Eqva ASA

Earnings Release • Feb 28, 2023

Eqva ASA

Fourth quarter results 2022

28 February 2023

1. Business update

• 1. Financial and operational highlights
• 1. Outlook

Enclosure

• Consolidated financial statements

The financial report does not meet the requirements for an IAS 34 report, but the accounting principles (as

This is Eqva

Page 3

A knowledge-based active owner of industrial service companies that contribute to the green transition in maritime, power intensive and renewable industries

Maritime services Products, Solutions & Renewables

Maritime service provider with attractive location, strong infrastructure and skilled organisation

Full-service provider of technical, sustainable solutions and services to maritime and landbased industries

A specialised hydropower plant developer and operator

Eqva caps off a year of milestones with a solid fourth quarter

• Strong order book and outlook for 2023 boosted by major contract wins: Several significant orders secured in Q4 2022 and early 2023, including BKS Industri's mNOK 160 contract with Boliden, the largest in its history
• Completed strategic shift in Maritime Services segment : Resulting in a number of new modification projects - with several comprising conversion to environmental-friendly propulsion systems
• Robust business model:
  • Diversified service offerings provide stability and resilience also in challenging market conditions
  • Havyard Leirvik pre-qualified to bid towards several large potential customers within offshore and land-based industry
• Launched incentive programs for key personnel. Aligns the interests of these individuals with the shareholders of the company

Full year 2022 key figures*

*All figures in this presentation are pro forma figures and comprises the group's subsidiaries including BKS and Fossberg Kraft acquired in June 2022. See appendix for consolidated reported figures (unaudited).

Products, Solutions & Renewable wins record-breaking mNOK 160 contract with Boliden

• BKS, a subsidiary of Eqva, was in February 2023 awarded a framework contract for refabrication and installation at Boliden's advanced zinc plant in Odda, Norway.
• For Eqva and BKS, the contract joins the series of assignments aimed at making Norwegian power-intensive industry and shipping more climate-friendly.
• Growing demand for such expertise, and it is expected that such climate and environmental projects will form an even larger part of the business in the years to come.

One of the world's most climate- effective zinc plant to become even more climate-friendly, Odda

Maritime Services wins major conversion contract with Boreal

• Havyard Leirvik, a subsidiary of Eqva, has in January 2023 secured a new marine conversion contract with Boreal Sjø, a new customer in the maritime service sector.
• This new contract further confirms the success of Eqva's strategic shift towards service and maritime conversion.
• The value of such projects typically falls between NOK 10-20 million.

M/F Vannes, Boreal Sjø

Sustainability serves as a driving force behind Eqva's continued growth

ESG is integrated in corporate governance structures and industry strategies

• Highlights Q4 2022:
  • Progress made in materiality assessment and GRI reporting
  • Launching new Code of Conduct
• Priorities 2023:
  • Deepening materiality assessment
  • Setting sustainability reporting goals
  • Preparing GRI compliant sustainability report, with a key focus on UN's Sustainability Development Goals

Agenda

• 1. Business update
• 2. Operational and financial highlights
• 1. Outlook

Enclosure

• Consolidated financial statements

Q4 Operations on track, solid order intake ensures high volumes into 2023

Highlights

• Maritime Services secured a contract with Fjord 1 for a full motor conversion of the ferry M/F Veøy to a more environmentally friendly solution.
• Products, Solutions & Renewables won several contracts for key environmentally efficient and technical equipment projects in Western Norway.
• The agreement to develop and sell the Skjeggfoss hydropower plant in Drangedal, southern Norway, to a UKbased infrastructure investor.

Demonstrates the value of Eqva and Havyard Leirvik's strong relationship with key partners.

.

• Confirms Eqva and BKS' position as preferred partners for delivering complex services, particularly in environmentally impactful projects.
• Provides good utilisation of Eqva and Fossberg Kraft's capacity and expertise - generate profits above Eqva's target levels.

Products, solutions & renewables: Strong orderbook into 2023

• High activity levels in BKS, particularly at the beginning of the quarter, partly offset by lower activity in December due to the Christmas holiday
• Significantly increasing order intake both in terms of contracts and volumes under frame agreements
  • Successfully secured multiple contracts worth NOK 43 million for the delivery of industrial services to leading companies in Norway's process industry
• Fossberg Kraft entered into an agreement to develop and sell the Skjeggfoss hydropower plant for approximately NOK 45 million
  • This, combined with another project in the order book secures the budgeted volumes for Fossberg Kraft for 2023, with satisfactory profits

Pro forma figures FY 2022

(Q4 2022- unaudited)

*EBITDA adjusted for non-recurring items

Maritime services: Successful implementation of strategic shift continues – developing towards a multi-service site

• The transition from newbuilding to multi-services continued according to plan, reducing risk and volatility

• Despite higher raw material prices, a weaker demand environment and uncertainty due to the Norwegian aquaculture tax, the underlying operations in the quarter remained solid
• Havyard Leirvik has continued to focus on diversifying its operations to include activities in the aquaculture and land-based industry and aims to increase utilisation of its infrastructure.
• The company has some large upcoming projects in the tender phase, which are expected to bring in significant volumes in 2023 and 2024
• Large pipeline of service projects with short time horizon for the order book, which is typical for this type of business

Pro forma figures FY 2022

(Q4 2022 - unaudited)

Revenues 235.1 million (Q4 62.8 million)	EBITDA* 14.4 million (Q4 4.2 million)
Order book 31.12.2022 45 million Order book 28.02.2023 56 million	EBITDA margin 6 %

*EBITDA adjusted for non-recurring items

Group consolidated unaudited financial figures YTD 2022

NOK in million

	Maritime Services	Products, solutions & renewables	Other/elimination *	Eqva pro-forma pr. 31.12.2022
Revenues	235.1	392.4	1.5	629.0
Materials and consumables	150.4	125.7	5.0	281.1
Payroll expenses	54.5	212.7	10.6	277.8
Other operating expenses	17.7	35.7	20.0	73.4
EBITDA	12.5	18.3	-34.1	-3.2
Non-recurring items*	1.9	2.5	16.6	21.0
Adjusted EBITDA	14.4	20.8	-17.5	17.8

Solid financial position

• Balance sheet as of 31 December 2022 • Total assets and liabilities reduced during the quarter • Delivery of projects • Adjustment of purchase price allocation within 12 months period according to IFRS 3 • Cash position in 2022 decreased mainly due to non-operational items (transaction effects) and planned debt reductions. Solid operational cash generation expected in 2023. • Equity ratio of 43 per cent • Total debt decreased from NOK 433 million by the end of third quarter to NOK 411 million in the end of fourth quarter. o Total outstanding debt to credit institutions decreased from NOK 198 million to NOK 175 million (of which construction loans amount to NOK 22 million) 100 161 238 Goodwill P, P & E
  • o Main reason for the reduction in debt to credit institutions can be attributed to a decrease in construction loans, which resulted from the completion of various projects
  • Net interest-bearing debt* NOK 109 million as of 31 December

Robust orderbook supports optimistic outlook for 2023

Order book as of 31 December 2022

Maritime Services at NOK 45 million

• Ibestad delivered in January 2023
• Veøy started in Q4 2022 main part of project to be executed in Q1 2023
• Service part of business with short horizons when it comes to order book
  • normal for this kind of business

Products, Solutions & Renewables at NOK 300 million

BKS

• Contracts and frame agreements with a value of approx. NOK 230 million
• Significant increase in order book in Q1 2023 due to large contract awarded with Boliden in February 2023

Fossberg Kraft

• Projects in order book for execution in 2023 at approx. NOK 70 million
• Current order book covers budgeted volumes for 2023

Order book pr. 31.12.2022 vs. 28.02.2023 (mNOK)

Maritime Services

Agenda

• 1. Business update
• 1. Financial and operational highlights
• 3. Outlook

Enclosure

• Consolidated financial statements

Products, solutions & renewables: Capitalising on strong underlying growth in BKS and bright prospect ahead

• BKS has consistently delivered solid underlying growth with a CAGR of 21 per cent since 2017.

• This impressive growth rate provides a strong foundation for BKS's future success and expansion.
• By continuing to build on this growth trajectory and expanding its market reach, BKS is well-positioned to become a leading player in its industry.

Historical revenue development in BKS (mNOK)

Financial guidance for 2023 as of 28.02.2023:

FY'2023 revenue (million) 650-750

FY'2023 EBITDA margin 4-7%

• Strong revenue growth expected due to solid order intake in recent months
• Targeted long-term EBITDA margin for the group is 7-9 per cent

Concluding remarks

Entering 2023 with a stronger orderbook

• Strong orderbook bodes well for 2023, with first half of the year expected to bring increased activity, particularly for Products, Services & Renewables.
• With the industry's focus on reducing emissions and transitioning to more sustainable practices, we expect an increase in demand for our services. Eqva's expertise in efficient technology and climate change solutions will position us well to support these efforts.
• With growing demand for modular solutions and cost-effective pre-fabrication, our yard is well equipped to meet this demand, and our Maritime Services segment is well positioned to be a leading sub-contractors for larger projects in land-based and offshore industry.
• Our strong customer relationships and broad market expertise provide us with a clear path to achieve profitable growth.

Thank you

Please direct any questions to eirik.saevareid@eqva.no

Consolidated statement of profit and loss

(NOK 1,000)		2022 YTD Q4	2021
		Unaudited	Audited
		Urevidert	Revidert
Revenues	Salgsinntekt	438 216	902 893
Other operating revenues	Annen driftsinntekt	2 502	7 293
Operating income	Driftsinntekt	440 718	910 186
Materials and consumables	Varekostnader	211 174	636 956
Payroll expenses	Lønnskostnader	172 360	164 574
Other operating expenses	Andre driftskostnader	67 111	51 761
Operating expenses	Driftskostnader	450 646	853 291

Operating profit/loss before depreciation and amortisation (EBITDA)	Driftsresultat før avskrivninger og nedskrivninger (EBITDA)	-9 928	56 895
Impairment of non-current assets	Nedskrivning av anleggsmidler	-139	0
Depreciation	Avskrivninger	7 598	5 409
Operating profit/loss (EBIT)	Driftsresultat (EBIT)	-17 387	51 486
Financial income	Finansinntekter	1 496	57 597
Financial expenses	Finanskostnader	-19 584	-16 245
Share of profit/loss of associate	Andel av resultat fra tilknyttet selskap	-10 090	-1 128
Profit / loss before tax	Resultat før skatt	-45 565	91 711
Income tax expense	Skattekostnad	-16 781	-957
Profit from continued operations	Resultat fra viderført virksomhet	-28 784	92 666
Profit from discontinued operation	Resultat fra ikke viderført virksomhet	0	286 997
Profit for the period	Perioderesultat	-28 784	379 663
Attributable to :	Tilordnet:
Equity holders of parent	Aksjonærer i morselskapet	-30 548	347 200
Non-controlling interest	Ikke-kontrollerende eierinteresser	1 763	32 463
Total	Sum	-28 784	379 663

Consolidated statement of profit and loss includes P&Leffect from the companies acquired in June 2022 (BKS, Fossberg Kraft) only from July 1st, 2022.

No adjustments for non-recurring items are made in the consolidated figures

Earnings per share (NOK)	Resultat per aksje (NOK)	-0,40	14,01
Diluted earnings per share (NOK)	Utvannet resultat per aksje (NOK)	-0,40	14,01
Earnings from continued operations	Resultat fra viderført virksomhet
Earnings per share (NOK)	Resultat per aksje (NOK)	-0,40	3,74
(NOK) Diluted earnings per share	(NOK) Utvannet resultat per aksje	-0,40	3,74

Consolidated statement of financial position YTD Q4 2022

ASSETS	EIENDELER	2022 YTD Q4	2021
		Unaudited	Audited
		Urevidert	Revidert
Non-current assets	Anleggsmidler
Deferred benefit tax	Utsatt skattefordel	1 710	1 710
Goodwill	Goodwill	238 343	0
Licenses and R&D , patents	Lisenser FoU , patenter og	36 478	0
Property , plant and equipments	Eiendom , anlegg utstyr og	161 339	16 116
Right of assets use	Bruksrett eiendeler	6 237	332
Investment in associates	Investeringer i tilknyttet selskap	22 737	194 185
Loan associates to	Lån til tilknyttet selskap	4 840	4 338
Investment in financial assets	Investeringer i finansielle eiendeler	20 579	4 610
Other receivables non-current	fordringer Andre langsiktige	7 249	111
Total non-current assets	Sum anleggsmidler	499 512	221 403
Current Assets	Omløpsmidler
Inventory	Varelager	12 823	2 781
Accounts receivables	Kundefordringer	108 673	19 784
Other receivables	Andre kortsiktige fordringer	40 450	26 176
Contract assets customer	Kontraktseiendeler kundekontrakter
contracts		0	0
Cash and cash equivalents	Bankinnskudd	61 102	221 733
Total current assets	Sum omløpsmidler	223 048	270 474
ASSETS TOTAL	SUM EIENDELER	722 560	491 877

Assets Equity and liabilities

ASSETS	EIENDELER	Q4 2022 YTD Unaudited Urevidert	2021 Audited Revidert
LIABILITIES EQUITY AND	EGENKAPITAL OG GJELD
Equity	Egenkapital
Share capital	Aksjekapital	3 599	1 239
Share premium reserve	Overkurs	195 175	22 535
Treasury shares	Egne aksjer	-905	-3
Retained earnings	Opptjent egenkapital	108 301	274 042
Non-controlling interests	Ikke-kontrollerende eierinteresser	4 769	0
equity Total	Sum egenkapital	310 939	297 814
liabilities Non-current	Langsiktig gjeld
Deferred liability tax	Utsatt skatt	2 978	2 441
Lease liabilities	Leieforpliktelser	6 923	225
Loans and borrowings	Gjeld til kredittinstitusjoner	157 216	4 348
Other long-term liabilities	Annen langsiktig gjeld	43 629	31 933
Total non-current liabilities	Sum langsiktig gjeld	210 746	38 947
Current liabilities	Kortsiktig gjeld
Accounts payables	Leverandørgjeld	49 682	27 793
Taxe payables	Betalbar skatt	1 796	2 603
Public duties payables	Skyldig offentlige avgifter	42 568	17 523
Loans and borrowings, current	Gjeld til kredittinstitusjoner	18 150	435
Contract liabilities	Kontraktsforpliktelse	0	35 558
Lease liabilities	Leieforpliktelse kortsiktig	1 353	132
Other liabilities current	Annen kortsiktig gjeld	87 325	71 073
Total liabilities current	Sum kortsiktig gjeld	200 874	155 117
Total liabilities	Sum gjeld	411 620	194 063
TOTAL EQUITY AND	SUM EGENKAPITAL OG GJELD	722 560	491 877

Adjustment of purchase price allocation within 12 months period according to IFRS 3

Bridge pro-forma figures vs. consolidated P&L YTD Q4 2022

	Consolidated figures	Aquired companies 01 01- 30 06	Non-recurring items	Pro-forma figures
Operating income	440 7	188 3		629 0
	,	,		,
Materials and consumables	211 2 ,	69 9 ,		281 1 ,
Payroll expenses	172 4 ,	105 4 ,		277 8 ,
Other operating expenses	67 1 ,	6 3 ,		73 4 ,
Operating expenses	450 6 ,	181 5 ,	0 0 ,	632 2 ,
EBITDA	-9 9 ,	6 7 ,	0 0 ,	-3 2 ,
Non-recurring items			21 0 ,	21 0 ,
Adjusted EBITDA	-9 9 ,	6 7 ,	21 0 ,	17 8 ,

Amounts in mNOK

• Consolidated figures includes the companies acquired in June 2022 (operational companies are BKS and Fossberg Kraft) only from July 1st, 2022 in the P&L
• Table to the left shows the bridge between the consolidated figures and the pro-forma figures for the full year 2022 (the latter comprises the group's subsidiaries including BKS and Fossberg Kraft acquired in June 2022 as well as adjustment for non-recurring items)