Q1 2020 Presentation Webcast 8 May 2020 Knut Nesse, CEO Andreas - PowerPoint PPT Presentation

Q1 2020 Presentation Webcast – 8 May 2020 Knut Nesse, CEO Andreas Pierre Hatjoullis, CFO

Agenda Highlights Financial performance Outlook Q&A

Highlights Q1 2020 – by CEO Knut Nesse

Order intake development Order intake • Order intake of 709 MNOK -36% 1 425 • 100 MNOK contract for delivery of Tube Net in Norway not included in order intake 1 107 600 44 997 778 46 • Strong quarter for Europe & Middle East, especially 33 760 300 within export from Norway 218 50 38 19 709 13 215 10 77 448 • Contract with Cooke Aquaculture for RAS facility in 471 38 Chile and Nordic Aqua Partners and China have been 43 34 cancelled* 87 762 732 695 686 644 591 376 342 • Last twelve months order intake of 3,017 MNOK 2Q18 3Q18 4Q18 1Q19 2Q19 3Q 19 4Q 19 1Q 20 Cancelled LBT LBT *Both customers are indicating that it is likely the projects can start up again at a later stage SW CBT

Revenue development Revenue • Both Scotland and export from Norway have had a -12% very good quarter 29 • Lower revenue in Caged Based in Nordic versus Q1 2019 823 798 771 752 726 • Low revenue in Land Based due to early phase of new 655 637 627 generation of projects and delayed projects • The software business, Wise, sold in Q3 2019 was 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 included with 29 MNOK in Q1 2019 Wise revenue Technology for sustainable biology

EBITDA development EBITDA -11% • EBITDA of 86 MNOK in the quarter 115 101 97 • 4 Europe & Middle East have significantly improved EBITDA margins 86 compared to last year – Scotland and export from Norway as the 71 main contributors 57 52 115 101 93 • The Egersund Net companies have improved margins compared to 86 71 same period last year 57 52 • The Land Based segment has delivered below both last year and expected margins due to postponement of projects and new generation of projects -40 -40 • The software business, Wise, sold in Q3 2019 was included with 4 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 MNOK in Q1 2019 Wise EBITDA Technology for sustainable biology

High order backlog Order backlog +2% – Order backlog at end of March of 1.7 BNOK 2 294 – Strong momentum for Egersund Net 600 1 650 1 611 1 572 1 524 – Order backlog in Americas region remains high 1 356 1 274 674 605 629 611 569 1 085 448 – Tube Net sale in Norway in April valued at 100 449 359 MNOK, not yet included in backlog 1 045 1 020 982 961 955 908 825 726 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 Cancelled Land Based Technology for sustainable biology

Key financial metrics Revenue EBITDA EPS +47% +59% +4% 0,10 0,15 0,15 0,11 858 97 0,94 86 752 0,87 589 59 510 0,60 0,59 54 Q1 17 Q1 18 Q1 19 Q1 20 Q1 17 Q1 18 Q1 19 Q1 20 Q1 17 Q1 18 Q1 19 Q1 20 YTD YTD YTD Amortization from intangible assets related to acquisitions In August 2018, number of shares increased from 25 834 303 to 33 334 303. When calculating the EPS the monthly average shares outstanding has been used.

Our presence AKVA group Agents and distributors

Revenue in geographical regions AKVA group’s geographical regions – absolute and relative 852 798 771 752 726 655 637 627 61% 64% 65% 66% 70% 70% 633 74% 76% 483 541 603 506 392 428 412 22% 18% 20% 22% 138 139 20% 125 155 144 24% 17% 145 17% 177 136 18% 17% 132 14% 106 13% 90 83 10% 74 76 9% 7% 59 6% 42 Q2 18 Q3 18 Q4 18 Q1 19 Q2 19 Q3 19 Q4 19 Q1 20 Q2 18 Q3 18 Q4 18 Q1 19 Q2 19 Q3 19 Q4 19 Q1 20 Nordic Americas EME

Development in OPEX based revenue • Egersund Net contributing 89 MNOK in the quarter 33,8% 300 35 32,3% 31,2% 30,1% 29,3% 28,2% 30 • 27,5% 250 Stable development for the rental business (Scotland and Norway) in 2020 25 22,5% 112 200 94 90 104 89 20 • 31 AKVA group Software with stable revenue compared to Q4 last 82 150 year 15 100 10 • Due to weather conditions in Norway lower activity within 151 149 144 146 141 136 132 116 service & after sales and the marine service business 50 5 0 0 • The Norwegian marine service business with solid order backlog 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 % of total revenue OPEX Based revenue Egersund Net

Revenue by product group and species By product groups – Q1 2020 By species – Q1 2020 852 852 798 798 44 56 771 1 771 752 752 39 23 655 726 0 726 66 28 118 0 17 1 68 39 13 95 44 655 37 92 78 32 74 1 35 637 637 627 627 16 Software 1 20 42 40 129 Non seafood 47 42 1 189 55 1 109 LBT S&AS 51 218 204 212 46 124 Other species 116 LBT 201 180 98 CBT S&AS 140 774 719 681 669 610 598 539 Salmon 526 500 453 446 439 CBT 370 352 349 334 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 Salmon = Revenue from technology and services sold to production of salmon Cage Based Technology = Cages, barges, feed systems, nets 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 Software = Software and software systems customers Land Based Technology = Recirculation systems and technologies for land based aquaculture S&AS Land Based = Service and after sales for land based aquaculture

Q1 – Operational Highlights • Next generation Tube Net solution ready for market, contract of 100 MNOK signed in April 2020 • High activity within the Net service business • Cage based business in Chile continued on same high level as for 2019 • Export out of Norway with solid order intake and margins • Land Based ending the quarter with some uncertainty caused by Covid-19 crisis, two large deliveries cancelled • Completed acquisition of Newfoundland Aqua Service Ltd. • Development of new camera system and AKVAconnect control system, progressing well • Dividend of 1.00 NOK per share paid on 3 March 2020, before the main outbreak of Covid-19 in Norway Technology for sustainable biology

Group Strategy process initiated – key themes Land Based Digital On-growing Data Platform Post Smolt Computer vision / AI Innovation Learning & Development Prioritization People and competence Fish health concepts Project and contract management

Tube Net • A patented concept for improved fish welfare • Proven to reduce lice infestation with 80%, with the potential to reduce the lice precence to almost 0 if the tube is deep enough • Suitable for AGD treatment • Reduced risk of escape: damages to the upper part of the net will not be a concern, as the fish is enclosed at the deeper part of the pen • Reduced need for net cleaning • Inner tube has been operated to 16 mtrs depth with great success • Concept also includes subsea feeder and led lights to be operated for a full cycle

Separate focus on full grow out RAS facilities • AKVA as strategic partner in NAP • Potential equity stake to secure partnership and successful execution • Learning and developing by a close follow-up on all technical, operational and biological performance measures • Final financing is still pending • Additional projects in pipeline

Covid-19  The Covid-19 virus together with a total collapse of the global oil price has had a massive impact around the globe. So far AKVA group has been moderately impacted. The major impacts financially for AKVA group has been related to two newly awarded RAS contracts on Land Based being cancelled. AKVA group has taken action with the following focus areas :  The core of AKVA group is its employees, therefore AKVA group’s main focus is the safety and health of our employees  AKVA group has put in place a program to monitor and optimize the overall liquidity in the company  AKVA group has implemented actions to maintain the security of supply during this crisis  A steady order intake is paramount to ensure work for all AKVA employees and a prerequisite for the other focus areas

Financial performance Q1 2020 – by CFO Andreas Pierre Hatjoullis

Q1 2020 – Financial highlights Revenue • Last twelve months order intake and revenue now at 852 3,017 MNOK and 2,977 MNOK respectively 798 771 752 726 • Nordic and Chile with decline in revenue compared to last years Q1 655 637 627 • Strong growth in export out of Norway and Scotland in the quarter 589 557 537 510 484 • Egersund Net with lower revenue in Q1 2020 versus to Q1 2019 • The land based segment had a revenue of 79 MNOK in the period, down from 119 MNOK in Q1 2019 • Last year software revenues included 29 MNOK from Wise, an Icelandic business which was sold in Q3 2019 Q1 Q2 Q3 Q4 2017 2019 2018 2020