AKVA Group — Earnings Release 2019

Feb 14, 2020

AKVA group ASA: 4Q 2019 financial reporting

AKVA group ASA: 4Q 2019 financial reporting

Record high order intake

AKVA group delivered a revenue for Q4 of 655 MNOK (726 MNOK), down 10% from Q4

2018. EBITDA decreased from 57 MNOK in Q4 2018 to -40 MNOK in Q4 2019, due to a

challenging quarter with several exceptional items particularly within Land

Based segment. The Net Profit decreased from 19 MNOK last year to -85 MNOK in Q4

Record high order intake of 1.4 BNOK in Q4 with a backlog of 2.3 BNOK at the end

of Q4 2019.

Dividend of NOK 1.00 per share to be paid in March 2020.

Cage Based Technology (CBT)

CBT revenue for Q4 2019 ended at 529 MNOK (553). EBITDA for the segment in Q4

came out at 31 MNOK (34). The EBITDA margin was 5.9% (6.2%). EBIT and EBIT

margin ended at -26 MNOK (6) and -4.9% (1.2%), respectively.

The revenue in the Nordic region ended at 323 MNOK (359). AKVA Marine Services

increased margins and had a strong quarter, significantly better than last year.

In the Nordic region, the order intake ended at 392 MNOK (498) in the fourth

quarter, and despite a decrease from same period last year the region continues

to experience high activity with a strong pipeline.

In the Americas region, the activity is still on a relatively high level and the

order book is increasing although revenue decreased from 152 MNOK fourth quarter

last year to 123 MNOK in Q4 2019.

EME achieved revenue of 82 MNOK in Q4 2019, an increase from 41 MNOK in the same

quarter last year. The operations in Scotland, Turkey and export out of Norway

came in well above Q4 2018 revenue.

Software (SW)

The revenue in the segment was 16 MNOK (44). EBITDA and EBIT ended at 5 MNOK (9)

and 3 MNOK (6), respectively. The related EBITDA and EBIT margins were 33.6%

(20.7%) and 18.4% (13.1%). Last year the sold business Wise ehf, was included in

revenue and EBITDA with 29 MNOK and 5 MNOK respectively.

Land Based Technology (LBT)

Revenues for the fourth quarter were 110 MNOK (129). EBITDA for Q4 2019 was -77

MNOK (13) and EBIT was -82 MNOK (10). EBITDA margin was -69.8% (10.0%) and EBIT

margin -74.6% (7.4%).

Order intake in Q4 2019 was 815 MNOK compared to 218 MNOK in Q4 2018. The

pipeline of projects continues to be strong. Order backlog ended at 1,274 MNOK

compared to 448 MNOK last year.

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 has been 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.

Dividend of NOK 1.00 per share to be paid in Q1 2020

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

is to be paid in March 2020.

Order Backlog

In the fourth quarter, we experienced record high order intake in the Land Based

segment. The order intake in Q4 2019 was 1425 MNOK (997 MNOK). The order backlog

at the end of Q4 2019 was 2,294 MNOK (1,356 MNOK). 1,274 MNOK of the total order

backlog at end of Q4 2019 relates to Land Based technology.

Outlook

2019 ended with a challenging quarter with several unexpected items affecting

earnings significantly. Specifically for the Land Based segment the

identification of recent irregularities in accounting uncovered losses not

reflected in the P&L. None of these irregularities affect the order book which

is at record heights, and a review has been done within Land Based to ensure

that the order book includes projects with normal margin expectation.

A strategy process is initiated which amongst others include a more focused

effort on full grow out RAS facilities. Further, the organizational structure

has been revisited and a new management structure is set up. Although the

competitive situation is demanding within areas of our offering, by

strengthening our execution skills, which will be a core part of the strategy,

we will enhance the organization, both in liens of our market offering and

execution capabilities.

Our net service businesses are about to be expanded, as a new service station is

to be built in northern Norway with a partner and plans for another one are

underway. Plans are also progressing well for expanding net sales

internationally. On Newfoundland AKVA has made good progress to establish a

strong presence, most recently by signing an agreement to acquire Newfoundland

Aqua Service Ltd, a net service business.

Our product portfolio was strengthened by introducing several new products in

Q3, subsequently digital solutions and an environmental sensor buoy are

launched. The tube net, a preventive sea lice solution, has received strong

interest in the market and a new generation of the product is underway to be

launched.

Within the digital segment the interest for our precision feeding solution

(Observe) is increasing and a solid pipeline exist.

About AKVA group

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

worldwide. The company has 1 436 employees, offices in 11 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: 14 February 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

This information is subject to the disclosure requirements pursuant to Section

5-12 the Norwegian Securities Trading Act