiversity framework, adopted at the

UN Biodiversity Conference in 2022, and EU-regulations.

This may be a risk for the company’s project planning and

may have an impact on access to plots of land. Mitigation

measures are already in place, such as internal and

external professionals on local regulations and biodiversity

in the project planning teams. The risk will be mitigated

through a continuous dialog with relevant local authorities.

In addition, Bulk has a substantial land bank available at

attractive locations which secures further development of real

estate and digital infrastructure on short- and medium-term.

The identified risks will be included in the ongoing process

for developing sustainability targets and initiatives for

the three business units. New measures to mitigate the

identified risks will be assessed and implemented. With

2022 as a baseline year, Bulk will continue to work on

emission targets and actions to support Bulk’s plan to

reduce greenhouse gas emissions in line with the Science

Based Targets initiative. The targets will be established

based on the 2022 climate account. Please refer to our

homepage, bulkinfrastructure.com, and our TCFD-report

2022, for more information.

Working environment and personnel

Bulk had a total of 89 employees at the end of year 2023.

In addition to permanent employees, over 100 contractors

and consultants have been performing services on Bulk’s

behalf. Bulk is committed to a goal of zero harm to people,

assets, and the environment. The cornerstone of this

objective is a strong, structured, and companywide HSE

system, setting clear standards for HSE management and

PAGE 13 BROWSE SEARCH

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Executive Chair

Group presentation

Bulk Data Centers

Bulk Fiber Networks

Bulk Industrial Real Estate

Board of Directors Report 2023

Consolidated nancial

statements

Parent company nancial

statements

Responsibility statement

Auditor’s report

Annual Report 2023

BULK INFRASTRUCTURE GROUP AS / BOARD OF DIRECTORS REPORT 2023

leadership. Regular audits aim to identify improvements

and help address potential shortcomings. Bulk is focused

on continuous improvement and learning throughout the

organization. The HSE culture is founded on the principle

that HSE is a personal responsibility for every employee.

Bulk had in total four lost time injuries and one medical

treatment within our subcontractors’ personnel. One of the

incidents was critical and caused long term sick leave, but

all injured personnel have recovered well and are back

to work. Bulk is committed to a goal of zero harm to its

employees, not just through accident prevention, but also

through safeguarding employee’s physical and mental

health.

The company complies with Norwegian law and i.e within

maternity/paternity leave, sick leave and sick leave

days for being home with children. The company gives

the employees leave with full pay within the absence

categories described above.

All employees are part of a Company’s insurance scheme

in the country they are employed in. The insurance includes

different treatments such as physiotherapy, psychologist,

and online access to consulting with a doctor. In addition,

Bulk offers an all-around annual health assessment to

all employees. All employees were offered voluntary

vaccination shots against the flu virus.

The sick leave amounted to 1,5% of the total work force in

2023. The sick leave statistics are a combination of long-

and short-term leave. This is a decrease from 2,7% in 2022

where Covid and the flu had an impact after reopening of

offices.

The company had quarterly working environment

committee meetings in 2023. The committee consisted

of safety delegates, employee representatives as well as

representatives of management. Bulk has two elected

employee representatives to submit requests or grievances

on behalf of the staff. The representatives had a quarterly

meeting with CEO and HR.

Bulk has an all-year People Process. This entails focus on

engagement, development and appreciation. The company

has continued the initiative called Bulk Academy during the

year. The academy is meant to promote internal knowledge

sharing between coworkers through presentations. Building

on both optional and mandatory training and strengthening

a learning culture. Bulk Academy had over 15 knowledge

presentations through the year.

The company introduced the engagement and satisfaction

system Winningtemp in late 2021. Winningtemp is

based on artificial intelligence in combination with

international studies on job engagement and satisfaction.

The employees receive every second week a short

questionnaire that is linked to academic research based on

categories and topics. The survey is done anonymously.

Winningtemp has been collecting data during 2023 with

96% survey participation among the staff. Bulk’s aim in

introducing a system such as this, is to measure and

optimize the employee experience. This enables Bulk’s

leaders to check in with our employees across countries,

time zones, at the office or working from home. The overall

temperature for team spirit in 2023 was 8,1 and leadership

was 8 out of 10.

Bulk has established routines for notifications & deviation

reports. All employees of Bulk have the right and a duty to

notify, and we encourage employees to use the opportunity

when needed. Guidelines for deviation reports are listed in

the company’s management system. The Company has

also an internal Hotline established on an online notification

channel for employees that wants to remain anonymous

and / or want an independent party (KPMG) to receive their

notice.

Gender equality and discrimination

Bulk is committed to equal career opportunities and work

continuously towards a diverse and gender balanced

workforce. The workforce consisted of 25% women and

75% men. Bulk has increased their gender balance for

women by 7% since 2022. The company has 33% female

Managers and 2 out of 6 are female executives at C-level

management. There is an age average of 45 across staff.

Bulk will continue recruitment of female professionals and

maintain a focus on the best suitable candidate for each

role. This also relates to orientation, age, nationality, and

other types of discriminatory factors.

Regarding the gender distribution in the Group, with

a predominance of men; Data centers and certain

engineering disciplines have a shortage of female

candidates in the job market. The company always

encourages recruitment partners to actively seek out

qualified female candidates, with the ambition to hire them

if they possess the required qualifications. Bulk engages in

dialogues with educational institutions to promote interest

in fields historically dominated by men.

The Company is aware of the importance of equal

opportunities relating to promotions, performance,

development opportunities as well as compensation and

benefits. These areas are all assessed and reviewed

once a year. The Group has an annual process where

each employee’s development, salary, and opportunities

are addressed. The company has historically also had

an annual KPI adjustment for all employees. Employees

on parental or other leave are always included in

compensation adjustments that apply to the majority.

Female employees can express interest in leadership

positions and will be evaluated against the qualifications

required for the position.

Environment reporting/ Preserving the

environment

Apart from legal obligations, our company will proactively

protect the environment and strive to create long term

sustainable solutions for the next generations.

Bulk was founded on the concept of making the sustainable

and societal advantages of the Nordics available to the

global market. We are proud of our vision: Racing to

bring sustainable infrastructure to a global audience. We

pursue opportunities to contribute to global sustainable

development at scale and we use our creative power to

develop new high quality, reliable and clean solutions. We

respect the environment, people and society as a whole. In

January 2022, Bulk joined UN Global Compact; the world’s

PAGE 14 BROWSE SEARCH

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Executive Chair

Group presentation

Bulk Data Centers

Bulk Fiber Networks

Bulk Industrial Real Estate

Board of Directors Report 2023

Consolidated nancial

statements

Parent company nancial

statements

Responsibility statement

Auditor’s report

Annual Report 2023

BULK INFRASTRUCTURE GROUP AS / BOARD OF DIRECTORS REPORT 2023

largest voluntary corporate sustainability initiative. For 2023

Bulk will report (CoP 2023) on aligning with the Sustainable

Development Goals (SDG) and the ten principles for

responsible business with strategy and operations.

Our Integrated Management System is used to soundly

manage, secure and continuously improve all work

processes that affect Environment, and we follow up our

performance indicators from our Environmental Action plan

along with systematic risk management.

A key priority in 2023 was to implement the assessment of

climate risk in line with the Task Force on Climate-related

Financial Disclosure (TCFD) framework as carried out in

2022. The results of this assessment can be found in a

separate report, refer TCFD report 2022 on the Group´s

homepage, bulkinfrastructure.com. Further, Bulk has focused

on data collection for our climate account across all business

areas. The work is a step in Bulk’s plan to reduce emissions

and accomplish net zero by 2050 in line with the GHG

reduction targets as announced in 2021. It is the second year

the climate account will be published. The climate account

will be integrated in the environmental report 2023. The data

collected for the climate account will be utilized to determine

our most significant emissions and how we can implement

measures to reduce these in the coming years.

Further, management has started to prepare for the new

reporting requirements from EU in line with the Corporate

Sustainability Reporting Directive (CSRD). Bulk will report

on CSRD for the first time for the reporting year 2025. A

double materiality analysis will be performed in 2024.

Climate impact

Bulk started to collect data on emissions and perform

climate accounting in 2020, according to the Greenhouse

Gas Protocol (GHG Protocol). However, 2022 was the first

year where the climate account was published. We are

continuously working to improve the quality of the data.

Bulk is reporting on scope 1, 2 and 3, of which scope 3 is

the most challenging. The emission data is partly based on

reports of actual carbon emissions, but also cost estimates

for the emissions in the supply chain where actual

PAGE 15 BROWSE SEARCH

Letter from the CEO and

Executive Chair

Group presentation

Bulk Data Centers

Bulk Fiber Networks

Bulk Industrial Real Estate

Board of Directors Report 2023

Consolidated nancial

statements

Parent company nancial

statements

Responsibility statement

Auditor’s report

emissions are not available. As such, the emission data for

scope 3 is subject for estimation uncertainty.

The majority of Bulk’s emission derive from activities in our

supply chain and is reflected in scope 3 emissions. Scope 3

tracking and reporting against this category of emissions is

critical for reduction in emissions. We strive to improve the

input from our supply chain and want to move from cost-

based estimates to accurate numbers from our suppliers

based on life cycle assessments. Within scope 3, Category

2 Capital goods, is the largest source of emissions. The

category includes embodied emissions, which is carbon

emitted during the manufacture and transport of building

materials and technical components building new capacity,

as well as fuel consumption related to the preparation of

land from subcontractors. Together with our suppliers, we

continue to search for more sustainable materials for our

buildings and solutions for our construction sites. With the

scaling of our solutions over the coming years, it will be our

main focus to reduce the impact from scope 3.

Emission targets - Bulk has set a net-zero target by 2050

across its scopes 1, 2 and 3 emissions. We will reduce our

scopes 1 and 2 emissions by 50 per cent by 2030 and our

emission intensity by 30 per cent for scope 3 by 2030. The

combination of absolute and intensity targets has been

chosen because we are a company in growth. Intensity

targets enable a visible effect of climate actions, even when

a company is expanding, by measuring emissions per unit,

such as MNOK. The base line is 2022. As a part of our

double materiality assessment to be carried out in 2024,

we are in the process of setting targets to improve our

business’ environmental impact. As of 2023, no accruals

or contingent liabilities have been made related to our

emission targets

Energy targets - Bulk was awarded Norway’s first

BREEAM-NOR certification for industrial buildings, where

we achieved the level “very good”. We aim to certify all

properties over 5,000 sqm to be BREEAM-NOR, and

ensure that such projects will be designed to meet energy

classification standards of A or B.

The data center industry is energy intensive. By locating

data centers in locations with cooler climate, Bulk reduces

the energy needed. Bulk’s data centers have a PUE

(Power Usage Effectiveness) below industry average and

target design PUE of 1.2 for new data centers.

Bulk is currently exploring various applications to re-use

excess heat from its data center operations to nearby

business. Please refer to our homepage, bulkinfrastructure.

com, and our TCFD report, for more information.

As of 2023, climate impact has not affected our

assessment of impairment of assets as we consider the

impact to be immaterial. It has neither been deemed

necessary to make provisions for loss as the demand of

our services as a result of climate related conditions remain

unchanged. Our business is not impacted by the climate to

a material degree and business is running as usual.

Corporate governance – risk management and

internal control

General

Bulk is subject to corporate governance reporting

requirements according to the Norwegian Accounting Act,

section 3-3b and c. Refer our homepage, bulkinfrastructure.

com, for information regarding the Norwegian Transparency

Act, where the 2022 report is published. The 2023

Transparency Act will be made available on our homepage

in June 2024.

Bulk’s board of directors believes that good Corporate

Governance is a prerequisite for a sound and sustainable

company and Bulk’s corporate governance is based on

openness and equal treatment of shareholders. Bulk’s

objective for Corporate Governance is accountability,

transparency, fairness, and simplicity with the goal of

maximizing shareholder value while creating added value

for all in compliance with laws, regulations and ethical

standards.

Governing structures and controls help to ensure that we

run our business in a justifiable and profitable manner

for the benefit of employees, shareholders, partners,

Annual Report 2023

BULK INFRASTRUCTURE GROUP AS / BOARD OF DIRECTORS REPORT 2023

customers, and society.

Bulk is committed to operate in accordance with

responsible, ethical, sustainable, and sound business

principles, with respect for people, the environment, and

the society. The work of the board of directors is based

on the existence of a clearly defined division of roles and

responsibilities between the shareholders, the board of

directors and the company’s management. Policies and

procedures have been established to manage risks and the

board of directors evaluate the overall risk management

systems on a regular basis.

The board of directors ensures that Bulk has in place

sound and appropriate internal control systems and

systems for risk management. Having effective internal

control systems and systems for risk management in place

prevents the group from situations that can damage its

reputation or financial standing. Furthermore, effective

and proper internal control and risk management are

important factors when building and maintaining trust,

to reach the company’s objectives, and ultimately

create value. Bulk has implemented an Integrated

Management System that are proportionate to and reflect

the extent and nature of Bulk’s activities. The Integrated

Management System carries out processes to analyze: 1)

the organizational context and strategic priorities; 2) the

organization’s interested parties and their requirements;

and 3) the organization’s risks and opportunities, including

those which should be treated within the structure of its

management system. Bulk is certified within several ISO

standards; ISO 9001,14001,22301 and 27001 and the

main focus in 2023 was to include the new businesses

in Denmark in the ISO certification. Certifications were

satisfactory obtained in Denmark.

The internal control system also addresses the organization

and execution of the company’s financial reporting, as well

as cover the company’s corporate values, compliance with

all laws and regulations that apply to the Group’s business

activities, ethical guidelines and principles of corporate

social responsibility. Bulk’s core values are clearly defined

and are reflected in the Company’s Code of Ethics. The

PAGE 16 BROWSE SEARCH

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Executive Chair

Group presentation

Bulk Data Centers

Bulk Fiber Networks

Bulk Industrial Real Estate

Board of Directors Report 2023

Consolidated nancial

statements

Parent company nancial

statements

Responsibility statement

Auditor’s report

Annual Report 2023

BULK INFRASTRUCTURE GROUP AS / BOARD OF DIRECTORS REPORT 2023

Code of Ethics includes ethical guidelines and guidelines

for corporate social responsibility, hereunder bribery and

anti-corruption, unlawful discrimination and human rights,

health, safety, and environmental issues.

The Group have a directors and officers liability insurance

in place. The insurance covers all Group Companies within

ownership of 50% or more. The insurance applies to board

members, CEO, members of the Group Management

and employees that may incur independent management

responsibility. The directors and officer’s liability insurance

covers the entire world for Companies registered in

Norway. It does not cover lawsuits filed in USA and Canada

in accordance with American laws.

Corporate governance in Bulk is subject to regular review

and discussion by the board of directors.

Annual review and risk management in the

annual report

The board of directors annually reviews the company’s

most important areas of risk exposure and the internal

control arrangement in place for such areas. The review

pays attention to any material shortcomings or weaknesses

in the company’s internal control and how risks are being

managed.

In the annual report, the board of directors describes

the main features of the company’s internal control and

risk management systems as they are connected to the

company’s financial reporting. This cover the control

environment in the company, risk assessment, control

activities and information, communication and follow-

up. The board of directors is obligated to ensure that

it is updated on the company’s financial situation and

shall continually evaluate whether the company’s equity

and liquidity are adequate in relation to the risk from the

company’s activities, and take immediate action if the

company’s equity or liquidity at any time is shown to be

inadequate. The company’s management focus on frequent

and relevant reporting of both operational and financial

matters to the board of directors, where the purpose is to

ensure that the board of directors has sufficient information

for decision-making and is able to respond quickly to

changing conditions. Board meetings are held frequently,

and management reports are provided to the board as a

minimum on a quarterly basis.

Further, an audit committee was established in 2023.

The committee will prepare matters relating to financial

reporting, internal control and auditing for consideration by

the board, or to carry such tasks on behalf of the board.

Human rights

Our company is dedicated to protecting human rights. We

are a committed equal opportunity employer and will abide

by all fair labor practices. We will ensure that our activities

do not directly or indirectly violate human rights and act in

accordance with the Norwegian Transparency act.

Bulk has in 2023 followed up required activities within

human rights in line with our Code of Conduct. Please refer

our homepage bulkinfrastructure.com for more information.

Donations and aid

Our company may preserve a budget to make monetary

donations. These donations will aim to:

• Advance the arts, education and community events

• Alleviate those in need

• Support initiatives related to sustainability

Instead of giving Christmas gifts to employees Bulk made

a donation to Doctors without borders, Gaza. The holiday

initiative was based on a collective vote for contributions to

a worthy cause.

Supporting the community

Our company may initiate and support community

investment and educational programs. It can provide

support to nonprofit organizations or movements to

promote cultural and economic development of global and

local communities.

Subsequent events

The investment properties held for sale as of December

31, 2023 were sold according to plan during Q1 2024. The

sales amount to approximately NOK 670 million.

There are no other material subsequent events after the

reporting period.

Prot/Loss for the year and allocation of funds

The Board of Directors proposes that the loss for the

year for Bulk Infrastructure Group AS amounting to NOK

232,278,254 will be transferred as follows;

Other equity NOK 232,278,254

Total brought forward NOK 232,278,254

Oslo, March 21, 2024

The board of Bulk Infrastructure Group AS

Peder Nærbø

Founder and Executive Chair

PAGE 17 BROWSE SEARCH

Letter from the CEO and

Executive Chair

Group presentation

Bulk Data Centers

Bulk Fiber Networks

Bulk Industrial Real Estate

Board of Directors Report 2023

Consolidated nancial

statements

Parent company nancial

statements

Responsibility statement

Auditor’s report

Consolidated statement of comprehensive income

Consolidated balance sheet

Consolidated statement of changes in equity

Cashow statement – consolidated

Notes to the consolidated nancial statements

Bulk Infrastructure Group AS

Consolidated nancial statements

2023

PAGE 18 BROWSE SEARCH

Letter from the CEO and

Executive Chair

Group presentation

Bulk Data Centers

Bulk Fiber Networks

Bulk Industrial Real Estate

Board of Directors Report 2023

Consolidated nancial

statements

Parent company nancial

statements

Responsibility statement

Auditor’s report

Annual Report 2023

BULK INFRASTRUCTURE GROUP AS / CONSOLIDATED FINANCIAL STATEMENTS

Note 1 Corporate information 24

Note 2 Accounting principles 24

Note 3 Accounting estimates and significant judgements 30

Note 4 Climate-related risk 31

Note 5 Segment information 32

Note 6 Rental income 34

Note 7 Investment property and inventories property 35

Note 8 Employee benefit expense 37

Note 9 Other operating expenses 39

Note 10 Share-based payments 39

Note 11 Joint venture and associated companies 41

Note 12 Financial income and costs 43

Note 13 Tax 44

Note 14 Goodwill and impairment 45

Note 15 Intangible assets 46

Note 16 Property, plant & Equipment 47

Note 17 Investments in subsidiaries, joint ventures and associated companies 48

Note 18 Financial assets and liabilities 49

Note 19 Derivative financial instruments 50

Note 20 Options, contingent assets and contingent liabilities 50

Note 21 Leases - group as a lessee (IFRS 16 disclosure) 51

Note 22 Inventories 52

Note 23 Trade and other receivables 53

Note 24 Cash and cash equivalents 53

Note 25 Non-current assets and disposal groups classified as held for sale 53

Note 26 Paid in equity and shareholders 54

Note 27 Financial risk management 55

Note 28 Capital structure and capital management 56

Note 29 Interest-bearing debt 56

Note 30 Reconciliation of net debt 58

Note 31 Accruals and prepayments from customers 58

Note 32 Subsequent events after the reporting period 58

Consolidated nancial

statements 2023

Presentations

Consolidated statement of comprehensive income 20

Consolidated balance sheet 21

Consolidated statement of changes in equity 22

Cashflow statement – consolidated 23

Notes

PAGE 19 BROWSE SEARCH

Letter from the CEO and

Executive Chair

Group presentation

Bulk Data Centers

Bulk Fiber Networks

Bulk Industrial Real Estate

Board of Directors Report 2023

Consolidated nancial

statements

Parent company nancial

statements

Responsibility statement

Auditor’s report

Annual Report 2023

BULK INFRASTRUCTURE GROUP AS / CONSOLIDATED FINANCIAL STATEMENTS

Consolidated statement of comprehensive income

For the year ended 31 December 2023

(Figures in NOK ‘000) Notes 2023 2022

Rental income

5,6 242,241 177,073

Revenue property sales

5,6 - -8,269

Revenue from sales

5 106,484 71,310

Gain from sale of investment property

5,7 15,270 -

Gain from sale of fiber infrastructure

5 52,048 -

Other revenue

5 48,025 36,015

Total revenue and other income 464,068 276,129

Property-related expenses

5 23,183 21,233

Cost of sales

5 76,761 67,746

Administrative expenses

8 113,933 122,147

Other cost

9,10 260,326 198,239

Total expenses 474,204 409,365

Operating profit before fair value adjustments on

investment properties

-10,136 -133,237

Fair value adjustments on investment properties

7 -176,571 -369,200

Operating profit -186,707 -502,437

Share of profit/loss(-) of investments accounted for using

the equity method

11 -39,051 -42,990

Remeasurement gain of previous held equity investments - 90,056

Finance income

12 98,321 102,631

Finance costs

12 359,413 233,049

Fair value adjustments on derivatives

12 1,209 27,067

Net financial items -298,935 -56,286

Profit before income tax -485,642 -558,722

Income tax expense

13 -69,882 -116,176

Profit for the year -415,760 -442,546

Attributable to:

Shareholders in the parent Company -405,965 -424,504

Non-controlling interests -9,795 -18,042

(Figures in NOK ‘000) Notes 2023 2022

Other comprehensive income

Currency translation difference 10,962 18,417

Other comprehensive income for the year, net of tax 10,962 18,417

Total comprehensive income -404,798 -424,129

Attributable to:

Shareholders in the parent Company -395,003 -406,087

Non-controlling interests -9,795 -18,042

Earnings per share basic and diluted (NOK)

26 -1.11 -1.33

PAGE 20 BROWSE SEARCH

Letter from the CEO and

Executive Chair

Group presentation

Bulk Data Centers

Bulk Fiber Networks

Bulk Industrial Real Estate

Board of Directors Report 2023

Consolidated nancial

statements

Parent company nancial

statements

Responsibility statement

Auditor’s report

Annual Report 2023

BULK INFRASTRUCTURE GROUP AS / CONSOLIDATED FINANCIAL STATEMENTS

Consolidated balance sheet

Figures in NOK ‘000 Notes 2023 2022

EQUITY AND LIABILITIES

Paid in equity

Ordinary shares 3,726 3,264

Share premium 3,841,445 2,918,911

Total paid in equity

26,32 3,845,172 2,922,175

Retained earnings

Retained earnings 136,863 524,045

Total retained earnings

26 136,863 524,045

Non-controlling interests

26 40,284 50,079

Total equity

26,31 4,022,319 3,496,299

Non-current liabilities

Bond loan

18,27,29,30 1,722,463 1,463,902

Borrowings

18,27,28,29,30 1,623,896 1,694,089

Derivative financial instruments

18,19 3,815 4,274

Lease liabilities

21 51,551 60,907

Other long-term liabilities

18,27,31 57,369 61,486

Deferred tax liabilities

13 143,172 215,580

Total non-current liabilities 3,602,265 3,500,239

Current liabilities

Trade payables

18 182,391 77,532

Short-term portion of borrowings

18,27,29,30 1,327,914 739,764

Short-term portion of derivatives

18,19 520 455

Short-term portion of lease liabilities

21 11,512 14,580

Other payables

18,31 294,446 145,334

Total current liabilities 1,816,782 977,665

Liabilities directly associated with the assets held for sale

25 371,599 -

Total liabilities 5,790,646 4,477,904

Total equity and liabilities 9,812,965 7,974,203

Figures in NOK ‘000 Notes 2023 2022

ASSETS

Intangible fixed assets

Goodwill

14,15 2,070 2,070

Other intangible assets

15 26,779 13,682

Total intangible assets 28,849 15,752

Other non-current assets

Investment property

7 4,169,120 4,628,451

Property, plant & equipment

16 3,210,473 2,338,985

Investment in Associated company

11,17 83,616 136,767

Derivative financial instruments

18,19 24,808 23,992

Other receivables

18,20 60,161 22,755

Investment in shares

18 1,249 1,249

Right-of-use assets

21 213,727 250,790

Total other non-current assets 7,763,154 7,402,989

Total non-current assets 7,792,003 7,418,741

Current assets

Inventories

22 19,774 8,463

Trade and other receivables

18,23 301,777 178,291

Cash and cash equivalents

18,24 1,026,391 224,459

Total current assets 1,347,942 411,213

Assets classified as held for sale

7,25 673,020 144,248

Total assets 9,812,965 7,974,203

Oslo, March 21, 2024

The board of Bulk Infrastructure Group AS

Peder Nærbø

Founder and Executive Chair

PAGE 21 BROWSE SEARCH

Letter from the CEO and

Executive Chair

Group presentation

Bulk Data Centers

Bulk Fiber Networks

Bulk Industrial Real Estate

Board of Directors Report 2023

Consolidated nancial

statements

Parent company nancial

statements

Responsibility statement

Auditor’s report

Annual Report 2023

BULK INFRASTRUCTURE GROUP AS / CONSOLIDATED FINANCIAL STATEMENTS

Consolidated statement of changes in equity

Paid in equity Retained earnings

(Figures in NOK ‘000) Note

capital

premium

Exchange differences

on translation on

foreign operations

Retained

earnings

Non-controlling

interests

Total

equity

01.01.2023 3,264 2,918,911 21,687 502,358 50,079 3,496,299

Profit for the period -405,965 -9,795 -415,760

Other comprehensive income - currency 10,962 10,962

Share issue 463 922,534 922,997

Share -based payments 8,947 8,947

Changes in deferred tax estimates -459 -459

Other changes -666 -666

31.12.2023 3,726 3,841,445 32,649 104,213 40,284 4,022,319

01.01.2022 2,731 1,856,531 3,270 919,129 225,975 3,007,636

Profit for the period -424,504 -18,042 -442,546

Other comprehensive income - currency 18,417 18,417

Share issue

22 533 1,062,380 1,062,913

Share -based payments 8,947 8,947

Adjustment of minority share -2,680 2,680 -

Transaction with non-controlling interest -160,533 -160,533

Other changes 1,465 1,465

31.12.2022 3,264 2,918,911 21,687 502,358 50,079 3,496,299

PAGE 22 BROWSE SEARCH

Letter from the CEO and

Executive Chair

Group presentation

Bulk Data Centers

Bulk Fiber Networks

Bulk Industrial Real Estate

Board of Directors Report 2023

Consolidated nancial

statements

Parent company nancial

statements

Responsibility statement

Auditor’s report

Annual Report 2023

BULK INFRASTRUCTURE GROUP AS / CONSOLIDATED FINANCIAL STATEMENTS

Cashow statement – consolidated

(Figures in NOK ‘000) Note 2023 2022

Cash flow from operations

Profit before income taxes -485,642 -558,722

Adjust for:

Depreciation and impairment

15,16 141,821 77,769

Fair value adj. on investment properties

7 176,571 369,200

Share of profit/loss(-) of investments accounted for using

the equity method

11 39,051 42,990

Remeasurement gain of previous held equity investments - -90,056

Finance income

12 -98,321 -102,631

Finance costs

12 359,413 233,049

Fair value change derivatives

12 -1,209 -27,067

Gain from sale of investment property

7 -15,270 -

Gain from sale of fiber infrastructure

16 -52,048 -

Cashflow before change in working capital 64,366 -55,468

Change in working capital

Trade and other receivables

18 -89,903 -32,046

Trade and other payables

18 249,245 59,593

Net cash flow from operations (A) 223,708 -27,920

Cash flow from investments

Purchase and improvements of investments property

7 -338,495 -808,267

Sale of investment property

7 15,270 -

Sale of real estate infrastructure

7 - 29,647

Dividend received

11 2,100 2,275

Purchase of shares in associated companies - -195,374

Purchase of shares in subsidiaries - -160,533

Sale of fiber infrastructure

16 200,400 -

Purchase of fixed assets

15,16 -1,056,732 -512,517

Purchase or disposal of Right-of-use assets

21 11,714 -34,758

Net cash flow from investments (B) 1,165,743 -1,679,526

(Figures in NOK ‘000) Note 2023 2022

Cash flow from financing

Finance cost paid including interest paid on derivatives

12 -343,107 -173,362

Interest received

12 38,986 10,881

Proceeds from Borrowings

28,29,30 1,602,741 1,435,989

Repayment of borrowings

28,29,30 -59,588 -29,868

Purchase of own shares in bond

28,29,30 -413,000 -

Change in other long-term liabilities

18,27 -4,117 -5,135

Change in payable related party

18 - -662,768

Principal paid on lease liabilities

21 -5,979 -7,585

Interest paid on lease liabilities

21 -3,911 -2,933

Share issue

21 922,997 1,062,913

Non-registered share issue

18 - -400,000

Share-based payments

10 8,947 8,947

Net cash flow from financing (C) 1,743,968 1,237,079

Net change in cash and cash equivalents (A+B+C) 801,932 -470,368

Cash and cash equivalents at the beginning of the period 224,459 694,826

Cash and cash equivalents at the end of the period 1,026,391 224,459

Restricted funds

24 4,962 4,799

This line item was added in 2023 causing an alteration in the comparative figures from 2022. A lease agreement

for HQ was terminated causing a disposal of Righ-of-use asset in the beginning of 2023.

PAGE 23 BROWSE SEARCH

Letter from the CEO and

Executive Chair

Group presentation

Bulk Data Centers

Bulk Fiber Networks

Bulk Industrial Real Estate

Board of Directors Report 2023

Consolidated nancial

statements

Parent company nancial

statements

Responsibility statement

Auditor’s report

Annual Report 2023

BULK INFRASTRUCTURE GROUP AS / CONSOLIDATED FINANCIAL STATEMENTS

Note 1 Corporate information

Bulk Infrastructure Group AS is a limited liability company registered in Norway. The head office of

the company is in Karenslyst Allé 53, Oslo, Norway. The Company is the subsidiary of the holding

company Bulk Infrastructure Holding AS. The Company is the parent company of Bulk Industrial Real

Estate AS, Bulk Data Centers AS and Bulk Fiber Networks AS. The ultimate parent of the Group is

Bulk Industrier AS.

Bulk Industrial Real Estate is a Nordic real estate developer, specializing in industrial buildings, large

modern warehouses, cross-dock terminals and logistics parks. The business area was established in

2006 and has already developed and delivered to customers more than 500,000 m² of high quality,

flexible and energy efficient facilities.

Bulk Data Centers is an industrial developer and operator of data centers and data center services

across the Nordics. Bulk has a portfolio of assets, capabilities and partners to serve any data center

customer requirement in a fast, secure, cost efficient and sustainable way. We operate scalable

facilities, we continue to add new sites to our portfolio, and we have access to strategically located

land. We have in-house expertise in data center design, engineering and operations that combined

with our industrial real estate development experience and dark fiber network deployments allow us to

shape the full value chain of the data processing infrastructure. We can serve customers in dedicated

hyperscale facilities and customers in need of server racks in a Colo environment.

Bulk Fiber Networks owns and controls dark fiber infrastructure with the purpose of enabling the

Nordics for large scale data processing. Our fiber infrastructure is modern with high capacity including

both subsea and terrestrial systems. We can offer dark fiber to carriers, large scale data center

customers and others that want to produce bandwidth services on top of our infrastructure. Bulk

considers itself as an infrastructure provider within fiber, being a partner rather than a competitor to

traditional carriers. Bulk has available thousands of km of dark fiber, including both intercontinental,

North European and intra-Nordic infrastructure that connects main European markets as well as the

US. We continue to explore new subsea and terrestrial fiber routes that could be strategic enablers for

the data center growth in the Nordics

The Board of Directors authorized these financial statements for issue on March 21, 2024.

Note 2 Accounting principles

2.1 Basis of preparation

2.2 Changes in accounting policies

2.3 Consolidation

2.4 Foreign currency translation

2.5 Investment property

2.6 Property, plant and equipment

2.7 Lease agreements

2.8 Goodwill

2.9 Impairment of non-financial assets

2.10 Financial assets

2.11 Borrowing costs

2.12 Inventory

2.13 Share capital

2.14 Current and deferred income tax

2.15 Provisions

2.16 Revenue recognition

2.17 Property-related expenses and other costs

2.18 Interest income

2.19 Classification of assets and debt

2.20 Dividends

2.21 Segment information

2.22 Share-based payments

2.23 Assets classified as held for sale

2.1 Basis of preparation

The consolidated financial statement has been prepared in accordance with International Financial

Reporting Standards (IFRS) as endorsed by the EU. The Group also present additional disclosures as

required under the Norwegian Accounting Act.

The consolidated financial statement has been prepared on a historical cost basis, with the following

exceptions:

• Investment properties are recognized at their fair value and changes in fair value are recognized as

fair value adjustment in the income statement

• Financial derivatives are recognized at their fair value over the profit and loss statement

• Investment in shares are recognized at fair value over profit and loss

The consolidated accounts have been prepared with consistent accounting principles for

similar transactions and events. The corresponding figures have been prepared on the basis

of the same accounting principles.

PAGE 24 BROWSE SEARCH

Letter from the CEO and

Executive Chair

Group presentation

Bulk Data Centers

Bulk Fiber Networks

Bulk Industrial Real Estate

Board of Directors Report 2023

Consolidated nancial

statements

Parent company nancial

statements

Responsibility statement

Auditor’s report

Annual Report 2023

BULK INFRASTRUCTURE GROUP AS / CONSOLIDATED FINANCIAL STATEMENTS

• Joint operations: In joint operations, two or more organizations contribute on a specific project.

The organizations operate individually and there are agreements in place regarding resources

and responsibilities related to the project. The parties in the joint operation have joint control of

the assets, and obligations for the liabilities, relating to the arrangement. The Group has one joint

operation related to the transatlantic subsea system, Havfrue. Bulk recognizes our part, according

to the Havfrue project agreement, of the assets and liabilities in the joint operation, as well as

revenue and expenses. The accounting treatment is in line with IFRS 11.

• Joint ventures: Joint ventures are accounted for using the equity method of accounting. Under the

equity method, the investment is initially recognized at cost, and the carrying amount is increased

or decreased to recognize the investor’s share of the profit or loss of the investee after the date of

acquisition.

Associates

Investments in associates are entities over which the group has significant influence but not control

(generally accompanying a shareholding of between 20% and 50% of the voting rights). Associates

are included using the equity method from the date when the group achieves significant influence.

When the group no longer have significant influence the equity method is no longer applied. Under

the equity method, the investment is initially recognized at cost, and the carrying amount is increased

or decreased to recognize the investor’s share of the profit or loss of the investee after the date of

acquisition. The group’s investment in associates includes goodwill identified on acquisition. The Group

currently has two associated companies. Refer note disclosures for further details.

Elimination of transactions

Inter-company transactions and balances between group companies are eliminated.

Unrealized gains on transactions with associates are eliminated to the extent of the group’s interest

in the associate. Unrealized losses are eliminated unless the transaction provides evidence of an

impairment of the asset transferred.

2.4 Foreign currency translation

The Group’s presentation currency is NOK. This is also the functional currency of the parent company

and most of the subsidiaries. The Group has two subsidiaries in the UK of which the functional

currency is GBP and one subsidiary in Ireland as of 2023 with EUR as the functional currency. Further,

five subsidiaries are located in Denmark and have DKK as the functional currency. The balance sheet

items of foreign subsidiaries are translated and consolidated with the year-end currency rate. The

income statement is translated using the average currency rate for the period.

Foreign currency transactions are translated into the functional currency using the exchange rates

prevailing at the dates of the transactions. Monetary assets and liabilities in foreign currencies are

translated to the year-end transaction date. Foreign exchange gains and losses are recognized in

the income statement. The average exchange rate was 1.5327 DKK/NOK in 2023 (2022: 1.3581),

13.1348 GBP/NOK in 2023 (2022: 11.8464) and 11.4206 EUR/NOK in 2023. At 31 December 2023 an

exchange rate of DKK/NOK 1.5082 (2022: 1.4138), GBP/NOK 12.9342 (2022: 11.8541) and 11.2405

EUR/NOK was applied for the valuation of balance sheet items

2.5 Investment property

Property held with the purpose of achieving rental income, increase in value, or both, areclassified as

investment property. Investment property also include property under development for future use as

investment property.

Owned investment property is initially measured at cost. Transaction costs are included in the initial

measurement. Cost comprises of the purchase price and any directly attributable expenditure,

including professional fees for legal services, property transfer taxes and other transaction costs.

2.2 Changes in accounting policies

New and amended standards effective from 2023

IFRS 17 Insurance contracts is a new accounting standard, which replaces IFRS 4. The accounting

standard is not relevant for the Group and has not been implemented. Further, there are several new

amendments to standards and interpretations that are effective for the fiscal year 2023.

There have been amendments to IFRS 9, IAS 1, IAS 8 and IAS 12. The amendments to IFRS 9 IAS

8 and IAS 12 are not further outlined as they are not considered to have a material impact on the

Group’s consolidated accounts. In addition, Pilar II is effective as of 2023, but is deemed not in scope

for the Group. The amendment to IAS 1 specifies that a company should give material accounting

policy information, rather than information about significant accounting principles. In addition, the

information given should not be general, but rather be adapted to the company in question. The

amendments have had an impact on the Group’s disclosures of accounting policies, but not on the

measurement, recognition or presentation of any items in the Group’s financial statements.

2.3 Consolidation

Subsidiaries

When the company has control over an investee, it is classified as a subsidiary. The company

controls an investee if the company has power over the investee, is exposed to variable returns from

the investee, and has the ability to use its power over the investee to affect those variable returns.

Control is reassessed whenever facts and circumstances indicate that there may be a change in any of

these elements of control. All entities of which the Group has ownership of at least 51 % is defined as a

subsidiary. As of 2023, the Group has one subsidiary in the Real Estate segment with 51 % ownership.

Subsidiaries are consolidated from the date the group gains control until the date control ceases,

Acquisitions of subsidiaries – business combinations

The group applies the acquisitions method to account for acquisition of subsidiaries or other

entities. The assets and debt transferred in business combinations are recognized at their fair values at

the acquisition date. Deferred tax is calculated based on the difference between fair value and the tax

bases of assets and debt.

Goodwill is calculated as the excess of the consideration and the net fair value of the net

identifiable assets, liabilities and contingent liabilities of the acquire and the fair value of the

non-controlling interest in the acquire. The minority interest is valued either at fair value or by the

non-controlling interest share of the net assets. Goodwill is not depreciated but an impairment test is

performed each year. If the fair value of net asset is in excess of consideration transferred (“negative

goodwill”) a gain is recognized in profit and loss on the date of acquisition.

Acquisition of subsidiaries not viewed as business combinations

Acquisition of entities in which the activities do not constitute a business, are accounted for as a

purchase of assets in accordance with IFRS 3. The acquisition cost is allocated to the acquired assets.

No goodwill is calculated for this type of acquisition, and no deferred tax is recognized for temporary

differences that arises at initial recognition in accordance with IAS 12.15. The Group’s business

continuously includes acquisitions, mostly within the Industrial Real Estate segment. During 2023 the

Group has carried out one acquisition accounted for as purchase of single asset.

Joint arrangements

A joint arrangement is an arrangement of which two or more parties have joint control. Joint

arrangements are classified as joint operations and joint ventures depending on the rights and

obligations of the parties to the arrangement.

PAGE 25 BROWSE SEARCH

Letter from the CEO and

Executive Chair

Group presentation

Bulk Data Centers

Bulk Fiber Networks

Bulk Industrial Real Estate

Board of Directors Report 2023

Consolidated nancial

statements

Parent company nancial

statements

Responsibility statement

Auditor’s report

Annual Report 2023

BULK INFRASTRUCTURE GROUP AS / CONSOLIDATED FINANCIAL STATEMENTS

After initial recognition, the investment property is measured at fair value. The Group obtains

valuations on investment property semi-annually from an external party. The valuations related to

projects under construction are presented at discounted fair value of the property. The valuation does

not account for costs related to finalization of the projects. As such, management adjusts the valuation

on these projects with remaining construction cost. Gains or losses arising from changes in fair value

are recognized over profit and loss in the period they arise. Management conducts internal valuation

based on input from projects on a quarterly basis.

Subsequent costs relating to investment property are included in the carrying amount if it is probable

that they will result in future economic benefits for the investment property and the costs can be

measured reliably. Expenses relating to operations and maintenance of the investment property are

recognized in profit and loss in the financial period in which they are incurred.

Investment properties are derecognized when they are sold or are permanently withdrawn from use

and no future economic benefit is expected if disposed of. All gains or losses relating to sales or

disposal are recognized in profit and loss. The Group sold one property in 2023.

2.6 Property, plant and equipment

Properties that do not qualify as investment property is presented as property, plant and equipment.

Such property is mostly related to fiber infrastructure, data center buildings, technical infrastructure,

and land, and other fixed assets. Other fixed assets include, among other things, upgrade of rented

office premises, electric cars, fixtures and office furniture, and network components. All property, plant

and equipment are recognized at cost less accumulated depreciation and impairment losses. Cost

includes expenditure that is directly attributable to the acquisition of the item.

Subsequent costs are included in the assets carrying amount or recognized as a separate asset, as

appropriate, only when it is probable that future economic benefits associated with the item will flow

to the group and the cost of the item can be reliable measured. All other repairs and maintenance are

recognized in profit and loss as incurred.

Land is not depreciated. However, ground works that are subject to physical deterioration will be

depreciated. Depreciation on assets under construction does not commence until they are complete

and available for use. All other items of property, plant and equipment are depreciated over their

expected useful economic lives. The expected useful economic life currently ranges from 4 – 50 years,

of which the highest expected life relates to data center buildings and fiber infrastructure.

2.7 Lease agreements

The Group assesses at contract inception whether a contract is, or contains, a lease. It is assessed if

the contract conveys the right to control the use of an identified asset for a period of time in exchange

for consideration. Leased assets with a remaining lease period of less than 12 months at inception are

excluded from lease accounting. Further, leases of assets of a low value (small asset leases), mainly

items as PCs, office equipment and similar, are excluded from lease accounting.

(a) When a group company is the lessee

Upon lease commencement the Group recognizes a right-of-use asset and a lease liability. The right-

of-use asset is measured at cost, less any accumulated depreciation and impairment losses, and

adjusted for any remeasurement of lease liabilities. The cost of right-of-use assets includes the amount

of lease liabilities recognized, initial direct costs incurred, and lease payments made at or before the

commencement date less any lease incentives received. Right-of-use assets are depreciated on a

straight-line basis over the shorter of the lease term and the estimated useful lives of the assets.

The lease liability is initially measured at the present value of the lease payments payable over the

lease term, discounted at the rate implicit in the lease if that can be readily determined. If that rate

cannot be readily determined, the Group uses its incremental borrowing rate. Variable lease payments

that depend on an index or a rate are included in the initial measurement of the lease liability and are

initially measured using the index or rate as at the commencement date. Amounts expected to be

payable by the Group under residual value guarantees are also included. Variable lease payments that

are not included in the measurement of the lease liability are recognized in profit or loss in the period in

which the event or condition that triggers payment occurs.

The majority of leases related to the terrestrial fiber in the Group have been paid up-front. As such,

there is no lease liability related to the right-of-use asset.

(b) When a group company is the lessor

The group classifies each lease as an operating lease or a finance lease. A lease is classified as

a finance lease if it transfers substantially all the risks and rewards incidental to ownership of an

underlying asset. Otherwise a lease is classified as an operating lease.

Upon lease commencement, the Group recognize assets held under a finance lease as a receivable

at an amount equal to the net investment in the lease. The group recognizes finance income over the

lease term of a finance lease, based on a pattern reflecting a constant periodic rate of return on the

net investment. The Group recognizes operating lease payments as income on a straight-line basis or,

if more representative of the pattern in which benefit from use of the underlying asset is diminished,

another systematic basis.

Fiber leases

The Group classifies its long-term fiber IRUs (Indefeasible right of use) as finance leases for the

following reasons:

• The leases transfer substantially all the risks and rewards incidental to ownership of the underlying

fiber assets.

• The lease terms are for the major part of the economic life of the fiber assets.

Long-term IRUs are typically between 20 and 40 years depending on if the fiber in question is subsea

or terrestrial, of which the economic life of terrestrial fiber is longer.

The Group classifies its short-term fiber IRUs as operational leases, as none of the above criteria for

classification as financial lease are met for these IRUs. Finance lease is relevant for the fiber sale

carried out in Q1 and Q4 2024 on the Havfrue cable system. A customer has exercised the option

agreement to purchase the fiber. For this IRU, the fiber is transferred for the expected economic life of

the fiber, 20 years, and the risks and rewards related to the ownership are entirely transferred to the

customer. Bulk does not expect to retrieve the fiber after the 20 years of the agreement. Hence, Bulk

will treat the sale as a finance lease and dispose the fiber infrastructure from the balance sheet. The

associated gain or loss will be presented over operating profit and loss.

2.8 Goodwill

Goodwill represents the excess of the cost of a business combination over, the Group’s interest in the

fair value of identifiable assets, liabilities and contingent liabilities acquired and, the total acquisition

date fair value of the identifiable assets, liabilities and contingent liabilities acquired.

The cost of a business combination comprises the fair value of assets given, liabilities assumed, and

equity instruments issued, plus the amount of any non-controlling interests in the acquiree plus, if the

business combination is achieved in stages, the fair value of the existing equity interest in the acquiree.

Contingent consideration is included in cost at its acquisition date fair value. Direct costs of acquisition

are recognized immediately as an expense.

Goodwill is measured at cost less any accumulated impairment loss.

PAGE 26 BROWSE SEARCH

Letter from the CEO and

Executive Chair

Group presentation

Bulk Data Centers

Bulk Fiber Networks

Bulk Industrial Real Estate

Board of Directors Report 2023

Consolidated nancial

statements

Parent company nancial

statements

Responsibility statement

Auditor’s report

Annual Report 2023

BULK INFRASTRUCTURE GROUP AS / CONSOLIDATED FINANCIAL STATEMENTS

Receivable from related party

Receivable from related party is a receivable from associated company. The receivable is classified as

non-current as it is expected to be collected in more than one year.

Trade receivables

Trade receivables are amounts due from customers for goods sold or services performed in the

ordinary course of business. If collection is expected in one year or less (or in the normal operating

cycle of the business if longer), they are classified as current assets. If not, they are presented as non-

current assets.

Cash and cash equivalents

Cash and cash equivalents include cash in hand, bank deposits, other short-term highly liquid

investments with original maturities of three months or less.

Financial assets at amortized cost are initially recognized at fair value, transaction costs are added to

the carrying amount. Financial assets at amortized cost are subsequently carried at amortized cost.

Impairment of financial assets

The group recognizes an allowance for expected credit losses (ECLs) for all debt instruments not held

at fair value through profit or loss. ECLs are based on the difference between the contractual cash

flows due in accordance with the contract and all the cash flows that the Group expects to receive,

discounted at an approximation of the original effective interest rate. The expected cash flows will

include cash flows from the sale of collateral held or other credit enhancements that are integral to the

contractual terms. For credit exposures for which there has not been a significant increase in credit

risk since initial recognition, ECLs are provided for credit losses that result from default events that are

possible within the next 12-months (a 12-month ECL). For those credit exposures for which there has

been a significant increase in credit risk since initial recognition, a loss allowance is required for credit

losses expected over the remaining life of the exposure, irrespective of the timing of the default (a

lifetime ECL).

For trade receivables and contract assets, the Group applies a simplified approach in calculating

ECLs. Therefore, the Group does not track changes in credit risk, but instead recognizes a loss

allowance based on lifetime ECLs at each reporting date.

Financial liabilities at amortized cost

Financial liabilities at amortized cost include all financial liabilities not classified at fair value through

profit and loss. All the group’s financial liabilities, except for derivatives, are classified as financial

liabilities at amortized cost.

Trade payables and other short-term payables

Trade payables are obligations to pay for goods or services that have been acquired in the ordinary

course of business from suppliers. Accounts payable are classified as current liabilities if payment is

due within one year or less. If not, they are presented as non-current liabilities.

Trade payables are recognized initially at fair value and subsequently measured at amortized cost

using the effective interest method.

Borrowings

Borrowings are recognized initially at fair value, net of transaction costs incurred. Borrowings are

subsequently carried at amortized cost using the effective interest method. The difference between the

proceeds (net of transaction costs) and the redemption value is recognized in the income statement

over the period of the borrowings using the effective interest method.

As of December 31, 2023, the goodwill in the Group is related to an acquisition in 2022. Refer note 14

for further information.

2.9 Impairment of non-financial assets

Non-financial assets are reviewed for impairment whenever events or changes in circumstances

indicate that the carrying amount may not be recoverable. Goodwill, intangible assets that have an

indefinite useful life or intangible assets not ready to use are also tested annually for impairment.

For the purposes of assessing impairment, assets are grouped at the lowest levels for which there

are largely independent cash inflows (cash-generating units). An impairment loss is recognized for the

amount by which the asset’s/CGU’s carrying amount exceeds its recoverable amount. The recoverable

amount is the higher of an asset’s fair value less costs of disposal and value in use. Prior impairments

of non-financial assets other than goodwill, are reviewed for possible reversal at each reporting date.

2.10 Financial assets and liabilities

Financial assets

The group classifies its financial assets in the following measurement categories:

a) those to be measured subsequently at fair value through profit or loss, and

b) those to be measured at amortized cost.

The classification depends on the entity’s business model for managing the financial assets and the

contractual terms of the cash flows.

(a) Financial assets at fair value through profit and loss

Financial assets that are not measured at amortized cost or fair value through other comprehensive

income, is measured at fair value through profit or loss. A financial asset is classified in this category

if acquired principally for the purpose of selling in the short term. Derivatives are also measured at

fair value through profit and loss, unless they are designated as hedge instruments. The Group does

not apply hedge accounting. Assets in this category are classified as current assets if expected to be

settled within 12 months, otherwise they are classified as non-current.

The Group currently has five interest rate swaps, of which four are related to loans in the Industrial

Real Estate segment, and one in the Data Center segment. The fair value change related to swaps are

measured through profit and loss. Further, the Group holds investments in shares that are measured at

fair value through profit and loss.

Financial assets are initially recognized at fair value, and transaction costs are expensed. Gains or

losses arising from changes in the fair value of the ‘financial assets at fair value through profit or loss’

category is presented as financial items in the income statement.

Financial assets are derecognized when the rights to receive cash flows from the investments have

expired or have been transferred and the group has transferred substantially all risks and rewards of

ownership.

(b) Financial assets at amortized cost

Financial assets are measured at amortized cost when the financial asset is held to collect contractual

cash flows and when the contractual terms of the financial asst give rise on specific dates to cash

flows that are solely payments of principal and interest on the principal amount outstanding. They are

included in current assets, except for maturities greater than 12 months after the end of the reporting

period. These are classified as non-current assets. The group’s financial assets at amortized cost

comprise ‘receivable from related party’, ‘trade and other receivables’ and ‘cash and cash equivalents’

in the balance sheet.

PAGE 27 BROWSE SEARCH

Letter from the CEO and

Executive Chair

Group presentation

Bulk Data Centers

Bulk Fiber Networks

Bulk Industrial Real Estate

Board of Directors Report 2023

Consolidated nancial

statements

Parent company nancial

statements

Responsibility statement

Auditor’s report

Annual Report 2023

BULK INFRASTRUCTURE GROUP AS / CONSOLIDATED FINANCIAL STATEMENTS

provisions where appropriate on the basis of amounts expected to be paid to the tax authorities.

Deferred tax assets and liabilities are recognized on temporary differences arising between the tax

bases of assets and liabilities and their carrying amounts in the consolidated financial statements.

Deferred tax is not recognized if it arises from initial recognition of an asset or liability in a transaction

other than a business combination that at the time of the transaction affects neither accounting nor

taxable profit or loss.

Deferred tax assets and liabilities are determined using tax rates (and laws) that have been enacted or

substantively enacted by the balance sheet date and are expected to apply when the related deferred

tax asset is realized, or the deferred tax liability is settled.

Deferred tax assets are recognized only to the extent that it is probable that future taxable profit will be

available against which the temporary differences can be utilized.

Deferred income tax liabilities are provided on taxable temporary differences arising from investments

in subsidiaries and associates, except for deferred income tax liability where the timing of the reversal

of the temporary difference is controlled by the group and it is probable that the temporary difference

will not reverse in the foreseeable future.

Deferred tax assets and liabilities are offset when there is a legally enforceable right to offset current

tax assets against current tax liabilities and when the deferred income taxes assets and liabilities relate

to income taxes levied by the same taxation authority on either the same taxable entity or different

taxable entities where there is an intention to settle the balances on a net basis.

2.15 Provisions

Provisions for environmental restoration, restructuring costs and legal claims are recognized when

the group has a present legal or constructive obligation as a result of past events, it is probable that

an outflow of resources will be required to settle the obligation, and the amount has been reliably

estimated. Provisions are not recognized for future operating losses.

Where there are a number of similar obligations, the likelihood that an outflow will be required in

settlement is determined by considering the class of obligations as a whole. A provision is recognized

even if the likelihood of an outflow with respect to any one item included in the same class of

obligations may be small.

Provisions are measured at the present value of the expenditures expected to be required to settle the

obligation using a pre-tax rate that reflects current market assessments of the time value of money and

the risks specific to the obligation. The increase in the provision due to passage of time is recognized

as interest expense.

2.16 Revenue recognition

Revenue is recognized when or as control of a good or service transfers to a customer. The amount

recognized reflects the consideration to which the Group expects to be entitled in exchange for those

goods or services.

Revenue comprises of rental income, revenue from property sales, revenue from sales and other

revenue. Rental income is present in all three business areas. Revenue from property sales are

relevant in the Industrial Real Estate business area. Revenue from sales is attributable to Data Centers

and Fiber Networks.

Rental income

Rental income arising from operating leases on investment property is accounted for on a straight-line

Offsetting financial assets and obligations

Financial assets and liabilities are offset, and the net amount reported in the balance sheet when there

is a legally enforceable right to offset the recognized amounts and there is an intention to settle on a

net basis or realize the asset and settle the liability simultaneously.

Derecognition of financial assets and liabilities

Financial assets are derecognized when the rights to receive cash flows from the investments have

expired or have been transferred and the group has transferred substantially all risks and rewards of

ownership. Financial liabilities are derecognized when the obligation under the liability is discharged or

cancelled or expires. This normally happens when the group pays the financial liability.

2.11 Borrowing costs

General and specific borrowing costs directly attributable to the acquisition, construction or production

of qualifying assets, which are assets that necessarily take a substantial period of time to get ready for

their intended use or sale, are included in the cost of those assets.

Investment income earned on the temporary investment of specific borrowings pending their

expenditure on qualifying assets is deducted from the borrowing costs eligible for capitalization.

All other borrowing costs are recognized in profit or loss in the period in which they are incurred.

Financial liabilities are presented as non-current liabilities when the group has an unconditional right to

defer settlement for at least 12 months after of the end of the reporting period.

2.12 Inventory

Raw materials, work in progress and finished goods are stated at the lower of cost and net realizable

value. Cost comprises direct materials, direct labor and an appropriate proportion of variable and fixed

overhead expenditure, the latter being allocated on the basis of normal operating capacity. Costs are

assigned to individual items of inventory on the basis of weighted average costs. Costs of purchased

inventory are determined after deducting rebates and discounts. Net realizable value is the estimated

selling price in the ordinary course of business less the estimated costs of completion and the

estimated costs necessary to make the sale.

2.13 Share capital

Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of new

ordinary shares or options are shown in equity as a deduction, net of tax, from the proceeds.

Where any group company purchases the company’s, equity share capital (treasury shares), the

consideration paid is deducted from equity. When such ordinary shares are subsequently reissued, any

consideration received, is included in equity attributable to the company’s equity holders. Voting rights

related to treasury shares are annulled and no dividend is allocated to treasury shares.

2.14 Current and deferred income tax

The tax expense for the period comprises current and changes in deferred tax. Tax expense is

recognized in the income statement, except to the extent that it relates to items recognized in

other comprehensive income or directly in equity. In this case, the tax is also recognized in other

comprehensive income or directly in equity.

The current income tax expense is calculated on the basis of the tax laws enacted or substantively

enacted at the balance sheet date in the countries where the company and its subsidiaries operate

and generate taxable income. Management periodically evaluates positions taken in tax returns

with respect to situations in which applicable tax regulation is subject to interpretation. It establishes

PAGE 28 BROWSE SEARCH

Letter from the CEO and

Executive Chair

Group presentation

Bulk Data Centers

Bulk Fiber Networks

Bulk Industrial Real Estate

Board of Directors Report 2023

Consolidated nancial

statements

Parent company nancial

statements

Responsibility statement

Auditor’s report

Annual Report 2023

BULK INFRASTRUCTURE GROUP AS / CONSOLIDATED FINANCIAL STATEMENTS

2.17 Property-related expenses and other costs

Costs directly related to the operation of existing properties are recognized as property-related

expenses, other costs are included as administration costs. Costs are recognized as incurred.

Cost of property sales and cost of sales

Cost of sales is recognized as an expense in the period in which the related revenue is recognized.

2.18 Interest income

Interest income is recognized using the effective interest method.

2.19 Classification of assets and debt

Assets and liabilities expected to be settled within 12 months, and other items that are included in the

company’s normal operating cycle are classified as current. First year installment of the long-term debt

is classified as current liabilities.

2.20 Dividend distribution

Dividend distribution to the company’s shareholders is recognized as a liability in the group’s financial

statements in the period in which the dividends are approved by the company’s shareholders.

2.21 Segment reporting

Operating segments are reported in a manner consistent with the internal reporting provided to the

chief operating decision maker. The chief operating decision maker, who is responsible for allocating

resources and assessing performance of the operating segments, has been identified as the corporate

management.

2.22 Share-based payments

The Group currently has two arrangements with share-based payments; a key employee share option

plan, and a management incentive program. The share-based payments are treated in line with

IFRS 2.

The key employee share option includes synthetic options, hence the employee receives no ownership

rights. Under the plan, participants are granted options which vest by 1/3 each year over a period of

three years. The options may be realized in the period 01.01.2025 to 01.09.2026.

The management incentive program is established through the company Klub Bulk AS. Under the

program, participants are granted A- and B-shares, of which the B-shares are preference shares. A

portion of the A-shares has an option element and are assessed as options when accounted for in the

financial statements. The rights of the shares are the same, except that the B-shares have a right to an

annual return equal to 8% of the face value of the shares. The shares granted give voting rights, but carry

no dividend. The program runs over a period of 60 to 80 months from the effective date of the program.

The fair value of the shares is calculated using an adjusted form of the Black-Scholes model that takes

into account the exercise price, the term of the option, the impact of dilution (where material), the

share price at grant date and expected price volatility of the underlying share, the expected dividend

yield, the risk-free interest rate for the term of the option, and the correlations and volatilities of the

peer group companies. The estimated value is distributed as payroll expense over the period. The

associated liability is booked as long-term debt and will be reclassified to short-term debt upon one

year of potential exercise. The calculation of the fair value is assessed on an annual basis and the

annual cost is adjusted accordingly.

basis over the lease term.

Income arising from expenses recharged to tenants is recognized in the period the associated cost is

incurred. Income is presented gross in the statement of profit & loss.

Revenue from sale of dark fiber (IRUs) is recognized based on the classification of individual contracts

as either financial or operational leases, in accordance with IFRS 16. The majority of IRU contracts are

short-term and classified as operational lease. The Group recognizes lease payments on a straight-line

basis as rental income over the period of the IRU.

Rental income in the Data Center business area is related to a couple of tenants who do not receive

data center services, but only rent the space for their own operations. These tenants were present

before Bulk started the data center business and the contracts have been carried forward based on the

historical lease terms.

Revenue from property sales

Revenue from property sales is generated from sale of completed property or sale of property under

construction. The Group did not generate any revenue from sale of property under construction in

2023. When the group performs a sale of completed property, revenue is recognized at point of sale.

Revenue from sale of fiber infrastructure is treated in line with sale of property, of which revenue is

recognized at point of sale. The Group sold fiber infrastructure in 2021 and in 2023, where the assets

in questions were first classified to held for sale based on an option agreement with the customer.

Revenue from sales

Revenue from sales is comprised of sale of telehousing services in the fiber segment and revenue

from sales of data center services.

Revenue from sales of data center service is comprised of sale of data center services and related

goods. These services consist of cooling, security, and access to fiber for the customer’s data servers.

The services are invoiced up-front monthly or quarterly, based on the contract terms, and revenue

accrued and recognized monthly. Further, electricity is invoiced monthly and settled based on annual

calculation of actual consumption at the end of the year. The revenue is recognized when control of

the goods or services are transferred to the customer. The data center services are simultaneously

received and consumed by the customer. As such, revenue is recognized over time in line with the

performance obligations satisfied over time. In addition, “smart hands” is offered to the customer, which

is a service where data center personnel make immediate physical adjustments or maintenance on the

server based on customer request. The service is invoiced and recognized at point of delivery.

Revenue from sale of fiber telehousing services is recognized in line with data center services

as outlined above. The telehouses function as a small data center connecting the terrestrial fiber

infrastructure.

The group satisfies its obligations in contracts with customers regarding sale of telehousing services or

data center services upon delivery, or as services are rendered. Payment terms for revenue from sales

are typically 30 days.

Other revenue

Other revenue mainly consists of business management for external parties and common cost

recharged, including electricity to data center customers. Other revenue is recognized point in time as

the shared costs are invoiced to tenants.

PAGE 29 BROWSE SEARCH

Letter from the CEO and

Executive Chair

Group presentation

Bulk Data Centers

Bulk Fiber Networks

Bulk Industrial Real Estate

Board of Directors Report 2023

Consolidated nancial

statements

Parent company nancial

statements

Responsibility statement

Auditor’s report

Annual Report 2023

BULK INFRASTRUCTURE GROUP AS / CONSOLIDATED FINANCIAL STATEMENTS

Note 3 Accounting estimates and significant judgements

When preparing the financial accounts according to IFRS the group management makes judgement

that may have significant impact on the amounts recognised in the financial statements. The

management also makes estimates based on assumption. Uncertainty relating to these assumptions

and estimates may require material adjustement to the carrying amount of the group assets or

liabilities in future periods.

Estimates

Fair value of investment property

Investment property is recognized at fair value on the year end date. As the Group collects external

valuation semi-annualy for all investment property, the estimate only relates to the adjustment of the

external valuation. These adjustments are made based on the remaining construction cost and risk

considerations. Risk considerations are a discussion between management and engineers responsible

for the respective investment. See also note 7.

Impairment considerations regarding property, plant and equipment

At the end of each reporting period the Group will assess whether there is any indication of impairment.

Identification of impairment indicators is based on an assessment of development in market rates,

earnings for the data centers and sale of fiber networks, opex, operating profit, technological

development, change in regulations, interest rates and discount rate. If any indication exist, the Group

will estimate the recoverable amount of the asset. Recoverable amount is set as the highest of fair

value less cost to sell and value in use. If carrying value exceeds the estimated recoverable amount,

impairment is recognised. Impairments are reversed in a later period if recoverable amount exceeds

carrying amount. As per year end 2023 impairment has been carried out for a few data center projects

of minor value and a ROU asset related to a fiber system. Refer note 16 and note 21.

Judgements

Joint arrangements related to the Havfrue cable system

The Group has conducted significant judgements related to the accounting treatment of the Havfrue

cable system. The Havfrue cable system connects the US to Norway, Denmark and Ireland. The

project is regulated through a Joint Build Agreements (JBA) in a consortium, which involves four

parties, including Bulk. The agreement states the ownership and interests in the system, of which each

party will own and have exclusive use of at least one fiber pair on the cable system. Decisions about

relevant actvities concerning the cables system, require unanimous approval by the parties.

Following the outline of the agreement, management has assesed the JBA to qualify as a joint

arrangement in line with IFRS 11. Further, due to the contractual agreement of joint control, the joint

arrangement is considered a joint operation. As such, the assets and liabilities related to Bulk’s interest

in the cables system is recognised in the balance sheet, along with associated revenue and cost.

Associated company

Bulk has a 25 % ownership in the company Berger Terminal Holding II AS. If an entity holds, directly

or indirectly, 20 % or more of the voting power of the investee, it is presumed that the entity has

significant influence. In addition, Bulk holds the position for the Executive Chair of the Board. As such,

the investment is accounted for using the equity method in line with IAS 28.

2.23 Assets classified as held for sale

Non-current assets are classified as held for sale if their carrying amount will be recovered principally

through a sale transaction rather than through continuing use and a sale is considered highly probable.

The assets are measured at the lower of their carrying amount and fair value less costs to sell. Assets

classified as held for sale are not depreciated while they are classified as held for sale. The asset

classified as held for sale is presented separately from other assets in the balance sheet. Any liabilities

directly associated to the asset classified as held for sale is presented separately from other liabilities

in the balance sheet. The Group has fiber infrastructure classified as assets held for sale related to

a transaction which is scheduled for the first half of 2024. In addition, two investment properties are

classified as held for sale of which the transactions are to be finalized in Q1 2024.

PAGE 30 BROWSE SEARCH

Letter from the CEO and

Executive Chair

Group presentation

Bulk Data Centers

Bulk Fiber Networks

Bulk Industrial Real Estate

Board of Directors Report 2023

Consolidated nancial

statements

Parent company nancial

statements

Responsibility statement

Auditor’s report

Annual Report 2023

BULK INFRASTRUCTURE GROUP AS / CONSOLIDATED FINANCIAL STATEMENTS

Note 4 Climate-related risk

Bulk has set ambitious emission targets to combat climate change, including a goal to achieve net-

zero emissions across all scopes (1, 2, and 3) by 2050. Additionally, we will reduce our scope 1 and 2

emissions by 50 per cent and decrease our emission intensity by 30 per cent for scope 3 by 2030.

We conducted a climate risk assessment in late 2022 and incorporated the identified risks and

opportunities into our overall risk management strategy early in 2023. As a company, it is crucial for us

to understand the impact of climate change on our operations in order to achieve our long-term goals.

Strategy

Transitional risks, such as energy and land use regulations, are the short- and medium-term climate-

related risks that are identified to have the greatest impact on Bulk. Location has been one of the key

elements in our sustainability framework from the beginning, of which availability of renewable energy

and further plans for development in the area are among the main decision criteria.

As climate changes and temperatures continue to rise, Bulk’s assets may face increased challenges

in maintaining optimal operational conditions. Extreme weather events such as downpours and storms

can lead to power outages, flooding, and other disruptions to operations. In a long term-scenario, we

need to adapt our strategies to account for these changing conditions, such as implementing more

advanced cooling systems, increase the resilience of building infrastructure, and keep the focus on

right locations as our key assessment in site development.

Changes in regulations on land-use will be implemented in the short- and medium-term, such as

national regulations based on the global biodiversity framework, adopted at the UN Biodiversity

Conference in 2022, and EU-regulations. This may be a risk for the company’s project planning and

may have an impact on access to plots of land. Mitigation measures are already in place, such as

internal and external professionals on local regulations and biodiversity in the project planning teams.

The risk will be mitigated through a continuous dialog with relevant local authorities.

These identified risks will be included in the ongoing process for developing sustainability targets and

initiatives for the three business units. New measures to mitigate the identified risks will be assessed

and implemented. With 2022 as a baseline year, emission targets and actions will be implemented

in order to support Bulk’s plan to reduce greenhouse gas emissions in line with the Science Based

Targets initiative. The targets will be established based on the 2022 climate account.

Sustainability reporting

Bulk started to collect data on emissions and perform climate accounting in 2020, according to the

Greenhouse Gas Protocol (GHG Protocol). However, 2022 was the first year where the climate

account was published.

Bulk has conducted a thorough analysis of climate-related risks in accordance with the guidelines set

forth by the Task Force on Climate-related Financial Disclosures (TCFD). Please refer our webpage for

more details on climate risk and our climate accounts.

Fiber sale - finace or operating lease

The Group performed a substantial sale of dark fiber on the Havfrue cable system in 2023. Sale of

dark fiber is mainly performed through Indefeasible Right of Use contracts (IRUs). The IRU is classified

as a lease, but whether the treatment is a finance or operating lease, is dependant on if the lease

transfers substantially all the risks and rewards incidental to ownership of the underlying dark fiber.

Based on an assessment of IFRS 16 and the details of the relevant IRU, management has concluded

that the dark fiber sale qualify as a finance lease. The IRU applies for the economic life of the dark

fiber, estimated to 20 years, and the risks and rewards related to the fiber is transfered to the customer

in its entirety. As such, the fiber sale is treated as a disposal of fiber from property plant an equipment

and the associated net gain or loss is presented over opertaing profit and loss.

PAGE 31 BROWSE SEARCH

Letter from the CEO and

Executive Chair

Group presentation

Bulk Data Centers

Bulk Fiber Networks

Bulk Industrial Real Estate

Board of Directors Report 2023

Consolidated nancial

statements

Parent company nancial

statements

Responsibility statement

Auditor’s report

Annual Report 2023

BULK INFRASTRUCTURE GROUP AS / CONSOLIDATED FINANCIAL STATEMENTS

Note 5 Segment information

Bulk Infrastructure Group has the following strategic operating segments by December 31, 2023 presented in accordance with internal reporting to management.

Operating activities are based in Norway, Denmark and the United Kingdom.

Operating profit and loss after segment 31.12.23Industrial Real Estate Data Centers Fiber Networks Group/other Eliminated Total(Figures in NOK '000) 2023 2022 2023 2022 2023 2022 2023 2022 2023 2022 2023 2022Rental income 205,087 147,528 21,337 19,576 14,861 8,561 2,302 1,408 -1,345 - 242,241 177,073 Revenue property sales - -8,269 - - - - - - - - - -8,269 Revenue from sales - - 105,332 71,374 2,528 1,930 - - -1,376 -1,994 106,484 71,310 Gain from sale of investment property 15,270 - - - - - - - - - 15,270 - Gain from sale of fiber infrastructure - - - - 52,048 - - - - - 52,048 - Other revenue 10,639 6,147 36,097 28,099 1,477 1,302 47,259 70,158 -47,447 -69,691 48,025 36,015 - Shared costs tenants 9,681 6,147 4,801 2,157 - - - - - - 14,482 8,304 - Leasehold improvements - - - - - - - - - - - - - Electricity - - 30,566 25,942 1,353 820 - - - - 31,919 26,762 - Business management/other 958 - 730 - 124 483 47,259 70,158 -47,447 -69,691 1,624 949 Total revenue and other income 230,997 145,406 162,765 119,049 70,913 11,793 49,561 71,565 -50,168 -71,686 464,068 276,129 Property-related expenses 15,689 13,510 7,495 7,723 - - - - - - 23,183 21,233 Cost of property sales - - - - - - - - - - - - Cost of sales - - 60,453 51,924 19,458 15,822 - - -3,150 - 76,761 67,746 Administrative expense 20,078 12,049 36,297 49,482 6,847 4,622 50,711 55,994 - - 113,933 123,473 Other cost 43,707 45,076 184,780 156,905 52,048 43,590 26,810 15,408 -47,018 -62,739 260,326 199,747 Total expenses 79,473 70,634 289,025 266,034 78,353 64,034 77,521 71,402 -50,168 -62,739 474,204 409,365Operating profit before fair value adjustments on 151,523 74,772 -126,260 -146,985 -7,440 -52,241 -27,960 164 - -8,947 -10,136 -133,237 investment propertiesFair value adjustments on investment properties -176,571 -369,200 - - - - - - - - -176,571 -369,200 Operating profit -25,048 -294,428 -126,260 -146,985 -7,440 -52,241 -27,960 164 - -8,947 -186,707 -502,437

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BULK INFRASTRUCTURE GROUP AS / CONSOLIDATED FINANCIAL STATEMENTS

Industrial Real Estate Data Centers Fiber Networks Group/other Eliminated Total(Figures in NOK '000) 2023 2022 2023 2022 2023 2022 2023 2022 2023 2022 2023 2022Share of profit/loss(-) of investments accounted for -39,051 -42,990 - - - - - - - - -39,051 -42,990 using the equity methodRemeasurement gain of previous held equity - 2,417 - 87,639 - - - - - - - 90,056 investmentsFinance income 33,714 63,573 23,359 15,110 24,572 17,220 341,532 135,413 -324,857 -128,685 98,321 102,631 Finance costs 212,051 144,322 154,496 68,056 24,377 34,269 293,346 115,087 -324,857 -128,685 359,413 233,049 Fair value adjustments on derivatives 3,443 21,227 -2,233 5,840 - - - - - - 1,209 27,067 Net financial items -213,946 -100,095 -133,370 40,533 195 -17,049 48,186 20,326 - - -298,935 -56,286 Profit before income tax -238,994 -394,523 -259,630 -106,452 -7,245 -69,290 20,226 20,490 - -8,947 -485,642 -558,722 Income tax expense -40,609 -63,734 -42,124 -36,887 5,794 -12,480 7,058 -3,074 - - -69,882 -116,176 Profit for the year -198,385 -330,788 -217,506 -69,565 -13,039 -56,810 13,168 23,564 - -8,947 -415,760 -442,546 Other comprehensive income 9,858 14,063 1,905 4,615 -800 -261 - - - - 10,962 18,417 Other comprehensive income for the year, net of tax 9,858 14,063 1,905 4,615 -800 -261 - - - - 10,962 18,417 Total comprehensive income -188,527 -316,725 -215,601 -64,950 -13,839 -57,071 13,168 23,564 - -8,947 -404,798 -424,129

Please also see note 2 for further explanation of the segments.

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BULK INFRASTRUCTURE GROUP AS / CONSOLIDATED FINANCIAL STATEMENTS

Note 6 Rental income

Industrial Real Estate Data Centers Fiber Networks Group(Figures in NOK ‘000) 2023 2022 2023 2022 2023 2022 2023 2022Recognized rental incomeRecognized minimum rent from minimum payments 205,087 147,528 21,337 19,576 14,861 8,561 2,302 1,408 Recognized variable rent - - - - - - - - Total income from rent 205,087 147,528 21,337 19,576 14,861 8,561 2,302 1,408 Future minimum payments to be received under non-cancellable leases: 2023 2022 2023 2022 2023 2022 2023 2022Within 1 year 245,181 190,995 12,920 21,587 8,301 8,170 2,027 2,027 During year 2 275,083 204,942 5,932 12,920 6,942 8,301 169 2,027 During year 3 289,865 192,196 4,756 5,932 6,845 6,942 - 169 During year 4 266,213 191,201 4,701 4,756 6,729 6,845 - - During year 5 237,332 189,037 4,657 4,701 6,664 6,729 - - After 5 years 1,183,960 834,343 14,767 19,424 70,097 76,761 - - Total 2,497,634 1,802,714 47,733 69,320 105,578 113,748 2,196 4,223 Carrying amount of assets leased under operating leases are as follow:2023 2022 2023 2022 2023 2022 2023 2022Investment property / property, plant and equipment 4,169,120 4,628,451 90,905 95,745 493,534 418,245 5,686 6,949Total 4,169,120 4,628,451 90,905 95,745 493,534 418,245 5,686 6,949

The carrying amount of assets leased under operating leases related to Group are Right-of-use assets, which are subleased. The same apply for the terrestrial fiber included in the carrying amount for assets in

Fiber Networks.

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BULK INFRASTRUCTURE GROUP AS / CONSOLIDATED FINANCIAL STATEMENTS

Note 7 Investment property and inventories property

Investment property

(Figures in NOK ‘000)2023 2022Fair value 01.01 4,628,451 4,184,248Additions:- Capital expenditure 257,960 676,821- Acquisition of property 80,535 131,446- Sale of real estate infrastructure - -29,647Transferred to assets held for sale -668,339 - Currency translation on property in foreign subsidiaries 47,084 34,783Changes in fair value -176,571 -369,200Fair value 31.12 4,169,120 4,628,451Income and expenses from investment propertyIncome from rent 205,087 147,528Other revenue - shared cost tenants 9,681 6,147Property-related expenses 15,689 13,510

Sale of investment property

In November 2023, the Group sold a property with a carrying value of zero. The gain of the sale

amounted to 15,3 million.

Overview over input used for valuation 2023 2022Valuation level 3 3Valuation model DCF DCFFair value as of December 31 4,169,120 4,628,451Estimated CPI 2.0% 4.0%Total sqm 254,159 234,439 Current rent per sqm (range) 447 - 2 130 527 - 2 146Current rent per sqm (average) 1,185 1014Remaining lease period actual contracts (range) 3,7 - 15,4 3.3 - 16.4Remaining lease period actual contracts (average) 8.2 8.3Market rent per sqm (range) 553 - 1 918 519 - 1 700Market rent per sqm (average) 1,127 1,045 Actual vacancy 2.1% 0.7%Valuation yield/discount rate (range) 4,72% - 6,86% 4,34% - 6,97%Valuation yield/discount rate (average) 5.49% 5.27%

Bulk Industrial Real Estate (BIRE) has, based on the nature, characteristics and risks of the

investment and development properties, determined that the properties should be presented based

on geographical segments. BIRE’s properties, including project properties and development sites are

primarily clustered around the Oslo region. BIRE’s other geographical segments, in addition to project

properties and zoned development sites, is included in the total management portfolio.

Ranges and weighted averages from the external appraisers are presented for the areas where BIRE

has 2 or more properties.

The appraisers have for the valuation as of 31.12.23 in average assumed inflation of 4.0 per cent for

2024, 2.8 per cent for 2025 and 2.3 per cent for 2026.The assumed inflation upon terminal value is 2.0

per cent.

Analysis is excluding Denmark.

Market yield takes into account current market conditions and expectations, while contract/valuation

yield represents the actual return guaranteed through existing lease agreements.

Total As of 31.12.23 Lindeberg Vestby Langhus EnebakkportfolioNo. Properties 12 7 4 2 34 Market value (NOKm) 1,029 1,858 661 426 4,688 Market yieldMin 5.0% 5.8% 5.4% 6.3% 5.0%Max 6.2% 6.5% 6.8% 6.7% 7.7%Average 5.7% 6.2% 6.2% 6.7% 6.2%Required rate of returnMin 4.7 % 4.9 % 5.5 % 6.0 % 4.7 %Max 5.5 % 6.0 % 5.6 % 6.9 % 6.9 %Average 5.0 % 5.4 % 5.5 % 6.2 % 5.5 %Market rent (NOK/sqm)Min 1,311 930 1,397 1,356 553 Max 1,918 1,166 1,600 1,850 1,918 Average 1,411 996 1,419 1,454 1,127 Operating costMin 3.0% 3.3% 4.6% 2.4% 2.4%Max 5.7% 5.3% 5.0% 2.7% 9.6%Average 3.5% 3.5% 4.6% 2.7% 4.0%Construction capex (NOK/sqm)Min 14,000 13,000 14,000 - 12,500 Max 14,000 13,000 14,000 - 14,000 Average 14,000 13,000 14,000 - 12,695

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BULK INFRASTRUCTURE GROUP AS / CONSOLIDATED FINANCIAL STATEMENTS

Total As of 31.12.22 Lindeberg Vestby Langhus EnebakkportfolioNo. Properties 12 5 3 2 31Market value (NOKm) 1,039 1,489 666 449 4,171 Market yieldMin 4.0% 5.1% 5.3% 5.5% 4.0%Max 5.3% 5.8% 6.0% 6.0% 6.9%Average 4.9% 5.4% 5.5% 5.9% 5.5%Requred rate of returnMin 4.3% 4.8% 5.5% 5.6% 4.3%Max 5.1% 5.2% 5.8% 6.6% 7.0%Average 4.6% 5.0% 5.6% 5.8% 5.2%Market rent (NOK/sqm)Min 1,207 869 1,247 1,312 519 Max 1,687 1,050 1,300 1,700 1,700 Average 1,268 953 1,282 1,389 1,045 Operating costMin 3.2% 3.6% 4.8% 2.5% 2.5%Max 6.2% 4.2% 5.1% 2.8% 10.0%Average 4.0% 3.6% 4.9% 2.8% 4.3%Construction capex (NOK/sqm)Min 14,000 13,000 - - 12,500 Max 14,000 13,000 - - 14,000 Average 14,000 13,000 - - 12,718

All investment properties are valued using discounted cash flow. Key factors are ongoing revenue

and expenses relating to the property, market lease, discount factor and inflation. Macro economic

assumptions are used, but each property is also subject to individual appraisal. To determine each

discount rate, the property location, attractiveness, quality and the general market conditions for real

estate, credit market, solidity of tenants and contracts are considered. The sensitivity when evaluating

fair value for investment property is connected to yield, interest rate level, inflation (CPI) and marked

lease for the properties.

Future leasing payments: The payments are estimated based on actual location, type and

condition of the current building.The estimates are supported by

existing leases, as well as recently lease agreements for similar

properties in the same area.

Discount rate: The discount rate is based on existing market rates, adjusted for the

estimated uncertainty in terms of size and future cash flows.

Estimated vacancies: The estimate is firmly set on the basis of the actual market conditions

and the expected market conditions at the end of existing leases.

Cost of Ownership: The cost of ownership expenses are estimated based on the estimated

maintenance costs regarding maintaining the building’s capacity over

its economic lifetime.

Fair value of investment property

Investment property is recognized at fair value based on estimation of value from a certified

independent party, Malling & Co. The valuation is carried out semi-annually, last performed as of

December 31, 2023.

The sensitivity of the fair value of investment properties are thus among others associated yield,

interest rates, inflation (CPI) and the market rent for the properties. As indicated below are the

separate effects of changes in these variables (amounts in NOK million):

Fair value changeVariables Changes in variables + -Yield +/- 0.25% -304 330Market rent +/- 5% 321 -321

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BULK INFRASTRUCTURE GROUP AS / CONSOLIDATED FINANCIAL STATEMENTS

Note 8 Employee benefit expense

(Figures in NOK ’000)2023 2022Salaries and remuneration 138,023 109,843Social security costs 21,529 14,768Pension cost for defined contribution plan 3,000 2,868Share-based payments 9,795 11,546 Other employee expenses 5,517 4,637Capitalized wages -62,603 -20,189Total payroll costs 115,260 123,473Number of employees at 31 December 89 81

Pursuant to the Norwegian Act on Mandatory Occupational Pension, Bulk Infrastructure Group AS,

must operate certain pension plans. The company has plans which satify these requirements (a

defined contribution plan for all employees).

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BULK INFRASTRUCTURE GROUP AS / CONSOLIDATED FINANCIAL STATEMENTS

Remuneration of senior management and the Board of directors 2023Name Title Salary Bonus Pension Board fee Other benetsJon Gravråk CEO 3,827 3,313 40 - 199 Gaute Krekling CFO 2,584 1,085 40 - 145 Peder Nærbø Executive Chair 4,626 - 40 150 - Torbjørn T. Moe Chief Business Development Officer 2,686 1,113 40 150 168 Nina Hage EVP, Industrial Real Estate 2,736 1,167 40 - 34 Gisle M. Eckhoff EVP, Data Center 2,727 1,037 40 - 13 Torill Møklebust Chief Governance Officer 1,991 441 40 - 130

Total 21,176 8,155 281 1,200 688

Remuneration of senior management and the Board of directors 2022Name Title Salary Bonus Pension Board fee Other benetsJon Gravråk CEO 3,441 2,378 38 - 237 Gaute Krekling CFO 2,183 272 38 - 123 Peder Nærbø Executive Chair 4,300 - 38 150 12 Torbjørn T. Moe EVP Business Areas 2,565 499 38 150 144 Nina Hage EVP, Industrial Real Estate 2,430 417 38 - 15 Gisle M. Eckhoff EVP, Data Center 2,370 333 38 - 14

Inger Gløersen Folkeson COO, EVP Fiber Networks 1,838 143 38 - 123

Total 19,126 4,041 269 1,200 668

In the event of resignation, the CEO, CFO and the EVPs are entitled to 6 months of salary.

The management bonus is based on the individual managers’ annual performance.

Shares held by executive officers and directorsThe following board members and chief executives have indirect ownership in Bulk InfrastructureGroup AS:Ownership Capital ratioPeder Nærbø Executive Chair indirect ownership 22.6% 22.6%

Torbjørn T. Moe Chief Business Development Officer indirect ownership 3.2% 3.2%

Executive Chair, Peder Nærbø, still has significant influence in Bulk Infrastructure Holding AS through his joint control in

Bulk Industrier AS, which holds the majority of the votes in Bulk Infrastructure Holding AS. Refer note 26 for shareholder

information.

CEO Jon Gravråk and CFO Gaute Krekling have ownership of 3% and 0.75%, respectively, of Klub Bulk AS, which

indirectly owns 3.21% of the total number of shares in Bulk Infrastructure Holding AS.

Mangement has shares in Klub Bulk AS. There is an agreement in place regarding future repurchase of shares in Bulk

Infrastructure Holding AS at market price. The agreement runs over 5 years, of which 1 year remain until start of vesting

period. Refer note 10 for further information.

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BULK INFRASTRUCTURE GROUP AS / CONSOLIDATED FINANCIAL STATEMENTS

Note 9 Other operating expenses

Administration costs

(Figures in NOK ’000)2023 2022Staff costs (see note 8) 115,260 123,473 Depreciation (see note 15 and 16) 103,786 77,769 Impairment (see note 16 and 21) 24,180 - Management, accounting, legal and consulting fees 33,336 37,624 Auditors 3,544 6,873 Depreciation right-of-use assets 13,855 12,696 Other operating expenses 80,299 74,823 Total other operating expenses 374,259 333,258

Audit fees

(Figures in NOK ’000) 2023 2022Statutory audit 3,439 5,387Other services not related to auditing - 1,040Other assurance services 105 446Total audit costs 3,544 6,873

The group recognised no operating expenses related to investment property that did not generate

rental income in 2023.

Note 10 Share-based payments

Key Employee Share Option Plan

Bulk Infrastructure Holding AS, established a share option plan in the end of 2021. The plan is effective

as of January 1, 2022. The relevant employees is employed in Bulk Infrastructure Group AS and

subsidiaries, as such the option cost is accounted for in this Group. The options are synthetic, hence

the employee receives no ownership rights. The Employee Option Plan is designed to provide long-

term incentives for key employees and executives to deliver long-term shareholder returns. Under

the plan, participants are granted options which vest by 1/3 each year over a period of three years.

The options may be realized in the period January 1, 2025 to January 1, 2029, depending on grant

date. Participation in the plan is at the board’s discretion, and no individual has a contractual right to

participate in the plan or to receive any guaranteed benefits.

In the given period of realization, 25% of the options has to be exercised upon each realization. The

gain depends on Bulk Infrastructure Holding AS’s total shareholder return, including share price

growth, dividends and capital returns.

Options are granted under the plan for no consideration and carry no dividend or voting rights.

When exercisable, any gain from the options are paid as an extraordinary bonus within three months of

realization. The gain will only become payable if the employee is still employed and not in resignation

at the time of payment.

The exercise price of options is based on the weighted average price in the company’s share issues.

Set out below are summaries of options granted under the plan:

2023 2022Average exercise Average exercise price per share Number of price per share Number of (Figures in NOK)optionoptionsoptionoptionsAs at January 1 19.94 902,570 - - Granted during the period 19.94 230,658 19.94 902,570 Exercised during the period - - - - Forfeited during the period - - - - As at December 31 19.94 1,133,228 19.94 902,570

The share option plan was effective January 1, 2022. As such, all options are presented as granted as

of December 31, 2022. Options can not be exercised until January 1, 2025.

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Share options outstanding at the end of the period have the following expiry dates and exercise prices:

Share options Share options Grant date Expiry date Exercise priceDec 31, 2023Dec 31, 2022January 1, 2022 September 1, 2026 19.94 902,570 902,570January 1, 2023 September 1, 2026 19.94 80,230 - May 1, 2023 September 1, 2029 19.94 150,428 -

Fair value of options granted

The assessed fair value at grant date of options granted during the period ended December 31,

2032 was NOK 19,943 per option. The fair value at grant date is independently determined using an

adjusted form of the Black-Scholes model which includes a Monte Carlo simulation model that takes

into account the exercise price, the term of the option, the impact of dilution (where material), the share

price at grant date and expected price volatility of the underlying share, the expected dividend yield,

the risk-free interest rate for the term of the option, and the correlations and volatilities of the peer

group companies.

The model inputs for options granted during the period ended December 31, 2023 included:

a) options are granted for no consideration and vest based on Bulk Infrastructre Holding AS ranking

within a peer group of 16 selected companies over a four-year period. Vested options are

exercisable for a period of 1.75 years after vesting

b) exercise price: NOK 19,943

c) grant date: May 1, 2023

d) expiry date: September 1, 2029

e) share price at grant date: NOK 19,943

f) expected price volatility of the company’s shares: 40%

g) expected dividend yield: 0

h) risk-free interest rate: 3.3%

The expected price volatility is based on the historic volatility of 16 peer group companies, adjusted for

dividend and stock splits.

Management incentive program - Klub Bulk AS

Bulk Infrastructure Holding AS, established a management incentive program through the company

Klub Bulk AS in the end of 2019. The program was effective as of January 1, 2020. The incentive

program is designed to provide long-term incentives for management to deliver shareholder returns.

Under the program, participants are granted A- and B-shares, of which the B-shares are preference

shares. A portion of the A-shares has an option element and are assessed as options when accounted

for in the financial statements. The rights of the shares are the same, except that the B-shares have a

right to an annual return equal to 8% of the face value of the shares. The shares granted give voting

rights, but carry no dividend.

The program runs over a period of 60 to 80 months from the effective date of the program. After 60

months, the management shareholders has a right, but no obligation, to exercise a put option, which

needs to include a minimum of 25% of the A- and B-shares. After 80 months, The Company has

a right, but no obligation to purchase all of the shares in Klub Bulk AS related to the management

incentive program.

Set out below are summaries of the option element of the A-shares granted under the program:

2023 2022Average exercise Number of Average exercise Number of price per shareA-sharesprice per share A-sharesAs at January 1 158.94 55,278 158.94 55,278Granted during the period - - - - Exercised during the period - - - - Forfeited during the period - - - - As at December 31 158.94 55,278 158.94 55,278

Shares outstanding at the end of the period have the following expiry dates and exercise prices:

A-sharesA-sharesGrant date Expiry date Exercise priceDecember 31, 2023 December 31, 2022January 1, 2020 December 31, 2025 158.94 55,278 55,278

Fair value of shares granted

The assessed fair value of the shares upon establishment of the program was NOK 100,16 per share

as of January 1, 2020. The fair value is determined by using an adjusted form of the Black-Scholes

model which includes a Monte Carlo simulation model that takes into account the exercise price, the

term of the option, the impact of dilution (where material), the share price at grant date and expected

price volatility of the underlying share, the expected dividend yield, the risk-free interest rate for the

term of the shares, and the correlations and volatilities of the peer group companies.

The model inputs for the calculation for the period ended December 31, 2023 included:

a) shares vest until December 31, 2024. Vested shares are exercisable for a period of 20 months

after vesting

b) exercise price: NOK 158.94

c) grant date: January 1, 2020

d) expiry date: December 31, 2025

e) share price at grant date: NOK 100.16

f) expected price volatility of the company’s shares: 40%

g) expected dividend yield: 0

h) risk-free interest rate: 3.6%

The expected price volatility is based on the historic volatility of 16 peer group companies, adjusted for

dividend and stock splits.

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BULK INFRASTRUCTURE GROUP AS / CONSOLIDATED FINANCIAL STATEMENTS

Note 11 Joint venture and associated companies

Associated companies 2023

Foundation / Acquisition Book valueDividends / Share of Book value(Figures in NOK ‘000)date Country Ofce location Ownership 01.0Impairmentnet prot after tax 31.12Berger Terminal Holding II AS 19/01/2022 Norway Oslo 25% 60,749 -2,100 -4,871 53,778Bulk Park Enebakk AS 06/07/2020 Norway Oslo 50% 76,018 -11,999 -34,181 29,839Total 136,767 -14,099 -39,051 83,616

Associated companies 2022

Foundation / Acquisition Book Share issues / Share of Book (Figures in NOK ‘000)date Country Ofce location Ownershipvalue 01.0dividendsnet prot after taxvalue 31.12Berger Terminal Holding II AS 19/01/2022 Norway Oslo 25% 47,703 -2,275 15,320 60,749Bulk Park Enebakk AS 06/07/2020 Norway Oslo 50% 134,235 93 -58,310 76,018Total 181,939 -2,182 -42,990 136,767

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Summary of financial information in the consolidated financial statement of Berger Terminal Holding II

AS on 100% basis inaccordance with IFRS

Income statement

(Figures in NOK ‘000) 2023 2022Total income 21,030 20,517 Total expenses 948 1,539 Operating profit before fair value adjustments on investment 20,082 18,978 properties Fair value adjustments on investment properties -35,000 70,000 Operating profit -14,918 88,978 Net financial items -11,638 -11,844 Profit before income tax -26,556 77,134 Income tax expense -7,072 15,853 Profit for the year -19,483 61,281

Balance sheet

(Figures in NOK ‘000) 2023 2022AssetsNon-current assets 570,000 605,000 Current assets 5,035 11,434 - Cash and cash equivalents 4,384 11,191 Total assets 575,035 616,434 Equity and liabilitiesEquity 226,588 256,276 Non-Current liabilities 346,137 352,032 - Deferred tax 25,137 31,032 Current liabilities 2,310 8,126 Total Equity and liabilities 575,035 616,434

Reconciliation of carrying amount

(Figures in NOK ‘000) Shareholding (%) 2023 2022Net assets 100% 226,588 256,276 Group’s shareholding in the company 25% 56,647 64,069 Carrying amount of Group’s shareholding 25% 56,647 64,069

Summary of financial information in the consolidated financial statement of Berger Terminal Holding II

AS on 100% basis inaccordance with IFRS

Income statement

(Figures in NOK ‘000) 2023 2022Total income 2,100 2,223 Total expenses 6,521 853 Operating profit before fair value adjustments on -4,421 1,371 investment propertiesFair value adjustments on investment properties -68,689 -105,529 Operating profit -73,111 -104,159 Net financial items -10,362 -6,580 Profit before income tax -83,473 -110,739 Income tax expense -15,112 -31,424 Profit for the year -68,361 -79,315

Balance sheet (Figures in NOK ‘000) 2023 2022AssetsNon-current assets 232,305 301,194 Current assets 11,138 19,979 - Cash and cash equivalents 6,206 17,596 Total assets 243,443 321,173 Equity and liabilitiesEquity 52,883 120,824 Non-current liabilities 183,233 194,819 -Deferred tax 25,559 40,671 Current liabilities 7,328 5,530 Total Equity and liabilities 243,443 321,173

Reconciliation of carrying amount

(Figures in NOK ‘000) Shareholding (%) 2023 2022Net assets 100% 52,883 120,824 Group's shareholding in the company 50% 26,441 60,412 Added value 50% - - Carrying amount of Group's shareholding 50% 26,441 60,412

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BULK INFRASTRUCTURE GROUP AS / CONSOLIDATED FINANCIAL STATEMENTS

Note 12 Financial income and costs

(Figures in NOK ‘000) 2023 2022Share of profit/loss(-) of investments accounted for using the equity method -39,051 -42,990Remeasurement gain of previous held equity investments - 90,056 Finance incomeInterest income 32,096 8,306Currency gain 65,978 94,086Other finance income 247 239 Total finance income 98,321 102,631Finance costsInterest expense on borrowings measured at amortised cost 329,809 158,474Finance expense on derivatives - 2,046 Currency loss 11,917 61,945 Other finance costs 17,687 10,585 Total finance costs 359,413 233,049Net gains / losses on financial assets / liabilities valued at fair valueDerivativesFair value adjustments on derivatives 1,209 27,067Net gain on financial instruments at fair value 1,209 27,067Net financial items -298,935 -56,286

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BULK INFRASTRUCTURE GROUP AS / CONSOLIDATED FINANCIAL STATEMENTS

Note 13 Ta x

Changes in deferred tax/(-)tax assets

Loss carried Investment Financial Real Estate and Total deferred tax/(Figures in NOK ‘000)forwardpropertyderivativesxed assets Other items(-)tax assets01.01.2023 -265,700 470,281 -1,040 16,458 -4,419 215,580 Changes in deferred tax -57,708 -14,311 266 1,963 -92 -69,882 Change related to purchased/sold companies 730 - - - - 730Changes related to tax estimates - - - - -3,256 -3,25631.12.2023 -322,678 455,969 -774 18,422 -4,511 143,172

Changes in deferred tax/(-)tax assets

Loss carried Investment Financial Prot and Total deferred tax/(Figures in NOK ‘000)forwardpropertyderivativesloss account Other items(-)tax assets01.01.2022 -174,608 467,761 -2,130 - -572 290,451 Changes in deferred tax -85,682 -42,790 1,089 14,341 -3,134 -116,176 Change related to purchased/sold companies -5,409 45,309 2,117 -713 41,304 31.12.2022 -265,700 470,281 -1,040 16,458 -4,419 215,580

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BULK INFRASTRUCTURE GROUP AS / CONSOLIDATED FINANCIAL STATEMENTS

Reconciliation net recognized deferred tax /(-)tax assets(Figures in NOK ‘000) 2023 202201.01 215,580 290,451Change related to sold companies 730 41,304Deferred tax expense (income) recognized in profit and loss -69,882 -116,176Changes related to tax estimates -3,256 - Net recognized deferred tax liability 31.12 143,172 215,580

Current income tax liabilities

(Figures in NOK ‘000) 2023 2022Current income tax - - Change in prior years - - Total current income tax liabilities - -

Loss carried forward

(Figures in NOK ‘000) 2023 2022No expiring date -1,466,560 -1,207,727Total loss carried forward -1,466,560 -794,855

There is no deferred tax recognized in comprehensive income

Income tax

(Figures in NOK ‘000) 2023 2022Tax payable Change in deferred tax -69,882 -116,176 Income tax expense -69,882 -116,176Profit before income tax -485,642 -558,722 Income tax expense calculated at 22 % -106,841 -122,919 Permanent differences 36,898 6,743 Non taxable revenue - - Income tax expense -69,944 -116,176 Effective tax rate 14.4 % 20.8 %

Note 14 Goodwill and impairment

The goodwill included in the balance sheet is related to the acquisition of OS-IX Eiendom Holding AS

on January 19, 2022. The value of the company and the corresponding goodwill is still considered

to be valid as of year-end 2023. The value of the company is assessed to have increased sine the

aquisition, mainly due to new signings of customers and expansion of the data center facilities. As

such, no indicators of impairment were identified.

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BULK INFRASTRUCTURE GROUP AS / CONSOLIDATED FINANCIAL STATEMENTS

Note 15 Intangible assets

Software Software under Other(Figures in NOK ’000) Goodwill licensesdevelopment intangible TotalCostBalance at January 1, 2023 19,018 1,895 - 14,335 35,248Additions - 1,380 12,593 1,898 15,871Transfer from "other intangible assets" - - 11,966 -11,966 - Balance at December 31, 2023 19,018 3,275 24,560 4,268 51,120Balance at January 1, 2022 16,948 1,895 - 1,053 19,896Additions 2,070 - - 12,015 14,085Acquisition of OS-IX - - - 1,267 1,267Balance at December 31, 2022 19,018 1,895 - 14,335 35,248Accumulated amortization and impairmentBalance at January 1, 2023 16,948 1,709 - 839 19,496 Amortization charge for the year - 207 - 2,567 2,775 Balance at December 31, 2023 16,948 1,916 - 3,406 22,271 Balance at January 1, 2022 16,948 1,380 - 123 18,451 Amortization charge for the year - 330 - 715 1,045 Balance at December 31, 2022 16,948 1,709 - 839 19,496Net book valueAt January 1, 2023 2,070 186 - 13,497 15,752At December 31, 2023 2,070 1,358 24,560 861 28,849At January 1, 2022 - 515 - 930 1,445 At December 31, 2022 2,070 186 - 13,497 15,752

Current estimates of useful economic life of intangible assets are as follows:

Goodwill: indefinite

Software licenses: 3-5 years

Software under development: n.a.

Other intangible assets: 3-5 years

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BULK INFRASTRUCTURE GROUP AS / CONSOLIDATED FINANCIAL STATEMENTS

Note 16 Property, plant & Equipment

DatacenterDatacentertechnical DatacenterUnderOther xedFiber (Figures in NOK ‘000)buildingsinfrastructureland constructionassetsinfrastructure TotalAccumulated costBalance at January 1, 2023 702,595 886,902 190,547 452,838 29,892 462,612 2,725,385 Additions 51 181,023 - 763,508 2,699 93,581 1,040,861 Disposals - - - - - -70,100 -70,100 Other adjustments - currency 9,377 3,663 217 1,077 - 7,474 22,8071)Reclassification to Assets held for sale - - - - - -4,680 -4,680 Balance at December 31, 2023 712,023 1,071,588 190,763 1,217,422 32,590 488,886 3,713,272Balance at January 1, 2022 213,212 430,859 122,556 67,224 25,727 578,227 1,437,804Additions 2,621 65,711 31,229 328,547 4,165 66,158 498,432Reclassification to Right-of-use assets - - - - - -40,931 -40,931 1)Reclassification to Assets held for sale - - - - - -144,248 -144,248 Aquisition of OS-IX 480,278 389,885 36,395 56,640 - - 963,198 Other adjustments - currency 6,484 447 366 426 - 3,406 11,130 Balance at December 31, 2022 702,595 886,902 190,547 452,838 29,892 462,612 2,725,385Accumulated depreciationBalance at January 1, 2023 157,307 174,984 4,225 - 21,793 28,090 386,399Depreciation charge for the year 16,856 58,525 1,414 - 5,642 19,503 101,940Impairment - 7,322 - - - - 7,322Other adjustments - currency 2,609 3,688 89 - - 752 7,138Balance at December 31, 2023 176,772 244,520 5,729 - 27,435 48,344 502,800Balance at January 1, 2022 17,939 56,191 3,015 - 15,761 16,210 109,114Depreciation charge for the year 19,761 37,875 1,206 - 6,033 11,849 76,724Acquisition of OS-IX 119,433 80,724 - - - - 200,157Other adjustments - currency 174 194 5 - - 31 404Balance at December 31, 2022 157,307 174,984 4,225 - 21,793 28,090 386,399Net book valueAt January 1, 2023 545,288 711,918 186,321 452,838 8,098 434,522 2,338,985At December 31, 2023 535,251 827,068 185,035 1,217,422 5,155 440,542 3,210,472At January 1, 2022 195,273 374,668 119,542 67,224 9,966 562,017 1,328,690At December 31, 2022 545,288 711,918 186,321 452,838 8,098 434,522 2,338,985Expected useful economic life 50 years 5-35 years 25 years - 4-10 years 20-30 years

All property, plant and equipment is located in Norway, Denmark, United Kingdom and Ireland.

In December 2023 a customer exercised an option to aquire fiber on the Havfrue cable system. The sale is expected to be completed during Q1 2024. Refer also note 25.

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BULK INFRASTRUCTURE GROUP AS / CONSOLIDATED FINANCIAL STATEMENTS

Note 17 Investments in subsidiaries, joint ventures and associated

companies

Group:

Bulk Infrastructure Group AS

Subsidiaries Ofce location Vote- / Ownership 31.12Bulk Industrial Real Estate AS Oslo 100.0%Bulk Eiendom Farex AS Oslo 100.0%Bulk Lindeberg II AS Oslo 100.0%Bulk Lindeberg V AS Oslo 100.0%Bulk Lindeberg VI AS Oslo 100.0%Bulk Gardermoen IV AS Oslo 100.0%Bulk Vinterbro II AS Oslo 100.0%Bulk Eiendom Vestby II AS Oslo 100.0%Bulk Vestby I AS Oslo 100.0%Bulk Berger IV AS Oslo 100.0%Bulk Forus AS Oslo 100.0%Bulk Eiendom Solgaard Skog AS Oslo 100.0%Logibulk I AS Oslo 100.0%Bulk Ormlia AS Oslo 100.0%Hofstad Næring 5 AS Oslo 100.0%Hofstad Næring 10 AS Oslo 100.0%Bulk Industrial Real Estate ApS Copenhagen, Denmark 100.0%Bulk Jernholmen ApS Copenhagen, Denmark 100.0%Logistik Terminal Køge ApS Copenhagen, Denmark 100.0%Bulk Lindeberg VII AS Oslo 100.0%Bulk Lindeberg IX AS Oslo 100.0%Bulk Lindeberg X AS Oslo 100.0%Bulk Vestby Nord AS Oslo 100.0%Bulk Langhus AS Oslo 100.0%Bulk Danebuåsen AS Oslo 100.0%Bulk Enebakk AS Oslo 100.0%Bulk Vestby II AS Oslo 100.0%Bulk Hanekleiva AS Oslo 100.0%Bulk Park Enebakk II AS Oslo 51.0%C5 Invest AS Oslo 51.0%AE Bulk Co Invest AS Oslo 100.0%Bulk Data Centers AS Oslo 100.0%Bulk Data Centers OS-IX AS Oslo 100.0%Bulk Data Centers N01 AS Oslo 100.0%Bulk Data Centers N01 DCM101 AS Oslo 100.0%N01 Utilities AS Oslo 100.0%N01 Real Estate AS Oslo 100.0%

Subsidiaries Ofce location Vote- / Ownership 31.12Bulk Data Centers DK01 ApS Esbjerg, Denmark 100.0%Bulk Infrastructure UK Ltd London, UK 100.0%Bulk Fiber Networks AS Oslo 100.0%Electric City-Link Norway AS Oslo 100.0%Optibulk Skagerak AS Oslo 100.0%Optibulk Havfrue AS Oslo 100.0%Infragreen Communications AS Oslo 100.0%Bulk Fiber Networks Denmark ApS Copenhagen, Denmark 100.0%Bulk Fiber Networks UK Ltd London, UK 100.0%Bulk Fiber Networks Ireland Limited Dublin, Ireland 100.0%Bulk Powered Land AS Oslo 100.0%Norway as a Service AS Oslo 100.0%Bulk Innovation AS Oslo 100.0%Associated companies Ofce location Vote- / Ownership 31.12Berger Terminal Holding II AS Oslo 25.0%Bulk Park Enebakk AS Oslo 50.0%

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BULK INFRASTRUCTURE GROUP AS / CONSOLIDATED FINANCIAL STATEMENTS

Note 18 Financial assets and liabilities

Set out below is a comparison by class of the carrying amounts and fair value of the Group’s financial

assets and financial liabilities included in the financial statements

Carrying Carrying amountFair valueamountFair valueas at as at as at as at (Figures in NOK ‘000)31.12.202331.12.202331.12.202231.12.2022Financial assets at fair value through profit or lossInterest rate swaps 24,808 24,808 23,992 23,992 Total financial assets at fair value 24,808 24,808 23,992 23,992 Financial assets at amortised costReceivable from related party - non-current 1,242 1,242 1,190 1,190 Other receivables 58,919 58,919 21,565 21,565 Investment in shares - non-current 1,249 1,249 1,249 1,249 Receivable from related party - current -981 -981 441 441 Trade and other receivables 302,758 302,758 177,850 177,850 Total financial assets at amortised cost 363,187 363,187 202,296 202,296 Cash and cash equivalents 1,026,391 1,026,391 224,459 224,459Total financial assets 1,414,386 1,414,386 450,746 450,746 Total current 1,328,168 1,328,168 402,750 402,750Total non-current 86,218 86,218 47,997 47,997

Carrying Carrying amountFair valueamountFair valueas at as at as at as at (Figures in NOK ‘000)31.12.202331.12.202331.12.202231.12.2022Financial liabilities at fair value through profit or lossInterest rate swaps 4,336 4,336 4,729 4,729Total financial liabilities at fair value 4,336 4,336 4,729 4,729Financial liabilities at amortised costBond loan 1,722,463 1,722,463 1,463,902 1,463,902Borrowings 1,623,896 1,623,896 1,694,089 1,694,089Short-term portion of bond loan 565,000 565,000 - - Short-term portion of borrowings 762,914 762,914 739,764 739,764Other long-term liabilities 7,077 7,077 20,248 20,248Trade payables 182,391 182,391 77,532 77,5321)Other payables134,283 134,283 67,730 67,730Total financial liabilities at amortised cost 4,998,024 4,998,024 4,063,266 4,063,266Total financial liabilities 5,002,360 5,002,360 4,067,995 4,067,995Total current 1,080,108 1,080,108 885,481 885,481 Total non-current 3,922,251 3,922,251 3,182,513 3,182,513

Other payables only represent financial liabilities. Refer note 31 for accruals and prepayments.

For trade receivables, trade payables and other short-term receivables and payables, the carrying

amount is a reasonable approximation for fair value due to the short term nature of these assets and

liabilities. The borrowings has an interest rate that is considered similar to the terms the Group could

achieve as of December 31, 2023 and carrying amount of the borrowings is considered not to be

significantly different from the fair value. Fair value of derivatives are based on mark to market reports

received from banks.

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Fair value hierarchy

The Group uses financial hierarchy under IFRS 13 for determining and disclosing the fair value of

financial instruments by valuation techniques. Below table presents fair value measurement to the

Group’s assets and liabilities at December 31, 2022

(NOK ‘000) Level 1 Level 2 Level 3 TotalAssetsDecember 31, 2023Financial assets at fair value through profit or lossInterest rate swaps 24,808 24,808 (NOK ‘000) Level 1 Level 2 Level 3 TotalLiabilitiesDecember 31, 2023Financial liabilities at fair value through profit or lossInterest rate swaps 4,336 4,336 (NOK ‘000) Level 1 Level 2 Level 3 TotalAssetsDecember 31, 2022Financial assets at fair value through profit or lossInterest rate swaps 23,992 23,992 (NOK ‘000) Level 1 Level 2 Level 3 TotalLiabilitiesDecember 31, 2022Financial liabilities at fair value through profit or lossInterest rate swaps 4,729 4,729

The fair value of financial instruments traded in an active market is based on unadjusted quoted

market prices for identical assets or liabilities at the balance sheet date and are included in level 1.

For Bulk this category is not relevant as of period close.

Inputs other than quoted prices included within level 1 that are observable for the asset or liability,

either directly or indirectly, are level 2 inputs. For Bulk this will typically apply for interest rate swaps,

which are over-the-counter derivatives.

Level 3 inputs are unobservable inputs and are applied when relevant observable inputs are not

available. The fair values presented in this category are mainly based on internal assumptions. There

were no transfers between any of the levels during the reporting period.

Note 19 Derivative financial instruments

(Figures in NOK ‘000) 2023 2022Interest rate swaps 24,808 23,992 Total assets 24,808 23,992 Interest rate swaps 4,336 4,729Total liabilities 4,336 4,729Interest rate swaps(Figures in NOK ‘000) 2023 2022Nominal amount interest rate swaps -688,023 -516,960Total nominal amount -688,023 -516,960

The Company receives floating interest and pay fixed interest.

Note 20 Options, contingent assets and contingent liabilities

The group has options to acquire land on certain terms and conditions, both zoned and unzoned.

In addition, the group has agreements to purchase land, contingent of finalized zoning, hence

with uncertain timing. These agreements, with the corresponding land and liability, have not been

accounted for in the balance sheet, and will be accounted for upon purchase.

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BULK INFRASTRUCTURE GROUP AS / CONSOLIDATED FINANCIAL STATEMENTS

Note 21 Leases - group as a lessee (IFRS 16 disclosure)

Ofce Motor(Figures in NOK ‘000) Seaberequipment Land and buildingsvehicles Terrestrial ber TotalRight of use assetsBalance at January 1, 2023 19,766 148 53,654 31 177,191 250,790Depreciations 1,578 85 6,828 31 5,333 13,855Impairment 16,858 - - - - 16,858Additions - - - - 96 96Adjustments - - -6,446 - - -6,446Balance at December 31, 2023 1,330 63 40,379 - 171,954 213,727 Balance at January 1, 2022 19,877 85 18,705 - 136,434 175,101 Depreciations 1,717 106 5,964 332 4,577 12,696 Additions 1,465 254 41,440 373 45,335 88,866 Adjustments 141 -85 -527 -11 - -481 Balance at December 31, 2022 19,766 148 53,654 31 177,191 250,790 Rental period 1-40 2-3 3-10 1-3 20

In 2023, a right-of-use asset related to one of the IRU agreements for seafiber was concluded to be impaired as the agreement was assessed as non profitable.

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Lease liabilities2023 2022Maturity analysis - contractual undiscounted cash flowsLess than one year 11,512 14,580 Between one and five years 44,846 47,748 More than five years 22,648 33,267 Total undiscounted lease liabilities at 31 December 79,005 95,595 Lease liabilities included in the statement of financial 63,062 75,487 position at 31 December

Amount recognised in profit or loss2023Interest on lease liabilities 3,911 Depreciation expense of right-of-use assets 13,855 Gains and losses due to terminations, purchases, impairments, 16,858 and other changesExpense relating to short-term leases - Expense relating to leases of low-value assets 64 Variable lease payments - Total amount recognised in profit or loss 34,688 Amount recognised in cash flow statementTotal cash flow from leases 9,890

Other information

The IRU´s for the Terrestrial fiber are paid up-front for a period of 20 years with an option for another

20 years. The option period is not included in the disclosure of the Right-of-use asset. As the fiber is

prepaid there are no liability related to the the Right-of-use assets.

The Group does not recognize right-of-use assets and lease liabilities for short-term leases or leases

where the underlying assets have low value.

The lease payments for such leases are recognised as costs linearly over the lease periods.

Note 22 Inventories

(Figures in NOK ’000) 2023 2022Gravel - 4,587Inventory data center 19,774 3,876 Total Inventories 19,774 8,463

The gravel is located at one of the properties. In 2023 it was decided that the gravel was to be

impaired as the cost of removing it exceeded the carrying value.

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Note 23 Trade and other receivables

(Figures in NOK ’000) 2023 2022Trade receivables 161,186 89,569 Other current receivables 140,684 88,504 Trade and other receivables 301,870 178,073

Other current receivables consists of earned not accrued revenue, VAT and other short-term

receivables

(Figures in NOK ’000) 31.12.2023 31.12.2022Provision for impairment of trade receivables at 01.01 550 946This years provision for receivables impairment 3,678 550 Loss on receivables - - Reversal of prior years provision -550 -946 Provision for impairment of trade receivables at 31.12 3,678 550

Refer also note 27 for ellaboration on credit risk and assessment of provisions.

(Figures in NOK ’000) Total Not due 0-30d 30-60d 60-90d >90dDecember 31, 2023 301,777 182,881 75,518 4,246 84 39,049 December 31, 2022 177,850 136,576 479 1,339 - 39,456

The Group has a receivable of NOK 33 million related to a collaborative project on a real estate plot.

The receivable is overdue as of December 31, 2023, but will be settled upon the final agreement in

relation to the project. Management has decided to make a provison for impairment of NOK 3,7 million

in relation to the receivable. The risk of loss on the remaining receivable is assessed as low.

Book value of trade and other receivables in the group’s balance sheet is considered to provide a

reasonable estimate of the fair value.

Related party disclosures

The Group provides accounting and asset management services to its parent companies, Bulk

Industrier AS and Green Keeper AS, and joint venture, Berger Terminal Holding II AS. The costs

related to the transactions amounts to 423,068 NOK in 2023 and 344,707 NOK in 2022.

Note 24 Cash and cash equivalents

(Figures in NOK ’000) 2023 2022Cash and cash equivalents 1,021,428 219,660Restricted funds 4,962 4,799Total 1,026,391 224,459

Note 25 Non-current assets and disposal groups classified as

held for sale

In September 2023 the Group initiated a process to locate a buyer for the property Bulk Jernholmen

located outside of Copenhagen, Denmark. On 23 December 2023 the group signed a letter of intent

(LOI) to sell the property. The sale is expected to be completed during Q1 2024.

(Figures in NOK ’000) 2023 2023Assets classified as held for saleProperty, plant and equipment 617,201 503,856 Other receivables 14,735 10,113 Total assets of disposal group held for sale 631,936 513,969 Liabilities directly associated with assets held for saleBorrowings 371,599 269,022 Intercompany debt 59,499 257,464 Other current liabilities 22,489 4,205Total liabilities of disposal group held for sale 453,586 530,692

The Group has been assessing a potential sale of Bulk Vinterbro II since 2021, but the sale did not

fulfill the criteria to classify as held for sale until 2023. The sale of the property became highly probable

in November 2023 when Bulk and the buyer agreed on the contract terms, which has been discussed

for a longer period. The transaction is expected to be completed in Q1 2024.

(Figures in NOK ’000) 2023 2022Assets classified as held for sale 21,409 36,833 Property, plant and equipment 14,994 797 Other receivables 36,404 37,630 Total assets of disposal group held for saleLiabilities directly associated with assets held for saleIntercompany debt 6,700 5,712 Other current liabilities 140 3 Total liabilities of disposal group held for sale 6,840 5,715

In addition, a customer excercised the option in 2023 to purchase the last span of fiber on the

Havfrue fiber cable in accordance with the option agreement. The transaction was carried out in Q4

2023. However, a small portion of the terrestrial fiber connected to the Havfrue cable is not sold, but

expected to be tranferred to the same customer in Q1 2024. The disposal group of fiber which is held

for sale amounts to NOK 4,7 million.

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BULK INFRASTRUCTURE GROUP AS / CONSOLIDATED FINANCIAL STATEMENTS

Note 26 Paid in equity and shareholders

2023 2022Share capital 3,726,321 3,263,503

Change in paid in equity and share premiumTotal shares Share capital Share premium(Figures in NOK '000) 2023 2022 2023 2022 2023 2022Issued stock and paid in capitalAt the beginning of the year 326,350,306 273,052,737 3,263,503 2,730,527 2,918,911,363 1,856,530,919 Capital increase 46,281,750 53,297,569 462,818 532,976 922,534,123 1,062,380,444 At the end of the year 372,632,056 326,350,306 3,726,321 3,263,503 3,841,445,485 2,918,911,363

The total numer of shares are 372,632,056, each valued at NOK 0,01, and NOK 3,726,321 in total share capital.

The company’s shareholders at December 31, 2023

Shareholder Type of account Country Number of shares Share %Bulk Infrastructure Holding AS Ordinary shares Norway 372,632,056 100%

Dividend

The company did not pay any dividend in 2023. No dividend has been proposed for approval in 2024.

Average number of shares

Basic and diluted earnings per share are calculated by dividing total comprehensive income attributable to shareholders in the parent

Company by the weightet average number of ordinary shares outstanding during the year.

2023 2022

Total comprehensive income, net of tax, attributable to shareholders in the parent Company -395,003,062 -406,086,880Weighted average number of outstanding shares 354,568,473 304,309,579Basic and diluted earnings per share -1.11 -1.33

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BULK INFRASTRUCTURE GROUP AS / CONSOLIDATED FINANCIAL STATEMENTS

Note 27 Financial risk management

The group’s activities expose it to a variety of financial risks: market risk, credit risk and liquidity risk.

The group’s overall risk management programme seeks to minimise potential adverse effects on the

group’s financial performance.

Market risk

The group is exposed to market risk arising from changes in interest rates and foreign exchange rates.

The exposure is reduced mainly by the use of finical derivatives. The group has operations in Norway,

Denmark, Ireland and the UK.

Interest rate risk

The group’s interest rate risk arises on short- and long-term basis because part of the company’s

borrowings are held at variable rates. The lease is not altered according to interest rate levels, but

according to the terms of the lease contract. Changes in the interest rate level will have a direct impact

on the future cash flow for the group.

To reduce the interest rate exposure, it is group policy to maintain a share of its borrowings at fixed

interest rates. The distribution between floating and fixed rates will not necessarily be the same for all

group companies. Some of the current loan agreementshave hedging ratio-covenants. The group use

interest rate derivatives to manage their interest rate exposure.As of December 31, 2023 NOK 689,3

million of the Group’s borrowings of NOK 4 674,3 million is hedged at a fixed rate. The liability directly

related to the asset held for sale is not included. Hedged nominal amount of NOK 688,0 expires

between 2024 and 2033. The sensitivity is calculated by the Group, and the Groups interest cost is

estimated to increase/decrease by NOK 25,2 million for 2024 based on a change in the interest rate of

+/- 0.5%.

Credit risk

Credit risk is the risk of loss when a party is unable to redeem their obligations to the group. The risk

is mainly linked to trade receivables and other receivables and based on historical losses the risk is

considered not significant. The risk is managedby doing thorough evaluations of the credit quality of

the customer when new lease agreements are signed, demand deposits or guarantees, and perform

regular monitoring of the credit quality of material customers. The maximum exposure to credit risk at

year end is equal to the carrying amount of financial assets. The majority of the Group’s customers pay

in advance for the services received. As such, the credit risk is deemed as low. There is one material

amount outstanding to a spesific customer. Refer note 23 for further information. The group deems

obligations to the group to be in default when payments are 90 days past due.

Liquidity risk

Liquidity risk is the risk that the group will not be able to meet their obligations at maturity, and the risk

that the group will not be able to meet their liquidity obligations without a significant increase in cost. At

a broader perspective, liquidity risk also include the risk that the group is not able to finance necessary

investments in the properties. The Group continuously monitors the Group’s liquidity and has a long-

term liquidity forecast in place. Management also monitors the Group’s installments and expiration of

the long-term debt and prepares action plans to be able to meet its obligations.

Liquidity risk is reduced by having a sufficient liquidity reserve, and by ensuring that the debt maturities

are distributed over time. The table below illustrates the maturity structure of liabilities.

The table below illustrates the maturity structure of liabilities.Financial liability 2023Expected cashflowCarrying After Figures in NOK ´000)amount Year 1 Year 2 Year 3-5year 5Bond loan 2,287,463 565,000 - 1,722,463 -Borrowings (bank) 2,386,810 762,914 506,815 1,056,081 61,000 Other long-term liabilities - seller credit 7,077 - - 7,077 - Trade payables 182,391 182,391 - - - Interest costs (bond loan) - 259,746 187,075 334,900 - Interest costs (bank) - 148,396 101,416 43,589 4,514 1)Other current payables 134,283 134,283 - - - Liabilities directly associated with the 371,599 371,599 - - - assets held for saleTotal non-derivative financial obligations 5,369,622 2,424,329 795,306 3,164,110 65,514Derivative financial intruments 4,336 -36 449 1,667 2,256 Total derivative financial obligations 4,336 -36 449 1,667 2,256

Financial liability 2022Expected cashflowCarrying After(Figures in NOK ´000)amount Year 1 Year 2 Year 3-5 year 5Bond loan 1,463,902 - 963,902 500,000 - Borrowings (bank) 2,433,853 739,764 545,631 1,148,459 - Other long-term liabilities 20,248 - 16,000 - 4,248 Trade payables 77,532 77,532 - - - Interest costs (bond loan) - 123,750 107,401 78,942 - Interest costs (bank) - 122,600 84,424 34,109 - 1)Other current payables 67,730 67,730 - - - Total non-derivative financial obligations 4,063,266 1,131,376 1,717,357 1,761,510 4,248 Derivative financial intruments 4,729 455 501 1,704 2,069 Total derivative financial obligations 4,729 455 501 1,704 2,069

Other current payables are not complete as the table only presents financial liabilities. As such, accruals are not

included. Refer note 30 for remaining payables.

Fair value of financial derivatives

Fair value of derivatives, including interest rate swaps, is determined upon the present value of future

cash flows relating to the agreements. The present value is calculated based on interest rate curves on

the date of appraisal. The calculations are made by the bank with which the agreement is made.

Sensitivity effect of change in variables (MNOK):Fair value changeVariables Change in variables + 1 % - 1%NIBOR +/- 1 % 3.26 -3.56

Sensitivity is obtained from DnB.

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BULK INFRASTRUCTURE GROUP AS / CONSOLIDATED FINANCIAL STATEMENTS

Note 28 Capital structure and capital management

The group’s objectives relating to capital management are to ensure continued operation, to provide

returns for shareholders and benefits for other stakeholders and to maintain an optimal capital

structure to reduce the cost of capital. The main objective of the group’s capital management is

to maintain a good debt and equity ratio and reduce the Groups interest cost. The group seeks to

maintain a satisfactory equity ratio, but the main focus is related to the debt ratio (loan-to-value/LTV).

The LTV ratio is calculated as net interest bearing debt divided by fair value of investment property

and book value of Property, Plant and Equipment. The group’s goal is to have a debt ratio below 60

%. According to the group’s loan agreements the LTV ratio should not exceed 65 % respectively.

Requirements related to LTV in the loan agreements are adhered to both by year-end and for the first

half year periods in 2022 and 2023. The Group’s LTV is 50 % as of December 31, 2023. To change the

capital structure, the group may adjust the amount of dividends paid to shareholders, return capital to

shareholders, issue new shares or sell assets to reduce debt.

The group’s capital needs are influenced by the need for a liquidity reserve for existing and possible

new projects.

Solidity and liquidity

Equity and liquidity reserve are central key figures in the management of the group capital structure.

The group liquidity reserve should be in proportion to all ongoing projects and any new projects.

Group covenants

As of December 31, 2023, the Group is in compliance with all financial covenants. The Group has

three bonds, of which the financial covenants include a minimum equity ratio on consolidated group

level. The Group also holds a credit facility with a requirement to minimum book value of equity, LTV

and minimum cash left on credit.

Further, Industrial Real Estate has several construction loans with associated covenants. The

covenants include LTV and minimum cash requirements. For some of the loans, the Industrial Real

Estate Group function as a guarantor.

In addition, one of the subsidiaries in the Data Center segment has a loan facility with financial

covenants related to debt service coverage ratio, minimum equity ratio and EBITDA.

The financial covenants are monitored by management continuously. The majority of the covenants are

reported on a quartely basis to the Board and the relvant credit facility. No financial covenants were in

breach during the year.

Note 29 Interest-bearing debt

(Figures in NOK ´000) 31.12.2023 31.12.20221)Total interest-bearing debt, nominal value 5,045,871 3,897,755 - of which hedged (fixed interest rate) 688,023 516,960 2)Hedge Ratio14% 13%Average interest rate at floating rate, including margin (%) 8.5% 5.5%Average remaining duration, borrowings (years) 2.5 2.2Average remaining duration, hedging contracts (years) 5.6 years 5.7 yearsTotal interest-bearing debt, nominal value 5,045,871 3,897,755 First year instalments of debt (short-term) 1,699,512 739,764 Long-term interest-bearing debt excluding first year instalments 3,346,358 3,157,991

The liabilities directly associated with the assets held for sale is also included in total interest-bearing debt for

2023.

The hedge ratio implies the degree of economic security. This is the percentage of debt which is hedged through

interest rate swaps. The Group does not apply hedge accounting.

Maturity on long-term debt31.12.2023 31.12.2022Year 1 1,699,512 739,764 Year 2 506,815 1,509,533 Year 3-5 2,778,543 1,648,459 After year 5 61,000 - Total 5,045,871 3,897,755

The recognized carrying amount of the assets pledged as security for liabilities as per 31.12

2023 2022Investment property and property, plant and equipment 5,172,769 5,525,306 Total pledged assets 5,172,769 5,525,306 Borrowings secured with pledged assets 2,951,810 2,433,853

I In addition to pledged investments property and property, plant and equipment, the group has

established priority pledge in the shares of subsidiaries, factoring and bank accounts.

Please refer note 28 for further info regarding the Groups covenants.

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BULK INFRASTRUCTURE GROUP AS / CONSOLIDATED FINANCIAL STATEMENTS

Bond loan

Bulk Infrastructure Group AS 19/24 FRN

Bulk Infrastructure Group AS issued a 5 year NOK 500 million senior unsecured FRN bond October

15, 2019. The Group further performed a tap issue of an additional NOK 500 million on the unsecured

bond on September 9, 2020.

Specification ISIN NO0010865876Maturity date 15.10.2024Amount NOK 1,000,000,000Coupon Nibor 3m + 4.5%Coupon type FRNCoupon frequency QuarterlyTrustee Nordic Trustee AS

Financial covenants

Equity ratio > 35%.

Security

Unsecured.

Listing

The Bond is listed as of 15 September, 2020.

Bulk Infrastructure Group AS 22/26 FRN

Bulk Infrastructure Group AS issued a new senior unsecured green bond of NOK 500 million

September 9, 2022. An application will be made for the bond to be listed on Oslo Børs. The net

proceeds from the bond will be utilized in accordance with the green bond framework.

Specification ISIN NO0012701269Maturity date 15.09.2026Amount NOK 500,000,000Coupon Nibor 3m + 6.5%Coupon type FRNCoupon frequency QuarterlyTrustee Nordic Trustee AS

Financial covenants

Equity ratio > 35%.

Security

Unsecured.

Listing

The bond is listed as of 1 September, 2023.

Bulk Infrastructure Group AS 23/28 FRN

Bulk Infrastructure Group AS has completed a new senior unsecured green bond issue of NOK 1,250

million with a 4.5 year tenor. The net proceeds from the bond issue will be used in accordance with the

green bond framework, including to repurchase approximately NOK 413 million in the outstanding

bond with ticker “BISG01” (ISIN NO0010865876).

Specification ISIN NO0013013219Maturity date 21.03.2028Amount NOK 1,250,000,000Coupon Nibor 3m + 5.75%Coupon type FRNCoupon frequency QuarterlyTrustee Nordic Trustee AS

Financial covenants

Equity ratio > 35%.

Security

Unsecured.

Listing

The bond is listed as of 13 October, 2023.

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BULK INFRASTRUCTURE GROUP AS / CONSOLIDATED FINANCIAL STATEMENTS

Note 30 Reconciliation of net debt

Liabilities arising from financing activities

Cash and cash (Figures in NOK ´000)equivalents Borrowings Leases TotalNet debt as at 01.01 224,459 -3,897,755 -75,487 -3,748,783Cash flowsNet cash flow from operations 223,708 223,708Net cash flow from investing -1,165,743 1,165,743Net cash flow from financing 1,743,968 1,743,968Repayment of borrowings 59,588 59,588Proceeds from borrowings -1,602,741 -1,602,741Installment on lease liabilities 8,514 8,514Purchase of own shares in bond 413,000 413,0001)Interest expense3,911 3,911Foreign exchange movement -17,963 -17,963Net debt as at 31.12 1,026,391 -5,045,871 -63,062 -4,082,541

Interest expense on borrowings amounts to NOK 336,7 million. Interest expense is not accumulated on the

borrowings, hence not included in the reconciliation of net debt.

Note 31 Accruals and prepayments from customers

(Figures in NOK ´000) 31.12.2023 31.12.2022Prepayments from customer - long-term 50,292 41,238Prepayments from customer - short-term 2,647 2,170Accrued salaries, public duties 42,444 39,923Accrued expenses 107,223 35,510Total 202,606 118,842

Prepayments from customer primarily consist of prepaid fiber revenue related to IRU agreements

in the Fiber Networks segment. The Group delivers dark fiber on fiber networks. The IRUs has an

average lifetime of 20 years, of which the revenue related to the the next year is classified as short-

term. Refer note 2 for additional information.

Note 32 Subsequent events after the reporting period

Events after the balance sheet date are events, favourable or unfavourable, that occurs between the

balance sheet date and the date that the financial statements are authorised for issue. Such events

can be events that provide information regarding conditions that existed at the balance sheet date

resulting in adjustments of the financial statement, or events that do not require such adjustments.

The investment properties held for sale as of December 31, 2023 were sold according to plan during

Q1 2024. The sales amount to approximately NOK 670 million.

There are no other material subsequent events after the reporting period.

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BULK INFRASTRUCTURE GROUP AS / FINANCIAL STATEMENTS

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Statement of comprenhensive income

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Cash ow statement

Notes to nancial statement

Auditor’s report

Bulk Infrastructure Group AS

Financial statements

2023

Annual Report 2023

BULK INFRASTRUCTURE GROUP AS / FINANCIAL STATEMENTS

Note 1 Transactions with related parties 65

Note 2 Personnel expenses, number of employees, remuneration, loan to employees 65

Note 3 Fixed assets and intangible assets 66

Note 4 Debtors, liabilities, pledged assets and guarantees etc. 66

Note 5 Investments in subsidiaries 66

Note 6 Bond loan 67

Note 7 Tax 67

Note 8 Equity 68

Note 9 Liabilities to credit institutions 68

Note 10 Restricted funds 68

Note 11 Share capital and shareholder information 68

Financial statements 2023

Presentations

Statement of comprehensive income 61

Balance sheet 62

Cash flow statement 63

Notes

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BULK INFRASTRUCTURE GROUP AS / FINANCIAL STATEMENTS

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Statement of comprehensive income

(Figures in NOK ´000) Note 2023 2022

Sales revenue

1 47,018 69,691

Rental income 2,302 1,565

Other income

1 1,451 2,861

Total income 50,771 74,117

Raw materials and consumables used 8 20

Employee benefits expense

2 58,627 55,994

Depreciation of tangible and intanglible fixed assets

3 1,971 3,203

Impairement of tangible and intangible assets

3 0 570

Other expenses

1,2 26,219 24,141

Total expenses 86,825 83,927

Operating profit/loss -36,054 -9,810

Financial income and expenses

Interest income from group companies

4 238,762 135,362

Other interest income 6,392 52

Other financial income 42 20

Writ-down of other financial fixed assets

5 -218,396 218,396

Interest expense to group companies

4 15,503 30,132

Other interest expenses

6 166,905 79,202

Other financial expenses 8,919 3,975

Net financial items 272,265 -196,272

Result before tax 236,211 -206,082

Tax expense

7 3,933 4,571

Result for the year 232,278 -210,653

Allocation of result for the year

Other equity

8 232,278 -210,653

Total brought forward 232,278 -210,653

Annual Report 2023

BULK INFRASTRUCTURE GROUP AS / FINANCIAL STATEMENTS

Oslo, March 21, 2024

The board of Bulk Infrastructure Group AS

Peder Nærbø

Founder and Executive Chair

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Balance sheet

(Figures in NOK ´000) Note 2023 2022

NON-CURRENT ASSETS

Intangible assets

Licences, patents etc.

3 1,358 186

Deferred tax assets

7 31,088 35,102

Total intangible assets 32,446 35,287

Property, plant and equipment

Land, buildings and other real estate

3 8,764 9,154

Equipment, fixtures and fittings and other movables

3, 9 679 1,549

Total property, plant and equipment 9,443 10,702

Non-current financial assets

Investments in subsidiaries

1, 5, 9 2,197,551 1,979,155

Loan to group companies

4 31,935 28,239

Investments in shares and other securities 2,672 2,672

Other long-term receivables

2 2,895 2,803

Total non-current financial assets 2,235,053 2,012,869

Total non-current assets 2,276,942 2,058,858

Current assets

Receivables

Accounts receivables 861 17

Other short-term receivables 7,788 4,390

Receivables from group companies

4 3,358,019 2,296,414

Total receivables 3,366,667 2,300,821

Investments

Bank deposits, cash and cash equivalents

10 743,457 36,663

Total bank deposits, cash and cash equivalents 743,457 36,663

Total current assets 4,110,124 2,337,484

Total assets 6,387,066 4,396,342

(Figures in NOK ´000) Note 2023 2022

EQUITY AND LIABILITIES

Equity

Paid in equity

Share capital

8, 11 3,726 3,264

Share premium reserve

8 3,841,445 2,918,911

Total paid-up equity 3,845,172 2,922,175

Retained earnings

Other equity

8 160,734 -87,665

Total retained earnings 160,734 -87,665

Total equity 4,005,906 2,834,510

Liabilities

Other provisions 49,416 49,416

Total provisions 49,416 49,416

Other non-current liabilities

Bonds

6 2,287,463 1,463,902

Liabilities to financial institutions

4 5,654 3,200

Total non-current liabilities 2,293,117 1,467,102

Current liabilities

Trade payables 6,509 7,967

Public duties payable 2,228 2,424

Other current liabilities

6 29,890 34,923

Total current liabilities 38,628 45,314

Total liabilities 2,381,160 1,561,833

Total equity and liabilities 6,387,066 4,396,342

Annual Report 2023

BULK INFRASTRUCTURE GROUP AS / FINANCIAL STATEMENTS

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Cash ow statement

(Figures in NOK ´000) Note 2023 2022

Cash flows from operating activities

Profit/loss before tax 236,211 -206,082

Ordinary depreciation

3 1,971 3,203

Impairment of fixed assets 0 570

Impairment of Investments

5 -218,396 218,396

Change in accounts receivable -844 -17

Change in accounts payable -1,458 3,016

Change in other accrual items -9,749 6,480

Net cash flows from operating activities 7,735 25,566

Cash flows from investment activities

Proceeds from the sale of fixed assets 0 50

Payments to buy tangible assets

3 1,884 583

Proceeds from sale of shares and participations in other

companies

5 0 99,201

Payments to buy shares and participations in other companies

5 0 36,500

Payments to buy other investments

6 0 2,672

Net cash flows from investment activities -1,884 59,496

Cash flows from financing activities

Proceeds from the issuance of new long-term liabilities

6 826,015 493,958

Net change in accrued items related to group cash pool

9 -1,061,235 -1,731,016

Proceeds from equity

8 939,859 671,860

Change in receivable related party

4 -3,696 -28,153

Net cash flows from financing activities 700,943 -593,351

Net change in cash and cash equivalents 706,794 -508,289

Cash and cash equivalents at the start of the period 36,663 544,952

Cash and cash equivalents at the end of the period 743,457 36,663

Annual Report 2023

BULK INFRASTRUCTURE GROUP AS / FINANCIAL STATEMENTS

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Accounting principles

The financial statements are presented in accordance with relevant Norwegian laws and generally

accepted accounting principles for other enterprises. The principles are outlined below and have been

consistently applied to all periods presented, unless otherwise is stated.

Current assets and liabilities

Balances that fall due within a year are classified as current assets and liabilities. The value of current

assets is presented as the lower historical cost and fair value.

Bond loan

The bond is measured by amortized cost according to the Norwegian Accounting Act chapter 5.

Amortized cost calculated by effective interest rate is accepted in the standard assessment guidelines.

The amortized cost of an asset is comprised by original cost, minus transactions between the parties

(eg. payments, interest and fees), plus effective interest. An impairment would decrease the calculated

value.

Intangible assets

Expenditure on own research is expenced as and when incurred. Expenditure on Development is

capitalised providing a future financial benefit relating to the development of an identifiable intangible

asset can be identified and the expenses can be measured reliably. Otherwise, such expenditure is

expensed as and when incurred. Capitalised development costs are amortised linearly over the asset’s

expected useful life.

Property, plant and equipment

Property, plant and equipment (PPE) are assets held for long-term ownership and use. PPE are valued

at historical cost less subsequent depreciation and impairments. Historical cost includes expenditure

directly attributable to the acquisition of the items.

Depreciation is calculated based on estimated useful lives for the assets. Impairments occur when

historical cost exceeds long-term fair value. Previous impairments may be reversed if there are

significant changes in value.

Investments in other companies

The cost method is applied to investments in subsidiaries and associated companies. Cost may vary

with capital contributions. Investments are subject to impairments if permanent fair value is lower than

cost. Previous impairments may be reversed if there are significant changes in value.

Dividends are classified as financial income. Capital contributions from previous ownership are

classified as return of capital and will reduce historic cost.

The management in the Group owns shares in the group through Klub Bulk AS. IFRS 2 Share-Base

Payments applies to the Consolidated Financial Statements for the group.

Foreign currency

Foreign currency transactions are translated at the exchange rate on the date of the transaction.

Monetary foreign currency items are translated to NOK at the exchange rate on the balance sheet

date. Non- monetary items that are measured at historical cost in a foreign currency are translated to

NOK using the exchange rate on the transaction date. Non-monetary items that are measured at fair

value in a foreign currency are translated to NOK using the exchange rate on the measurement date.

Exchange rate fluctuations are posted to the profit and loss account as they arise under other financial

items.

Revenues

Income from the sale of goods is recognised on the date of delivery. Services are posted as income

as they are delivered. Income from the sale of services and long-term manufacturing projects

(construction contracts) are posted to the profit and loss account in line with the project’s degree of

completion, when the outcome of the transaction can be estimated in a reliable manner. When the

transaction’s outcome cannot be estimated reliably, only income corresponding to a projects’ incurred

costs can be posted as revenue. At the time when it is identified that the project will give a negative

result, the estimated loss on the contract is posted in full to the profit and loss account.

Costs

Costs are expensed in the same period as the associated income. When there is no clear connection

between costs and associated income, costs are expensed in the period they are incurred.

Receivables

Receivables are recognized at fair value. A provision for impairment is established when objective

evidence exists that the company will be unable to collect the entire amount due in accordance with

the original terms of each receivable.

Tax

The tax charge in the income statement includes both payable taxes for the period and changes in

deferred tax. Deferred tax is calculated at 22 % on the basis of the temporary differences that exist

between accounting and tax values, as well as any possible taxable loss carried forwards at the end of

the accounting year. Tax enhancing or tax reducing temporary differences, which are reversed or may

be reversed in the same period, have been eliminated.

Cash Flow statement

The cash flow statement has been prepared according to the indirect method. Cash and cash

equivalents include cash, bank deposits, and other short-term investments which immediately and

with minimal exchange risk can be converted into known cash amounts, with due date less than three

months from purchase date.

Changes in accounting principles

There were no changes in the accounting principles applied by the company in 2023.

Consolidated financial statements

Bulk Infrastructure Group AS is included in the consolidated financial statements of Bulk Infrastructure

Holding AS and Bulk Industrier AS. The consolidated financial statements are available at

www.bulkinfrastructure.com.

Annual Report 2023

BULK INFRASTRUCTURE GROUP AS / FINANCIAL STATEMENTS

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Note 1 Transactions with related parties

Bulk Infrastructure Group AS provide services in accounting and administration to related companies

and companies in the group. The services are priced according to current market conditions. In 2023,

fees for accounting, administration and project management of TNOK 47 018 have been recognized

as income. In addition TNOK 7 210 has been allocated as share of Group costs (recognised as other

income an/or cost reduction in Bulk Infrastructure Group AS).

Note 2 Personnel expenses, number of employees, remuneration,

loan to employees

Payroll expenses

(Figures in NOK ´000) 2023 2022

Salaries/wages 51,165 49,075

Social security fees 6,057 5,577

Pension expenses 690 932

Other remuneration 1,969 1,779

Allocated saleries to other group companies -1,255 -1,369

Total 58,627 55,994

Average number of employees during the financial year 20 22

Salaries and remunerations to executives

(Figures in NOK ´000) Executives Board Chairman

Salaries and bonuses 17,040 4,300

Pension obligations 161 0

Other remunerations 641 12

Total 17,841 4,313

The CEO and additional members of the board of Bulk Infrastructure Holding AS (the parent company) recieves

salaries and remunerations from Bulk Infrastructure Group.

Loan to employees

Other employees have loans in the company totalling TNOK 2 895 These loans are repaid within

three years (due in 2025). The interest rate corresponds to the tax-free interest rate determined by the

authorities.

OTP (Statuatory occupational pension)

The company is required to have a pension scheme in accordance with the Norwegian law on required

occupational pension (“lov om obligatorisk tjenestepensjon”). The company’s pension scheme meets

the requirement of this law.

Expensed audit fee

Expenses paid to the auditor for 2023 amounts to TNOK 1 507,- excl.mva.

(Figures in NOK ´000)

Statutory audit fee 850

Tax advisory -

Other assistance 657

Total audit fees 1,507

Annual Report 2023

BULK INFRASTRUCTURE GROUP AS / FINANCIAL STATEMENTS

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Consolidated nancial

statements

Parent company nancial

statements

Responsibility statement

Auditor’s report

Note 3 Fixed assets and intangible assets

(Figures in NOK ´000) Land

Buildings/

adjustments

rented buildings

Moveables and

machines

R&D and

software Total

Purchase cost 01.01 5,076 10,260 13,312 1,895 30,543

Additions 276 228 1,380 1,884

Disposals - - - - -

Purchase cost 31.12 5,076 10,537 13,539 3,275 32,427

Acc. depr. 31.12 0 6,848 12,861 1,916 21,625

Book value 31.12 5,076 3,689 679 1,358 10,801

Depr. this year 666 1,098 207 1,971

Not

depreciated

10-15 years,

linear

3-5 years

linear

5 years, linear/

not depreciated

Note 4 Debtors, liabilities, pledged assets and guarantees etc.

Long-term receivables with minimum maturity of 1 year

Receivables due later than 1 year amounts to TNOK 31 935.

Long-term debt with minimum maturity of 5 years

Bulk Infrastructure Group AS does not have any debt with minimum maturity of 5 years.

Balances with group companies

(Figures in NOK ´000) 2023 2022

Long-term claims on group companies 31,935 28,239

Accounts receivable from group companies 2,058 27,052

Claims on group companies / group contributions 3,355,960 2,269,362

Short-term debt to group companies 0 0

Total 3,389,953 2,324,653

Other debt have priority over debt to group companies. Balances with group companies are charged

with an interest rate equal to NOWA 3M + 4% p.a.

Bulk Infrastrcture Group AS is the owner of a group cash pool. Of the company’s short term claims on

group companies TNOK 3,355,590 are claims regarding the cash pool.

Note 5 Investments in subsidiaries

Investments in subsidiaries are booked according to the cost method

Company

(Figures in NOK ‘000)

Ownership/

voting rights Cost price

Write-down/

Reclassication Book value

Bulk Industrial Real Estate AS 100% 499,478 0 499,478

Bulk Data Centers AS 100% 933,392 0 933,392

Bulk Fiber Networks AS 100% 764,682 0 764,682

Bulk Powered Land AS 100% 0 0 0

Sum 2,197,551 0 2,197,551

The companies are based in Oslo, Norway.

Company

(Figures in NOK ‘000) Book value

P/L for 2023

(100%)

Equity pr.

31.12 (100%)

Bulk Industrial Real Estate AS 499,478 -130,130 341,823

Bulk Data Centers AS 933,392 -42,971 663,325

Bulk Fiber Networks AS 764,682 145,030 722,723

Bulk Powered Land AS 0 -128 -730

Sum 2,197,551 -28 199 1,727,141

Annual Report 2023

BULK INFRASTRUCTURE GROUP AS / FINANCIAL STATEMENTS

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Group presentation

Bulk Data Centers

Bulk Fiber Networks

Bulk Industrial Real Estate

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Consolidated nancial

statements

Parent company nancial

statements

Responsibility statement

Auditor’s report

Note 6 Bond loan

Bulk Infrastructure Group AS AS issued a 5 year NOK 500 million senior unsecured FRN bond 15

October 2019. Bulk Infrastructure Group AS further performed a tap issue of an additional NOK 500

million on the unsecured bond on 9 September 2020. Bulk Infrastructure Group AS issued a new

senior unsecured green bond of NOK 500 million 9 September 2022 and a new green bond NOK

1250 million 21 March 2023. Both bonds listed 2nd half of 2023 according to the table below. The net

proceeds from the bond will be utilized in accordance with the green bond framework.

Spesification Bond 2019/2020 Bond 2022/2026 Bond 2023/2028

ISIN NO001 10865876 NO0012701269 NO0013013219

Maturity date 15.10.2024 15.09.2026 21.03.2028

Amount NOK 1,000,000,000 NOK 500,000,000 NOK 1,250,000,000

Coupon Nibor 3 m + 4.5% Nibor 3m + 6.5% Nibor 3m + 5.75%

Coupon type FRN FRN FRN

Coupon Frequency Quarterly Quarterly Quarterly

Trustee Nordic Trustee AS Nordic Trustee AS Nordic Trustee AS

Financial Covenants Equity ratio > 35% Equity ratio > 35% Equity ratio > 35%

Security Unsecured Unsecured Unsecured

Listed 15 September 2020 1 September 2023 13 October 2023

Note 7 Ta x

(Figures in NOK ‘000) 2023 2022

Entered tax on ordinary profit/loss:

Payable tax - -

Changes in deferred tax assets 3,933 4,571

Tax expense on ordinary profit/loss 3,933 4,571

Taxable income:

Ordinary result before tax 236,211 -206,082

Permanent differences -218,335 226,858

Changes in temporary differences -4,398 2,875

Received intra-group contribution 370 0

Allocation of loss to be brought forward -13,848 -23,651

Taxable income - -

Payable tax in the balance:

Payable tax on this year's result -81 -

Payable tax on received Group contribution 81 -

Total payable tax in the balance - -

The tax effect of temporary differences that has formed the basis for deferred tax and deferred tax

advantages, specified on type of temporary differences

(Figures in NOK ‘000) 2023 2022 Difference

Tangible assets -3,165 -2,992 173

Allocations and more -6,888 -11,459 -4,571

Total -10,053 -14,452 -4,398

Accumulated loss to be brought forward -131,255 -145,103 -13,848

Basis for deferred tax assets -141,308 -159,554 -18,246

Deferred tax assets (22%) -31,088 -35,102 -4,014

Annual Report 2023

BULK INFRASTRUCTURE GROUP AS / FINANCIAL STATEMENTS

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Group presentation

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Bulk Fiber Networks

Bulk Industrial Real Estate

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Consolidated nancial

statements

Parent company nancial

statements

Responsibility statement

Auditor’s report

Note 8 Equity

(Figures in NOK ‘000)

capital

premium

reserve

Other paid in

capital

Retained

earnings Total equity

Equity 01.01 3,264 2,918,911 17,893 -105,558 2,834,510

Share capital increase 463 922,534 922,997

Received group contribution 289 0 289

Other adjustments

16,863 -1,031 15,832

Annual net profit/loss 232,278 232,278

Equity 31.12 3,726 3,841,445 35,045 125,689 4,005,906

Other adjustments consist of effects from Share-Based Payments for Group Management employed in Bulk

Infrastructure Group AS, covered by Bulk Infrastructure Holding AS and recognised as equity in Bulk Infrastructure

Group AS.

Note 9 Liabilities to credit institutions

(Figures in NOK ´000) 2023 2022

Liabilities secured by collateral:

Debt to credit institutions 5,654 3,200

Book value of collateral:

Shares in subsidiaries 2,197,551 1,979,155

Cars 352 1,237

Total book value of collateral 2,197,903 1,980,392

Note 10 Restricted funds

Funds of TNOK 1 386 restricted to employees taxes are included in the cash-post in the balance sheet.

Note 11 Share capital and shareholder information

Share capital Number Nominal value

Book value

1 = NOK 1000

Ordinary shares 372,632,056 0,0100 3 726

Shareholders Country Number shares Share of capital %

Bulk Infrastructure Holding AS Norway 372,632,056 100 %

Board Chairman, Peder Nærbø, has an indirect ownership of 22,6 % in Bulk Infrastructure Group AS

Annual Report 2023

BULK INFRASTRUCTURE GROUP AS / RESPONSIBILITY STATEMENT

The annual report for the Group and the parent company is in

compliance with the Accounting Act.To the best of our knowledge,

we confirm that;

• The 2023 financial statements for the Group and the parent

company are prepared in accordance with applicable

accounting standards

• The provided information in the financial statements gives

a true and fair view of the Group and the parent company’s

assets, liabilities, financial position and results of operations as

of December 31, 2023

• The Board of Directors report provides the Group and the

parent company a fair view of

∙ development, performance and position of the Group and

the parent company

∙ the most important risks and uncertainties the Group and

the parent company faces

Responsibility statement by the Board of Directors – Bulk Infrastructure Group AS

The Board of Directors have today treated and approved the

annual report and financial statements for Bulk Infrastructure

Group AS (the parent company) and the Group, the consolidated

accounts, as of December 31, 2023. The consolidated financial

statements have been prepared in accordance with the EU-

approved IFRS standards and interpretations, together with the

additional disclosure requirements in the Norwegian Accounting

Act to be applied as of December 31, 2023. The financial

statements for the parent company are prepared in accordance

with relevant Norwegian laws and generally accepted accounting

principles in Norway as of December 31, 2023.

Oslo, March 21, 2024

The board of Bulk Infrastructure Group AS

Peder Nærbø

Founder and Executive Chair

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Responsibility statement

Auditor’s report

Annual Report 2023

BULK INFRASTRUCTURE GROUP AS / AUDITOR’S REPORT

Deloitte AS

Dronning Eufemias gate 14

Postboks 221

-0103 Oslo

Norway

+47 23 27 90 00

www.deloitte.no

Deloitte AS and Deloitte Advokatfirma AS are the Norwegian affiliates of Deloitte NSE LLP, a member firm of Deloitte Touche Tohmatsu Limited ("DTTL"), its

network of member firms, and their related entities. DTTL and each of its member firms are legally separate and independent e

ntities. DTTL (also referred

to as "Deloitte Global") does not provide services to clients. Please see www.deloitte.no for a more detailed description of

DTTL and its member firms.

Registrert i Foretaksregisteret

Medlemmer av Den norske Revisorforening

Organisasjonsnummer: 980 211 282

To the General Meeting of Bulk Infrastructure Group AS

INDEPENDENT AUDITOR'S REPORT

Report on the Audit of the Financial Statements

Opinion

We have audited the financial statements of Bulk Infrastructure Group AS, which comprise:

• The financial statements of the parent company Bulk Infrastructure Group AS (the Company), which

comprise the balance sheet as at 31 December 2023, the statement of profit and loss and cash flow

statement for the year then ended, and notes to the financial statements, including material accounting

policy information.

• The consolidated financial statements of Bulk Infrastructure Group AS and its subsidiaries (the Group),

which comprise the balance sheet as at 31 December 2023, the statement of profit and loss, statement of

changes in equity and cash flow statement for the year then ended, and notes to the financial statements,

including material accounting policy information.

In our opinion

• the financial statements comply with applicable statutory requirements,

• the financial statements give a true and fair view of the financial position of the Company as at 31

December 2023, and its financial performance and its cash flows for the year then ended in accordance

with the Norwegian Accounting Act and accounting standards and practices generally accepted in Norway,

and

• the consolidated financial statements give a true and fair view of the financial position of the Group as at 31

December 2023, and its financial performance and its cash flows for the year then ended in accordance

with IFRS Accounting Standards as adopted by the EU.

Our opinion is consistent with our additional report to the Audit Committee.

Basis for Opinion

We conducted our audit in accordance with 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. We are independent of the Company and the Group as required by relevant laws and

regulations in Norway and the International Ethics Standards Board for Accountants’ International Code of Ethics for

Professional Accountants (including International Independence Standards) (IESBA Code), and we have fulfilled our

other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have

obtained is sufficient and appropriate to provide a basis for our opinion.

To the best of our knowledge and belief, no prohibited non-audit services referred to in the Audit Regulation

(537/2014) Article 5.1 have been provided.

We have been the auditor of Bulk Infrastructure Group AS for 2 years from the election by the general meeting of

the shareholders on 23 September 2022 for the accounting year 2022.

side 2

Independent auditor's report

Bulk Infrastructure Group AS

Key Audit Matters

Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the

financial statements of 2023. These matters were addressed in the context of our audit of the financial statements as

a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.

Investment property represents a

substantial portion of the group’s total

assets. Investment property is recognised

at fair value. Fair value is estimated by

management with assistance from third

party valuers.

The fair value is based on assumptions

and estimates as well as property specific

information like future leasing payments,

vacancies, and discount rate. These

assumptions and estimates require

significant judgment and therefore

valuation of investment property is a key

audit matter. We refer to note 3

“Accounting estimates and significant

judgments” for further information.

The Group has established internal control to ensure

relevant property information is included in the external

valuations. We have assessed the design and implementation

of the control.

For a sample of the investment properties, we have

reconciled the property information regarding annual rent

and square meters in the third party valuers’ report to the

Group`s own records.

We have met with the third party valuers’ and discussed and

challenged their judgements used in the valuation of

investment properties, particularly those concerning market

rent, yield and discount rate.

We have assessed the third party valuers’ qualifications and

expertise and reviewed their terms of engagement in order

to determine whether there were any matters that might

have affected their objectivity. We have assessed the

valuation methods used against generally accepted valuation

standards and practices.

In carrying out the procedures related to valuation of

investment property, we have used our internal valuation

specialists.

We have assessed whether the disclosures in note 7

regarding valuation of investment properties were adequate.

Other Information

The Board of Directors and the Managing Director (management) are responsible for the information in the Board of

Directors’ report and the other information accompanying the financial statements. The other information comprises

information in the annual report, but does not include the financial statements and our auditor’s report thereon. Our

opinion on the financial statements does not cover the information in the Board of Directors’ report nor the other

information accompanying the financial statements.

In connection with our audit of the financial statements, our responsibility is to read the Board of Directors’ report

and the other information accompanying the financial statements. The purpose is to consider if there is material

inconsistency between the Board of Directors’ report and the other information accompanying the financial

statements and the financial statements or our knowledge obtained in the audit, or whether the Board of Directors’

report and the other information accompanying the financial statements otherwise appear to be materially

PAGE 70 BROWSE SEARCH

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Bulk Data Centers

Bulk Fiber Networks

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Board of Directors Report 2023

Consolidated nancial

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Parent company nancial

statements

Responsibility statement

Auditor’s report

Annual Report 2023

BULK INFRASTRUCTURE GROUP AS / AUDITOR’S REPORT

side 3

Independent auditor's report

Bulk Infrastructure Group AS

misstated. We are required to report if there is a material misstatement in the Board of Directors’ report or the

other information accompanying the financial statements. We have nothing to report in this regard.

Based on our knowledge obtained in the audit, it is our opinion that the Board of Directors’ report

• is consistent with the financial statements and

• contains the information required by applicable statutory requirements.

Our opinion on the Board of Directors’ report applies correspondingly to the statements on Corporate Governance

and Corporate Social Responsibility.

Responsibilities of Management for the Financial Statements

Management is responsible for the preparation of financial statements of the Company that give a true and fair view

in accordance with the Norwegian Accounting Act and accounting standards and practices generally accepted in

Norway, and for the preparation of the consolidated financial statements of the Group that give a true and fair view

in accordance with IFRS Accounting Standards as adopted by the EU. Management is responsible 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 of the Company use the going concern basis of accounting insofar as it is not likely that the enterprise

will cease operations. The financial statements of the Group use the going concern basis of accounting unless

management either intends to liquidate the Group or to cease operations, or has no realistic alternative but to do so.

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

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 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 and 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’s 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.

side 4

Independent auditor's report

Bulk Infrastructure Group AS

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.

We communicate with the Board of Directors 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.

We also provide the Audit Committee with a statement that we have complied with relevant ethical requirements

regarding independence, and to communicate with them all relationships and other matters that may reasonably be

thought to bear on our independence, and where applicable, related safeguards.

From the matters communicated with the Board of Directors, we determine those matters that were of most

significance in the audit of the financial statements of the current period and are therefore the key audit matters.

We describe these matters in our auditor’s report unless law or regulation precludes public disclosure about the

matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our

report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest

benefits of such communication.

Report on Other Legal and Regulatory Requirements

Report on Compliance with Requirement on European Single Electronic Format (ESEF)

Opinion

As part of the audit of the financial statements of Bulk Infrastructure Group AS, we have performed an assurance

engagement to obtain reasonable assurance about whether the financial statements included in the annual report,

with the file name “Bulk Infrastructure Group AS Annual Report 2023.zip”, have been prepared, in all material

respects, in compliance with the requirements of the Commission Delegated Regulation (EU) 2019/815 on the

European Single Electronic Format (ESEF Regulation) and regulation pursuant to Section 5-5 of the Norwegian

Securities Trading Act, which includes requirements related to the preparation of the annual report in XHTML format

and iXBRL tagging of the consolidated financial statements.

In our opinion, the financial statements, included in the annual report, have been prepared, in all material respects,

in compliance with the ESEF regulation.

Management’s Responsibilities

Management is responsible for the preparation of the annual report in compliance with the ESEF regulation. This

responsibility comprises an adequate process and such internal control as management determines is necessary.

Auditor’s Responsibilities

Our responsibility, based on audit evidence obtained, is to express an opinion on whether, in all material respects,

the financial statements included in the annual report have been prepared in compliance with ESEF. We conduct our

work in compliance with the International Standard for Assurance Engagements (ISAE) 3000 – “Assurance

engagements other than audits or reviews of historical financial information”. The standard requires us to plan and

perform procedures to obtain reasonable assurance about whether the financial statements included in the annual

report have been prepared in compliance with the ESEF Regulation.

As part of our work, we have performed procedures to obtain an understanding of the Company’s processes for

preparing the financial statements in compliance with the ESEF Regulation. We examine whether the financial

statements are presented in XHTML-format. We evaluate the completeness and accuracy of the iXBRL tagging of the

PAGE 71 BROWSE SEARCH

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Executive Chair

Group presentation

Bulk Data Centers

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Board of Directors Report 2023

Consolidated nancial

statements

Parent company nancial

statements

Responsibility statement

Auditor’s report

Annual Report 2023

BULK INFRASTRUCTURE GROUP AS / AUDITOR’S REPORT

side 5

Independent auditor's report

Bulk Infrastructure Group AS

consolidated financial statements and assess management’s use of judgement. Our procedures include reconciliation

of the iXBRL tagged data with the audited financial statements in human-readable format. We believe that the

evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Oslo, 21 March 2024

Deloitte AS

State Authorised Public Accountant

(This document is signed electronically)

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Auditor’s report

CHAPTER

Annual Report 2023

Bulk Infrastructure Group AS

Karenslyst Allé 53

0279 Oslo, Norway

Phone: +47 47 80 70 00

bulkinfrastructure.com

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Auditor’s report