AKVA Group — Earnings Release 2024

Nov 7, 2024

AKVA group ASA: Q3 2024 financial reporting

AKVA group ASA: Q3 2024 financial reporting

Strong financial performance driven by Sea Based

AKVA group delivered high quarterly revenue in Q3 2024 of MNOK 1,011 (817).

Adjusted for the gain of MNOK 76 related to the Observe transaction, the revenue

was MNOK 936 and 14,5% higher compared to Q3 2023.

EBITDA was MNOK 199 in Q3 2024. Adjusted for the net gain of NOK 71 related to

the Observe transaction EBITDA was MNOK 128 compared to MNOK 78 in Q3 2023.

Total order intake of MNOK 803 (600) in Q3 2024 and order backlog was BNOK 2,4

at the end of September 2024.

Completion of the acquisition of Observe Technologies at the start of Q3,

increasing ownership from 33.7% to 100%.

Awarded LOI from Cermaq early Q4 related to RAS contract for new post smolt

facility in Chile with estimated contract value of MEUR 30.

The high activity is driven by the Sea Based business segment and continued

positive momentum in the Nordic market. The market for Land Based is still soft

but the revenue level is gradually increasing. The award of the LOI from Cermaq

at the beginning of Q4 with an estimated contract value of MEUR 30 will have a

positive effect on the revenue level in Q4 and onwards. The outlook for the post

smolt market in Norway is still uncertain but is expected to improve gradually

into 2025.

Profitability improved significantly in the third quarter compared to last year,

and the improved profitability is primarily related to strong performance in the

Sea Based business. The profitability in Land Based business is improving partly

due to the higher activity level and partly due to improved project margins. The

Digital business segment has experienced great revenue growth in the last few

years but the current cost base is still high compared to the current activity

level resulting in soft profit margins.

Sea Based Technology (SBT)

SBT revenue for Q3 2024 ended at MNOK 740 (660). EBITDA and EBIT for the segment

in Q3 ended at MNOK 112 (79) and MNOK 75 (41), respectively. The related EBITDA

and EBIT margins were 15.2% (11.9%) and 10.1% (6.3%).

Order intake in Q3 2024 was MNOK 635 compared to MNOK 574 in Q3 2023. Order

backlog ended at MNOK 711 compared to MNOK 731 last year.

The Nordic region experienced an increase in revenue from MNOK 417 in Q3 2023 to

MNOK 528 in Q3 2024.

In the Americas region, the revenue was MNOK 156, which is a decrease from 171

MNOK in the third quarter last year.

Europe and Middle East (EME) had a revenue of MNOK 55 in Q3 2024, compared to

the revenue of MNOK 73 in the third quarter last year.

Land Based Technology (LBT)

Revenue for the third quarter was MNOK 162 (124). EBITDA and EBIT ended at MNOK

5 (-11) and MNOK 3 (-13), respectively. The related EBITDA and EBIT margins were

3.1% (-8.5%) and 1.6% (-10.4%).

Order intake in Q3 2024 of MNOK 138 compared to MNOK 4 in Q3 2023. Order backlog

ended at MNOK 1,509 compared to MNOK 1,728 last year.

Digital (DI)

The revenue in the segment was MNOK 34 (33) in Q3 2024, adjusted for the gain of

MNOK 76 related to the Observe transaction. EBITDA and EBIT (adjusted for the

net gain) ended at MNOK 11 (10) and MNOK 1 (0), respectively. The related EBITDA

and EBIT margins were 31.9 % (29.9%) and 3.1% (0.8%).

Order intake in Q3 2024 was MNOK 30 compared to MNOK 21 in Q3 2023. Order

backlog ended at MNOK 147, compared to MNOK 150 last year.

Balance sheet

Working capital as a percentage of 12 months rolling revenue is 7.3% (8.6%).

Cash and unused credit facilities amounted to MNOK 448 (526) at the end of Q3.

Total assets and total equity amounted to MNOK 4,018 and MNOK 1,301

respectively, resulting in an equity ratio of 32.4% (31.8%) at the end of Q3

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 for the second half of 2024.

Order Backlog

The order backlog at the end of Q3 was MNOK 2,367 (2,609). MNOK 1,509 or 64% of

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

Outlook

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

AKVA expects to see a normalization of the post smolt market in Norway into

AKVA is aiming for revenue of minimum BNOK 3,6 and EBIT of 5% in 2024.

About AKVA group

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

worldwide. The company has 1 409 employees, offices in 12 countries and had a

total turnover of NOK 3.4 billion in 2023. 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: 7 November 2024

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

Ronny 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