Skel fjárfestingafelag : Interim report

Condensed Interim Financial Statements

1. January - 30. June 2022

This is a translation of the Icelandic original. In the event of discrepancies between the Icelandic language version and any translation thereof, the Icelandic version will prevail.

Table of contents

	Bls.
Report and statement of the Board of Directors and Chief Executive Officer ......................................................	3
Income statement .................................................................................................................................................	5
Balance sheet ........................................................................................................................................................	6
Statement of changes in equity ............................................................................................................................	7
Cash flow statement .............................................................................................................................................	8
Notes .....................................................................................................................................................................	9

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Condensed interim financial statement of	2
SKEL fjárfestingafélag hf. 30 June 2022	Unaudited

Report and statement of the Board of Directors and

Chief Executive Officer

The condensed interim financial statements of the Company has been prepared in accordance with International Accounting Standard IAS 34, as adopted by the European Union, and additional requirements of the Act on annual accounts.

The objects of the Company are to own and manage companies that operate in areas such as retail and wholesale, administration of real estate, vessels and service stations. Also credit and investment activities and other business activities, or participation in commercial enterprises, as resolved by the Company's Board of Directors. The Company focuses on developing new opportunities with the companies in its asset portfolio, targeting long-term value creation.

Income from investment assets amounted to 6,849 million ISK over the period and profit amounted to 4,939 ISK. According to the Company's balance sheet as at 30 June 2022 the Company's assets amounted to 26,707 million ISK and liabilities amounted to 3,402 million ISK. Equity amounted to 23,306 million ISK and the equity ratio was 87.3%.

The preparation of this interim financial statement required changes in accounting policies from the preceding year. The Company meets the requirements laid down in International Financial Reporting Standard IFRS 10 to qualify as an investment company. Subsidiaries and associated companies are therefore classified as investment assets and no consolidated financial statement is prepared. Comparison figures are based on a consolidated basis and are therefore not fully comparable. Investment assets and liabilities are assessed at fair value and the change in valuation is entered in compliance with IFRS 9.

At the Annual General Meeting of SKEL Investment Company held on 10 March 2022, the Board of Directors of the Company was granted authorisation for the Company to acquire shares in itself in an amount corresponding to 10% of the Company's total share capital. No announcement has been made of any acquisition of shares under this authorisation. In addition, shareholders at SKEL's AGM approved a payment of dividends to shareholders in the amount of 500 million ISK. The dividends were paid to shareholders on 13 April 2022.

The AGM also approved a remuneration policy for SKEL with the amendments proposed at the meeting. Also, the AGM resolved to adopt a stock option plan for key management. The updated remuneration policy and stock option plan can be accessed on the Company's website.

A motion was adopted by the AGM to change the name of the Company to SKEL Investment Company to reflect the new objects of the Company

On 4 February 2022 Árni Pétur Jónsson, the CEO of the Company at the time, resigned from his post. Ólafur Þór Jóhannesson, former CFO of the Company, was appointed CEO. On 7 April 2022 it was announced that the Board of Directors of the Comany had appointed Ásgeir Helgi Reykfjörð Gylfason to the post of CEO of the Company and Magnús Ingi Einarsson as CFO. They took up their respective posts on 13 July 2022. At the same time Ólafur Þór Jóhannesson left his post of CEO.

Concurrently with the appointment of Ásgeir Helgi Reykfjörð Gylfason and Magnús Ingi Einarsson the Board of Directors of SKEL resolved to enter into stock option agreements with them on shares in the Company in conformity with the provisions of the Company's stock option plan approved at the Annual General Meeting. The agreement has the purpose of interweaving the long-term interests of the Company, its employees and shareholders.

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Condensed interim financial statement of	3
SKEL fjárfestingafélag hf. 30 June 2022	Unaudited

Report and statement of the Board of Directors and

Chief Executive Officer

Statement of the Board of Directors and Chief Executive Officer

To the best knowledge of the Board of Directors and Chief Executive Officer, the interim financial statement of the Company has been prepared in accordance with International Financial Accounting Standard IAS 34 as adopted by the European Union. It is the opinion of the Board of Directors and Chief Executive Officer that the interim statement provides a fair view of the Company's performance and changes in cash over the period 1 January to 30 June 2022 and assets, liabilities and financial situation as at 30 June 2022.

The Board of Directors and Chief Executive Officer of SKEL Investment Company have today addressed the interim financial statement of the Comapny for the period 1 January 2022 to 30 June and hereby confirm the statement with their signatures.

Reykjavík, 11. ágúst 2022.

Board of Directors

Jón Ásgeir Jóhannesson, Chairman of the Board of Directors Gudbjörg Heiða Gudmundsdóttir

Nanna Björk Ásgrímsdóttir Sigurður Kristinn Egilsson Þórarinn Arnar Sævarsson

CEO

Ásgeir Helgi Reykfjörð Gylfason

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Condensed interim financial statement of	4
SKEL fjárfestingafélag hf. 30 June 2022	Unaudited

Income Statement 1. January to 30. June 2022

		2022		2021*		2022		2021*
	Note	1.4. - 30.6		1.4. - 30.6		1.1 - 30.6		1.1 - 30.6
Investment income
Fair value change of assets ...........................................	3.	365	(	67)		664	(	102)
Financial income (expenses) .........................................		126	(	133)		134	(	224)
Income from investment properties ............................	6.	1.826		2.558		6.051		4.970
		2.316		2.358		6.849		4.645
Operating expenses
Salaries and related expenses ......................................	(	294)	(	893)	(	406)	(	1.876)
Other operating expenses ............................................	(	87)	(	1.090)	(	230)	(	2.182)
	(	381)	(	1.984)	(	636)	(	4.058)
Profit before taxes		1.935		374		6.213		587
Income tax ....................................................................	(	338)	(	82)	(	1.274)	(	126)
Net profit		1.597		292		4.939		461
Earnings per share ........................................................		0,82		0,15		2,55		0,24
Diluted earnings per share ...........................................		0,82		0,15		2,55		0,24

*Comparative amounts are based on consolidated numbers and are therefore not fully comparable. The notes on page 9-10 are an integral part of these condensed financial statements.

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Condensed Interim Financial Statements of	5	Unaudited
SKEL fjárfestingafélag hf. 30.6.2022	Amounts in ISK million