Fjord Defence Group ASA

Investor Presentation • Oct 13, 2021

CARBON TRANSITION ASA

Company overview

13 October 2021

Disclaimer

• The information in this presentation has been prepared by Carbon Transition ASA (the "Company"). By attending the meeting where this presentation is made, or by reading the presentation slides, you agree to be bound by the following limitations and provisions:
• This presentation has been prepared by the Company based on information available as of the date hereof. By relying on this presentation you accept the risk that the presentation does not cover all matters relevant of an assessment of an investment in the company.
• No representation or warranty (expressed or implied) is made as to, and no reliance should be placed on, any information, including projections, estimates, targets and opinions, contained herein, and no liability whatsoever is accepted as to any errors, omissions or misstatements contained herein, and, accordingly, none of the Company, any advisor or any such persons' officers or employees accepts any liability whatsoever arising directly or indirectly from the use of this presentation. The information herein is subject to change, completion, supplements or amendments without notice.
• The presentation is based on the economic, regulatory, market and other conditions as in effect on the date hereof, and may contain certain forward-looking statements. By their nature, forward-looking statements involve risk and uncertainty because they reflect the Company's current expectations and assumptions as to future events and circumstances that may not prove accurate. It should be understood that subsequent developments may affect the information contained in this document, which neither the Company nor its advisors are under an obligation to update, revise or affirm.
• This complete presentation is for informational purposes only and does not constitute an offer to sell shares in of the Company. This presentation is not a prospectus, disclosure document or offering document and does not purport to be complete. Nothing in this presentation should be interpreted as a term or condition of the Transaction. The presentation is strictly confidential and may bot not be reproduced or redistributed, in whole or in part, to any other person.
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• The contents of this presentation are not to be construed as legal, business, investment or tax advice. Each recipient should consult with its own legal, business, investment and tax adviser as to legal, business, investment and tax advice.
• Any investment in the Company involves inherent risks and is suitable only for investors who understand the risks associated with this type of investment and who can afford a loss of all or part of the investment. Investors should carefully review the summary of risk factors set out in the following slides before making any investment decision.
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Strategy

Focus on investing in companies & technologies which contribute to significant reduction of carbon emissions

• Listed investment company a unique vehicle to take part in the ongoing energy transition from an early stage
• Multiple sectors facing large and lasting changes, creating opportunities to invest in long term winners (there will be several)
• Opportunistic approach but typically some common denominators:
  • o Unique & proven technology
  • o Scalable business model
  • o High barriers to entry
  • o Global potential
• Company may also invest more broadly in the energy transition space

Value proposition

• To unlock value through investing in companies which are:
  • o Through its seed and venture phase
  • o Currently looking for growth capital in pre IPO phase
  • o Targeting an IPO in the short to medium term
• A unique investor for such companies as we provide a combination of:
  • o Sizeable investment
  • o Active involvement
  • o Attention through stock listing
  • o Strong shareholder base
• Unique access to deal flow through active network
• Income from legacy business to contribute to funding of new investments

* Company may also make investments which deviate from the illustrative model

CO² prices The driving force of change – and green profitability

• In four years' time, the price on European emissions rights, EU ETS, has increased tenfold
• Currently trading around EUR 60/ton
• EU "Green Deal" target: Europe to be the world's first carbon neutral region by 2050
• China with similar commitment for 2060
• Global momentum through the Paris climate agreement
• Massive investments needed to meet targets
  • o Estimated level > EURO 250 billion / year for EU alone
  • o Funds exiting fossil fuels/energy in parallel

Source: SpareBank 1 Markets Equity Research

Carbon Transition investments is the way forward

Maximizing value of legacy seismic business

173 nm
Multi-Client	Ocean Bottom Node
▪ Holds significant ownership of high resolution seismic data surveys in Norway and Egypt	▪ Global experience with multi-vessel ocean bottom node (OBN) operations ▪ Project organization
▪ Late sales to generate revenues and cash flow	capable of performing complex OBN operations
▪ Joint ownership with TGS and Western Geco	▪ Scalable asset-light business model, low fixed cost structure
	▪ Evaluating strategic alternatives

Legacy segments 173 nm		Energy transition investments
		Investment # 1	Investment # 2	Investment # 3
	▪ Global experience with multi-vessel ocean bottom node (OBN) operations				Investments # 4, 5, 6…
	▪ Project organization capable of performing complex OBN operations		▪ ▪	Investments in the "energy transition" space	Focus on investments in companies and technologies which contribute to significant reductions of carbon emissions
	▪ Scalable asset-light business model, low fixed cost structure		▪	investments	Goal of positively impacting the value creation of its
	▪ Evaluating strategic alternatives		▪		Investments with an attractive rate of return potential, profiled to allow for realization of investments in an efficient manner

First investment | Arbaflame

• NOK 30 million invested as part of NOK 156 million convertible loan
• NOK 550 million invested to date, including several ESG focused entities and main sponsor Pemco
• Highly attractive company with unique and verified technology enabling production of black pellets from bio waste ("ArbaCore")
• ArbaCore can fully replace coal in coal -fired power plants worldwide, reducing Co2 emissions by approximately 90% compared to coal
• Current production capacity at 70.000 tonnes per year, with goal of >850,000 tonnes per year in 2026 (0.2% of the total coal consumption in EU)
• Backlog for delivery of ArbaCore corresponding to a value of up to EUR 65m
• Incoming requests and discussions with several new prospects wanting supply of ArbaCore
• Verified extraction of planned high value green chemicals: Furfural, Methanol and Biogas
• First truck of ArbaCore delivered to port early July
• Planning and engineering of next production plants initiated
• Substantial global potential

Second investment | Britishvolt

• NOK 15.2 million invested in the company's series B financing in return for shares and options for equivalent amount
  • − Other investors include Glencore, Cathexis Venture II and NG Bailey
• Manufacturer of lithium -ion batteries for electric cars, established with the aim to meet the Electric Vehicle ("EV") battery demand in the UK & EU by 2023
• The company has identified Blyth, in Northumberland, as the site for the Gigafactory and acquired the required land in April 2021. The UK Gigaplant is targeting a capacity of 39GWh
• A second Gigafactory in Canada is in the planning stage. The Canadian Gigaplant is targeting a capacity of 72 GWh
• Britishvolt recently announced that it has entered into an offtake agreement with FTSE 100 -listed Glencore for the supply of responsibly sourced cobalt
• Britishvolt has signed an MoU and term sheet with leading organizations including WMG and Oxford University for the development of next -generations solid state technology. Solid state batteries are expected to be the next generation technology for electric vehicles

Third investment | CO2 Capsol

• NOK 40 million invested in a pre-IPO growth financing round
• CO2 Capsol owns a proven, cost competitive carbon capture technology with full cycle cost (opex and capex) of \$30 -37/t (vs. \$43 -50 for traditional technologies)
• CO2 Capsol technology utilizes a patented heat recovery process which significantly reduces energy costs
• Each module has a capacity of 2.5mtpa, and the solution is easily scalable by adding several modules to the same plant. Efficient installation period of 18 -24 months requiring no modification of existing facilities
• Technology based on Hot Potassium Carbonate ("HPC"), which is a non hazardous solvent used in the food industry – this results in a safe solution with HSE benefits over existing amine based alternatives
• CO2 Capsol's technology has been selected for Stockholm Exergi's carbon capture facility (800,000 tons CO2/year)
• Highly scalable licensing model with strong margins, low capex requirements and a recurring revenue component'
• CO2 Capsol has entered into a collaboration with Petrofac who has been awarded the Front -End Engineering Design contract for Stockholm Exergi

9

Current investments tick the boxes