AKVA Group — Earnings Release 2016

Feb 22, 2017

High market activity – growth strategy continued

Fourth quarter 2016 – HIGHLIGHTS

• Record high sales and order intake (+60%)
• Order backlog end of year approximately 1.0 BNOK
• EBITDA in the quarter hampered by material restructuring cost of 19.9 MNOK related to AKVA group Denmark
• Growth strategy continues with acquisition of Sperre AS – a leading provider of ROV solutions
• Dividend of 0.50 NOK per share to be paid out in March 2017

YTD 2016 - HIGHLIGHTS

• Total order intake for the year close to 2.0 BNOK, 24 % up from 2015
• Year on year growth in revenue 12.5%
• Total EBITDA 144 MNOK, up from 135 MNOK last year
• Balance sheet KPI's remains strong
• Acquisition of AD Offshore AS in April and Sperre AS in November
• Dividend of 0.75 NOK per share paid out in September 2016

Revenues and profits for the Group

(Figures in brackets = 2015 unless other is specified)

Operations and profit

Market activity has been good in the quarter and the order intake continued to grow, at 561 MNOK this was 60% up compared to Q4 last year. The full year order intake ended at 1,952 MNOK, a 24% increase on 2015.

The significant ramp up of order intake and phasing of projects, results in sales growing at a slower pace, as well as building the order backlog.

Sales in the quarter ended at 448.6 MNOK, last year was 344.1 MNOK. The quarterly EBITDA of 23.7 MNOK was significantly influenced by restructuring and one off costs related to AKVA group Denmark of 19.9 MNOK.

The cage-based segment in Nordic region had an increase in revenues of 72 %. EBITDA was up from 10.3 MNOK Q4 2015 to 26.9 MNOK in Q4 2016.

The activity in Chile has been picking up after several slow quarters and the EBITDA for Q4 ended at 1.8 MNOK.

The Canadian business in the quarter is comparable to the same quarter last year.

In Scotland the OPEX based revenue and service sales performed very well and offset a more quiet project market.

The Turkish operation continued to improve and quarterly financial performance were good.

The margins in the Software business continue to be good and the financial performance is stable. The land based segment with Aquatec Solutions and Plastsveis performed very well with good margins and ending the year with a high order backlog. However, restructuring costs and one-off expenses relating to AKVA group

Denmark reduced the overall EBITDA for the segment by 19.9 MNOK in Q4.

Total revenue in Q4 was 448.6 MNOK (344.1) with an EBITDA of 23.7 MNOK (27.1). EBIT was 3.4 MNOK (13.2).

Net financial items in Q4 was -6.5 MNOK (-6.3), resulting in a profit before tax of -3.2 MNOK (6.9). Net profit was -8.1 MNOK (7.6) after allowing for taxes of 4.9 MNOK (-0.8).

Total revenues for 2016 ended at 1,603.1 MNOK (1,425.3) and EBITDA was 144.2 MNOK (135.2). EBIT in 2016 was 75.0 MNOK (83.6) after depreciation of 69.2 MNOK (47.5).

Depreciation and amortization has increased year on year due to acquisitions and higher activity in our rental business.

The balance sheet remains strong and the cash flow in Q4 was good. A halfyearly dividend of 0.50 NOK per share will be paid out in Q1 2017.

Business segments

AKVA group has organized its business into three technology segments;

• Cage based technologies (CBT): Includes cages, barges, feed systems and other operational technologies and systems for cage based aquaculture. CBT consist of the following companies; AKVA group ASA, Helgeland Plast AS, AKVA group Services AS, AKVA Marine Services AS, Sperre AS, AKVA group Scotland Ltd, AKVASmart Turkey Ltd, AKVA group Australia Pty Ltd, AKVA group Chile S.A. and AKVA group North America Inc
• Land based technologies (LBT): Includes recirculation systems and technologies for land based aquaculture. LBT consist of the following companies; Plastsveis AS, AKVA group Denmark A/S, Aquatec Solutions A/S and Systemas de Recirculacion Ltd
• Software (SW): Includes software solutions and professional services. SW consist of the following companies; AKVA group Software AS, Wise Blue AS and Wise Lausnir ehf

Further, AKVA group has organized its business into three geographical segments;

Nordic: Includes the Nordic countries,

• Americas: Includes Americas and Oceania, and
• Export: Includes the rest of the world.

Revenue by region (Q4 2016)

The third view on the business is by allocating revenue by CAPEX and OPEX based revenue (formerly called recurring and non-recurring business);

• CAPEX based: Revenue classified as CAPEX in our customers' accounts
• OPEX based: Revenue classified as OPEX in our customers' accounts

Revenue CAPEX or OPEX based (Q4 2016)

The business of AKVA group may also be divided between revenue from technology and services to salmon, other species and non-seafood;

• Salmon: Revenue from technology and services sold to production of salmon
• Other species: Revenue from technology and services sold to production of other species than salmon

Non Seafood: Revenue from technology and services sold to non seafood customers

Revenue by species (Q4 2016)

The information below is divided into the three technology segments. Comments on the geographical segments are included when relevant.

Cage based technologies (CBT)

CBT revenue in Q4 was 331.5 MNOK (219.9). Revenue in the Nordic region was 232.9 MNOK (135.9), in the Americas region 56.1 MNOK (44.0) and in the Export region 42.5 MNOK (40.1).

EBITDA for CBT in Q4 was 28.2 MNOK (10.1) resulting in an EBITDA margin of 8.5% (4.6%). EBIT in Q4 was 13.0 MNOK (0.9) representing an EBIT margin of 3.9% (0.4%).

Nordic

Nordic CBT had good performance in Q4 with increased revenue and EBITDA YoY. All entities are contributing positively with our wide range of products.

The Farming Services operations is increasing and strengthening the Group.

Americas

We saw increased activity in Chile in Q4 and they deliver a positive EBITDA of 1.8 MNOK after several poor quarters.

Q4 in Canada was slow as regards to new sales, but the area continue to deliver good margins. Australia remain a small, but profitable operation.

Export

UK is delivering a decent quarter due to high level of OPEX based revenue.

Turkey had another very good quarter and 2016 is their best year ever.

We continue to see increased activity in the Sea Bass and Sea Bream industry in the Mediterranean and positive outlook for 2017.

Export to emerging markets have mainly deliveries to Iran in Q4. Emerging markets are dominated by a few but large contracts and this will continue to give variations in the P&L quarter by quarter.

Revenues for CBT for 2016 was 1,132.8 MNOK (1,070.9) with an EBITDA of 112.6 MNOK (94.8). EBIT was 63.1 MNOK (61.6) after depreciations of 49.5 MNOK (33.3).

Software (SW)

Revenue for SW in Q4 2016 was 39.5 MNOK (38.4). The EBITDA was 6.8 MNOK (8.6) resulting in an EBITDA margin of 17.2% (22.4%) and an EBIT of 3.9 MNOK (5.9) representing an EBIT margin of 9.8% (15.4%).

AKVA group Software AS has stable performance YoY. Wise Ehf in Iceland experience somewhat lower margins due to accelerating salary costs in Iceland.

Q4 2015 numbers includes the gain on sale of shares in WiseDynamics of 1.5 MNOK.

Overall, the software segment had improved performance year on year, with higher topline and stable margins. The Software segment has ongoing investments in new product modules expected to strengthen the financial performance of the SW segment going forward.

YTD operating revenues for SW was 140.3 MNOK (132.1) with an EBITDA of 26.0 MNOK (26.0). EBIT was 14.5 MNOK (15.7) after depreciation of 11.5 MNOK (10.3).

Land based technologies (LBT)

LBT Q4 2016 revenue was 77.6 MNOK (85.8) with an EBITDA of -11.4 MNOK (8.4) resulting in an EBITDA margin of -14.7% (9.8%) and an EBIT of -13.5 MNOK (6.3) and corresponding EBIT margin of -17.4% (7.4%).

Aquatec Solutions is performing very well in Q4, but this is partly offset by earn-out to former shareholders of Aquatec Solutions.

Plastsveis delivering another strong quarter, increasing the EBITDA in the quarter with 4.9 MNOK YoY.

AKVA group Denmark A/S has been through a significant restructuring and this resulted in a negative EBITDA for the quarter of 19.9 MNOK.

The land based segment ended the quarter with a strong order backlog, representing 41% of the total backlog for the Group at end of 2016.

2016 operating revenues was 330.0 MNOK (222.3) and EBITDA was 5.6 MNOK (14.3). The 2016 EBIT was -2.5 MNOK (10.5).

Balance sheet and cash flow

The balance sheet is strong and we had a strong operational cash flow in Q4. The working capital in the Group balance sheet, defined as non-interest bearing current assets less noninterest bearing current liabilities was 36 MNOK at the end of Q4 2016,

compared to 126 MNOK at the end of Q4 2015. Working capital as a percentage of 12 months rolling revenue has improved YoY from 8.8% to 2.2%. We have been able to maintain a very low working capital despite record high activity.

Cash and unused credit facilities amounted to 256 MNOK at the end of Q4 2016 versus 160 MNOK at the end of Q4 2015. The total credit facility at Danske Bank is 90 MNOK. Dividend is paid out once during 2016 of total 19.4 MNOK (0.75 NOK per share).

Net interest-bearing debt was 212 MNOK at the end of Q4 2016 compared to 136 MNOK at the end of Q4 2015. The increase is mainly due to a bank loan financing the acquisition of AD Offshore AS in Q2 2016 and a bank loan financing the acquisition of Sperre AS in Q4 2016.

Gross interest-bearing debt was 378 MNOK at the end of Q4 2016 versus 246 MNOK at the end of Q4 2015. The short term interest bearing debt in our balance sheet includes the next 12 months installments of the long term debt. This is in accordance to current IFRS requirements.

CAPEX in Q4 2016 amounted to 24.7 MNOK of which 7.6 MNOK was capitalized R&D expenses in accordance to IFRS and 8.1 MNOK was related to our rental model and is classified as financial lease. YTD CAPEX were 89.3 MNOK whereof 19.6 MNOK was capitalized R&D expenses in accordance to IFRS and 22.0 MNOK was related to rental. Total 2015 CAPEX were 75.8 MNOK whereof 19.1 MNOK was capitalized R&D expenses in accordance to IFRS and 29.7 MNOK was related to rental. Annualized CAPEX as percentage of revenue was 5.5% in Q4 and annualized CAPEX as percentage of revenue in 2016 was 5.6%.

Return on capital employed (ROCE) in Q4 2016 ended at 10.7% (14.7%).

Total assets and total equity amounted to 1,307 MNOK and 452 MNOK respectively, resulting in an equity ratio of 34.6% (39.6%) at the end of Q4 2016.

Other shareholder issues

Earnings per share in Q4 2016 was -0.34 NOK (0.28). Earnings per share in 2016 was 1.03 NOK (2.20) for equity holders of AKVA group ASA and the diluted earnings per share was NOK 1.03 (2.21). The calculations are based on 25,834,303 (25,834,303) shares in average. The calculation of the diluted numbers of shares are based on 25,834,301 shares in average (25,711,303).

The 20 largest shareholders are presented in note 4 in this report.

Acquisition of Sperre AS – the leading ROV producer

Sperre AS will be the "center of excellence" in AKVA group in terms of ROV technologies as well as relevant subsea technologies.

AKVA group ASA acquired 66% of the shares in Sperre AS. The closing of the transaction took place on November 4 th, 2016.

The enterprise value on a 100% basis was NOK 126.9 million for Sperre AS.

The Minority Shareholder has an option to sell to AKVA, and AKVA has an option to purchase from the Minority Shareholder the remaining 34% of the shares after three years, where the pricing is based on financial performance in the three-year period.

The acquisition was paid in cash and was financed with a loan from Danske Bank.

Atlantis Subsea Farming AS

On November 26th The Norwegian Directorate of Fisheries informed Atlantis Subsea Farming that the concept for submersible farms fell within the general scope of the scheme for awarding development fish-farming licenses, and that the Directorate will continue on to consider the concept further with an objective to award one or more licenses.

Atlantis Subsea Farming AS has engaged in a process with the Directorate to provide additional information, including target financial criteria for the concept.

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 largescale development and testing of the new technology and operational concept.

Through its innovative development work, ATLANTIS aims both to contribute to better and more sustainable use of current farming sites, as well as to enable use of more exposed sites than is currently possible. The goal is to achieve production gains and improve fish welfare by submerging the facilities, as they will be far less exposed to the environmental and physical conditions than in a surface position.

Large-scale testing will focus on thirdparty documentation of fish welfare and production performance, the technological capabilities of the system, and safeguarding the occupational health and safety of employees.

There are several risks elements associated with the project, and the testing of the technological and operational solutions requires largescale testing beyond what can be done in today's fish farms based on traditional operating methods. The further progress of the project and our ability to ensure a methodical approach thus depends on us eventually being granted development licences.

Although ATLANTIS represents a significant leap forward in terms of innovation, it is also an objective for the concept to keep costs at a level that helps strengthen the industry's competitive position. The aim is also that the technology and operating methods developed through ATLANTIS can be made available and adopted by the industry relatively quickly.

Market and future outlook

The order intake in Q4 was 561 MNOK (350). Order intake in 2016 in total was 1,952 MNOK (1,570).

The order backlog at the end of Q4 was 998 MNOK (649). This is the highest order backlog ever for AKVA group.

MNOK 412 or 41% of total order backlog at end of Q4 is related to land based technology (LBT).

Biological conditions remains challenging for core customers and thus focus on solutions to improve productivity and efficiency. At the same time customers experience record earnings and cash flow. We see this being reflected in high activity level in the Nordic cage based segment continues.

We expect increased activity in UK and Chile in 2017 and a solid recovery compared to 2016. In Canada we are facing somewhat increased competition in the market and we have moderate expectations for the development in 2017.

The activity in the Mediterranean represents an upside potential and we will focus our resources in this region over the next quarters.

The land based segment is growing in AKVA group with very high activity level. A key for AKVA group is to be selective and focus on project execution.

Service and after sales in the Nordic region has potential for further improvements and we will put additional focus on this going forward. There is also an untapped potential for the current core business, particularly within sourcing and supply chain.

Statement from the Board and Chief Executive Officer

We confirm that, to the best of our knowledge, the condensed set of financial statements for the period January 1st to December 31st 2016, which have been prepared in accordance with IAS 34 Interim Financial Statements, gives a true and fair view of the Company's consolidated assets, liabilities, financial position and results of operations, and that the interim management report includes a fair review of the information required under the Norwegian Securities Trading Act section 5-6 fourth paragraph.

Bryne, February 21st, 2017 Board of Directors, AKVA group ASA

Interim financial statements

CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME	Note	2016	2015	2016	2015	2015
(NOK 1 000)		Q4	Q4	YTD	YTD	Total
OPERATING REVENUES	5	448 573	344 077	1 603 072	1 425 338	1 425 338
Operating costs ex depreciations		424 894	316 947	1 458 880	1 290 179	1 290 179
OPERATING PROFIT BEFORE DEPR.(EBITDA)	5	23 678	27 130	144 193	135 159	135 159
Depreciation		20 320	13 943	69 156	47 450	47 450
OPERATING PROFIT (EBIT)	5	3 358	13 187	75 036	87 709	87 709
Net interest expense		-1 728	-1 736	-6 608	-5 354	-5 354
Other financial items		-4 800	-4 564	-19 838	-4 265	-4 265
Net financial items		-6 528	-6 301	-26 446	-9 619	-9 619
PROFIT BEFORE TAX		-3 170	6 887	48 590	78 090	78 090
Taxes		4 947	-751	20 992	19 690	19 690
NET PROFIT		-8 116	7 638	27 598	58 400	58 400
Net profit (loss) attributable to:
Non-controlling interests		589	378	933	1 572	1 572
Equity holders of AKVA group ASA		-8 705	7 260	26 665	56 828	56 828
Earnings per share equity holders of AKVA group ASA		-0,34	0,28	1,03	2,20	2,20
Diluted earnings per share equity holders of AKVA group ASA		-0,34	0,28	1,03	2,21	2,21
Average number of shares outstanding (in 1 000)		25 834	25 834	25 834	25 834	25 834
Diluted number of shares outstanding (in 1 000)		25 834	25 711	25 834	25 711	25 711
CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION	Note			2016	2015	2015
(NOK 1 000)				31.12.	31.12.	31.12.
Intangible fixed assets	1,3			493 012	348 130	348 130
Deferred tax assets				13 316	12 659	12 659
Fixed assets				150 568	103 495	103 495
Long-term financial assets				6 416	8 165	2 747
FIXED ASSETS				663 313	472 449	467 031
Stock				186 125	180 677	180 677
Trade receivables				259 880	289 216	289 216
Other receivables				31 967	31 268	36 686
Cash and cash equivalents				165 543	109 517	109 517
CURRENT ASSETS				643 515	610 678	616 096
TOTAL ASSETS				1 306 828	1 083 127	1 083 127
Paid in capital				355 549	355 426	355 426
Retained equity				78 206	69 562	69 562
				433 755	424 988	424 988
Equity attributable to equity holders of AKVA group ASA				18 635	3 444	3 444
Non-controlling interests	1,3
TOTAL EQUITY				452 390	428 432	428 432
Deferred tax				34 564	18 107	18 107
Other long term debt				56	15 495	15 495
Long-term interest bearing debt	1			347 902	188 375	188 375
LONG-TERM DEBT				382 522	221 977	221 977
Short-term interest bearing debt				29 973	57 258	57 258
Other current liabilities				441 943	375 459	375 459
SHORT-TERM DEBT				471 916	432 717	432 717
TOTAL EQUITY AND DEBT				1 306 828	1 083 127	1 083 127
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY	Note	2016	2015	2016	2015	2015
(NOK 1 000)		Q4	Q4	YTD	YTD	Total
Book equity before non-controlling interests at the beginning of the period		426 879	439 498	424 988	387 577	387 577

Book equity before non-controlling interests at the beginning of the period		426 879	439 498	424 988	387 577	387 577
The period's net profit		-8 705	7 260	26 665	56 828	56 828
Capital increase		-	-	-	-	-
Non-controlling interests arising on a business combination	1,3	-	-196	2 689	-196	-196
Buyback of ow n shares		-	-3 272	-	-4 173	-4 173
Sale of ow n shares		-	-	4 155	-	-
Gains/(losses) on cash flow hedges (fair value)		1 378	145	-2 346	-5 046	-5 046
Dividend		-	-25 736	-19 376	-25 736	-25 736
Change in pension liability recorded against equity		-	-	-	-	-
Recording of option agreement		-	-	-	-	-
Translation differences		14 203	7 289	-3 021	15 735	15 735
Equity before non-controlling interests		433 755	424 988	433 755	424 988	424 988
Non-controlling interests		18 635	3 444	18 635	3 444	3 444
Book equity at the end of the period		452 390	428 432	452 390	428 432	428 432

CONDENSED CONSOLIDATED STATEMENT OF CASH FLOW	Note	2016	2015	2016	2015	2015
(NOK 1 000)		Q4	Q4	YTD	YTD	Total
Net cash flow from operations		11 932	20 049	105 596	120 240	120 240
Net cash flow from change in w orking capital		95 646	-11 836	106 050	-24 500	-24 500
Net cash flow from operational activities		107 578	8 212	211 645	95 740	95 740
Net cash flow from investment activities	1,3	-123 326	-6 379	-260 324	-116 557	-116 557
Net cash flow from financial activities		52 070	-29 380	105 646	74 419	74 419
Net change in cash and cash equivalents		36 323	-27 546	56 967	53 602	53 602
Net foreign exchange differences		3 034	860	-941	1 980	1 980
Cash and cash equivalents at the beginning of the period		126 187	136 203	109 517	53 935	53 935
Cash and cash equivalents at the end of the period		165 543	109 517	165 543	109 517	109 517

Selected notes to the condensed interim consolidated financial statements

Note 1 General information and basis for preparation

AKVA group consists of AKVA group ASA and its subsidiaries. There have been the following changes in the Group's legal structure since year-end 2015:

• AKVA group ASA acquired 58% of the shares in AD Offshore AS on April 7th, 2016. YesMaritime AS was in June 2016 merged with AD Offshore AS. The new company is named AKVA Marine Services AS and AKVA group ASA owns 65% of the shares in this company. AKVA and the other minority shareholders have agreed on a mutual option to buy / sell the remaining 35% of the shares in AKVA Marine Services AS. The option is exercisable from the date that is five years from completion. The pricing of the remaining 35 percent of the shares is linked to the performance of the company over these five years.
• AKVA group ASA exercised a call option to buy the remaining 30% of the shares in Plastsveis from the minority shareholders. The call option was exercised in March 2016 and the transaction was finalized on April 11th, 2016. AKVA group ASA owns 100% of

the shares in Plastsveis AS from April 11th, 2016.

AKVA group ASA acquired 66 % of the shares in Sperre AS on November 4th, 2016. AKVA and Sperre Group AS have also agreed a mutual option to buy/sell the remaining 34% of the shares in Sperre AS. The option is exercisable in a limited period after the approval of the 2019 annual accounts of Sperre AS. The pricing of the remaining 34% of the shares is linked to the performance of the company in 2017, 2018 and 2019.

These condensed interim financial statements are prepared in accordance with International Accounting Standard 34, Interim Financial Reporting as adopted by the EU (IAS 34). The same accounting policies and methods of computation are followed in the interim financial statements as compared with the most recent annual financial statement. The condensed interim financial statements do not include all of the information and disclosures required by International Reporting Standards (IFRS) for a complete set of financial statements, and these condensed interim financial statements should be read in conjunction with the most recent annual financial statements. The annual financial statements were prepared in accordance with International Financial Reporting Standards and interpretations as issued by the International Standards Board and as adopted by the EU. A description of the significant accounting policies applied in preparing these condensed interim financial statements is included in AKVA Group's consolidated financial statements for 2015. There have been no changes to significant accounting policies since the preparation of the annual financial statements for 2015.

The condensed interim financial statements are unaudited.

Because of rounding differences, numbers or percentages may not add up to the total. The consolidated financial statements for the Group for the year ended December 31st, 2015 are available upon request from the company's registered head office at Nordlysveien 4, 4340 Bryne, Norway or at http://ir.akvagroup.com/investor relations/financial-info-/annualreports.

Note 2 Accounting principles

All significant accounting principles applied in the consolidated financial statement are described in the Annual Report 2015 (as published on the OSE on April 11th, 2016). No new standards have been applied in 2016.

Note 3 Recognition and measurement of assets and liabilities in connection with the AD Offshore AS acquisition

The recognition and measurement of assets and liabilities in connection with the AD Offshore AS acquisition and Sperre AS acquisition is not final in the consolidated financial statement as of

December 31st, 2016. IFRS 3 permits adjustments to items recognized in the original accounting for business combination, for a maximum of one year after the acquisition date, if and when new information about facts and circumstances existing at the acquisition date is obtained. AKVA group will make a final assessment before this one year period comes to an end.

Note 4 Events after the reporting period

No significant events.

Note 5 Business segments

AKVA group is organized in three business segments; Cage based technologies, Software and Land based technologies. The same accounting principles as described for the Group financial statements have been applied for the segment reporting. Intersegment transfers or transactions are entered into under normal commercial terms and conditions, and the measurement used in the segment reporting is the same as used for the actual transactions.

CONDENSED CONSOLIDATED BUSINESS SEGMENTS	Note	2016	2015	2016	2015	2015
(NOK 1 000)		Q4	Q4	YTD	YTD	Total
Cage based technologies
Nordic operating revenues		232 850	135 862	800 752	647 287	647 287
Americas operating revenues		56 116	43 963	153 095	231 542	231 542
Export operating revenues		42 498	40 091	178 934	192 098	192 098
INTRA SEGMENT REVENUE		331 464	219 916	1 132 781	1 070 927	1 070 927
Operating costs ex depreciations		303 222	209 800	1 020 207	976 102	976 102
OPERATING PROFIT BEFORE DEPRECIATIONS (EBITDA)		28 241	10 116	112 575	94 824	94 824
Depreciation		15 226	9 195	49 522	33 254	33 254
OPERATING PROFIT (EBIT)		13 016	922	63 052	61 570	61 570
Software
Nordic operating revenues		35 667	34 056	125 211	108 061	108 061
Americas operating revenues		3 319	3 462	12 615	21 335	21 335
Export operating revenues		531	890	2 469	2 696	2 696
INTRA SEGMENT REVENUE		39 517	38 408	140 294	132 092	132 092
Operating costs ex depreciations		32 705	29 809	114 266	106 092	106 092
OPERATING PROFIT BEFORE DEPRECIATIONS (EBITDA)		6 812	8 599	26 029	25 999	25 999
Depreciation		2 930	2 684	11 505	10 331	10 331
OPERATING PROFIT (EBIT)		3 882	5 915	14 524	15 668	15 668
Land based technologies
Nordic operating revenues		75 120	81 608	324 887	214 658	214 658
Americas operating revenues		2 472	4 144	5 109	7 661	7 661
Export operating revenues		-	-	-	-	-
INTRA SEGMENT REVENUE		77 592	85 752	329 997	222 319	222 319
Operating costs ex depreciations		88 967	77 339	324 407	207 984	207 984
OPERATING PROFIT BEFORE DEPRECIATIONS (EBITDA)		-11 375	8 413	5 589	14 335	14 335
Depreciation		2 164	2 064	8 129	3 865	3 865
OPERATING PROFIT (EBIT)		-13 539	6 350	-2 540	10 469	10 469

Note 6 Top 20 shareholders as of December 31st, 2016

		Number of	Ownership
Shareholders	Citizenship	shares held	percentage
EGERSUND GROUP AS	NOR	13 203 105	51,1
WHEATSHEAF INVESTMEN	GBR	3 900 000	15,1
VERDIPAPIRFONDET ALF	NOR	1 000 621	3,9
EIKA NORGE	NOR	489 417	1,9
STATOIL PENSJON	NOR	461 396	1,8
VPF NORDEA KAPITAL	NOR	391 920	1,5
MP PENSJON PK	NOR	356 300	1,4
NORRON SICAV - TARGE	LUX	346 000	1,3
VERDIPAPIRFONDET DNB	NOR	330 067	1,3
MERTOUN CAPITAL AS	NOR	300 000	1,2
VPF NORDEA AVKASTNIN	NOR	265 352	1,0
FORTE TRØNDER	NOR	246 598	1,0
OLE MOLAUG EIENDOM A	NOR	238 692	0,9
ARCTIC FUNDS PLC	BEL	193 924	0,8
ROGALAND SJØ AS	NOR	166 880	0,6
DAHLE BJØRN	NOR	150 000	0,6
NORDEA 1 SICAV	GBR	132 595	0,5
NORRON SICAV - SELEC	LUX	124 108	0,5
STATOIL FORSIKRING A	NOR	122 382	0,5
VERDIPAPIRFONDET NOR	NOR	118 985	0,5
20 largest shareholders		22 538 342	87,2
Other shareholders		3 295 961	12,8
Total shares		25 834 303	100,0

An updated overview of the 20 largest shareholders is available on AKVA group's investor relations webpage, http://ir.akvagroup.com/investor-relations/theshare/largest-shareholders.

Note 7 Non IFRS Financial Measures

Available cash – Available cash is a non-IFRS financial measure, calculated by summarizing all cash in the Group in addition to available borrowing base in the Group.

NIBD – NIBD (Net interest bearing debt) is a non-IFRS financial measure, equal to our long term interest bearing debt plus liabilities to financial institutions minus our cash at balance date.

NIBD / EBITDA – NIBD/EBITDA is a non-IFRS measure, calculated as period end NIBD divided by 12 months rolling EBITDA.

Order backlog – Order backlog is a non-IFRS measure, calculated as signed orders and contracts at balance date. It does not include spot-sales, spare parts and aftermarket sales.

Order intake – Order intake is a non-IFRS measure, calculated as order backlog at end of period minus order backlog at start of period and revenue in the period.

ROCE – ROCE (Return on Capital Employed) is a non-IFRS financial measure, calculated by dividing last 12 months EBIT by capital employed at balance date.

Capital Employed is calculated as sum of net interest bearing debt, also called NIBD, as of end of period plus equity, deferred tax and other long term liabilities.

Capital Employed can also be found by the formula (total assets – cash) – (total current liabilities – liabilities to financial institutions).

We believe that using ROCE provides useful information to investors because ROCE can be used to determine the yield on invested capital and can be used when comparing to other similar companies.

Working Capital – Working capital is a non-IFRS financial measure calculated by current assets less cash minus current liabilities less liabilities to financial institutions.

AKVA group ASA,

Nordlysvn.4 P.O. Box 271, N-4349 Bryne Norway

Tel +47 51 77 85 00. Fax +47 51 77 85 01.

www.akvagroup.com

Other AKVA group offices:

AKVA group, Oslo	Tel (+47) 51 77 85 00
AKVA group, Trondheim	Tel (+47) 73 84 28 00
AKVA group, Brønnøysund	Tel (+47) 75 00 66 00
AKVA group, Sandstad	Tel (+47) 72 44 11 00
AKVA group, Mo i Rana	Tel (+47) 75 14 37 50
AKVA group, Tromsø	Tel (+47) 75 00 66 50
Helgeland Plast, Mo i Rana	Tel (+47) 75 14 37 50
Plastsveis, Sømna	Tel (+47) 75 02 78 80
AKVA Marine Services, Torvastad	Tel (+47) 47 27 04 54
Sperre	Tel (+47) 35 02 50 00
Wise ehf, Reykjavik	Tel (+354) 545 3200
Wise Blue, Ålesund	Tel (+47) 930 03 470
Aquatec Solutions, Vejle	Tel (+45) 75 88 02 22
AKVA group Denmark, Copenhagen	Tel (+45) 755 13 211
AKVA group Denmark, Fredericia	Tel (+45) 755 13 211
AKVA group Chile, Puerto Montt.	Tel (+56) 65 250 250
AKVA group UK, Inverness.	Tel (+44) 1463 221 444
AKVA group North America, Campbell River, Canada	Tel (+1) 250 286 8802
AKVA group North America, Halifax, Canada	Tel (+1) 902 482 2663
AKVA group Australia, Tasmania	Tel (+61) 400 167 188
AKVA group Turkey, Bodrum	Tel (+90) 252 374 6434