Argeo AS

Investor Presentation • May 11, 2023

Digitizing the ocean space

Argeo Q1 company presentation

11 May 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

Agenda

Highlights

Introduction to Argeo

Operational update

Commercial & Market update

Technology

Financials

Outlook

Side 3

Highlights

Agenda

Introduction to Argeo Operational update Commercial & Market update Technology Financials Outlook

Highlights

Q1 Highlights

• Strong revenue growth up 258% from NOK 6.9 to 24.7 million
• Strong order book of NOK 120 million secured in the quarter
  • Signed contract for Polish Geological Institute in the Mid Atlantic
  • Teamed up with global multi-client player for world first multi-client marine minerals survey
  • Signed contract with Stromar Offshore Wind Farm
• Strong sales pipeline of more than NOK 1.4 bn
• Completed conversion and rigging of Argeo Searcher in February
• Strengthened financial position through NOK 5.2 million subsequent offering

Subsequent events

• Signed NOK 37 million contract with Norwegian Petroleum Directorate for minerals survey in Norway
• 6-month option confirmed with extension for minimum USD 2 million contract for Hugin 6000 AUV confirmed.

Highlights

Business development

• Converting projects in our sales pipeline to backlog in our orderbook is still primary focus, but starts to shift towards 2024 as capacity is near fully booked for 2023
• Establishing a second crew in the Americas is a key focus area now and there are good signs of succeeding with this, however timeline is capacity driven (assets & vessels) and challenging

Finances

• With a strong orderbook already in place we continue to standby our earlier statements of positive cashflow from operations in Q3 and EBITDA target of NOK 50 million for 2023. However, delays in contract awards and subsequently project startup could put this target at risk.

Proven strategic adjustment

TO MEET GLOBAL DEMAND IN THE SUBSEA SECTOR

Containerized focused strategy Complete package strategy

AUV-based (containerized) operations with vessel-ofopportunity

Complete package of vessels and assets for the global market

Full scale subsea services Larger scope-of-work for clients

REVENUE

Strong revenue growth and record order book

REVENUES 24.7

EBITDA -9.8

EBITDA for the quarter included OPEX for vessel during conversion and dry dock

ORDER BOOK 2023 120

Positive cash flow from operations expected from Q3

Agenda

Introduction to Argeo Operational update Commercial & Market update Technology Financials Outlook

Highlights

Argeo in brief

Argeo is an Offshore Service company with a mission to transform the ocean surveying and inspection industry by utilizing autonomous surface and underwater robotics solutions.

What we do

High-capability valuable assets with complimentary abilities

SeaRaptor AUV Hugin AUV

• Depth rated to 6,000m
• Up to 50 hours battery capacity
• Light and very scalable
• Autonomous

• Low CO2 footprint

• Depth rated 1000 6,000m

• 18-60 hours battery capacity
• Wide range of available sensor integrations
• Custom sensor integration possible
• Navigation sensors and acoustic aiding

Argeo Argus USV

• Flexible aft deck for multiple payloads
• Configurable moonpools (2x)
• Independent propulsion systems (2x)
• Integrated geophysical / hydrographical sensors
• Stabilizer for improved data and communication quality
• Remote operated from Onshore Mission Control

Argeo Searcher

• AUV's Up to 2x SeaRaptor 6000
• ROV: 1 x WROV/Observation/Survey (option)
• Instrumentation and acoustic positioning (SON/HIPAP)
• Dedicated instrument/operations room
• Computerized onboard data processing center
• MarlinkVSAT/Starlink communication

Agenda

Highlights Introduction to Argeo

Operational update

Commercial & Market update Technology Financials Outlook

Increased order intake

Confirming strategic direction and commercial demand

MARINE MINERALS

Marine Minerals contract

• Multi-sensor data acquisition with AUV for the Polish Geological Institute – National Research Institute (PGI-NRI), Multi Client and Norwegian Petroleum Directorate (NPD)

Survey contract with Stromar Offshore Farm

• Focus on Renewables Energy Sources pays off
• Environmental and geological surveys for marine minerals

World's first Multi-Client survey in DSM

The first ever MC data collection at the Atlantic Ridge for DSM

• Collaboration project with long standing multi-client partner
• Used to identify potential deep-sea mineral occurrences
• Enables early access to cost effective data

"

Having a global collaboration partner onboard with us on this project means that we can leverage our joint expertise to enable better decisions for our clients with high-quality data and data products. (Trond Crantz, CEO Argeo)

SUBSEQUENT EVENT

NOK 37 million deep-sea contract with Norwegian Petroleum Directorate

Multi-sensor data acquisition with AUV to further evaluate mineral resource potential in the northern part of the Mid-Atlantic Ridge (Knipovich Ridge).

• 8 weeks duration in total
• Argeo Searcher VESSEL
• SeaRaptor AUVs
• State- of-the-art SENSORS
• Argeo SCOPE delivery
• Potential expansion

Advanced sensor technology delivering actionable data is key for enabling the development of the emerging marine minerals industry. CEO Trond Crantz "

Continuing to grow our tender and sales pipeline

CONTINOUSLY GROWING OUR ORDER BOOK

Project backlog secured – near full order book for 2023

Agenda Highlights Introduction to Argeo Operational update Commercial & Market update Technology

Financials

Outlook

Oil & Gas offshore market

Categorized, excluding internal expenditure. For the US, only Gulf of Mexico are included

Operator	్రామం నుండి 10 కి.మీ. దూరంలో ఉంది. మూలాలు విశాఖపట్నం నుండి 10 కి.మీ. దూర	EPC & Topside Eq.	Subsea	Well	Operations
BP	717	2.901	3.428	7.932	9.915
ExxonMobil	1,295	8.634	6.686	10,616	13.968
Petrobras	1.481	20.559	16.193	11.273	44.173
Shell	2,105	6.361	5.988	11,777	11,097
TotalEnergies	690	4.621	4.647	4.936	7,368
lota	6,287	43,076	36,942	46,534	86,522

Countries selected in the following geomarkets: NSA (US, Brazil, Guyana, Suriname); EAME (Nigeria, Namibia, Angola, UK); APAC (Malaysia, Australia)

Source; Norwep markets & Rystad energy

Offshore market details 2023-2026

Subsea services, SURF and equipment, Operations and EPC topside

Countries selected in the following geomarkets: NSA (US, Brazil, Guyana, Suriname); EAME (Nigeria, Namibia, Angola, UK); APAC (Malaysia, Australia)

Source; Norwep markets & Rystad energy

Agenda

Highlights Introduction to Argeo Operational update Commercial & Market update Technology Financials Outlook

Argeo Robotics

Argeo Robotics is a

technology & engineering company delivering unique and innovative solutions for ocean subsea surveying and inspection. ARGEO

Argeo SCOPE

Fast and performant 3D visualization of ocean space data in the cloud, supporting a collaborative data sharing and interpretation workflow.

Our sensor technology

Argeo SCOPE

Fast and performant 3D visualization of vast amounts of ocean space data in the cloud, supporting a collaborative data sharing and interpretation workflow.

Seamless data fusion from seabed measurements such as:

• Synthetic aperture sonar (SAS)
• Sub-bottom profiler (SBP)
• Backscatter
• Bathymetry
• EM intensity along pipelines using Argeo Listen

Agenda

Highlights Introduction to Argeo Operational update Commercial & Market update Technology Financials Outlook

Income Statement

Amounts in NOK 1 000	Q1-2023	Q1-2022	2022
Operating revenue	24 682	6 913	33 583
Operating cost	15 963	4 676	31 266
Employee expenses	18 857	13 843	62 425
Other operating expenses	4 696	4 398	17 954
Capitalisation of cost	-4 984	-3 659	-26 326
EBITDA	-9 849	-12 345	-51 736
Depreciation	6 019	630	12 481
EBIT	-15 868	-12 975	-64 217
Net financial items	-6 683	386	-5 770
Profit/(loss) before tax	-22 551	-12 589	-69 986
Income tax (expense)	-209	2 777	-6 309
Profit/ (loss) for the period	-22 760	-9 813	-76 296

• Revenue in Q1 2023 is from the deep-water survey with Searcher + 2 SeaRaptors in the North Atlantic, and from Hugin 6000.
• EBITDA minus NOK 9.8 million in Q1 2023, vs minus 12 million in Q4 2022.
• Net financial items in Q1 2023 includes NOK 6.1 million unrealized currency exchange loss on the seller's credit nominated in USD.

Balance Sheet

Amounts in NOK 1 000	31.3.2023	31.3.2022	31.12.2022
ASSETS
Intangible assets	28 472	12 463	24 304
Deferred tax asset	4 158	13 036	4 349
Multi-client library	4 000	0	4 000
Property, plant and equipment	217 887	65 072	211 840
Shares in associated companies	2 103	5 514	2 295
Total non-current assets	256 619	96 085	246 788
Trade receivables	9 436	9 142	17 582
Spares	21 209	0	15 630
Other current assets	10 096	52 602	44 468
Cash and cash equivalents	14 082	32 898	21 313
Total current assets	54 823	94 642	98 992
Total assets	311 443	190 727	345 781
EQUITY AND LIABILITIES
Equity	170 177	138 238	189 108
Long term debt	88 465	35 633	106 482
Total non-current liabilities	88 465	35 633	106 482
Trade payables	26 544	10 562	23 784
Other current liabilities	26 257	6 294	26 406
Total current liabilities	52 801	16 856	50 190
Total liabilities	141 266	52 489	156 672
Total equity and liabilities	311 443	190 727	345 781

• Intangible assets include capitalized cost to Argeo Scope and the other development projects.
• Deferred tax asset reduced to NOK 4.2 million.
• PPE includes two SeaRaptor's, one Hugin 6000 and Argus USV.
• Cash: NOK 20 million loan from Innovation Norway was drawn in Q2 2023.
• Long term debt is mainly seller's credit on 3 AUV's.

Cash flow statement

Amounts in NOK 1 000	Q1-2023	Q1-2022	2022
Cash flow from operating activities
Profit/(loss) before tax	-22 551	-12 589	-69 986
Depreciation	6 019	630	12 481
Financial income	-32	0	-267
Financial expense	6 524	167	2 853
Gain/loss equity investments	192	-35	3 183
Change in current assets	36 938	12 384	-3 551
Change current liabilities	2 414	3 500	37 101
Net cash from operating activities	29 503	4 057	-18 185
Cash flow from investing activities
Investment in property, plant and equipment	-11 548	-61 484	-218 962
Investment in intangibles	-4 685	-5 070	-18 052
Investment in Multi-client	0	0	-4 000
Net cash from investing activities	-16 233	-66 554	-241 014
Cash flow from financing activities
Net proceeds from new equity	3 829	0	117 353
Proceeds from new debt	9 286	30 040	122 743
Repayment of debt	-33 422	-340	-25 009
Financial income	32	0	267
Financial expense	-226	-167	-704
Net cash flow from financial activities	-20 500	29 533	214 650
Net change in cash and cash equivalents	-7 231	-32 964	-44 549
Cash and cash equivalents beginning of period	21 313	65 862	65 862
Cash and cash equivalents end of the period	14 082	32 898	21 313

• Positive change in current assets in Q1 2023 due to the unpaid share capital (NOK 35.9 million) in Q4 2022.
• Investment in PPE in Q1 2023 NOK 11.5 million is mainly rigging cost Argeo Searcher.
• Net proceeds from subsequent offering NOK 3.8 million.
• Net repayment on debt NOK 24.1 million in Q1 2023.

Agenda

Highlights Introduction to Argeo Operational update Commercial & Market update Technology Financials

Outlook

Outlook

• Finishing up our SMART Mid-Atlantic campaign and transit to next project
• Preparing Argus USV for more advanced operations and uses in our RES market
• Strengthen orderbook into 2024 with close attention on capacity and availability going forward
• Finalizing data deliverables from ongoing projects to initiated sales portfolio from MC
• Argeo SCOPE digital platform pilot customer onboarding

Thank you

Side 31