AKVA Group — Interim / Quarterly Report 2022

Nov 4, 2022

High activity level but challenging profitability

Third quarter 2022 – HIGHLIGHTS

• Quarterly revenue of MNOK 840, 14% increase compared to Q3 2021
• Order intake of MNOK 650, up from MNOK 616 in Q3 2021
• Cost saving target set to MNOK 100 and estimated 70% to be implemented by the end of Q4 2022
• Profitability negative impacted by accruals for restructuring and cost saving programs ("restructuring costs")
• EBITDA of MNOK 25, decrease from MNOK 79 in Q3 2021. Excluding restructuring costs EBITDA was MNOK 83 in Q3 2022
• EBIT of MNOK -59, down from MNOK 32 in Q3 2021. Excluding restructuring costs EBIT was MNOK 39 in Q3 2022
• Write down of loan AquaCon is impacting financial costs by MNOK 28 in the quarter

YTD 2022 – HIGLIGHTS

• EBIT of -42 MNOK and down from 101* MNOK in first three quarters in 2021. Excluding restructuring costs EBIT YTD 2022 is MNOK 56

* Costs of MNOK 49,7 related to cyber-attack in Q1 21 are excluded

• Profitability in 2022 is negatively impacted by supply chain restrictions, high inflation rates and one-time cost provisions
• Order intake of MNOK 2,525, increase from MNOK 2,147 in first three quarters in 2021
• Order backlog of MNOK 1,579, 9% decrease compared to end of Q3 2021
• A dividend of NOK 1 per share was paid in Q1 2022

Order intake, revenues, and profits for the Group

(Figures in brackets = 2021 unless other is specified)

Operations and profit

In 2021 the COVID-19 restrictions impacted our operations negatively during the first half year. The travel restrictions were lifted at the end of Q2 2021 and the impact from the restrictions were limited in the second half of 2021 and onwards.

At the end of 2021 AKVA group experienced challenging profit margins due to high cost inflations and global supply chain restrictions. This has been further intensified in 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. The estimated P&L impact from the high cost inflations in the first half year was MNOK 57. Furthermore, the global instability has a negative impact on the net working capital in 2022 and especially for inventory levels. The increased inventory levels are partly related to higher price levels and partly to secure supplies for our production facilities and products. The situation has normalized somewhat in Q3 2022 but is still considered to be uncertain going forward.

Quarterly order intake

Year		2019				2020				2021				2022
Quarter	Q1	Q2	Q3	Q4	Q1	Q2	Q3	Q4	Q1	Q2	Q3	Q4	Q1	Q2	Q3
Sea Based1)	762	644	694	591	686	738	559	602	569	735	563	695	759	704	450
Land Based	300	7 7	5 0	218	1 0	235	7 2	385	6 9	116	3 3	2 1	254	9 6	167
Digital2)	4 4	3 8	3 3	1 9	1 3	2 1	1 6	2 7	1 4	2 9	1 9	2 7	3 5	2 8	3 2
Total	1 107	760	778	828	709	994	647 1 014		651	880	616	742 1 048		827	650

1) AKVA Marine Services backlog is reduced from MNOK 79 in Q2 2021 to MNOK 0 in Q3 2021, which impacted the order intake in Q3 2021 negatively by MNOK 47 due to disposal of the subsidiary in Q3 2021. 2) Digital includes order intake related to Wise lausnir ehf until disposal of the subsidiary in Q3 2019.

Order intake was MNOK 650 in Q3 2022 compared to MNOK 616 in Q3 2021.

Quarterly financials

Year		2019				2020				2021				2022
Quarter	Q1	Q2	Q3	Q4	Q1	Q2	Q3	Q4	Q1	Q2	Q3	Q4	Q1	Q2	Q3
Revenue	852	798	771	655	752	862	806	757	719	832	738	833	849	907	840

Revenues in Q3 2022 ended at MNOK 840 compared to MNOK 738 in Q3 2021, an increase of 14%.

The Sea Based segment experienced an increase in revenue compared to Q3 2021 of 13%, whilst the Digital and Land Based segments experienced an increase in revenues compared to Q3 2021 of 26% and 17%, respectively.

Depreciation and amortization for the quarter were MNOK 85 compared to MNOK 47 in the same quarter last year. The increase is related to impairment of right-of-use asset and other fixed assets of MNOK 40 in the Land Based business area as a part of the ongoing restructuring process.

EBITDA decreased from MNOK 79 in Q3 2021 to MNOK 25 in Q3 2022. EBIT was MNOK -59, down from MNOK 32 in Q3 2021 Profitability was negatively impacted by cost related to restructuring process and cost savings programs. Total EBIT impact was MNOK 98 while EBITDA impact was MNOK 58.

Net financial items were MNOK -49, compared to MNOK -13 in the third quarter last year. The main reason for this decrease is write off loan to AquaCon MNOK -28 and negative market value adjustment of the Group's investment in Nordic Aqua Partners of MNOK 6.3, compared to MNOK 0 in Q3 2021.

Profit before tax ended at MNOK -108, down from MNOK 19 in Q3 2021.

Estimated tax expenses were MNOK -16 in the quarter compared to MNOK 5 last year and Net Profit decreased from MNOK 14 last year to MNOK -93 in Q3 2022.

Business Segments & other information

The information below shows AKVA group's three business segments, Sea Based Technology, Land Based Technology and Digital (ref. notes to the interim financial statements).

Revenue per segment

Revenue per segment

Sea Based Technology (SBT)

SBT revenue for Q3 2022 ended at MNOK 681 (603). EBITDA and EBIT for the segment in Q3 ended at MNOK 79 (70) and MNOK 44 (29), respectively. The related EBITDA and EBIT margins were 11.5% (11.6%) and 6.4% (4.7%), respectively. The profitability was negative impacted from cost accruals related to restructuring and cost savings programs of MNOK 11 in the quarter.

Order intake in Q3 2022 was MNOK 450 compared to MNOK 563 in Q3 2021. Order backlog ended at MNOK 672 compared to MNOK 808 last year. The reduction is mainly related to the Nordic region.

The revenue in the Nordic region ended at MNOK 381 (338). The order intake was MNOK 214 (339) in the third quarter.

In the Americas region, the revenue was MNOK 186, which is an increase from 140 MNOK in the third quarter last year. The order intake was MNOK 115 (190) in the third quarter.

Europe and Middle East (EME) had a revenue of MNOK 114 in Q3 2022, compared to the revenue of MNOK 125 in the third quarter last year. The reduction is related to loss of activity towards the Russian market. The order intake was MNOK 126 (40) in the third quarter.

Land Based Technology (LBT)

Revenues for the second quarter were MNOK 134 (115). EBITDA and EBIT ended at MNOK -63 (7) and MNOK -106 (4), respectively. The related EBITDA and EBIT margins were -46.6% (5.7%) and -78.9% (3.4%). The profitability was negative impacted from cost accruals related to restructuring and cost savings programs of MNOK 87 in the quarter.

Order intake in Q3 2022 was MNOK 167 compared to MNOK 34 in Q3 2021. Order backlog ended at MNOK 812, compared to MNOK 867 last year.

Digital (DI)

The revenue in the segment was MNOK 25 (20) in Q3 2022. EBITDA and EBIT ended at MNOK 9 (3) and MNOK 3 (0), respectively. The related EBITDA and EBIT margins were 38% (13%) and 11.5% (-1.6%). The increased profit margins are primarily related to higher activity level. The order intake was MNOK 24 (12) in the third quarter.

Revenue per region

Nordic and Americas had an increase in revenues compared to the same quarter last year of 14% (Nordic) and 33% (Americas). Europe and Middle East (EME) had a decrease in activity level this quarter of -9% compared to the same quarter last year, and due to the situation in Russia.

Revenue per region

AKVA group has organized its business into three geographical regions:

• Nordic: Includes the Nordic countries,

• Americas: Includes the Americas and Oceania, and

• Europe and Middle East: Includes the rest of the world

CAPEX vs OPEX based revenue

The CAPEX based revenues increased with 23% in the third quarter compared to the same quarter in 2021, whilst the OPEX based revenues decreased with 5% in the same period. The decrease in OPEX based revenues is mainly due to the disposal of AKVA Marine Services late in Q3 2021. Egersund Net's service stations contributed with MNOK 85 (79) in Q3 2022.

Revenue per CAPEX / OPEX based revenue

The revenue in AKVA group can be split between CAPEX based revenue and OPEX based revenue. The above graphs show the last nine quarters development in CAPEX and OPEX based revenues. We use the following definition:

• CAPEX based: Revenue classified as CAPEX in our customers' accounts • OPEX based: Revenue classified as OPEX in our customers' accounts

Species

Most of the revenues are generated from the Salmon segment. The revenues from other species relate mainly to the Mediterranean area.

Revenue per species

The revenue in AKVA group can be divided based on species, and the above graphs show the last nine quarters development in revenue by species. The following species are used:

• Salmon: Revenue from technology and services sold for production of salmon

• Other species: Revenue from technology and services sold for production of other species than salmon

• Non-Seafood: Revenue from technology and services sold to non-seafood customers

Balance sheet and cash flow

The working capital was MNOK 201 on 30 September 2022, a decrease from MNOK 368 on 30 September 2021. The working capital relative to last twelve months revenue was 5.9% at the end of September 2022, compared to 12.1% at the end of September 2021.

CAPEX in Q3 2022 was MNOK 25, where 17 MNOK related to capitalized R&D expenses and 8 MNOK was other CAPEX.

Cash and unused credit facilities amounted to MNOK 793 at the end of Q3 2022 versus MNOK 311 at the end of Q3 2021. The unused credit facility (at DNB) is MNOK 465.

Net interest-bearing debt was MNOK 894 at the end of September 2022, including lease liabilities of MNOK 472, compared to MNOK 1,204 and MNOK 460 at the end of Q3 2021.

Gross interest-bearing debt was MNOK 1,222 at the end of Q3 2022 versus MNOK 1,292 at the end of Q3 2021. The short-term interest-bearing debt in the balance sheet includes the next 12 months instalments of the long-term debt. This is in accordance with current IFRS requirements. The IFRS 16 lease liability at the end of Q3 2022 of MNOK 472 (460), is included in the interest-bearing debt.

The Company obtained a waiver from DNB in respect of the leverage ratio (NIBD/EBITDA covenant). The waiver is effective from 30 September 2022 to and including 30 September 2023 (waiver period). The EBITDA used for calculating the NIBD/EBITDA covenant is adjusted for certain one-time cost provisions and restructuring provisions in Q2 and Q3 2022. The adjustment is a total of MNOK 138. In the waiver period the leverage ratio shall not exceed 4,5 including the allowed adjustment to the EBITDA calculation set out above. The Group continues to closely monitor its financial performance to ensure compliance with financial covenants.

Trailing 12 months average return on capital employed (ROACE) ended at -1.3 % (6.3%) for the quarter.

Total assets and total equity amounted to MNOK 3,477 and MNOK 1,181 respectively, resulting in an equity ratio of 34.0% (30.8%) at the end of Q3 2022. Adjusted for the effect of IFRS 16 assets, the equity ratio is 38.8% (35.8%).

Other shareholder issues

Earnings per share in Q3 2022 were NOK -2.55 (0.43). The calculations are based on 36,373,451 (32,979,745) shares on average.

The minority interests in Newfoundland Aqua Service are reflected in the balance sheet with 1.5% ownership based on the assumption that AKVA group will exercise its option to increase its ownership from 70% to 98.5%. The potential liability of this is estimated at MNOK 7, due in 2023, and the amount is presented within the non-interest-bearing liabilities in the balance sheet.

The 20 largest shareholders are presented in note 6 in this report.

Market and future outlook

The order backlog remains sound and was MNOK 1,579 (1,740) at the end of Q3 and forms a good foundation to execute the organic growth strategy.

The impact from the global instability and uncertainty related to supply chain restrictions and cost inflations were reduced in Q3 2022 but may continue to impact the profitability on short term.

The implications from the introduction of new resource tax are uncertain. Most likely this will have a negative impact on the order intake level on short and medium term.

Based on the underlying demand for salmon the Group still believes in a strong market growth long term. To meet the future demand a significant part of the production will come from land-based facilities or other unconventional production methods.

Order backlog

Order backlog (MNOK)

Notes:

Order backlog is reduced by MNOK 79 in Q3 21 related to the divestment of AKVA Marine Services

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.

Statement from the Board and Chief Executive Officer

We confirm that, to the best of our knowledge, the condensed set of financial statements for the period 1 January to 30 September 2022, which have been prepared in accordance with IAS 34 Interim Financial Statements, gives a true and fair view of the Company's consolidated assets, liabilities, financial position and results of operations, and that the interim management report includes a fair review of the information required under the Norwegian Securities Trading Act section 5-6 fourth paragraph.

Klepp, 3. November 2022 Board of Directors, AKVA group ASA

CONDENSED CONSOLIDATED INTERIM STATEMENT OF INCOME	Note	2022	2021	2022	2021	2021
(NOK 1 000)		Q3	Q3	YTD	YTD	Total
OPERATING REVENUES	5	840 287	738 136	2 596 432	2 289 194	3 121 737
Cost of materials		522 512	425 362	1 632 903	1 333 205	1 872 523
Payroll expenses		226 092	193 260	656 918	615 211	796 878
Other operating expenses		66 188	40 336	175 420	148 991	199 870
OPERATING PROFIT BEFORE DEPR.(EBITDA)	5	25 496	79 178	131 192	191 787	252 467
EBITDA ex. cyber-attack costs	5	25 496	79 178	131 192	241 487	302 167
Depreciation		9 238	15 377	34 080	45 276	56 976
IFRS 16 Depreciation		20 895	22 307	62 019	67 454	87 786
Amortization		14 832	9 266	37 221	28 097	37 900
Impairment		39 895	-	39 895	-	-
OPERATING PROFIT (EBIT)	5	-59 364	32 228	-42 023	50 960	69 805
EBIT ex. cyber-attack costs	5	-59 364	32 228	-42 023	100 660	119 505
Net interest expense		-8 068	-5 793	-19 168	-15 893	-18 263
IFRS 16 Interest expenses		-4 662	-5 059	-14 066	-15 457	-20 605
Other financial items		-36 278	-2 112	-39 953	-17 033	-28 388
Net financial items		-49 008	-12 965	-73 187	-48 383	-67 256
PROFIT BEFORE TAX		-108 373	19 263	-115 210	2 577	2 549
PROFIT BEFORE TAX ex. cyber-attack costs		-108 373	19 263	-115 210	52 277	52 249
Taxes1		-15 765	5 092	-21 423	-3 029	-8 909
NET PROFIT		-92 608	14 171	-93 787	5 606	11 458
NET PROFIT ex. cyber-attack costs		-92 608	14 171	-93 787	44 372	61 158
Net profit (loss) attributable to:
Non-controlling interests Equity holders of AKVA group ASA		7 -92 615	-38 14 209	- 6 -93 780	-39 5 645	-18 11 476
Earnings per share equity holders of AKVA group ASA		-2,55	0,43	-2,58	0,17	0,34
Diluted earnings per share equity holders of AKVA group ASA		-2,55	0,43	-2,58	0,17	0,34
Average number of shares outstanding (in 1 000)		36 373	32 980	36 365	32 968	33 813
Diluted number of shares outstanding (in 1 000)		36 373	32 980	36 365	32 968	33 813
1 Income tax 2022 based on best estimate

CONDENSED CONSOLIDATED INTERIM STATEMENT OF COMPREHENSIVE INCOME Note	2022	2021	2022	2021	2021
(NOK 1 000)	Q3	Q3	YTD	YTD	Total
NET PROFIT	-92 608	14 171	-93 787	5 606	11 458
Other comprehensive income that may be reclassified subsequently to income statement:
Translation differences on foreign operations	8 384	-14 134	24 127	-18 674	-36 937
Income tax effect	-	-	-	-	-
Total	8 384	-14 134	24 127	-18 674	-36 937
Gains(+)/losses(-) on cash flow hedges	-6 837	-2 788	-18 185	-9 846	-10 144
Income tax effect	1 504	613	4 001	2 166	2 232
Total	-5 333	-2 175	-14 185	-7 680	-7 912
Total other comprehensive income, net of tax	3 052	-16 308	9 942	-26 353	-44 849
TOTAL COMPREHENSIVE INCOME, NET OF TAX	-89 556	-2 138	-83 845	-20 747	-33 391
Attributable to:
Non-controlling interests	7	-38	- 6	-39	-18
Equity holders of AKVA group ASA	-89 563	-2 099	-83 838	-20 709	-33 373

CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY Note	2022	2021	2022	2021	2021
(NOK 1 000)	Q3	Q3	YTD	YTD	Total
Balance at start of period before non-controlling interest	1 270 185	986 137	1 296 885	1 041 538	1 041 538
The period's net profit	-92 615	14 209	-93 780	5 645	11 476
Sale of ow n shares	-	-	4 242	-	-
Equity issue	-	-	-	-	321 676
Gains/(losses) on cash flow hedges (fair value)	-5 333	-2 175	-14 185	-7 680	-7 912
Dividend	-	-	-36 668	-32 956	-32 956
Effect of merged entities on opening balance	-	-	-	-3 837	-
Translation differences	8 384	-14 134	24 127	-18 674	-36 937
Equity before non-controlling interests	1 180 622	984 037	1 180 622	984 037	1 296 885
Non-controlling interests	196	119	196	119	140
Book equity at the end of the period	1 180 819	984 156	1 180 819	984 156	1 297 025

CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION	Note	2022	2021	2021
(NOK 1 000)		30.9.	30.9.	31.12.
Intangible fixed assets	1,3	972 404	936 882	934 157
Deferred tax assets		16 582	2 319	11 229
Tangible fixed assets		615 090	625 070	642 568
Long-term financial assets		310 492	331 924	342 196
FIXED ASSETS		1 914 567	1 896 196	1 930 149
Stock		623 572	550 860	556 076
Trade receivables		491 854	580 082	550 787
Other receivables		119 090	83 965	105 091
Cash and cash equivalents		328 098	87 925	303 442
CURRENT ASSETS		1 562 615	1 302 832	1 515 397
TOTAL ASSETS		3 477 182	3 199 028	3 445 546
Paid in capital		1 175 365	880 172	1 208 539
Retained equity		5 256	103 865	88 346
Equity attributable to equity holders of AKVA group ASA		1 180 622	984 037	1 296 885
Non-controlling interests	1,3	196	119	140
TOTAL EQUITY		1 180 819	984 156	1 297 025
Deferred tax		3 251	37 822	21 187
Other long term debt		37 364	38 771	39 056
Lease Liability - Long-term		387 037	395 484	404 673
Long-term interest bearing debt	1	712 406	754 187	454 065
LONG-TERM DEBT		1 140 058	1 226 263	918 981
Short-term interest bearing debt	4	37 500	77 889	300 858
Lease Liability - Short-term		85 124	64 083	78 201
Trade payables		341 453	239 977	275 604
Public duties payable		92 466	92 442	63 699
Contract liabilities		331 696	357 316	354 905
Other current liabilities		268 067	156 902	156 273
SHORT-TERM DEBT		1 156 306	988 608	1 229 540
TOTAL EQUITY AND DEBT		3 477 182	3 199 028	3 445 546

CONDENSED CONSOLIDATED STATEMENT OF CASH FLOW	2022	2021	2022	2021	2021
(NOK 1 000)	Q3	Q3	YTD	YTD	Total
Cash flow from operating activities
Profit before taxes	-108 373	19 263	-115 210	2 577	2 549
Taxes paid	14 642	-13 278	-6 237	-25 936	-34 683
Share of profit(-)/loss(+) from associates	-7 895	-2 113	-5 985	-6 122	-8 461
Net interest cost	12 730	10 852	33 234	31 350	38 868
Gain(-)/loss(+) on disposal of fixed assets	-286	-295	-448	-1 005	-1 567
Gain(-)/loss(+) on financial fixed assets	34 270	9 355	29 945	13 492	10 342
Depreciation and amortization	84 860	46 950	173 215	140 827	182 662
Changes in stock, accounts receivable and trade payables	200 107	-108 989	57 286	-168 052	-108 105
Changes in other receivables and payables	53 103	127 081	124 229	80 390	22 221
Net foreign exchange difference	-28 252	-16 134	-16 884	-31 004	-43 075
Cash generated from operating activities	254 906	72 692	273 144	36 518	60 752
Cash flow from investment activities
Investments in fixed assets	-24 980	-12 984	-123 949	-59 324	-80 335
Proceeds from sale of fixed assets	1 645	567	6 601	2 259	2 626
Payment of shares and participations	0	-5 414	0	-36 217	-36 217
Net cash flow from investment activities	-23 335	-17 831	-117 348	-93 282	-113 926
Cash flow from financing activities
Repayment of borrow ings	-29 262	-22 106	-66 922	-67 948	-91 810
Proceed from borrow ings	0	-50 764	0	77 879	6 695
Loan issue	0	-22 471	0	-22 471	-22 142
IFRS 16 interest	-4 662	-5 059	-14 066	-15 457	-20 605
Net other interest	-8 068	-5 793	-19 168	-15 893	-18 263
Dividend payment	0	0	-36 668	-32 956	-32 956
Equity issue	0	0	0	0	321 676
Net cash flow from financing activities	-41 992	-106 194	-136 824	-76 846	142 595
Net change in cash and cash equivalents	189 580	-51 332	18 972	-133 610	89 421
Net foreign exchange differences	1 468	-3 317	5 684	-2 002	-7 576
Cash and cash equivalents at beginning of period	137 051	143 920	303 442	224 884	224 884
Cash and cash equivalents divested entities	0	-1 347	0	-1 347	-3 287
Cash and cash equivalents at end of period	328 098	87 925	328 098	87 925	303 442

Selected notes to the condensed interim consolidated financial statements

Note 1 General information and basis for preparation

AKVA group consists of AKVA group ASA and its subsidiaries. In February 2021, AKVA group ASA acquired 33.7% of the shares in Observe Technologies Ltd. In September 2021, AKVA group ASA participated in a share issue in Abyss Group AS, where 100% of the shares in AKVA Marine Services AS (later renamed to Abyss Sør AS) were used as a non-cash contribution, for which AKVA group ASA received an ownership interest of 25.5% in Abyss Group AS. The ownership as of today is 22,9% in Abyss Group AS.

In March 2022, AKVA group ASA and Egersund Net AS sold its shares in Atlantis Subsea Farming AS.

These condensed interim financial statements are prepared in accordance with International Accounting Standard 34, Interim Financial Reporting as adopted by the EU (IAS 34). The same accounting policies and methods of computation are followed in the interim financial statements as compared with the most recent annual financial statement. The condensed interim financial statements do not include all of the information and disclosures required by International Reporting Standards (IFRS) for a complete set of financial statements, and these condensed interim financial statements should be read in conjunction with the most recent annual financial statements. The annual financial statements were prepared in accordance with International Financial Reporting Standards and interpretations as issued by the International Standards Board and as adopted by the EU. A description of the significant accounting policies applied in preparing these condensed interim financial statements is included in AKVA group's consolidated financial statements for 2021. There have been no changes to significant accounting policies since the preparation of the annual financial statements for 2021. The condensed interim financial statements are unaudited.

Because of rounding differences, numbers or percentages may not add up to the total. The consolidated financial statements for the Group for the year ended 31 December 2021 are available upon request from the company's office at Plogfabrikkveien 11, 4353 Klepp Stasjon, Norway or at

http://ir.akvagroup.com/investor-relations/financial-info-/annual-reports.

Note 2 Accounting principles

All significant accounting principles applied in the consolidated financial statement are described in the Annual Report 2021 (as published on the OSE on 15 April 2022).

AKVA group accounts for associates owned between 20% and 50% by using the equity method. Gain/loss on investments are recognized as other operating revenue, subject to the investment being of similar character and type as the other businesses within the group.

No new standards have been adopted in 2022.

In connection with the global instability and ongoing war between Russia and Ukraine, AKVA group has reviewed and assessed internal and external factors related to material discretionary items. AKVA group has, based on our assessment, made no write-downs for Q3 2022.

Related to restructuring of the Land Based Business area in Q3 there has been performed impairment test at different CGU levels. The result is an impairment of right-of-use asset and other fixed asset of MNOK 40.

Furthermore, there has been made a write down loan to AquaCon of MNOK 28.

Note 3 Recognition and measurement of assets and liabilities in connection with acquisitions

IFRS 3 permits adjustments to items recognized in the original accounting for business combination, for a maximum of one year after the acquisition date, if, and when new information about facts and circumstances existing at the acquisition date is obtained. AKVA group will make a final assessment before this one-year period comes to an end.

Note 4 Events after the reporting period

No events after reporting period.

Note 5 Business segments

AKVA group is organized in three business segments; Sea Based Technology, Land Based Technology and Digital.

Sea Based Technology (SBT) consist of the following companies: AKVA group ASA, Helgeland Plast AS, AKVA group Services AS, Sperre AS, AKVA group Scotland Ltd, AKVASmart Turkey Ltd, AKVA group Australia Pty Ltd, AKVA group Chile S.A., AKVA group North America Inc, AKVA group Hellas, Newfoundland Aqua Service Ltd., AKVA group España, Egersund Net AS, Egersund Trading AS, UAB Egersund Net and Grading Systems Ltd. The products included in the segment are: Cages, barges, feed systems, sensors, net cleaning systems, nets and other operational technologies and systems for Sea Based Aquaculture.

Land Based Technology (LBT) consist of the following companies: AKVA group Land Based Norway AS, AKVA group Denmark A/S, AKVA group Land Based A/S and AKVA group Land Based Americas SA. The products included in the segment is recirculation systems and other technologies for land based aquaculture and post smolt facilities.

Digital (DI) consist of the following companies: AKVA group Software AS. The products included in software includes digital solutions and professional services. In addition to AKVA group Software AS the products are sold worldwide through a number of other companies in AKVA group.

The same accounting principles as described for the Group financial statements have been applied for the segment reporting. Inter-segment transfers or transactions are entered into under normal commercial terms and conditions, and the measurement used in the segment reporting is the same as used for the actual transactions.

CONDENSED CONSOLIDATED BUSINESS SEGMENTS	2022	2021	2022	2021	2021
(NOK 1 000)	Q3	Q3	YTD	YTD	Total
Sea based technology
Nordic operating revenues	380 890	338 261	1 326 402	1 239 628	1 635 093
Americas operating revenues	186 260	139 988	462 318	346 914	478 166
Europe & Middle East operating revenues	113 794	125 049	304 324	322 809	446 457
INTRA SEGMENT REVENUE	680 943	603 298	2 093 043	1 909 350	2 559 716
Operating costs ex depreciations	602 324	533 211	1 880 427	1 718 033	2 318 994
OPERATING PROFIT BEFORE DEPRECIATIONS (EBITDA)	78 619	70 087	212 616	191 317	240 722
EBITDA ex. cyber-attack costs	78 619	70 087	212 616	234 217	283 622
Depreciation	34 788	41 506	107 346	124 284	159 612
OPERATING PROFIT (EBIT)	43 831	28 581	105 270	67 034	81 110
EBIT ex. cyber-attack costs	43 831	28 581	105 270	109 934	124 010
Digital
Nordic operating revenues	15 257	13 151	44 748	32 738	47 590
Americas operating revenues	8 554	5 788	23 755	16 889	22 233
Europe & Middle East operating revenues	1 168	869	3 698	2 709	3 648
INTRA SEGMENT REVENUE	24 979	19 808	72 201	52 336	73 471
Operating costs ex depreciations	15 493	17 225	53 805	43 942	62 310
OPERATING PROFIT BEFORE DEPRECIATIONS (EBITDA)	9 485	2 584	18 396	8 394	11 162
EBITDA ex. cyber-attack costs	9 485	2 584	18 396	11 494	14 262
Depreciation	6 606	2 892	14 683	8 968	12 025
OPERATING PROFIT (EBIT)	2 879	-309	3 713	-574	-863
EBIT ex. cyber-attack costs	2 879	-309	3 713	2 526	2 237
Land based technology
Nordic operating revenues	133 173	112 914	426 889	320 867	486 926
Americas operating revenues	1 193	2 116	4 300	6 641	1 624
INTRA SEGMENT REVENUE	134 365	115 030	431 188	327 508	488 550
Operating costs ex depreciations	196 974	108 523	531 009	335 432	487 967
OPERATING PROFIT BEFORE DEPRECIATIONS (EBITDA)	-62 609	6 507	-99 821	-7 924	583
EBITDA ex. cyber-attack costs	-62 609	6 507	-99 821	-4 224	4 283
Depreciation and amortization	3 571	2 552	11 291	7 575	11 026
Impairment	39 895	-	39 895	-	-
OPERATING PROFIT (EBIT)	-106 074	3 955	-151 006	-15 499	-10 442
EBIT ex. cyber-attack costs	-106 074	3 955	-151 006	-11 799	-6 742

Note 6 Top 20 shareholders as of 30 September 2022

No of shares		% Account name	Type	Citizenship
18 703 105	51,0 %	EGERSUND GROUP AS		NOR
6 600 192	18,0 %	Israel Corporation Ltd		ISR
1 509 915		4,1 % PARETO AKSJE NORGE VERDIPAPIRFOND		NOR
968 622		2,6 % SIX SIS AG	Nominee	CHE
892 579		2,4 % VERDIPAPIRFONDET NORDEA KAPITAL		NOR
841 484		2,3 % VERDIPAPIRFONDET NORDEA AVKASTNING		NOR
791 167		2,2 % VERDIPAPIRFONDET ALFRED BERG GAMBA		NOR
615 614		1,7 % VERDIPAPIRFONDET NORDEA NORGE PLUS		NOR
543 332		1,5 % FORSVARETS PERSONELLSERVICE		NOR
321 155		0,9 % J.P. Morgan SE	Nominee	LUX
302 998		0,8 % MP PENSJON PK		NOR
294 282		0,8 % AKVA GROUP ASA		NOR
256 590		0,7 % J.P. Morgan SE	Nominee	FIN
232 613		0,6 % VERDIPAPIRFONDET ALFRED BERG NORGE		NOR
199 752		0,5 % EQUINOR PENSJON		NOR
130 000		0,4 % NESSE & CO AS		NOR
129 988		0,4 % PACTUM AS		NOR
128 000		0,3 % VERDIPAPIRFONDET ALFRED BERG NORGE		NOR
125 795		0,3 % DAHLE		NOR
104 336		0,3 % VERDIPAPIRFONDET ALFRED BERG AKTIV		NOR
33 691 519		91,9 % 20 largest shareholders
2 976 214		8,1 % Other shareholders
36 667 733		100,0 % Total shares

An updated overview of the 20 largest shareholders is available on AKVA group's investor relations webpage, http://ir.akvagroup.com/investor-relations/theshare/largest-shareholders.

Note 7 Alternative Performance Measures - Non IFRS Financial Measures

AKVA group discloses alternative performance measures as a supplement to the financial statements prepared in accordance with IFRS. Such performance measures are used to provide an enhanced insight into the operating performance, financing and future prospects of the company and are frequently used by analysts, investors and other interested parties. The definition of these measures are as follows:

Available cash is a non-IFRS financial measure, calculated by summarizing all cash in the Group in addition to available cash from established credit facilities.

EBITDA – EBITDA is the earnings before interest, taxes, depreciation, and amortizations. It can be calculated by the EBIT added by the depreciations and amortizations.

EBITDA ex. cyber-attack costs - EBITDA ex. cyber-attack costs are the earnings before interest, taxes, depreciation, and amortizations, adjusted for the effect of the costs related to the cyber-attack in 2021 to show normalized results for the period. It can be calculated by the EBIT ex. cyber-attack costs added by the depreciations and amortizations.

EBIT – EBIT is the earnings before interest and taxes. It can be calculated by the profit before tax added by the net financial items.

EBIT ex. cyber-attack costs - EBIT ex. cyber-attack costs are the earnings before interest and taxes, adjusted for the effect of the costs related to the cyber-attack in 2021 to show normalized results for the period. It can be calculated by the profit before tax ex. cyber-attack costs added by the net financial items.

NIBD - Net interest-bearing debt is a non-IFRS financial measure, equal to our longterm interest-bearing debt plus liabilities to financial institutions minus our cash at the balance sheet date.

NIBD / EBITDA is a non-IFRS measure, calculated as period end NIBD divided by the prior 12 months EBITDA.

Order backlog is a non-IFRS measure, calculated as signed orders and contracts at the balance sheet date.

Order intake is a non-IFRS measure, calculated as order backlog at the end of period minus order backlog at start of period and revenue in the period.

ROACE - Return on average Capital Employed is a non-IFRS financial measure, calculated by dividing the last 12 months EBIT by the average of the Capital Employed ex. IFRS 16 last 12 months.

Working Capital is a non-IFRS financial measure calculated by current assets less cash minus current liabilities less liabilities to financial institutions.

The following tables reconciles our Alternative Performance Measures to the most directly reconcilable line item, subtotal or total presented in the financial statements:

Alternative Performance Measures - Non IFRS Financial Measures	2022	2021	2021
(NOK 1 000)	Q3	Q3	31.12.
Cash and cash equivalents	328 098	87 925	303 442
Not utilized overdraft facilities at period end	465 000	222 955	300 000
Available cash	793 098	310 880	603 442
Total assets	3 477 182	3 199 028	3 445 546
Cash and cash equivalents	-328 098	-87 925	-303 442
IFRS 16 - RoU Asset	-434 329	-446 495	-469 501
Current liabilities	-1 156 306	-988 608	-1 229 540
Liabilities to financial institutions - Short-term	37 500	77 889	300 858
Lease Liability - Short-term	85 124	64 083	78 201
Capital employed	1 681 072	1 817 973	1 822 122
Operating profit	-59 364	32 228	119 505
Depreciation and amortization	84 860	46 950	182 662
EBITDA	25 496	79 178	302 167
Liabilities to financial institutions	750 000	750 000	750 000
Lease liabilities	472 161	459 567	482 874
Other non-current liabilities	37 270	120 846	43 979
Non-interest bearing part of non-current liabilities	-37 364	-38 771	-39 056
Cash and cash equivalents	-328 098	-87 925	-303 442
Net interest-bearing debt	893 968	1 203 718	934 355
Operating profit last tw elve months	-23 179	110 244	119 505
Average Capital employed last tw elve months	1 837 445	1 741 091	1 779 038
ROACE	-1,3 %	6,3 %	6,7 %
Current assets	1 562 615	1 302 832	1 515 397
Cash and cash equivalents	-328 098	-87 925	-303 442
Current liabilities	-1 156 306	-988 608	-1 229 540
Current lease liabilities	85 124	64 083	78 201
Current liabilities to financial institutions	37 500	77 889	300 858
Working capital	200 834	368 272	361 473

No reconciliations have been performed for order backlog and order intake, as these are Alternative Performance Measures not linked to accounting figures.

AKVA group ASA,

Plogfabrikkveien 11 P.O. Box 8068, N-4353 Klepp stasjon Norway

Tel +47 51 77 85 00 Fax +47 51 77 85 01

www.akvagroup.com

Other AKVA group offices:

AKVA group, Trondheim	Tel (+47) 73 84 28 00
AKVA group, Brønnøysund	Tel (+47) 75 00 66 00
AKVA group, Sandstad	Tel (+47) 72 44 11 00
AKVA group, Mo i Rana	Tel (+47) 75 14 37 50
AKVA group, Tromsø	Tel (+47) 75 00 66 50
AKVA group, Sandnessjøen	Tel (+47) 75 14 37 50
AKVA group, Rørvik	Tel (+47) 75 00 66 50
Egersund Net, Egersund	Tel (+47) 51 46 29 60
Egersund Net, Austevoll	Tel (+47) 55 08 85 10
Egersund Net, Manger	Tel (+47) 51 46 29 60
Egersund Net, Kristiansund	Tel (+47) 51 46 29 60
Egersund Net, Rørvik	Tel (+47) 51 46 29 60
Egersund Net, Brønnøysund	Tel (+47) 51 46 29 60
Egersund Net, Vevelstad	Tel (+47) 51 46 29 60
Egersund Net, Vesterålen	Tel (+47) 76 14 00 00
Egersund Trading, Austevoll	Tel (+47) 55 08 85 00
Grading Systems, Shetland	Tel (+44) 1806 577 241
Helgeland Plast, Mo i Rana	Tel (+47) 75 14 37 50
AKVA group Land Based Norway, Sømna	Tel (+47) 75 02 78 80
Sperre, Notodden	Tel (+47) 35 02 50 00
UAB Egersund Net, Lithuania	Tel (+370) 446 54 842
AKVA group Land Based, Fredericia	Tel (+45) 75 88 02 22
AKVA group Chile, Puerto Montt	Tel (+56) 65 250 250
AKVA group UK, Inverness	Tel (+44) 1463 221 444
AKVA group North America, Campbell River, Canada	Tel (+1) 250 286 8802
AKVA group North America, New Brunswick, Canada	Tel (+1) 506 754 6991
AKVA group North America, Newfoundland and Labrador, Canada	Tel (+1) 506 754 1792
AKVA group Australia, Tasmania	Tel (+61) 488 983 498
AKVA group Turkey, Bodrum	Tel (+90) 252 374 6434
AKVA group España, Murcia	Tel (+34 968 209494
AKVA group Hellas, Athen	Tel (+30) 69 441 660 14
AKVA group China, Ningbo	Tel (+45) 75 88 02 22