AKVA Group — Earnings Release 2019

May 10, 2019

AKVA group ASA: 1Q 2019 financial reporting

AKVA group ASA: 1Q 2019 financial reporting

Record high order intake - 1.1 billion NOK in Q1

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

revenue in first quarter of 2019 ended on 852 MNOK (589 MNOK) with an EBITDA of

97 MNOK (59 MNOK). First quarter EBITDA margin was 11.4% (10.0%). The Net Profit

increased from 24 MNOK in Q1 2018 to 29 MNOK in Q1 2019.

AKVA group is ending the quarter with an order backlog of 1.6 BNOK.

A half-yearly dividend of 0.75 NOK per share was paid in March 2019.

Cage Based Technology(CBT)

The total CBT revenue for Q1 2019 ended at 689 MNOK (434). Nordic ended at 493

MNOK (227), Americas at 123 MNOK (103) and EME at 73 MNOK (104).

The EBITDA for the segment in Q1 came out at 77 MNOK (40). The EBITDA margin was

11.1% (9.1%). EBIT and EBIT margin ended at 36 MNOK (24) and 5.3% (5.5%),

respectively. The margins in the Norwegian barge business are significantly

better than last half of 2018 but there is still untapped potential in improved

project execution. In Mo i Rana, the pipe factory experienced a strong quarter

with high production and limited down time. The activity in the marine services

is increasing and we are seeing increased revenue and EBITDA compared to last

year.

In the Nordic region, the order intake ended at 580 MNOK (293) in the first

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

pipeline.

In the Americas region the growth continues, with revenue of 145 MNOK compared

to 113 MNOK in the same quarter in 2018. The sales and supply contract with

Grieg NL signed in Q3 is not included in the order backlog yet. Order intake in

AKVA group Chile decreased from 151 MNOK to 110 MNOK within the cage based

segment in Q1.

EME ended the quarter with revenue of 73 MNOK, a decrease from 104 MNOK in the

same quarter last year. The operations in Greece, Spain and Middle East are well

positioned for the anticipated growth in the region. Our operation in Turkey is

affected by local economic turmoil but we still see good potential when market

conditions eventually improve.

Software (SW)

In Q1 2019 the revenue for the segment was 44 MNOK (47). EBITDA and EBIT ended

at 8 MNOK (10) and 4 MNOK (7), respectively. A cooperation agreement was entered

into with Observe Technologies (AI) and the first module with feeding assistant

is already in the market.

As noted in a stock notice of 6 September 2018, we entered into an agreement

with Advania Holding hf to divest Wise lausnir ehf. The transaction is

conditional on clearance from the Icelandic Competition Authority. As noted in

the stock notice of 14 January 2019, the estimated final deadline for the

Icelandic Competition Authority to clear the Transaction has now been updated to

be around Q2/Q3 2019.

Land Based Technology (LBT)

Revenues for the first quarter were 119 MNOK (109). EBITDA ended at 12 MNOK (9)

and EBIT was 8 MNOK (7). Order intake in Q1 2019 was 300 MNOK compared to 51

MNOK in Q1 2018. Major contract awarded by Svaberget Smolt AS of approximately

300 MNOK. The pipeline of projects continue to be good. Order backlog ended at

629 MNOK compared to 479 MNOK last year.

Balance sheet

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

rolling revenue is 10.3% (5.8%). The twelve months average working capital is

10.7%. Cash and unused credit facilities amounted to 422 MNOK at the end of Q1

(462 MNOK). Total assets and total equity amounted to 3,196 MNOK (1,755 MNOK)

and 1,055 MNOK (491 MNOK) respectively, resulting in an equity ratio of 33%

(28%) at the end of Q1.

Atlantis Subsea Farming AS

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

established 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 applied for six development licenses to

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

concept.

On February 22nd 2018 The Directorate announced that the Company has been

granted one license. Atlantis Subsea Farming AS is now in a technology testing

phase with regards to the execution of the project.

Dividend of NOK 0.75 per share paid in Q1 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 0.75 NOK per share

was paid in March 2019. Total dividend payout in March 2019 was 25.0 MNOK.

Order Backlog

We have experienced continued good activity across all regions and segments in

the first quarter of 2019. The order intake in Q1 2019 was 1 107 MNOK (639

MNOK). The order backlog at the end of Q1 2019 was 1,611 MNOK (1,430 MNOK). MNOK

629 of total order backlog at end of Q1 relates to land based technology.

Outlook

Our presence on the east coast of Canada is being built on the Sales and Supply

contract entered into with Grieg NL in Q3 2018 for the delivery of barges. The

contract secures a good platform for further development in the area. Plans are

being firmed up for a strong product and service foothold.

Another large Land Based contract was awarded in Q1 and the pipeline within the

segment continues to be strong, in the Nordics as well as Americas. Still, the

phasing of the current order backlog indicates a likely dip in revenue for Q2.

Developing a revised digitalization strategy, upgrading software platform and

control systems are in the works. An interim Chief Digital Officer (CDO) has

been hired to accelerate the process. Product development is well underway with

a new cage system and feeding system. New Chief Technology Officer (CTO) hired.

The integration of the acquisition of Egersund Net is developing well, and

"total solutions" where nets, cages and moorings are combined are already sold

and welcomed by the marketplace.

Atlantis Subsea Farming in execution mode, fish in sea.

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 1 541 employees, offices in 12 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: 10 May 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