AKVA Group — Earnings Release 2020

Nov 6, 2020

AKVA group ASA: 3Q 2020 financial reporting

AKVA group ASA: 3Q 2020 financial reporting

Solid quarter for the Cage Based business - total Group EBITDA of 105 MNOK in

Q3

AKVA group delivered revenue for Q3 of 806 MNOK (771 MNOK), an increase of 4%

compared to Q3 2019. EBITDA decreased from 115 MNOK in Q3 2019 to 105 MNOK in Q3

2020. The Net Profit decreased from 42 MNOK last year to 36 MNOK in Q3 2020. A

net gain of 18 MNOK from the sale of Wise lausnir ehf was included in the 2019

revenue, EBITDA and net profit.

The order intake in the quarter was 647 MNOK with a backlog of 1.63 BNOK at the

end of September 2020. AKVA group have signed engineering and design contracts

for full grow-out facilities in the quarter.

AKVA group have decided to conduct a strategic review of AKVA Marine Services.

The COVID-19 pandemic has had limited impact on AKVA group in the quarter.

AKVA group have remained focused on the implemented measures started after the

COVID-19 outbreak in March to ensure the health and safety of our employees and

customers, to monitor and optimize the overall liquidity in the company, to

maintain the security of supply during the crisis and a steady order intake to

ensure work for all in AKVA group. In the first half of 2020 the pandemic

impacted our Land Based segment the most with cancellation and postponement of

contracts. With regards to the Cage Based segment the impact was mixed as our

portfolio of offerings are more diversified in regards of customer needs.

Cage Based Technology (CBT)

CBT revenue for Q3 2020 ended at 694 MNOK (651). EBITDA for the segment in Q3

came out at 100 MNOK (98). The EBITDA margin was 14,4% (15,0%). EBIT and EBIT

margin ended at 60 MNOK (58) and 8,6% (8,8%), respectively. A net gain of 18

MNOK of the sale of Wise lausnir ehf is included in the abovementioned amounts

in Q3 2019.

The revenue in the Nordic region ended at 444 MNOK (436).

In the Nordic region, the order intake was 434 MNOK (375) in the third quarter,

and the order backlog was 509 MNOK (435) at the end of September 2020.

In the Americas region, the activity is relatively high with revenue of 187

MNOK, which is an increase from 142 MNOK third quarter last year.

Europe and Middle East (EME) had a decrease in revenue, down from 74 MNOK in Q3

2019 to 63 MNOK in Q3 2020. The region had a solid order intake in the quarter

resulting in an order backlog of 152 MNOK (128) end of September 2020.

Software (SW)

The revenue in the segment was 16 MNOK (28). EBITDA and EBIT ended at 5 MNOK (8)

and 2 MNOK (4), respectively. The related EBITDA and EBIT margins were 31.6%

(27.5%) and 14.3% (15.3%). Last year the sold business Wise lausnir ehf, was

included in revenue and EBITDA with 12 MNOK and 0.5 MNOK respectively.

Land Based Technology (LBT)

Revenues for the third quarter were 96 MNOK (92). EBITDA for Q3 2020 was

0.2 MNOK (9) and EBIT was -5 MNOK (4). EBITDA margin was 0.2% (10.0%) and EBIT

margin was -4.7% (4.0%).

The COVID-19 outbreak is still a challenge for our Land Based business, but

activity has picked up from second quarter this year.

Order intake in Q3 2020 was 72 MNOK in LBT compared to 50 MNOK in Q3 2019. Order

backlog ended at 747 MNOK compared to 569 MNOK last year.

Balance sheet

AKVA group's financial position remains strong. Working capital as a percentage

of 12 months rolling revenue is 10.3% (14.8%). Cash and unused credit facilities

amounted to 562 MNOK (535) at the end of Q3. Total assets and total equity

amounted to 3,302 MNOK (3,175 MNOK) and 1,074 MNOK (1,096) respectively,

resulting in an equity ratio of 33% (35%) at the end of Q3.

Atlantis Subsea Farming AS

In January 2016, AKVA group, together with Sinkaberg-Hansen AS and Egersund Net

AS, established Atlantis Subsea Farming AS for the purpose of developing

submersible fish-farming facilities for salmon on an industrial scale, which

will both enable better and more sustainable utilization of today's locations,

and also open up the opportunity for farming at more exposed locations.

The Atlantis Subsea Farming project requires large-scale testing of the

technological and operational solutions. On 22 February 2018, the Norwegian

Directorate of Fisheries announced that the company was granted one license.

Atlantis Subsea Farming AS is now in a technology testing phase with regards to

execution of the project, including testing with fish in the pen. During June

2020 the fish from the second batch in Atlantis were harvested and we are

planning the next batch at an even more exposed site for 2020/2021.

Dividend

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 on 3 March 2020, before the main outbreak of Covid-19 in Norway. Due to

the overall uncertainty caused by COVID-19 the company has decided not to pay

any dividend in the second half of 2020.

Order Backlog

The order backlog at the end of Q3 was 1,625 MNOK (1,524). 747 MNOK or 46% of

total order backlog at the end of Q3 is related to Land Based Technology (LBT).

Outlook

AKVA group maintains focus on full grow out RAS facilities, and have signed

several engineering and design contracts. The last one with the Norwegian

company Ecofisk AS with potential delivery contract and equity participation

from AKVA group.

The interest for the patented TubenetTM solution remains strong, and delivery of

the 100 MNOK contract signed in April 2020 is still ongoing.

AKVA group remain focused on developing digital solutions as integrated part of

our product offerings.

The low salmon price causes some uncertainty on the customers willingness to

invest.

AKVA group will host a webcasted Capital Markets Day on 24 November 2020.

About AKVA group

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

worldwide. The company has 1 449 employees, offices in 10 countries and a total

turnover of NOK 3.1 billion in 2019. 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.

Dated: 6 November 2020

AKVA group ASA

Web: www.akvagroup.com

CONTACTS:

Knut Nesse Chief Executive Officer

Phone: +47 51 77 85 00

Mobile: +47 91 37 62 20

E-mail: knesse@akvagroup.com

Rony Meinkøhn Chief Financial Officer

Phone: +47 51 77 85 00

Mobile: +47 98 20 67 76

E-mail: rmeinkohn@akvagroup.com

This information is subject to the disclosure requirements pursuant to Section

5-12 the Norwegian Securities Trading Act