Argeo AS

Investor Presentation • Sep 20, 2023

Complete subsea service provider in three major markets

20.09.23 Pareto Securities' 30th Annual Energy Conference Trond F. Crantz, CEO 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

About Argeo

Side 3

COMPLETE SET-UP From acquisition to actionable data

Digital Platform Argeo SCOPE

Decision ready data to clients during mission and project lifecycle

Skilled crew & management With in-depth industry knowledge

Unique EM technology

Argeo LISTEN Argeo WHISPER

Comprehensive fleet of AUVs

2 X Hugin Superiors 2 X Hugin 6000 2 X SeaRaptor 1 X Hugin 1000

Vessels

Work ROVs

Going forward Technology supported growth focus

Decision ready data to clients during mission and project lifecycle ARGEO SCOPE

Rapid data transfer from ship to shore via Argeo SCOPE

DATA DATA

TECHNOLOGY ARGEO LISTEN + ARGEO WHISPER

All assets are to have Argeo sensor technology embedded

RESILIENT STRATEGY with growth in three major markets

& REPAIR

MULTI CLIENT / DAAS

SURVEY INSPECTION MAINTENANCE

STRONG POSITION WITH A COMPETITIVE EDGE

PATENT 1

for subsea electromagnetic remote-sensing system, Argeo Whisper & Argeo Discover

PATENT 2

for electromagnetic method for tracking and detection of pipelines and power cables

PATENT 3

for electromagnetic method for detection of buried objects

PATENT 4

on Argeo Discover, a high energy electromagnetic system

LONG TERM IP STRATEGY

• In final negotiation for a total of USD 20 million in new contracts with commencement in 2023
• Submitted tender pipeline in excess of USD 85m with commencement stretching into 2025
• LOI for a fully financed purchase agreement for 3 new Hugin AUV's from 2023-2025
• Financial agreement in place to upgrade Argeo Searcher to full subsea capability
• Preparing for next vessel to secure further growth

LOI in place for AUV fleet expansion

AMPLIFYING OPERATIONAL CAPACITY AND ENABLING SUPERIOR PRODUCTIVITY

LOI: Fully financed

• Fully financed purchase agreement
• Lease term of 4 years
• Total financing deal of USD 25 m

Delivery schedule

• 1st Hugin Superior Q4 2023
• 2nd Hugin Superior Q1 2024
• Hugin 6000 Q1 2025

Superior technology

• Doubling production over previous systems
• Will be fitted with Argeo sensor systems
• Increased battery capacity (80hrs)
• Continuous production per dive equals 15000 football fields of high-resolution data

The introduction of these highly advanced AUVs from Kongsberg is a strategic move that propels us miles ahead of the competition (Trond Crantz, CEO Argeo) "

Value adding services for the subsea sector

Renewables

Marine Minerals

• Pipeline and cable survey / inspection
• Site Survey
• Route / trench survey and modelling
• Electrical & communication cable installations

• Route inspection after installation

• Initial survey

• Early planning and design survey
• Construction & design survey

• Operations & maintenance

• Exploration and prospect assessment

• Environmental impact assessment
• Environmental monitoring

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

Strong revenue growth & record order book

Attractive unit economics

• Argeo targets 80% commercial utilization for full spreads
• This implies EBITDA of NOK +100 million per spread per year (depending on financial structure for next vessel)
• We are reviewing expansion opportunities with indicative capex requirement of NOK 250-300 million per full spread
• EV/EBITDA less than 3x at 80% utilization
• Net profit impact above NOK 30 million per additional spread assuming 50% debt

Illustrative unit economics

Key assumptions:

• NOK 270 million capex
• Financed 50% by debt at 8%
• Depreciated over 7 years
• 22% tax

Scale is key to profitability

• Argeo currently has one full spread operational
  • In addition to two stand-alone AUVs and one temporary second spread expected to start operations in 2H 2023
• Target of 80% utilization implies annual EBITDA per full spread of close to NOK 100 million per year*
• Implies unit-level net profit contribution of more than NOK 30 million (before SG&A and fixed costs)*
• Current SG&A cost budget of NOK ~32 million is expected to increase with 20% for additional unit
• One unit can cover the full SG&A
• Additional units are required to obtain the desired profitability

Illustrative economies of scale

* Key assumptions:

• NOK 270 million capex
• Financed 50% by debt at 8%
• Depreciated over 7 years
• 22% tax

SUPERIOR CAPACITY WITH UNPARALLELED SENSOR TECHNOLOGY

Increased Productivity

Market focus

Side 17

Oil & Gas: Record high demand MARKET FOCUS

Offshore wind: Strong growth predicted MARKET FOCUS

Offshore wind in numbers

Globally installed offshore wind capacity

~55 GW

Fully commissioned capacity

~200 TWh

Annual production

~97%

Located in Europe & China

~17% Annual capacity growth*

(*): Global incl. China 2022E-2035E Source: Pareto Securities Equity Research, BNEF H1'22 Offshore wind market outlook

Energy transition: Increased need for marine minerals

MARINE MINERALS SPECIAL FOCUS

Norwegian continental shelf in numbers

Complete set-up

From acquisition to

Argeo positioned in the entire value chain

MARINE MINERALS SPECIAL FOCUS

Projects in the marine mineral market

Norwegian Petroleum Directorate

• Mineral reserve identification
• Environmental impact assessment
• Dual AUV set-up
• State-of-the-art Argeo Sensor system
• Delivered actionable data in Argeo SCOPE

• First ever MC for marine minerals
• Market backing in place
• Data acquired showing promising results
• State-of-the-art Argeo Sensor system
• Delivered actionable data in Argeo SCOPE

Multi Client mineral campaign Polish Geological Institute (PGI)

• The quality of data acquired are a major step forward in fulfilling Poland's international obligations, contributing to a better understanding of the deep-sea environment.
• Argeo's unique SCOPE digital data access and management platform, a full flow of information was achieved between the vessel and the PGI-NRI research team in Poland.

Summary

Side 24

• Strong Contract pipeline reflecting robust near-term revenue potential
• Long-term growth trajectory with a tender pipeline exceeding USD 85 million
• Amplifying operational capacity through strategic fleet expansion and vessel upgrade
• Positioning Argeo for future growth and market expansion
• Skilled crew & management with in-depth industry knowledge

Thank you

Side 26