AKVA Group — Earnings Release 2023

Aug 11, 2023

AKVA group ASA: Q2 2023 financial reporting

AKVA group ASA: Q2 2023 financial reporting

Record high activity and improved profitability

AKVA group delivered revenue for Q2 of MNOK 940 (907), an increase of 4%

compared to Q2 2022.

EBITDA increased from MNOK 3 in Q2 2022 to MNOK 86 in Q2 2023.

Strong order intake of MNOK 1,840 (827) in Q2 and record high order backlog of

BNOK 2,9 at the end of June 2023.

Award of new post smolt contract with Cermaq Norway with estimated contract

value of minimum MEUR 60

Commercial breakthrough of deep sea farming concepts in Q2 2023

The activity in the first two quarters of 2023 were high and above last year.

Overall, the order intake was sound with the newly awarded RAS contract for

Nordic Aqua Partners (MEUR 40) and the post smolt contract for Cermaq Norway

(minimum MEUR 60) as the largest contracts. Profitability continuing to improve

compared to previous quarters but is still below expectations. The Land Based

business segment is still impacted by a high cost base compared to current

activity level and by lower profitability in parts of the project portfolio. The

profit margins in this part of the project portfolio were written down

significantly in Q2 and Q3 2022 mainly due to cost inflations and will run at a

lower profit margin until completion end of Q3 2023. The profitability in the

Sea Based business segment was positively impacted by the product mix and the

commercial breakthrough of deep sea farming concepts in the quarter.

Sea Based Technology (SBT)

SBT revenue for Q2 2023 ended at MNOK 733 (736). EBITDA and EBIT for the segment

in Q2 ended at MNOK 82 (40) and MNOK 46 (3), respectively. The related EBITDA

and EBIT margins were 11.2% (5.5%) and 6.3% (0.5%), respectively.

Order intake in Q2 2023 was MNOK 690 compared to MNOK 704 in Q2 2022. Order

backlog ended at MNOK 817 compared to MNOK 902 last year.

The Nordic region experienced an increase in revenue from MNOK 453 in Q2 2022 to

MNOK 475 in Q2 2023.

In the Americas region, the revenue was MNOK 158, which is a decrease from 179

MNOK in the second quarter last year.

Europe and Middle East (EME) had a revenue of MNOK 100 in Q2 2023, compared to

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

Land Based Technology (LBT)

Revenues for the second quarter were MNOK 174 (145). EBITDA and EBIT ended at

MNOK -4 (-41) and MNOK -6 (-45), respectively. The related EBITDA and EBIT

margins were -2.3% (-28.5%) and -3.7% (-31.2%).

Strong order intake in Q2 2023 of MNOK 1,062 compared to MNOK 96 in Q2 2022.

Order backlog ended at MNOK 1,905, compared to MNOK 779 last year.

Digital (DI)

The revenue in the segment was MNOK 33 (26) in Q2 2023. EBITDA and EBIT ended at

MNOK 8 (5) and MNOK -2 (1), respectively. The related EBITDA and EBIT margins

were 23.8% (17.8%) and -5.3% (2.1%). The order intake was high of MNOK 89 (28)

in the quarter.

Balance sheet

Working capital as a percentage of 12 months rolling revenue is 11.6% (13.6%).

Cash and unused credit facilities amounted to MNOK 522 (637) at the end of Q2.

Total assets and total equity amounted to MNOK 3,692 and MNOK 1,223

respectively, resulting in an equity ratio of 33.1% (36.2%) 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. The

company has decided not to pay any dividend in the second half of 2023.

Order Backlog

The order backlog at the end of Q2 was MNOK 2,884 (1,769). MNOK 1,905 or 66% of

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

Outlook

The order backlog and financial position remains sound and forms a good

foundation to execute the organic growth strategy.

Salmon prices are expected to remain strong driven by reduced supply.

The implications from the introduction of new resource tax are uncertain. Most

likely this will have a negative impact on the activity level on short and

medium term, especially in the post smolt market in Norway.

AKVA is targeting minimum BNOK 4 in revenue and 6-8% EBIT in 2024.

AKVA will continue to invest and improve their solutions, both within Sea Based,

Digital and Land Based Technology.

About AKVA group

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

worldwide. The company has 1 394 employees, offices in 11 countries and had a

total turnover of NOK 3.4 billion in 2022. 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: 11 August 2023

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