AKVA Group — Earnings Release 2019

Nov 1, 2019

AKVA group ASA: 3Q 2019 financial reporting

AKVA group ASA: 3Q 2019 financial reporting

Solid quarter

AKVA group completed third quarter with growth in revenue and order intake. The

revenue in third quarter of 2019 ended on 771 MNOK (637 MNOK) with an EBITDA of

115 MNOK (71 MNOK). Third quarter EBITDA margin was 14.9% (11.1%). The Net

Profit increased from 28 MNOK in Q3 2018 to 42 MNOK in Q3 2019.

AKVA group is ending the quarter with an order backlog of 1.5 BNOK.

Sale of Wise lausnir ehf with impact of 18 MNOK in net gain.

A half-yearly dividend of 1.00 NOK per share was paid in September 2019.

Cage Based Technology(CBT)

The total CBT revenue for Q3 2019 ended at 651 MNOK (474). The EBITDA for the

segment in Q3 came out at 98 MNOK (48). The EBITDA margin was 15.0% (10.2%).

EBIT and EBIT margin ended at 58 MNOK (29) and 8.9% (6.0%), respectively.

The revenue in the Nordic region ended at 436 MNOK (245). The margins in our

Norwegian barge business are significantly better than third quarter last year,

however there still remains an untapped improvement in project execution. AKVA

Marine Services had a strong quarter, significantly better than last year.

In the Nordic region, the order intake ended at 375 MNOK (252) in the third

quarter and the region continues to experience high activity with a strong

pipeline.

In the Americas region the growth continues, with revenue of 142 MNOK compared

to 123 MNOK in the same quarter in 2018. A contract for delivery of four barges

to a customer in Chile was signed in September contributing to increased order

intake in Americas from 78 MNOK to 284 MNOK within the region in Q3.

EME ended the quarter with revenue of 76 MNOK, a decrease from 106 MNOK in the

same quarter last year. The operations in Scotland, Spain and Turkey came in

slightly above on revenue compared to Q3 2018.

Software (SW)

In Q3 2019 the revenue for the segment was 28 MNOK (40). EBITDA and EBIT ended

at 8 MNOK (9) and 4 MNOK (6), respectively. EBITDA margin was 27.5% (23.3%) and

EBIT margin 15.3% (14.7%).

Digital solutions in Software integrated with control systems and AI solutions

creates stronger combined offerings. First version of modernized Fishtalk

delivered, with open, cloud based API and new modern app's. Brand new control

system, AKVAconnect launched at Aqua Nor in August. Successful launch of Observe

AI (artificial intelligence), now in use globally.

As noted in stock notice of 25 September 2019 AKVA group has finalized the

divestment of the Icelandic company, Wise lausnir ehf.

Land Based Technology (LBT)

Revenues for the third quarter were 92 MNOK (124). EBITDA ended at 9 MNOK (13)

and EBIT was 4 MNOK (10). EBITDA margin was 10.0% (10.5%) and EBIT margin 4.0%

(8.0%).

Order intake in Q3 2019 was 51 MNOK compared to 34 MNOK in Q3 2018. The pipeline

of projects continues to be good. Order backlog ended at 569 MNOK compared to

359 MNOK last year.

Balance sheet

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

rolling revenue is 14.8% (15.8%). Cash and unused credit facilities amounted to

535 MNOK at the end of Q3 (307 MNOK). Total assets and total equity amounted to

3,175 MNOK (2,663 MNOK) and 1,096 MNOK (1,017 MNOK) respectively, resulting in

an equity ratio of 35% (38%) at the end of Q3.

Atlantis Subsea Farming AS

In partnership with Sinkaberg-Hansen AS and Egersund Net AS, AKVA group ASA

established Atlantis Subsea Farming AS on in January 2016 with the purpose of

developing submersible fish-farming facilities for salmon on an industrial

scale.  Atlantis Subsea Farming AS applied for six development licenses to

enable large-scale development and testing of the new technology and operational

concept.

On 22 February 2018 the Norwegian Directorate of Fisheries announced that the

Company was granted one license. Atlantis Subsea Farming AS now in execution

mode, fish in sea.

Dividend of NOK 1.00 per share paid in Q3 2019

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 AKVA group ASAs' dividend policy a dividend of 1.00 NOK per share

was paid in September 2019. Total dividend payout in September 2019 was 33.2

MNOK.

Order Backlog

In the third quarter, we experienced high activity in both the Nordic and the

Americas region. The order intake in Q3 2019 was 723 MNOK (448 MNOK). The order

backlog at the end of Q3 2019 was 1,524 MNOK (1,085 MNOK). 569 MNOK of the total

order backlog at end of Q3 relates to Land Based technology.

Outlook

The Land Based segment has a strong order backlog. A co-operation agreement with

Cooke Aquaculture Inc. was established in Q3 and a tender project with Russian

Sea Aquaculture Llc was awarded in Q2. These are not yet recognized in the order

intake but represent significant potential for growth.

Several new products were launched in Q3 that amongst others will strengthen our

position within the Nordics. A strong focus is put on products and solutions for

optimization of production, related to feeding, lice and fish welfare.

The growth in the Americas regions has continued, including a 12.6 MUSD barge

contract signed in Q3. While the market for cages may stabilize going forward,

significant opportunities exist to further broaden our portfolio and work is

ongoing in this regard. On the east coast of Canada the Sales and Supply

contract entered into with Grieg NL in Q3 2018, resulted in the first barge

being registered in order intake in Q3. In Q2 a letter of intent was agreed with

a local partner to form a joint venture to explore service offerings on land and

in sea, the work related to this is showing good progress in Q3.

Wise lausnir ehf was sold in Q3 and was deconsolidated as of 1 September. Year

to date revenues were 65 MNOK. A set of initiatives within the digital space are

in the works, related to the reporting system Fishtalk, the control system

AKVAconnect and Observe (AI). The co-operation with Observe AI has resulted in

new contracts in both in Q2 and Q3.

Egersund Net, which was acquired Q3 2018 continues to develop successfully. The

competences of the company are now used as building blocks to evaluate expansion

of net sales and services in other regions.

In general the market activity is good in most markets and opportunities exist

on a broad basis to further strengthen AKVA's position.

About AKVA group

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

worldwide. The company has 1 443 employees, offices in 11 countries and a total

turnover of NOK 2.6 billion in 2018. 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 40 years. The Corporate Headquarter is in Oslo Norway.

Dated: 1 November 2019

AKVA group ASA

Web: www.akvagroup.com

CONTACTS:

Hallvard Muri Chief Executive Officer

Phone: +47 51 77 85 00

Mobile: +47 91 58 07 50

E-mail: hmuri@akvagroup.com

Simon Nyquist Martinsen Chief Financial Officer

Phone: +47 51 77 85 00

Mobile: +47 91 63 00 42

E-mail: snmartinsen@akvagroup.com

This information is subject to the disclosure requirements pursuant to Section

5-12 the Norwegian Securities Trading Act