Q1 2018 Presentation Oslo May 16 th 2018 Hallvard Muri, CEO Simon - PowerPoint PPT Presentation

Q1 2018 Presentation Oslo – May 16 th 2018 Hallvard Muri, CEO Simon Nyquist Martinsen, CFO

Agenda Highlights Financial performance Outlook Q&A

Highlights Q1 2018 – by CEO Hallvard Muri

Continued growth in order intake Order intake • Overall order intake up 8 % compared to Q1 2017 +8% 778 48 • Strong quarter for new orders in the Nordic region with 639 Helgeland Plast and ASA Nordic as the main contributors 557 589 SW 45 561 33 546 303 533 51 51 LBT 33 53 69 Americas continues the strong development with order intake 31 • 103 92 72 of 187 MNOK in Q1 2018 (up from 117 MNOK in Q1 2017) 417 32 250 57 • Slow quarter on new orders for the Land Based segment as 543 CBT some projects have been delayed 471 435 427 420 421 328 252 • Last twelve months order intake of 2,521 MNOK, compared to 2,471 MNOK in full year 2017 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18

High activity across all regions Revenue • 16% increase in revenue compared to Q1 2017 +16% • Europe & Middle East more than doubled the revenue from Q1 2017, with ASA Export and AKVA group Scotland as the main contributors. Several large deliveries to Russia in the quarter • As for Q4 2017, another strong quarter in Americas 589 with revenue more than doubled from Q1 2017 557 537 510 484 449 408 354 • Revenue for the Land Based segment is up 22% compared to Q1 2017 as we continue to deliver on the order book 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18

Operational leverage taking effect EBITDA • EBITDA up 10 % compared to Q1 2017 • EBITDA margin of 10.0 %, down from 10.6 % in Q1 2017, +10% driven by changes in mix/revenue composition • Europe & Middle East ends a strong quarter with an EBITDA of 10 MNOK, up from 6.9 MNOK last year 65 61 60 59 • Land Based segment ends the quarter with an EBITDA of 9 54 43 MNOK compared to 7 MNOK in Q1 2017 38 24 Americas (AKVA group Chile, North America and Australasia) • ends the quarter with an EBITDA of 6 MNOK, more than four 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 times the EBITDA in Q1 2017

Eleventh quarter in a row with growth in order backlog Order backlog • First quarter 2018 – Highlights +33% 1 430 1 380 1 381 – Strong platform for further positive development 1 318 479 1 077 537 998 629 – Order backlog end of March of 1.43 BNOK 620 886 822 430 412 417 – EBITDA of 59 MNOK in the quarter 437 951 844 751 698 647 586 – Dividend of 0.75 NOK paid out in March 2018 468 385 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 Land Based

Operational leverage and profitable growth Revenue EBITDA EPS +81% +119% +114% 589 59 0,94 54 510 0,77 40 393 325 0,45 0,44 27 2015 2016 2017 2018 2015 2016 2017 2018 2015 2016 2017 2018 Q1 Q1 Q1

Where do we deliver AKVA group’s geographical regions Income distribution Q1 2018 20% (12%) 18% (7%) 62% (81%) Nordic Americas Nordic Export EME AKVA group Agents and Distributors Americas

Development in OPEX based revenue 150 35 30,6% 29,0% • The Marine Service business in Chile has started with plans to 28,3% 30 27,1% 26,1% grow this segment going forward 24,7% 23,4% 25 22,1% 100 • Continued good development for the rental business in Scotland 20 in 2018 146 145 140 130 15 • Marketing and sales activity slowly starting to yield effect for 127 119 108 Software segment 50 101 10 MNOK 11 (9%) increase in revenue compared to Q1 2017 • 5 0 0 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 % of total revenue OPEX Based revenue

Revenue by product group and species By product groups – Q1 2018 By species – Q1 2018 589 589 557 557 34 537 537 47 1 32 510 510 46 52 28 41 484 0 484 54 1 30 41 108 54 449 449 1 38 37 52 124 0 112 408 408 40 38 84 46 Software 0 83 32 82 44 354 Non seafood 57 354 1 77 LBT S&AS 78 33 1 99 39 40 104 Other species 95 102 LBT 87 51 76 503 CBT S&AS 68 471 456 427 75 401 367 351 Salmon 313 307 287 279 260 263 244 CBT 212 170 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 Salm on = Revenue from technology and services sold to production of salmon Cage Based technologies = Cages, barges, feed systems and other operational systems for cage based aquaculture Other species = Revenue from technology and services sold to production of other species than salmon S&AS Cage Based = Service and after sales for cage based aquaculture Non Seafood = Revenue from technology and services sold to non seafood Softw are = Software and software systems customers Land Based technologies = Recirculation systems and technologies for land based aquaculture S&AS Land Based = Service and after sales for land based aquaculture

Q1 – Operational Highlights • Development in Americas and Chile is still very positive • Positive improvements in Russian market into 2018 Pipeline of post smolt projects still strong in Norway and other markets, but decisions are slow • • Increased focus on the Mediterranean markets for Bass and Seabream is starting to yield results • Good activity in Marine Service segment, although Q1 is a slower quarter • Completed upgrade of manufacturing lines at Helgeland Plast, and are investing in Marine Services (vessels) Atlantis: Granted one license, starting to plan for execution of project • • Group strategy process – see next slide

Group Strategy Focused growth and Operational expansion excellence Increased international focus Improvement programs within sourcing, Land based post smolt logistics and manufacturing Expand services and OPEX based Streamline project execution and service business delivery Product portfolio add-ons Optimize cost base Technology enabling a Flexible and efficient sustainable and efficient organization industry “One group” Production optimization, digitalization Global delivery models and automation Reduce organizational complexity Environmentally friendly, safe and Leadership and competence quality solutions Exposed farming

1. Atlantis Subsea Farming AS applied for 6 development licenses the 29th of January 2016 2. The Norwegian Directorate of Fisheries have informed the company that the company’s concept has progressed another step further in the process to get awarded development licenses. 3. The Directorate will go ahead with processing the application limited to 2 licenses, but have rejected the application in terms of the other 4 permits applied for. Risk management 4. On May 9th 2017 the company appealed the decision of rejecting the 4 permits. 5. On June 16th 2017 the Directorate forwarded the appeal to the Norwegian Ministry of Trade, Industry and Fisheries, for their final decision. On December 18 th 2017 The Ministry rejected the appeal. The decision is final and 6. cannot be appealed. On February 22 nd 2018, The Directorate announced that the Company has been 7. granted one license. Submerge and raise the cage – safe and remote Underwater feeding Fish health operations Daily operations (dead fish removal, surveillance, cleaning, etc) Air to the salmon Artificial air space

Financial performance Q1 2018 – by CFO Simon Nyquist Martinsen

Q1 2018 – Financial highlights Revenue 589 557 • 16% growth, a new quarter with strong contributions 537 510 from Americas, Land Based and Europe & Middle East 484 449 408 402 393 • Last twelve months order intake and revenue now at 355 354 344 325 2,521 MNOK and 2,167 MNOK respectively • The order book has grown to 1,430 MNOK at the end of Q1 2018, which is 353 MNOK higher than at the end of Q1 2017 Q1 Q2 Q3 Q4 2015 2016 2017 2018

Q1 2018 – Financial highlights EBITDA (MNOK) 80 65 • Sperre is a strong contributor to EBITDA with a total of 8 61 60 59 54 60 MNOK in the quarter 43 41 41 40 38 40 27 27 24 20 The entities in the Americas region had another strong • quarter with an EBITDA of 6 MNOK, more than four times 0 Q1 Q2 Q3 Q4 the EBITDA in Q1 2017 2015 2016 2017 2018 • The margins in the Land Based segment improved EBITDA % compared to Q1 17, with an EBITDA margin of 8,5% 10,4% 15 10,8% 12,6% 10,6% 10,2% 12,1% 11,4% 10,8% 10,1% • Software had a good quarter with an EBITDA of 10.5 10,0% 10 8,2% 7,9% MNOK, compared to 4.9 MNOK in Q1 2017 5,3% 5 0 Q1 Q2 Q3 Q4