AKVA Group — Earnings Release 2015

Nov 5, 2015

AKVA group ASA : 3Q 2015 financial reporting

AKVA group ASA : 3Q 2015 financial reporting

Strong performance and growth continues

AKVA group has completed another good quarter. Revenue in Q3 2015 ended at  356

MNOK (330 MNOK) with an EBITDA of 41 MNOK (34 MNOK). Third quarter EBITDA margin

was 11.4% (10.4%). All business segments have made positive contributions  to

the third quarter result. Financially this is the best year ever for AKVA group

ASA. The order backlog is also the highest ever. A dividend of NOK 1.00 per

share will be paid out in Q4 2015.

"AKVA group have completed yet another strong quarter and we are happy to

announce a dividend payment according to our dividend policy. The dividend

reflects our strong underlying performance and financial position. We are also

happy to welcome Aquatec Solutions A/S to the group. We believe this acquisition

will strengthen our position in the land based segment significantly. We are

also happy", says CEO of AKVA group ASA Trond Williksen.

Cage Based Technology (CBT)

Third quarter is traditionally a good quarter in Nordic due to high activity.

The strong performance continues with a slightly different product mix compared

to 2014. A wider range of products contributes to revenue and profit YTD 2015 vs

2014. Number of employees and cost base in Chile has been reduced in Q2 to

prepare for expected reduced market activity in the second half of 2015. Service

and aftersales combined with a tight cost control gives a profitable Q3 in Chile

despite challenging market conditions. YTD Chile have a decent year mostly due

to a strong first half year. Canada continues the good performance in Q3 and

have the best YTD financials ever. Our UK operation continues the good

performance in Q3, resulting in the best YTD Q3 ever. Turkey continues the good

performance in Q3 and also have the best YTD Q3 ever. There has been low

activity in Export to emerging markets in Q3. This area is dominated by few but

large contracts and this gives variations in the P&L quarter by quarter.

Software (SW)

AKVA group Software AS continues to deliver stable and high margins with

improved revenue and margins YoY. Wise lausnir ehf continues with good

performance and improved financials YoY. Software continues to invest in new

product modules, which is expected to strengthen the financial performance of

the software segment further.

Land Based Technology (LBT)

Land based has experienced improved performance year on year and quarter on

quarter. AKVA group Denmark A/S have decent performance YTD, however there is

still room for improvement financially. Plastsveis AS is on track with good

performance YTD. This results in an EBITDA of 7.0% in Q3 2015. Aquatec Solutions

A/S will be included in the consolidated P&L from Q4 2015 and onwards. The

balance sheet and the order backlog is included at end of Q3 2015. The land

based segment ends the second quarter with a good order backlog.

Order Backlog

We have experienced continued good market activity throughout Q3. The order

inflow in Q3 2015 was 505 MNOK (201 MNOK). The order backlog at the end of Q3

2015 was 643 MNOK (349 MNOK). This is the highest third quarter order backlog

ever for AKVA group before including Aquatec Solutions A/S. The order inflow and

order backlog from Aquatec Solution A/S in Q3 2015 was 187 MNOK. After including

Aquatec Solutions A/S we are ending the quarter with the best order backlog

ever.

Balance sheet

The balance sheet continued to be strong. Working capital in percentage of 12

months rolling revenue is 9.1% (8.4%). We are able to maintain low working

capital despite significant activity ramp up over the last year. Cash and unused

credit facilities amounted to record high 226 MNOK at the end of Q3 (183 MNOK).

Total assets and total equity amounted to 1,160 MNOK (836 MNOK) and 443 MNOK

(375 MNOK) respectively, resulting in an equity ratio of 38% (45%) at the end of

Q3.

Dividend of NOK 1.00 per share to be paid in Q4 2015

The Company's main objective is to maximize the return on the investment made by

its shareholders through both increased share prices and dividend payments.

According to the AKVA group ASAs' dividend policy a dividend of 1.00 NOK per

share will be paid out in Q4 2015. Total dividend pay out in Q4 2015 will be NOK

25.8 million. The shares in the company will be traded "ex dividend" as from

November 12th, 2015 and payment of the dividend shall be made no later than

November 20th, 2015.

Acquisition of Aquatec Solutions A/S

The acquisition was finalized at September 30th, 2015. AKVA group ASA purchased

all the shares in Aquatec Solutions for a price of DKK 35 million. In addition

AKVA will pay an adjustment amount based on the net debt and working capital

position of Aquatec Solutions as of September 30th, 2015. Finally, AKVA will pay

to the sellers an additional consideration (earn-out) based on the realized

EBITDA of Aquatec Solutions for 2015 and 2016. The parties have agreed on an

estimated net present value of the earn out in the amount of DKK 21.6 million

based on current budgets and forecasts. The acquisition is paid in cash and is

financed with a loan from Danske Bank. Aquatec Solutions will strengthen AKVA

group's position in the Land Based Technology segment. Aquatec Solutions will be

operated as a stand-alone operation going forward.

Outlooks

We have a strong mid term outlook due to high market activity and large order

backlog. Q4 is a low season quarter in Nordic, which will influence the groups

quarterly  financial performance as usual. Good demand in the Nordic market

continues, with a shift towards more investment in Land Based Technology. UK and

Canada are expected to continue to perform well in the next quarters with a

significant order backlog and a large portion of recurring business. We have

continued low expectations in Chile. The majority of our Chilean customers

struggle with loss making operations and a there is a need to restructure the

industry. The situation in Chile is expected to last. We adjust our resources,

costs and activity level to the situation and are maintaining a good level of

service and after sale. The land based segment is expected to have positive

development with a growing order backlog. The acquisition of Aquatec Solutions

A/S will contribute to the positive development in this segment. Exports to

emerging markets will continue to fluctuate short term, but improved project

activity is expected in the next quarters. We continue our effort to build

service and after sales as a key business element in all markets and segments.

About AKVA group

AKVA group is a technology and service partner to the aquaculture industry

worldwide. The company has around 690 employees, offices in 8 countries and a

total turnover of NOK 1.2 billion in 2014. We are a public listed company

operating in one of the world's fastest growing industries and supply everything

from single components to complete installations, both for cage farming and land

based aquaculture. AKVA group is recognized as a pioneer and technology leader

through more than 30 years. The Corporate Headquarter is in Bryne Norway.

Dated: 5 November 2015

AKVA group ASA

Web: www.akvagroup.com

CONTACTS:

Trond Williksen Chief Executive Officer

Phone: +47 51 77 85 00

Mobile: +47 91 63 01 73

E-mail: twilliksen@akvagroup.com

Eirik Børve Monsen Chief Financial Officer

Phone: +47 51 77 85 00

Mobile: +47 91 63 98 31

E-mail: emonsen@akvagroup.com

This information is subject of the disclosure requirements acc. to §5-12 vphl

(Norwegian Securities Trading Act)

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