Sc Scan anship ship Hol olding ding ASA SA 1H 2018 - PowerPoint PPT Presentation

Sc Scan anship ship Hol olding ding ASA SA 1H 2018 Presentation 28 .August 2018 Henrik Badin, CEO Erik Magelssen, CFO

Abo bout us • we are improving our clients sustainability impact with technology for cleaner oceans • headquartered in Norway with subsidiaries in US for life cycle services and Poland for production follow up With our waste to energy With our innovations within With our waste to energy With our technologies for • well positioned in cruise industry on 100 ships carbon capture technology we wastewater purification, waste carbon capture technology we wastewater purification, will create clean energy from processing and waste to will reduce the use of fossil foodwaste and garbage handling onboard cruiseships waste for immediate use on energy, we help to improve the fuels and CO2 emissions we board cruiseships advancing sustainability of sea traffic are advancing SDG 13 along with our solutions for SDG 7 the aquaculture industry, we • building aquaculture presence with 7 projects will be advancing SDG 14 • project based business with substantial revenues from repeatable aftersales 2

Wast ste Manage gement ment Syst stem ems 3

Adv dvance ced d Wast stewa water ter Purific ification ion Syst stems ems 4 4

Adv dvance ced Wast stewa water ter Purific ification ion Syst stems ems 5 5

Aqu quacu cult ltur ure e sy syst stems ms 6

Aqu quacu cult ltur ure sy syst stems ms 7 7

1H 2018 High ghlig light hts ORDER ER BACKL KLOG OG REVEN ENUE UE GROW OWTH TH EBITD TDA A GROW OWTH TH ORDER ER INTAK AKE 55% 55% 25% 25% 143 513 (MNOK) (MNOK) PROJ OJEC ECTS TS ON ORDER ER CONTR TRACT T AWARDS 11 11 34 34 CRUI UISE SE WINS AQUACUL CULTUR TURE E WINS NS MAIN N DELIV IVER ERIES IES SYSTEM TEM HAND NDOV OVER ER EMPLOYEES YEES 7 4 11 11 5 66 66 8

Vitami min n Sea in Genoa oa July 20, 2018 9 9

gr growth in Re Revenu enues es & E & EBITD TDA Revenue enues MNOK OK 247 • increased demand in cruise newbuilds drives growth 146,5 117,2 • high focus on operational efficiency • strengthening commercial team 1H 2017 1H 2018 FY 2017 • improving scalability in delivery model EBITD TDA A MNOK K & (%) 25,1 • streamlining supply chain 16,3 (10.2%) (11.1%) 10,5 (9%) 1H 2017 1H 2018 FY 2017 The 2018 figures are based on IFRS 15, while the 2017 figures are based on IAS 18 10

st strong g ba back cklog g pr provide des s go good v d visi sibi bility lity Order Backlog log MNOK 513 • 1H 2018 project order intake of MNOK 143 469 Fincantieri for Viking Ocean Cruises and Silversea newbuilds • 360 AWP Retrofit NCL Holding for Oceania Insignia and MV Corinthian • Aquaculture contracts AkvaFuture, Billund Aquaculture & Salmar • 250 221 226 • contract portfolio with additional MNOK 200 in 198 185 newbuild options of which MNOK 140 have been called 100 by owners 1H 2014 2H 2014 1H 2015 2H 2015 1H 2016 2H 2016 1H 2017 2H 2017 1H 2018 11

gr growth in bo both pr projec ects s & af & aftersal sales es Proje jects cts (MNOK) 165 99 • project revenues continues at 2/3rds of total 78 47 • main revenues from cruise newbuild supply but 29 22 1H 2017 1H 2018 FY 2017 expects retrofits and aquaculture to increase Aftersales sales (MNOK) • increase in gross margin in both business areas 83 • increase of installed base and new initiatives on 47 39,5 existing ships will grow aftersales further 28,9 16,5 13 1H 2017 1H 2018 FY 2017 Revenues Gross Profit 12

P&L st stateme ment nt 1H 2018 Unaudited Unaudited Audited (MNOK) 1H 18 1H 17 2017 • strong first half year with significant improvements Revenue 146.5 117.2 247.0 Total operating revenue 146.5 117.2 247.0 • revenue increase Cost of goods sold -101.2 -82.7 -171.2 Gross Profit 45.3 34.6 75.9 • operating expenses increasing according to plan - Gross Margin 30.9 % 29.4 % 30.7 % Employee expenses -17.7 -13.3 -29.0 Other operating expenses -11.3 -10.8 -21.8 • improved EBITDA margin EBITDA 16.3 10.5 25.1 - EBITDA margin 11.1 % 9.0 % 10.2 % • net financial items includes positive market Depreciation and amortisation -1.2 -1.2 -3.2 Operating result (EBIT) 15.0 9.3 21.9 valuation of Euro currency contracts Net Financial items 0.8 -1.1 -4.0 Result before tax 15.8 8.2 17.9 The 2018 figures are based on IFRS 15, while the 2017 figures are based on IAS 18 13

st statemen ment of f fi financial cial po posi sitio ion Unaudited Unaudited Audited (MNOK) 30.06.18 30.06.17 31.12.17 ASSETS: Total non-current assets 37.2 33.8 33.7 Current assets: • non-current assets includes MNOK 35.1 in intangible Inventories 4.2 4.9 3.9 Trade receivables 47.9 66.9 58.8 Contracts in progress 10.4 25.0 43.3 assets in which the MAP system is the most significant. Financial instruments 0.6 - - Other Receivables 11.2 16.5 10.1 • non-current liabilities primarily consist of deferred tax Cash and cash equivalents 6.3 2.8 5.6 Total current assets 80.6 116.1 121.6 Total assets 117.8 149.9 155.3 liability of MNOK 10.9 EQUITY AND LIABILITIES • improved cash flow from operations has reduced bank Total equity 77.1 51.1 57.9 Total non-current liabilities 11.9 6.0 8.3 overdraft to MNOK 1.9 Current liabilities Trade creditors 26.1 27.2 47.6 Contract accruals -0.6 17.6 10.6 • significant increase in equity ratio Financial instruments - 3.5 1.5 Income tax payable -0.1 0.9 1.4 Bank overdraft 1.9 31.7 20.8 Other Current liabilities 1.4 11.9 7.1 Total Current Liabilities 28.7 92.9 89.0 Total liabilities 40.6 98.9 97.4 Total equity and liabilities 117.8 149.9 155.3 14

ca cash sh fl flow st stateme ment nt Unaudited Unaudited Unaudited • strong cash flow from operations (MNOK) 1H 18 1H 17 2017 Result before tax 15.8 8.2 17.9 • significant improvements in the net working capital in Net cash flow from operating activities 25.1 -6.1 10.1 the group, and increased EBITDA level Net cash flow from investing activities -5.5 -2.5 -4.8 Net cash flow from financing activities -18.7 7.8 -3.3 Net change in cash and cash equivalents 0.9 -0.8 2.0 • cash flow from financing activities includes the Effect of exchange rate changes on cash -0.2 -0.2 Cash and cash equivalents at start of period 5.6 3.6 3.8 reduction bank overdraft Cash and cash equivalents at end of period 6.3 2.8 5.6 15

robu bust st cr cruise se ma marke ket ma main dr driver er • strong underlying market tripled last twenty years with target to grow 50 percent next 10 years • high focus on environmental sustainability major driver • industry orderbook with 104 new ships on order • ≈ 450 MNOK per year newbuild market for AWP & Waste • ≈ 4 billion NOK untapped AWP retrofit market “moving” 16

multipl mu iple e Aqu quacu cultur lture e opp pportunit nities ies • positioned on well recognized industry projects • Norwegian aquaculture market for salmon to exceed 3 million tons of salmon by 2030 from current 1.2 million tons • robust market that needs to bridge environmental sustainability challenges to reach growth target • wins first in world systems on seabased closed cage • expects growth in all three segments; smolt, seabased closed cage and landbased farms 17

MAP wast ste to ener ergy gy tech chnolog ology • unique technology producing low carbon energy from waste with substantial carbon capture • ongoing promising full-scale testing in Norway • ongoing tendering for newbuild projects • multiple addressable markets for emission reduction, energy production and activated carbon 18