Eqva ASA

Earnings Release • Nov 26, 2021

Havyard Group ASA – Highlights Q3 2021

25 November 2021

www.havyard.com

Innhold / Contents

• 1. Innledning / Introduction
• 2. Kvartalstall Havyard Group ASA / Quarterly figures Havyard Group ASA
• 3. Utdeling av utbytteaksjer til aksjonærer i Havyard Group ASA/ Distribution of dividend shares to shareholders in Havyard Group ASA

1. Innledning

• Da det ikke foreligger rapporteringsplikt for Havyard Group ASA i forbindelse med 3. kvartal 2021, velger selskapet å offentliggjøre redusert regnskapsinformasjon i henhold til nedenstående nøkkelinfo.
• Det opplyses om at den finansielle rapporten ikke fyller kravene til en IAS 34 rapport, men at regnskapsprinsippene (som angitt i årsregnskapet) følges i konsernet.
• Kvartalstallene per 3. kvartal 2021 er ureviderte.

1. Introduction

• As there is no reporting obligation for Havyard Group ASA in connection with the 3rd quarter of 2021, the company chooses to publish reduced accounting information in accordance with the below key information.
• Please note that the financial report does not meet the requirements for an IAS 34 report, but that the accounting principles (as stated in the annual accounts) are followed in the group.
• The quarterly figures per 3rd quarter of 2021 are unaudited.

2. Kvartalstall Havyard Group ASA

• Havyard Group ASA har en total omsetning per 3. kvartal på MNOK 1 438, og resultat før skatt er MNOK 157.
• Skipsverftet Havyard Leirvik AS overleverte ett skip i 3. kvartal, bnr. 149 til Esvagt.
• Etter balansedagen: Bnr 151 til NFT/Frøy ble levert i begynnelsen av November 2021.
• Verftet er nå omorganisert og hovedfokus fremover vil være ombyggings- og vedlikeholdsoppdrag.
• Det henvises til Hav Group ASA (66,5%) sin 3. kvartal rapport 2021 for informasjon vedrørende drifts- og regnskapsutviklingen i dette konsernet.

2. Quarterly figures Havyard Group ASA

• Havyard Group ASA has a turnover YTD 3rd quarter of MNOK 1 438, and profit before tax is MNOK 157.
• The shipyard Havyard Leirvik AS delivered 1 ship in the 3rd quarter, bnr. 149 to Esvagt.
• After balance sheet date: Bnr 151 to NFT/Frøy was delivered in the start of November 2021.
• The yard is now restructured, and main focus forward will be rebuilding- and maintenance contracts.
• Reference is further made to HAV Group ASA's (66,5%) 3rd quarter report 2021 for information regarding operational- and financial development of HAV Group.

Consolidated statement og Profit or loss – Havyard Group ASA

• Konsernets omsetning er ca 400 MNOK lavere enn for tilsvarende periode i fjor. Dette er primært en konsekvens av endringen i fokus på verftet - fra nybyggingsverft til ombyggingog vedlikeholdsverft.
• Konsernets resultat etter skatt er ca 110 MNOK høyere enn tilsvarende periode i fjor. Forbedringen skyldes primært positiv resultatutvikling i segmentene, kombinert med en positiv effekt fra den offentlige akkorden i Havyard Ship Technology AS og fortjeneste fra aksjesalg i Havyard i Hav Group ASA (se informasjon i Havyard Q2 2021 rapport)

	YTD 2021	YTD 2020	FY 2020
(NOK 1,000)	(unaudited)	(unaudited)	(audited)
Revenues	1 436 281	1 808 311	2 322 584
Other operating revenues	1 330	1 365	1 593
Operating revenues	1 437 611	1 809 675	2 324 177
Materials and consumables	1 014 558	1 307 878	1 719 955
Payroll expenses etc	218 554	235 367	324 471
Other operating expenses	64 287	173 280	166 460
Operating expenses	1 297 400	1 716 525	2 210 885
Operating profit before depreciation and amortization (EBITDA)	140 211	93 151	113 292
Depreciation and amortization	22 691	30 322	38 385
Operating profit (EBIT)	117 520	62 829	74 907
Financial income	18 204	67 079	15 770
Effect from public settlement	47 135	0	0
Financial expenses	-25 122	-112 947	-38 388
Share of profit/loss of associate	-706	67	11 004
Profit / loss before tax	157 031	17 028	63 293
Income tax expense	-28 885	-628	22 946
Profit/loss from continued operations	128 146	17 656	86 240
Profit / loss for the periode	128 146	17 656	86 240
Attributable to :
Equity holders of parent	107 990	15 925	84 906
Non-controlling interest	20 157	1 731	1 334
Total	128 146	17 656	86 240
Earnings per share (NOK)	4,36	0,64	3,43
Diluted earnings per share (NOK)	4,36	0,64	3,43

• The Group revenues are approx. 400 MNOK down from same period last year, mainly because of change in focus in the shipyard - from new built to rebuilding- and maintenance yard
• The Group profit after tax is up approx. 110 MNOK from same period last year, mainly driven by positive result development in the segments, combined with a positive effect from public debt settlement in Havyard Ship Technology AS and profit from share sale in Havyard in Hav Group ASA (see info in Havyard Q2 2021 report)

Segment information – Havyard Group ASA

The Group's main activities are 1) Ship building Technology, i.e. delivering vessels from own shipyard/repair/rebuilding and 2) ownership in HAV Group ASA (66,5% ownership).

		3 quarter				YTD Q3 2021
Profit & loss	Ship Building Technology	Hav Group	MIE/ Other	Havyard Group	*Ship Building Technology	Hav Group	MIE/ Other	Havyard Group
(NOK 1,000)
Operating revenues	181 417	80 417	-29 202	232 632	797 417	698 017	-57 823	1 437 611
EBITDA	18 017	16 473	1 287	35 777	40 517	91 773	7 921	140 211
EBIT	17 232	10 635	654	28 520	38 232	73 235	6 054	117 520
Profit/ Loss for the period (after tax)	11 938	7 314	-2 345	16 907	145 238	55 314	-72 406	128 146

*The Ship Building Technology segment Profit and loss figures are impacted by the public debt settelement in the old shipyard company, Havyard Ship Technology AS (see also Havyard Q2 2021 report). The shipyard company Havyard Leirvik AS third quarter figures:

Profit and loss	YTD 2021
Operating revenues	790 662
EBIT	29 843
Profit after tax	21 430

Consolidated statement of Financial position - Havyard Group ASA

	YTD 2021	YTD 2020	FY 2020
(NOK 1,000)	(unaudited)	(unaudited)	(audited)
ASSETS
Non-current assets
Goodwill	48 431	48 431	48 431
Licenses, patents and R&D	86 331	83 146	89 152
Property, plant and equipment	49 122	50 730	48 837
Right of use assets	31 850	43 245	38 775
Investment in associates	30 214	25 222	30 920
Loan to associates	4 160	2 021	2 000
Investment in financial assets	9 860	14 914	17 914
Other non-current receivable	485	3 919	1 502
Total non-current assets	260 453	271 629	277 531
Current Assets
Inventory	13 718	799 946	17 577
Accounts receivables	106 427	48 679	24 466
Other receivables	106 658	696 325	549 582
Contract assets customer contracts	343 724	502 357	829 438
Cash and cash equivalents	579 877	285 910	229 275
Total current assets	1 150 404	2 333 218	1 650 338
TOTAL ASSETS	1 410 856	2 604 846	1 927 870

	YTD 2021	YTD 2020	FY 2020
(NOK 1,000)	(unaudited)	(unaudited)	(audited)
EQUITY AND LIABILITIES
Equity
Share capital	1 239	1 239	1 239
Share premium reserve	22 535	22 535	22 535
Treasury shares	-3	-3	-3
Retained earnings	212 161	-168 163	-102 581
Non-controlling interests	49 712	48 380	47 986
Total equity	285 644	-96 012	-30 823
Non-current liabilities
Deffered tax liability	6 379	2 808	0
Loans and borrowings, non-current	66 739	0	0
Lease liabilities	26 302	36 569	32 903
Other long-term liabilities	26 333	27 727	16 136
Total non-current liabilities	125 753	67 105	49 039
Current liabilities
Accounts payables	91 518	399 588	467 567
Tax payables	29 214	1 243	11 042
Public duties payables	35 146	44 791	33 364
Construction loans	268 905	513 714	724 456
Bond loan	O	80 000	80 000
Loans and borrowings, current	21 031	96 772	95 602
Contract liabilities	306 520	110 498	100 436
Lease liabilities	8 761	9 350	8 676
Other current liabilities	238 365	1 377 798	388 512
Total current debt	999 460	2 633 754	1 909 654
Total liabilities	1 125 213	2 700 858	1 958 693
TOTAL EQUITV AND LADILITIES	1 440 OEG	2 200 200 1 007 970

www.havyard.com

3. Utdeling av utbytteaksjer til aksjonærer i Havyard Group ASA (Etter balansedagen)

Selskapet arbeider løpende for at aksjonærene skal motta en konkurransedyktig avkastning på sin investering. Følgelig vil selskapet ha høyt fokus på verdiskaping for aksjonærene og føre en utbyttepolitikk som i så henseende ivaretar interessene til både aksjonærene og selskapet på en god måte. Når styret skal ta stilling til hvorvidt det skal foreslås utbytte og fastsette størrelsen på dette, vil styret ta i betraktning begrensninger som følger av lovgivningen, selskapets kapitalkrav, herunder kapitalkostnader, selskapets finansielle stilling, markedsutsikter og generelle forretningsvilkår for øvrig. Det vil også bli tatt hensyn til mulige begrensninger på utbetaling av utbytte som måtte følge av selskapets låneforpliktelser eller andre kontraktsforpliktelser, samt krav til opprettholdelse av en tilstrekkelig finansiell fleksibilitet.

Selskapet har en solid finansiell posisjon og jobber aktivt med å optimalisere kapitalstrukturen. Etter oppgjør av obligasjonslån og fristillelse av aksjepant fra byggelånsbanker i 2021 er det således gledelig at selskapet nå er i en finansiell posisjon til å kunne dele ut et ekstraordinært utbytte.

Styret har i børsmelding av 22.november 2021 annonsert forslag om utbetaling av et ekstraordinært utbytte. Forslaget innebærer utdeling av inntil 50% av selskapets aksjer i HAV Group ASA, dvs. inntil totalt 11 631 034 aksjer fordelt med 0,46935005 HAV-aksjer per aksje i selskapet som avrundes nedad til nærmeste hele HAV-aksje.

Selskapet vil kalle inn til ekstraordinær generalforsamling 14.desember 2021 for å behandle utbytteforslaget. Utbyttet forventes å være godskrevet aksjeeierne 27.desember 2021.

3. Distribution of dividend shares to shareholders in Havyard Group ASA (After balance sheet date)

The company works continuously to ensure that shareholders receive a competitive return on their investment. Consequently, the company will have a high focus on value creation for the shareholders and pursue a dividend policy that in this respect safeguards the interests of both the shareholders and the company in a good way. When the board is to decide whether to propose a dividend and determine the size of this, the board will take into account limitations that follow from the legislation, the company's capital requirements, including capital costs, the company's financial position, market prospects and general business conditions. Possible restrictions on the payment of dividends that may result from the company's loan obligations or other contractual obligations will also be taken into account, as well as requirements for maintaining sufficient financial flexibility.

The company has a solid financial position and works actively to optimize the capital structure. Following the settlement of bond loans and the release of share pledges related to construction financing at the shipyard in 2021, the board is happy to announce that the company is now in a financial position to be able to distribute an extraordinary dividend.

Pursuant to a stock exchange announcement of 22 November 2021, the board has announced a proposal for the payment of an extraordinary dividend. The proposal involves the distribution of up to 50% of the company's shares in HAV Group ASA, up to a total of 11,631,034 shares divided by 0.46935005 HAV shares per share in the company which is rounded down to the nearest whole HAV-share.

The company will summon to an extraordinary general meeting on 14 December 2021 to consider the dividend proposal. The dividend is expected to be credited to the shareholders on 27 December 2021.