Argeo AS

Investor Presentation • Feb 23, 2024

ARGEO Q4 PRESENTATION

23 February, 2023

TROND FIGENSCHOU CRANTZ, CEO ARGEO ODD ERIK RUDSHAUG, CFO ARGEO

Disclaimer

• This presentation includes and is based on, among other things, forward-looking information and statements
• Such forward-looking information and statements are based on the current expectations, estimates and projections of Argeo or assumptions based on information available to the company
• Such forward-looking information and statements reflect current views with respect to future events and are subject to risks, uncertainties and assumptions
• Argeo cannot give any assurance as to the correctness of such information and statements

Highlights

Backlog & tender status

Operational update

Technology

Financials

Highlights

Agenda

Introduction to Argeo Backlog & tender status Operational update Technology Financials Outlook

Highlights

Q4 Highlights

• Revenue NOK 29.0 million in Q4 23'
• Backlog of NOK 550 million secured for 2024
• Awarded NOK 55 million Subsea Inspection Contract with Shell SNEPCo on Bonga field in Nigeria
• Successful startup for Argeo Searcher for the Bonga field
• First Hugin Superior AUV, delivered and entered into a leasing agreement
• Conversion of vessel Argeo Searcher completed late November
• Delivery of vessel Argeo Venture 7 November
• Private placement with gross proceeds of NOK 250 million completed
• Secured equipment leasing agreement of NOK 275 million

Subsequent events

• Highlights Conditional letter of award with an International Energy company for a project with expected duration of 9 months
• Contemplating a sale and leaseback arrangement for vessel Argeo Venture
• Agreed delivery of second Hugin Superior for Argeo Venture

Highlights

Introduction to Argeo

Backlog & tender status

Operational update

Technology

Financials

Outlook

Agenda

Argeo conducts ocean surveys & inspections using autonomous robotic solutions

Argeo uses autonomous and underwater robotics solutions, including Autonomous Underwater Vessels (AUVs) and Work-Class ROVs, to conduct ocean surveys & inspections

CLIENTS INCLUDE:

Oil & Gas companies

Inspection, Maintenance, Repair and Survey (IRMS)

Greenfield development, route survey connection with installation of FPSOs, inspection of existing pipelines, power cables and subsea infrastructure. Subsea inspection programs and general maintenance activities. Seismic support operation for Ocean Bottom Node (OBN) in cooperation with Shearwater Geo.

Offshore wind companies (OWS)

Pre-installation and route Survey (IRMS), cable burial inspection and verification

Survey of new areas prior to installation and inspection relating to building of offshore wind farms in connection with installation of offshore wind parks, installation of power cables and fibre cables and inspections of infrastructure. Multi-Client (MC) for greenfield acreage prior to concession rounds

Marine minerals companies / Geological institutions

Exploration surveys related to new licenses and Resource estimation. Environmental assessments prior and after exploration and extraction activities

More cost-efficient survey and inspection giving our clients

• Faster inspections
• Faster project turnaround
• Lower CO2 footprint
• Safer operations with lower HSE risk

Easy access to actionable data

• Rapid decision ready data to clients during mission and project lifecycle
• Intuitive visualizations of complex data

Complete service solution ARGEO SCOPE Technology supported growth focus

DIGITAL PLATFORM

Decision ready data to clients during mission and project lifecycle

Rapid data transfer from ship to shore via Argeo SCOPE

Argeo use novel technology protected by strong IP to provide its customers with a unique service solution in all market verticals. Sentral to the complete subsea solution is:

• Cost efficient subsea vessels
• Embedded robotics tools (AUV/ROV/USV)
• Integrated patented sensor technology
• Ship-to-Shore digital data management platform Argeo SCOPE

SENSOR TECHNOLOGY ARGEO LISTEN + ARGEO WHISPER

All assets are to have Argeo sensor technology embedded

ROBUST STRATEGY with growth in three major markets

SURVEY INSPECTION MAINTENANCE & REPAIR

MULTI CLIENT / DAAS

SUPERIOR CAPACITY WITH THE MOST ADVANCED AUV FLEET AVAILABLE

Expansion for continuous growth

Record order book and continued revenue growth

SUBMITTED TENDERS 500

NOK 350 million converted to backlog since Q3

Highlights

Introduction to Argeo

Backlog & tender status

Operational update Technology

Financials

Continued strong volume of submitted tenders

During the quarter we have converted an additional NOK 350 million in tenders to secured backlog

Competing for more Marine Minerals contracts

Proceedings with Oil & Gas majors and IOCs on both sides of the Atlantic for survey and IMR work

Total remaining tender pipeline of NOK 500m with decisions expected late Q1 and Q2

Increased activity as Argeo proprietary technology is addressing major issues for offshore wind development

VESSEL SCHEDULE

Backlog for 2024 now totals NOK 550 million

Highlights Introduction to Argeo

Operational update

Commercial & business development Technology Financials Outlook

OPERATIONAL UPDATE

Argeo Searcher

• Completed a significant upgrade
• 3-week delay
• Shell (GOSL) AUV asset survey in Bonga • Fully set up for any subsea work
• Commenced work in Nigeria late December
• Argeo Searcher with Hugin Superior AUV • Work completed January 20th
• Status acquisition – on time etc? • Status data – customer happy etc.. • Currently working on the NCPOR project estimated completion late May 2024.

Argeo Venture

• Upgrades to be completed by mid-March
• Mobilisation for announced project after commissioning and sea trials
• Vessel fully reactivated
• Upgraded computer system for full onboard data processing
• Equip. with Hugin Superior
• Equip. with active heave compensated subsea crane

Hugin Superior

• Reliable high-capacity production unit
• Producing quality data for all scopes of work that Argeo engages in
• High customer quality satisfaction
• Upgraded with Argeo LISTEN
• O&G projects
• Marine Mineral projects
• Offshore Wind projects

Successfully completed the Shell/SNEPCo Bonga subsea inspection and survey program

• First deep-water project for the Shell Nigeria Exploration and Production Company Bonga is the first deep-water project for the Shell Nigeria Exploration and Production Company (SNEPCO) and for Nigeria

• Field operated by SNEPCO on behalf of the Nigerian National Petroleum Corporation (NNPC) and its partners under a production sharing contract The partners in the field Field operated by SNEPCO on behalf of the Nigerian National Petroleum Corporation

include Shell (55%), Esso (20%), Total (12.5%) and Agip (12.5%). • It can produce 200,000 barrels of oil per day and 150 million standard cubic feet of gas per day. The cost of the full field development was \$3.6bn. (NNPC) and its partners under a production sharing contract The partners in the field include Shell (55%), Exxon Mobil (20%), Total (12.5%) and ENI (12.5%).

It can produce 200,000 barrels of oil per day and 150 million standard cubic feet of gas per day. The cost of the full field development was \$3.6bn.

PROJECT IN NUMBERS

Project water depth 1000 – 1300 meters

Scope of Work (SOW) Pipe, flowline inspection and geophysical survey

Project performance 20 days infield acquisition

Inspection line km 500

Geophysical line km 1100

Argeo technology used Argeo LISTEN & Argeo Scope

Argeo supporting Indian flagship project to carry out multi-sensor high-resolution exploration survey in the Indian Ocean

• First deep-water project for the Shell Nigeria Exploration and Production Company (SNEPCO) and for Nigeria • Field operated by SNEPCO on behalf of the Nigerian National Petroleum Corporation NCPOR Survey 2024 is the first comprehensive multi-sensor AUV exploration survey (GEO+ENV) with Argeo LISTEN and Argeo SCOPE technology setting the new industry benchmark

• It can produce 200,000 barrels of oil per day and 150 million standard cubic feet of gas per day. The cost of the full field development was \$3.6bn. The project reinforces Argeo's position as a leading service provider in Marine Minerals exploration

1st AUV survey in the Indian Exploration Contract Area

PROJECT IN NUMBERS

(NNPC) and its partners under a production sharing contract The partners in the field Project water depth 1,900 to 5,600 m

include Shell (55%), Esso (20%), Total (12.5%) and Agip (12.5%). Total coverage 15 Areas of Interest & 750 sq. km

Hours of seabed photography 150

Strategic Context:

India's Deep Ocean Mission (DOM) Budget

Substantial Budget (over 300 MEUR ) dedicated to Deep-Sea Exploration in the next 3 years

Highlights Introduction to Argeo Backlog & tender status Operational update Technology

Financials

ADVANCED ROBOTICS

ARGEO ELECTROMAGNETIC SENSOR SYSTEM

Argeo SCOPE digital solution DIGITAL SOLUTION

Cloud-based solution for management, analysis, and interpretation of Ocean Space data

Enables efficient 3D visualization of Ocean Space Data in a user-friendly browser-based interface, supporting a collaborative data sharing and a smoother interpretation workflow.

Seamless data fusion from seabed measurements such as:

• Synthetic aperture sonar (SAS)
• Sub-bottom profiler (SBP)
• Backscatter
• Bathymetry
• Subsea camera and snapshots
• Environmental data
• Laser measurements
• Geo-taggable documents
• WMS Services
• Interpreted surfaces and horizons from legacy platforms
• Electromagnetic field data

Highlights Introduction to Argeo Backlog & tender status Operational update Technology Financials

Income Statement

Amounts in NOK 1 000	Q4-2023	Q4-2022	2023	2022
Operating revenue	29 033	10 840	128 455	33 583
Operating cost	40 415	8 026	139 772	31 266
Employee expenses	18 388	18 259	68 802	62 425
Other operating expenses	7 062	5 006	21 969	17 954
Capitalisation of cost	-15 782	-8 450	-34 900	-26 326
EBITDA	-21 051	-12 001	-67 189	-51 736
Depreciation	13 718	6 180	40 527	13 249
EBIT	-34 769	-18 181	-107 716	-64 984
Net financial items	6 415	7 437	-3 690	-5 770
Profit/(loss) before tax	-28 353	-10 745	-111 406	-70 754
Income tax (expense)	3 283	-19 432	2 333	-6 309
Profit/ (loss) for the period	-25 070	-30 177	-109 072	-77 063

• Revenue in Q4 2023 is from the contract with Shell in Nigeria and from Hugin 6000.
• Reduction in Operating cost from Q3 2023 due to additional vessel for the Stromar survey in Q3 2023.
• Capitalisation of development cost and vessel upgrade.
• EBITDA minus NOK 21.1m in Q4 2023, vs minus NOK 12.0m in Q4 2022 and minus NOK 20.8m in Q3 2023.

Balance Sheet

Amounts in NOK 1 000	31.12.2023	31.12.2022
ASSETS
Intangible assets	38 266	24 304
Deferred tax asset	6 693	4 349
Multi-client library	7 150	4 000
Property, plant and equipment	542 812	226 702
Shares in associated companies	1 434	2 295
Total non-current assets	596 355	261 650
Trade receivables	11 274	17 582
Inventory	9 061	0
Other current assets	38 024	44 468
Cash and cash equivalents	53 946	21 313
Total current assets	112 305	83 363
Total assets	708 661	345 013
EQUITY AND LIABILITIES
Equity	429 691	188 341
Long term debt and leases	182 602	106 482
Total non-current liabilities	182 602	106 482
Trade payables	66 532	23 784
Other current liabilities	29 836	26 406
Total current liabilities	96 368	50 190
Total liabilities	278 970	156 672
Total equity and liabilities	708 661	345 013

• Intangible assets include capitalised cost to Argeo Scope and the other development projects
• PPE includes Argeo Venture, two Hugin AUV's, two SeaRaptor AUV's and Argus USV
• Long term debt and leases includes seller's credit on 3 AUV's, loan from Innovation Norway and lease for one Hugin Superior AUV

Cash flow statement

Amounts in NOK 1 000	Q4-2023	Q4-2022	2023	2022
Cash flow from operating activities
Profit/(loss) before tax	-28 353	-10 744	-111 406	-70 754
Depreciation	13 718	6 181	40 527	13 249
Financial income	-468	-209	-587	-267
Financial expense	-6 165	-10 025	3 415	2 853
Gain/loss equity investments	217	2 796	861	3 183
Gain sale equipment	-256	0	-256	0
Change in current assets	-7 876	-56 752	3 690	12 078
Change current liabilities	17 667	17 860	41 531	37 101
Net cash from operating activities	-11 516	-50 893	-22 224	-2 556
Cash flow from investing activities
Investment in property, plant and equipment	-145 067	-10 086	-166 214	-234 591
Investment in intangibles	-2 055	-2 578	-16 041	-18 052
Investment in Multi-client	0	0	-3 150	-4 000
Proceeds from sale of equipment	650	0	650	0
Net cash from investing activities	-146 472	-12 664	-184 755	-256 643
Cash flow from financing activities
Net proceeds from new equity	235 954	46 995	286 027	117 353
Proceeds from new debt	0	0	29 286	122 743
Repayment of debt and leases	-23 432	-4 531	-72 872	-25 009
Financial income	468	209	587	267
Financial expense	-2 278	-260	-3 416	-704
Net cash flow from financial activities	210 712	42 413	239 612	214 650
Net change in cash and cash equivalents	52 723	-21 144	32 632	-44 549
Cash and cash equivalents beginning of period	1 222	42 458	21 313	65 862
Cash and cash equivalents end of the period	53 946	21 313	53 945	21 313

• Investment in PP&E is mainly purchase of the vessel SW Bell (renamed Argeo Venture) in November 2023, and cost for reactivation/ upgrade
• NOK 236m net proceeds from new equity in October 2023
• Repayment of debt and leases NOK 23.4m in Q4 2023

Highlights Introduction to Argeo Backlog & tender status Operational update Technology Financials

• Argeo Searcher consistently on projects with good performance until end-Q2-2024. Bid in tenders from Q3 ->
• Argeo Venture finalising upgrade program in medio-March 2024 and commencement of project directly after
• Strong O&G tender activity in deep-water markets EAME & NSA
• Starting to see an uptick in Offshore Wind tenders for 2024
• Focus on high vessel utilisation, project performance and overall profitability going forward
• Generally good margin in tenders reflecting activity levels in the deep-water subsea market
• Hugin Superior #2 confirmed delivery in Q1-2024

Thank you