Argeo AS

Investor Presentation • May 19, 2022

Digitizing the ocean space

Argeo Q1 company presentation

19 MAY 2022 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

Technology

Financials

Outlook

Highlights

Introduction to Argeo

Operational update

Technology

Financials

Outlook

Agenda

Highlights

Q1 Highlights

• Ordered a new Hugin 6000 from Kongsberg
• Signed a 12-month project for the new Hugin 6000 AUV
• Awarded a NOK 8.5 million contract from Statens Vegvesen for the Sea Raptor "Alpha"
• Completed Sea Acceptance Testing (SAT) in the North-Sea
• First Sea Raptor delivered in February 2022
• Remaining work for the Hugin project in Brazil given new startup in late May

Subsequent events

• NOK 75 million private placement in April 2022
• AUV work for Statens Vegvesen successfully completed
• Commenced Multi-Client offshore wind project at Utsira Nord
• Deep-water SeaRaptor project moved to early July

Agenda

Highlights

• Introduction to Argeo
  • Operational update
  • Technology
  • Financials
  • Outlook

Page 7 Source: Company * Numbers in parentheses indicate vessels planned by 2023

HIGH CAPABILITY ROBOTICS SOLUTIONS

UNIQUE IMAGING AND MODELLING TECHNOLOGY

"FASTER, BETTER, GREENER AND AT A LOWER COST"

ARGEO'S MISSION

Transforming the ocean surveying and inspection industry

Utilising autonomous underwater and surface vehicles and unique sensor and imaging technology

to significantly increase efficiency and quality

And to substantially reduce the industry CO2 footprint

Robotics and digital solutions for the ocean space

ENGINEERING & CONSTRUCTION

• Data acquisition, imaging and underground modelling for large infrastructure projects.
• High accuracy imaging reducing project risk and construction costs

O&G SURVEY INSPECTION

• Offshore field design, location of platform and subsea infrastructure
• Investigation of routes for pipelines
• Detection of damage and erosion on existing installations

OFFSHORE WIND

• Wind farm design of foundations, substations etc.
• Investigation of routes for power cable
• Inspection of existing infrastructure

DEEP SEA MINERALS

• Exploration for Deep -Sea Minerals (DSM)
• Wide use of sensors and in -house technology for mineral deposits characterization, a system under development by Argeo Robotics

Highlights

Introduction to Argeo

Agenda

Operational update

Technology

Financials

Outlook

FLEET UPDATE

Steadily developing our fleet to meet market demand

New Hugin 6000

COMMERCIALLY AVAILABLE FROM THE BEGINNING OF H2 2022

"

The Hugin 6000 is a state-of-the-art ultra-deep water AUV with all the necessary payload systems to make it one of the most advanced high-capacity survey machines in the world.

12-month project with net value of 4,5 MUSD

• Project will commence H2 2022
• Minimum guaranteed duration of 6-months
• 6-month extension, with estimated completion in H2 2023
• Total net value for full 12 months of 4.5 MUSD

250 000

E&P spending expected to increase significantly

ALONGSIDE SIGNIFICANTLY EXPANDING GLOBAL OFFSHORE CAPEX SANCTIONING

E&P spending (Y/Y) Global capex sanctioning (USDm)

Argeo's growth and expansion into new geomarkets are driven by further growth in E&P spending (17% in 2022)

Positioning key assets strategically to capitalize on stronger subsea activities supports faster mobilization and cost-effective operations

With global offshore sanctioning up 8% in 2022 and a further increase to 37% in 2023, Argeo is perfectly positioned to capitalize on this strong growth to support our fleet expansion going forward

Unique offering to the O&G business demanding efficiency gains

ARGEO IS WELL POSITIONED TO MEET GROWING DEMAND FOR EFFICIENT AND LOW-CARBON SOLUTIONS IN THE BROADER O&G INDUSTRY

• Global survey market based on Rystad Energy estimates on total offshore survey spending
• Annual global demand of NOK 15–20 billion within the O&G industry
• Estimated total addressable market of NOK ~1.5–2.0 billion in Norway, where survey accounts for ~65% of the total

USV ARGUS in its final stages of testing

Argeo positioned in the entire offshore wind value chain

WIDE-RANGING SURVEY AND INSPECTION USE IN OFFSHORE WIND

Argeo's solutions accelerate offshore wind development

ENABLING RENEWABLES

Bringing cost-efficient Multi Client to wind farming

ENABLING RENEWABLES

Argeo's Multi Client model

• Argeo efficiently surveys the entire wind park, creating high-resolution imaging and bathymetry of the ocean bottom and building a digital library

ARGEO GROWTH GEOMARKETS

Building a strong library with significant long-term value

• Large-scale, high-quality data from key areas long-term relevance to clients
• Early acquisition relevant for several clients evaluating the areas
• Successful bidders likely to upgrade their data licenses
• Dynamic wind farm ownership

Tenders and project pipeline solidifying

Argeo Fleet Schedule Q1-2022

Agenda

Highlights

Introduction to Argeo

Operational update

• Technology
  • Financials

Outlook

ARGEO'S ROBOTIC TECHNOLOGY Unique in-house abilities to generate valuable data output

"Argeo Listen" measure the position and strength of electricity in objects on the seabed.

CATHODIC PROTECTION

Zinc sacrificial anodes are used to protect pipelines and subsea installations from corrosion. The anodes corrode in stead of the pipeline and needs to be replaced from time to time. By flying Argeo's AUV over the pipe Argeo Listen measure and identify the condition of these anodes and predict the need for replacement.

INSPECTION

Argeo Listen can localize electrical cables that have been buried or exposed by shifting sand dunes on the seabed. The tool can also be used to pinpoint the cable's position in real time even when buried.

"Argeo Whisper" sends out electrical signals from the AUV detecting objects with a higher level of electrical conductivity or higher resistance than its surroundings.

PIPELINE AND OBJECT TRACKING

Traditional use of AUV's cannot locate buried pipelines. By sending out electrical signals and identifying the location of the reflection and signal strength the tool can decide direction, position and depth of the pipeline.

UXO

With "Argeo Whisper" one can identify and locate objects containing metals, typically unexploded ordnance, with an AUV rather than using a large vessel and tethered magnetometers.

"Argeo Discover" is developed to search and find minerals and smaller objects than the Argeo Whisper can locate as it is 5 times as powerful.

DEEP-SEA MINERALS EXPLORATION

Deep-sea minerals can be separated from its surroundings as it has a higher level of electrical conductivity. Argeo Discover can detect these minerals and determine the extent of the deposits.

In some cases, one AUV will push signals out and another AUV will listen for the reflection.

ARGEO ENLIGHT ARGEO INTROSPECTION ARGEO FORESIGHT

Mission Controlled Operation for USV & Eelume

Global Mission Control: Supporting client on-prem or containerised Supervised operations providing 100% mission support and backup

Argeo Digital Ocean Space

OPTIMIZING VALUE FROM OCEAN DATA

SUBSEA ASSET DIGITALIZATION, VISUALIZATION AND ANALYSIS ENABLED

The main tool for data processing and visualization of data in addition to our Multi-Client data shopping window

3D visualization and mapping of subsea inspection data fully interpreted

Georeferenced in space and time

Prediction of subsea movements and remaining lifetime of assets based upon trends in data measured over time

Agenda

Highlights

Introduction to Argeo

Operational update

Technology

Financials

Outlook

Income Statement

Amounts in NOK	Q1-2022	Q1-2021	2021
Operating revenue	6 913 301	1 140 898	15 841 933
Operating cost	4 676 349	497 070	17 439 402
Employee expenses	13 842 936	1 592 821	22 661 612
Other operating expenses	4 397 915	1 102 571	8 755 430
Capitalisation of cost	-3 658 689	0	-6 367 084
EBITDA	-12 345 210	-2 051 564	-26 647 427
Depreciation	630 107	307 212	1 276 144
EBIT	-12 975 317	-2 358 776	-27 923 571
Net financial items	385 944	-61 688	-38 288
Profit/(loss) before tax	-12 589 373	-2 420 463	-27 961 859
Income tax (expense)	2 776 647	513 425	9 848 396
Profit/ (loss) for the period	-9 812 726	-1 907 039	-18 113 463

• Revenue in Q1 2022 is mainly from our AUV project in Brazil.
• Total expenses in Q1 2022 NOK 22.9 million, up from NOK 19.6 million in Q4 2021.
• Increase due to operation in Brazil, and continued increase of employees

Balance Sheet

Amounts in NOK	31.03.2022	31.03.2021	31.12.2021
ASSETS
Intangible assets	12 463 110	3 363 934	7 647 152
Deferred tax asset	13 036 078	824 146	10 259 439
Property, plant and equipment	65 072 246	1 220 120	3 964 613
Shares in associated companies	5 513 794	5 862 978	5 478 556
Total non-current assets	96 085 229	11 271 177	27 349 760
Trade receivables	9 141 962	1 023 685	6 164 055
Other current assets	52 601 599	445 221	67 963 861
Cash and cash equivalents	32 898 064	948 735	65 862 065
Total current assets	94 641 625	2 417 641	139 989 981
Total assets	190 726 854	13 688 818	167 339 740
EQUITY AND LIABILITIES
Equity	138 237 892	4 346 065	148 050 618
Long term debt	35 632 981	6 653 333	5 933 333
Total non-current liabilities	35 632 981	6 653 333	5 933 333
Trade payables	10 561 895	1 357 329	6 287 642
Other current liabilities	6 294 087	1 332 091	7 068 148
Total current liabilities	16 855 982	2 689 420	13 355 790
Total liabilities	52 488 963	9 342 753	19 289 123
Total equity and liabilities	190 726 854	13 688 818	167 339 740

• Intangible assets of NOK 12.5 million includes mainly capitalized cost to our Digital Ocean Space project.
• PPE includes first SeaRaptor delivered in Q1 2022.
• Other current assets includes 49.4 million in Pre-payments for assets to be delivered later in 2022.
• Long term debt includes seller's credit for first SeaRaptor.

Cash flow statement

Amounts in NOK	Q1-2022	Q1-2021	2021
Cash flow from operating activities
Profit/(loss) before tax	-12 589 373	-2 420 463	-27 961 859
Depreciation	630 107	307 212	1 276 144
Financial income	0	0	-89 449
Financial expense	167 066	56 124	432 934
Gain/loss equity investments	-35 238	86 714	471 136
Change in current assets	12 384 354	3 239 098	-69 419 911
Change current liabilities	3 500 196	-12 376 031	-1 809 979
Net cash from operating activities	4 057 112	-11 107 345	-97 100 984
Cash flow from investing activities
Investment in property, plant and equipment	-61 483 986	-593 586	-3 687 020
Investment in intangibles	-5 069 713	0	-4 903 211
Net investment in associated companies	0	-5 871 402	-5 871 402
Sale AUV to associated company	0	10 837 500	10 837 500
Net cash from investing activities	-66 553 699	4 372 512	-3 624 132
Cash flow from financing activities
Net proceeds from new equity	0	0	159 910 974
Proceeds from new debt	30 039 647	0	0
Repayment of interest-bearing debt	-340 000	-40 000	-760 000
Financial income	0	0	89 449
Financial expense	-167 066	-56 124	-432 934
Net cash flow from financial activities	29 532 582	-96 124	158 807 489
Net change in cash and cash equivalents	-32 964 005	-6 830 958	58 082 373
Cash and cash equivalents beginning of period	65 862 065	7 779 692	7 779 692
Cash and cash equivalents end of the period	32 898 060	948 734	65 862 065

• Positive change in current assets due to delivery of first SeaRaptor. Was classified as Other current asset in Q4 2021.
• Investment in PPE mainly first SeaRaptor.
• Investment in intangibles NOK 5.1 million in Q1 2022.
• New debt NOK 30 million related to first SeaRaptor

Page 28

On track extending our fleet and services globally

Increased market demand and strong overall market outlook

On track developing our digital solutions

Rationale

• Attractive market opportunity
• Strong industry and technological competence
• Ability to meet high demand through fleet expansion
• Sustainable business model
• Solid customers in all verticals

Agenda

Highlights

Introduction to Argeo

Operational update

Technology

Financials

Outlook

Outlook

Attractive markets – we experience strong interest and opportunities in all our markets

Experience accelerating growth and tenders in O&G

Strong potential and momentum in Offshore Wind

Expect continued build-up of tenders in 2022 supporting further growth

Thank you