AKVA Group — Earnings Release 2022

Aug 12, 2022

AKVA group ASA: Q2 2022 financial reporting

AKVA group ASA: Q2 2022 financial reporting

Record high revenues with cost related headwinds

AKVA group delivered record high revenue for Q2 of MNOK 907 (832), an increase

of 9% compared to Q2 2021. EBITDA decreased from MNOK 79 in Q2 2021 to MNOK 3 in

Q2 2022. The Net Profit decreased from MNOK 16 last year to MNOK -41 in Q2 2022.

The order intake in the quarter was MNOK 827 with a backlog of BNOK 1.8 at the

end of June 2022.

Profitability negatively impacted by estimated MNOK 102 from high inflation

rates and one-time cost provisions.

During Q4 2021 AKVA group experienced somewhat challenging profit margins due to

cost inflations and global supply chain restrictions. This has been further

intensified in H1 2022 due to the war between Ukraine and Russia. Examples

include increased freight rates, high energy prices and increased price level on

raw materials and key components in general.

Sea Based Technology (SBT)

SBT revenue for Q2 2022 ended at MNOK 736 (716). EBITDA and EBIT for the segment

in Q2 ended at MNOK 40 (95) and MNOK 3 (54), respectively. The related EBITDA

and EBIT margins were 5.5% (13.3%) and 0.5% (7.5%), respectively.

Order intake in Q2 2022 was MNOK 704 compared to MNOK 735 in Q2 2021. Order

backlog ended at MNOK 902 compared to MNOK 848 last year.

The revenue in the Nordic region ended at MNOK 453, a decrease from MNOK 490 in

the second quarter last year.

In the Americas region, the revenue was MNOK 179, which is an increase from 123

MNOK in the second quarter last year.

Europe and Middle East (EME) had a revenue of MNOK 104 in Q2 2022, identical to

the revenue of MNOK 104 in the second quarter last year.

Land Based Technology (LBT)

Revenues for the second quarter were MNOK 145 (97). EBITDA and EBIT ended at

MNOK -41 (-20) and MNOK -45 (-23), respectively. The related EBITDA and EBIT

margins were -28.5% (-20.8%) and -31.2% (-23.3%).

Order intake in Q2 2022 was MNOK 96 compared to MNOK 116 in Q2 2021. Order

backlog ended at MNOK 779, compared to MNOK 948 last year.

Digital (DI)

The revenue in the segment was MNOK 26 (18) in Q2 2022. EBITDA and EBIT ended at

MNOK 5 (4) and MNOK 1 (1), respectively. The related EBITDA and EBIT margins

were 17.8% (22.3%) and 2.1% (5.4%).

Balance sheet

Working capital as a percentage of 12 months rolling revenue is 13.6% (12.1%).

Cash and unused credit facilities amounted to MNOK 637 (322) at the end of Q2.

Total assets and total equity amounted to MNOK 3,507 and MNOK 1,270

respectively, resulting in an equity ratio of 36.2% (29.8%) at the end of Q2

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. Due

to the challenging first half year of 2022 the company has decided not to pay

any dividend in the second half of 2022.

Order Backlog

The order backlog at the end of Q2 was MNOK 1,769 (1,862). MNOK 779 or 44% of

total order backlog at the end of Q2 relates to Land Based Technology (LBT).

Outlook

The order backlog and the financial profile remains strong and forms a good

foundation to execute on the organic growth strategy. The global instability and

uncertainty related to supply chain restrictions and cost inflations may

continue to impact the profitability on short term.

Based on the underlying demand for salmon the Group believes in strong market

growth. To meet the future demand a significant part of the production will come

from land-based facilities or other unconventional production methods. Hence,

the Group expects a continued strong market for the Sea Based segment, while for

the Land Based segment there will be a potential for exponential growth.

Digital products are an important part of AKVA groups total product offering and

the company will continue to invest and develop attractive solutions, both

within Sea Based and Land Based Technology.

About AKVA group

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

worldwide. The company has 1 488 employees, offices in 11 countries and had a

total turnover of NOK 3.1 billion in 2021. 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 sea farming and land

based aquaculture. AKVA group is recognized as a pioneer and technology leader

through more than 40 years.

Dated: 12 August 2022

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 (mailto:rmeinkohn@akvagroup.com)

This information is subject to the disclosure requirements pursuant to Section

5-12 the Norwegian Securities Trading Act