AKVA Group — Earnings Release 2014

Feb 20, 2015

AKVA group ASA: 4Q 2014 financial reporting

AKVA group ASA: 4Q 2014 financial reporting

Completing the best year ever

Financially this has been the best year ever for AKVA group with total revenues

of 1.246 MNOK and an EBITDA of 103 MNOK. AKVA group has in the fourth quarter

experienced improved financial performance year on year in what traditionally is

a low season.  Q4 2014 revenues was 305 MNOK (246 MNOK) and EBITDA was 13 MNOK

(9 MNOK). The order backlog is the second highest ever.

"We are proud of completing the best year ever in AKVA group's history. High

order backlog and continued high market activity also gives positive

expectations for the financial performance in the quarters to come", says CEO of

AKVA group ASA Trond Williksen.

Cage Based Technology (CBT)

Q4 is traditionally low season for Nordic. However, revenue and margins are

stabilizing on a higher level compared to same period in 2013. Change in product

mix is the main explanation for reduced margin compared to previous quarters in

2014. Chile had a good quarter and the positive development in the market

continues. However, we continue to monitor the development closely. Canada

completed a very good year, despite a slightly slower Q4 due to lower technology

deliveries in the quarter. Export activity to emerging markets had lower

activity in Q4. No profit or loss from the announced Russian contract is

included in 2014. In Q4 UK continued with stable but slightly slower performance

than previous quarters. The quarter concludes a very good year for our UK

operation. Our Turkey operation has a good quarter and a profitable year.

Software (SW)

AKVA group Software AS in Norway continues to deliver stable revenue and good

margins and have ended another good year financially. Wise Lausnir ehf in

Iceland has had a good second half of 2014. This combined with a slightly slower

start of the year, completes a decent full year 2014 financially. Software

continues to invest in new product modules. These product modules will

strengthen the financial performance of the SW segment further.

Land Based Technology (LBT)

LBT has increased activity and improved performance in 2014 compared to previous

years and AKVA group Denmark is profitable in 2014. Despite significant

financial improvement over the last years, we are still not satisfied with the

overall performance. However, we believe improved organization, controlled cost

and cash flow will secure a profitable operation going forward.

Order Backlog

Good market activity has materialized in a good order inflow and as a

consequence the order backlog is the second best ever for AKVA group. The order

inflow in Q4 2014 was 460 MNOK (467 MNOK). The order backlog at the end of Q4

2014 was 504 MNOK (520 MNOK).

Balance sheet

The balance is considered as strong. Working capital in percentage of 12 months

rolling revenue is improved YoY from 12% to 10%. We are able to maintain low

working capital despite significant activity ramp up in 2014. Cash and unused

credit facilities amounted to 144 MNOK at the end of Q4 2014 versus 96 MNOK at

the end of Q4 2013. Total assets and total equity amounted to 904 MNOK and 389

MNOK respectively, resulting in an equity ratio of 43% (47%) at the end of Q4

Outlooks

The positive outlook in all main market segments is maintained. The strong

demand in the Nordic market is expected to last into the next quarters. The

demand is driven by high salmon prices, which is fuelling investments in

increased efficiency and sustainable solutions for cage based and land based

operations. Strong development is expected in the Chilean market, driven by

increased investments by main players to extend and enhance more sustainable

operations. We are monitoring the market closely and will adjust our operation

according to the development. Our UK and Canadian operations are expected to

continue to perform well in the next quarters with a significant order backlog

and a large portion of reoccurring business. Land based is expected to have a

positive development with a growing prospect mass in several market segments.

Prospects in the salmon industry are growing in particular. Earnings are

expected to be more stable going forward. Export sales to emerging markets will

continue to fluctuate short term, but represents a large potential over time. We

continue our effort to build service and after sales as a key business element

in all markets and segments. Introduction of a rental model in the Norwegian

market is expected to give positive financial effects going forward.

About AKVA group

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

worldwide. The company has around 726 employees, offices in 8 countries and a

total turnover of 1.246 MNOK 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: 20 February 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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