AKVA Group — Earnings Release 2016

Aug 17, 2016

AKVA group ASA : 2Q 2016 financial reporting

AKVA group ASA : 2Q 2016 financial reporting

Improved performance and growth continues

AKVA group is on track and has completed the second quarter with good overall

performance. Revenue in second quarter 2016 ended on 408 MNOK (402 MNOK) with an

EBITDA of 43 MNOK (41 MNOK). Second quarter EBITDA margin was 10.4% (10.2%).

With the exception of Americas, all business segments and regions are performing

well in the second quarter. AKVA group is ending the quarter with the highest

order backlog ever of 822 MNOK.

"AKVA group continues to be on track and has completed the best second quarter

and first half ever with regards of revenue, EBITDA and order backlog. The

resent year's transformation of AKVA group to become a better performing and

more diversified Group is reflected in the Q2 results. Operationally and

financially AKVA group is well positioned for further growth. The half yearly

dividend of 0.75 NOK per share to be paid out in Q3 underlines our solid

financial position", says CEO of AKVA group ASA Trond Williksen.

Cage Based Technology (CBT)

Nordic CBT had a good performance in Q2. A wide range of products continues to

contribute to the good financial performance. Main drivers were the AKVAsmart

products (sensors and feed systems), barges, Polarcirkel cages, service and

rental.

We have experienced reduced activity in Americas this quarter compared to same

quarter last year resulting in a reduced EBITDA year on year of 8 MNOK. There

has been low activity in Chile in Q2 and we have also experienced reduced

service sales in the quarter. Canada had an unusually slow quarter with some

shift of deliveries and revenue to next quarters. Australia continues to be a

small, but profitable operation.

UK had a decent first half of the year and continues to have a high level of

OPEX based revenue. Turkey had a very good first half of the year and we are

experiencing increased activity in the Sea Bass and Sea Bream industry in the

Mediterranean. Export to emerging markets experienced a decent quarter with

increased activity in some markets, especially in Iran. Emerging markets are

dominated by a few but large contracts and this gives variations in the P&L

quarter by quarter.

Software (SW)

Software has ended another good quarter. Both AKVA group Software AS and Wise

lausnir ehf experienced improved performance year on year in Q2. Wise Blue AS, a

Norwegian subsidiary of Wise lausnir ehf, is a small but profitable business.

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)

LBT have had a significant improved performance year on year in Q2. Both

Plastsveis AS and Aquatec Solutions A/S had a good first half of 2016. AKVA

group Denmark A/S had another decent quarter, but there is still potential for

further improvements financially. The land based segment ended the quarter with

a record high order backlog and has after Q2 2016 53% of the total order backlog

in the Group. Land based increased its revenues year on year with 74% and was

23% of total revenues in Q2 2016, hence land based is becoming a significant

part of AKVA group.

Order Backlog

We have experienced continued good market activity throughout the second quarter

of 2016. The order inflow in Q2 2016 was 533 MNOK (348 MNOK). The order backlog

at the end of Q2 2016 was 822 MNOK (493 MNOK). This is the highest order backlog

ever for AKVA group.

Balance sheet

The balance remains very strong. Working capital as a percentage of 12 months

rolling revenue is 7.5% (10.6%). We are able to maintain a very low working

capital despite record high activity. Cash and unused credit facilities amounted

to record high 203 MNOK at the end of Q2 (157 MNOK).Total assets and total

equity amounted to 1,180 MNOK (1,007 MNOK) and 460 MNOK (417 MNOK) respectively,

resulting in an equity ratio of 39% (42%) at the end of Q2.

AKVA Marine Services AS - our new Farming Services vehicle

The merger process of AKVA group's farming services entities (YesMaritime AS,

Rogaland Sjøtjenester AS and AD Offshore AS) was completed in June 2016. AKVA

group ASA owns 65% of AKVA Marine Services AS. The acquisition process with

Techno Dive AS announced in May 2016 has been terminated, however we are

actively seeking other strategic opportunities. We expect the farming services

market to grow in the coming years and we expect a consolidation of the players.

AKVA group is well positioned to participate in this development and will pursue

several opportunities.

Atlantis Subsea Farming AS

In partnership with the companies Sinkaberg-Hansen AS and Egersund Net AS, AKVA

group ASA established the company Atlantis Subsea Farming AS on February

1st, 2016 with the purpose of developing submersible fish-farming facilities for

salmon on an industrial scale.  Atlantis Subsea Farming AS has applied for six

development licences to enable large-scale development and testing of the new

technology and operational concept.

Atlantis Subsea Farming AS is in dialogue with the Directorate of Fisheries and

we are waiting for a final decision.

Dividend

A dividend of NOK 0.75 per share will be paid out in Q3 2016. Total dividend pay

out in Q3 2016 will be 19.4 MNOK. The dividend is in accordance to AKVA group's

current dividend policy. For further details on dividend please read the full

second quarter report and/or a separate stock notice regarding dividend.

Outlook

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

backlog. The activity level is particularly high in the Nordic market segment.

The good demand in the Nordic cage based segment continues, with a shift towards

sale of technology for more efficient production. The land based segment has

experienced increased activity and improved margins. This trend is expected to

continue and the land based segment is becoming a larger part of AKVA group. UK

and Europe is expected to perform well going forward with growing order backlog.

Canada experience slightly less project sales so far compared to last year and

we have moderate expectations in this market going forward. We still have low

expectations in Chile, but there are some positive signs towards the end of the

year. Our exposure in Chile is reduced compared to prior years. Our Turkey and

Australian operations are expected to continue to perform well in the next

quarters with a good order backlog. Exports to emerging markets have seen a more

optimistic start of the year than last year. The activity is still expected to

fluctuate due to the nature of the business. We continue our effort to build

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

segments. AKVA group is actively seeking strategic M&A opportunities within

relevant segments.

About AKVA group

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

worldwide. The company has around 750 employees, offices in 8 countries and a

total turnover of NOK 1.4 billion in 2015. 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: 17 August 2016

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)

[HUG#2035497]