AKVA Group — Interim / Quarterly Report 2023

Feb 16, 2024

About AKVA group	2
Higlights	3
Orderintake, revenues and profit for the group	5
Financial performance per segment	6
Revenue per segment	7
Revenue per region	8
Revenue per CAPEX / OPEX	9
Revenue per species	10
Balance sheet and cash flow	11
Statement from the Board and Chief Executive Officer	12
Notes	15
Our offices	20

AKVA group in brief

AKVA group is the leading technology and service partner to the aquaculture industry worldwide. The company has 1 425 employees, offices in 11 countries and 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 based farming and land based aquaculture. AKVA group is recognized as a pioneer and technology leader through more than 40 years.

Acceptable activity level but challenging profitability

Fourth quarter 2023 - highligts

• Quarterly revenue of MNOK 800, 3% increase compared to Q4 2022
• Order intake of MNOK 718, down from MNOK 889 in Q4 2022
• Order backlog at the end of the quarter of MNOK 2,396
• EBITDA of MNOK 41, increase from MNOK 27 in Q4 2022
• EBIT of MNOK -10, up from MNOK -14 in Q4 2022
• A rightsizing process with estimated MNOK 45 in annual cost savings was completed in Q4
• Adjusted for MNOK 10 in costs related to the rightsizing process EBITDA and EBIT was MNOK 51 and MNOK 0, respectively

■ The medium-term financial targes are revised and AKVA is aiming for revenue of minimum BNOK 3.6 and EBIT of 4%-5% in 2024

Full year 2023 - highligts

• EBIT of 68 MNOK in 2023 is up from MNOK -56 in 2022*
• Strong order intake of MNOK 4,328, increase from MNOK 3,414 YTD Q4 2022
• Order backlog of MNOK 2,396, 42% increase compared to end of Q4 2022
• Commercial breakthrough for deep sea farming concepts
• Award of new RAS contract with NOAP for next 4,000 tonnes (phase 2) and new post smolt contract with Cermaq Norway. Contract values estimated at MEUR 40 and MEUR 60, respectively
• Acquisition of 51% of the shares in Submerged AS was completed in Q3 with the option to increase the ownership to 100% in 2028 based on certain conditions

*EBIT in 2022 was impacted by restructuring costs of MNOK 98

Order intake, revenues, and profits for the Group

OPERATIONS AND PROFIT (Figures in brackets = 2022 unless other is specified)

The activity in 2023 was at the same level as last year. Overall, the order intake was sound with the award of RAS contract for Nordic Aqua Partners (MEUR 40) and the post smolt contract for Cermaq Norway (minimum MEUR 60) as the largest contracts. However, the introduction of the resource tax had a negative impact on the activity level both in Land Based and parts of the Sea Based business. The market outlook for the post smolt market in Norway is challenging and uncertain but is expected to normalize during second half of 2024.

Profitability is improved compared to last year 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 profitability in the Sea Based business segment is acceptable with a healthy product mix. A rightsizing process, with annual cost savings of MNOK 45, was carried out in Q4 to adapt the organization to the current and expected activity level. The costs related to the process was MNOK 10 and had a negative impact on the profitability in Q4 2023.

• Order intake was MNOK 718 in Q4 2023 compared to MNOK 889 in Q4 2022.
• Revenues in Q4 2023 ended at MNOK 800 compared to MNOK 779 in Q4 2022, an increase of 3%.
• EBITDA increased from MNOK 27 in Q4 2022 to MNOK 41 in Q4 2023.
• Depreciation and amortization for the quarter were MNOK 51 compared to MNOK 42 in the same quarter last year. The increase is primarily related to Digital.
• EBIT was MNOK -10, up from MNOK -14 in Q4 2022.
• Net financial items were MNOK -43, compared to MNOK -22 in the fourth quarter last year. The main reason for the decrease is increased interest rates and currency effects.
• Profit before tax ended at MNOK -53, down from MNOK -37 in Q4 2022.
• Net Profit decreased from MNOK -37 last year to MNOK -41 in Q4 2023.

Financial key figures (NOK 1 000 000)	2023 Q4	2022 Q4	2023 YTD	2022 YTD
Revenues	800	779	3 431	3 376
EBITDA	41	27	263	158
EBIT	-10	-14	68	-56
Net profit	-41	-37	-23	-131
Net interest-bearing debt	1 109	988	1 109	988
Cash flow from operations	91	-17	192	221
ROACE	3,5%	-3,1 %	3,5%	-3,1 %
Order backlog	2 396	1 688	2 396	1 688
Order intake	718	889	4 328	5 3 414

Financial performance per segment

SEA BASED TECHNOLOGY (SBT)

SBT revenue for Q4 2023 ended at MNOK 618 (592). EBITDA and EBIT for the segment in Q4 ended at MNOK 55 (50) and MNOK 17 (16), respectively. The related EBITDA and EBIT margins were 8.8% (8.4%) and 2.8% (2.7%), respectively.

Order intake in Q4 2023 was MNOK 679 compared to MNOK 823 in Q4 2022. Order backlog ended at MNOK 792 compared to MNOK 902 last year.

The revenue in the Nordic region ended at MNOK 359 (304). The order intake was MNOK 438 (554) in the fourth quarter.

In the Americas region, the revenue was MNOK 166, which is a decrease from MNOK 198 in the fourth quarter last year. The order intake was MNOK 162 (145) in the fourth quarter.

Europe and Middle East (EME) had a revenue of MNOK 92 in Q4 2023, compared to a revenue of MNOK 90 in the fourth quarter last year. The order intake was MNOK 78 (123) in the fourth quarter.

LAND BASED TECHNOLOGY (LBT)

Revenues for the fourth quarter were MNOK 142 (163). EBITDA and EBIT ended at MNOK -15 (-27) and MNOK -18 (-28), respectively. The related EBITDA and EBIT margins were -10.9% (-16.8%) and -12.6% (-17.5%).

Order intake in Q4 2023 of MNOK 0 compared to MNOK 34 in Q4 2022. Order backlog ended at MNOK 1,454, compared to MNOK 683 last year.

DIGITAL (DI)

The revenue in the segment was MNOK 40 (24) in Q4 2023. EBITDA and EBIT ended at MNOK 2 (5) and MNOK -9 (-2), respectively. The related EBITDA and EBIT margins were 4.0% (19.7%) and -22.5% (-7.8%).

Order intake in Q4 2023 of MNOK 40 compared to MNOK 33 in Q4 2022. Order backlog ended at MNOK 150, compared to MNOK 103 last year.

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).

ORDER INTAKE PER SEGMENT 833

ORDER BACKLOG PER SEGMENT 817 849 833

Revenue per segment

Digital and Sea Based had an increase in activity level this quarter of 66% and 4% compared to the same quarter last year, respectively. Land Based had a decrease in revenues compared to the same quarter last year of 13%.

The revenue in AKVA group can be divided based on segments, and the above graphs show the last nine quarters development in revenue by segments

Revenue per region

Nordic and Europe and Middle East (EME) had an increase in activity level this quarter of 9% and 5% compared to the same quarter last year, respectively. Americas had a decrease in revenues compared to the same quarter last year of 12%.

AKVA group has organized its business into three geographical regions:

• Nordic: Includes the Nordic countries,
• Americas: Includes the Americas and Oceania
• Europe and Middle East: Includes the rest of the world

Revenue per CAPEX / OPEX

The CAPEX based revenues decreased with -1.9% in the fourth quarter compared to the same quarter in 2022, whilst the OPEX based revenues increased with 13.3% in the same period. Egersund Net's service stations contributed with MNOK 82 (76) in Q4 2023.

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

Revenue per species

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

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 212 on 31 December 2023, an increase from MNOK 204 on 31 December 2022. The working capital relative to last twelve months revenue was 6.2% at the end of December 2023, compared to 6.0% at the end of December 2022.

Total CAPEX in Q4 2023 was MNOK 35. MNOK 16 relates to capitalized R&D expenses, MNOK 6 is related to new ERP system and MNOK 13 was other CAPEX.

Cash and unused credit facilities amounted to MNOK 519 at the end of Q4 2023 versus MNOK 731 at the end of Q4 2022. The unused credit facility (at DNB) is MNOK 300.

Net interest-bearing debt was MNOK 1,109 at the end of December 2023, including lease liabilities of MNOK 496, compared to MNOK 988 and MNOK 482 at the end of Q4 2022.

Gross interest-bearing debt was MNOK 1,396 at the end of Q4 2023 versus MNOK 1,266 at the end of Q4 2022. The short-term interest-bearing debt in the balance sheet includes the next 12 months instalments of the long-term debt. The IFRS 16 lease liability at the end of Q4 2023 of MNOK 496 (482), is included in the interest-bearing debt.

A waiver from DNB was obtained in respect of the leverage ratio (NIBD/EBITDA) covenant. The waiver is effective from 23 November 2023 to and including 30 September 2024 (waiver period). The EBITDA used for calculating the NIBD/ EBITDA covenant is adjusted with MNOK 40. In the waiver period the leverage ratio shall not exceed 4,5 including the allowed adjustment to the EBITDA set out above. The leverage ratio was 3,66 as at 31 December 2023 and AKVA group was in compliance with all bank covenants. The Group continues to closely monitor its financial performance to ensure complicance with financial covenants.

Trailing 12 months average return on capital employed (ROACE) ended at 3.5 % (-3.1%) for the quarter.

Total assets and total equity amounted to MNOK 3,648 and MNOK 1,148 respectively, resulting in an equity ratio of 31.5% (32.0%) at the end of Q4 2023. Adjusted for the effect of IFRS 16 assets, the equity ratio is 36.2% (36.6%).

OTHER SHAREHOLDER INFORMATION

Earnings per share in Q4 2023 were NOK -1.10 (-1.03). The calculations are based on 36,437,070 (36,373,451) shares on average.

The minority interests in Newfoundland Aqua Service and Submerged are reflected in the balance sheet with 1.5% and 49% ownership, respectively.

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

MARKET AND FUTURE OUTLOOK

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

AKVA expects to see a normalization of the post smolt market in Norway during the second half of 2024.

A righsizing process was completed in Q4 2023, with estimated annual cost savings of MNOK 45, to adapt the organization to the current and expected activity level.

AKVA has revised the medium-term financial targets and is aiming for a revenue of minimum BNOK 3,6 and EBIT of 4-5% in 2024.

AKVA group will continue to invest and improve solutions, both within Sea Based, Digital 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 31 December 2023, 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, 15 FEBRUARY 2024 BOARD OF DIRECTORS, AKVA GROUP ASA

Hans Kristian Mong Chairperson

Frode Teigen Board Member

Yoav Doppelt Board Member

Heidi Nag Flikka

Board Member

Irene Heng Lauvsnes Board Member

Knut Nesse CEO

Kristin Reitan Husebø Deputy Chairperson

Odd Jan Håland Employee's Representative

John Morten Kristiansen Board Member

Mona Skåtøy Skadberg Employee's Representative

CONDENSED CONSOLIDATED INTERIM STATEMENT OF INCOME	Note	2023	2022	2023	2022
(NOK 1 000)		Q4	Q4	YTD	YTD
OPERATING REVENUES	5	799 525	779 121	3 430 922	3 376 320
Cost of materials		435 203	473 812	1 996 252	2 106 715
Payroll expenses		269 621	224 026	953 853	880 944
Other operating expenses		53 993	54 205	217 410	230 391
OPERATING PROFIT BEFORE DEPRECIATIONS (EBITDA)	5	40 708	27 078	263 407	158 270
Depreciation		13 502	7 901	48 653	41 981
IFRS 16 Depreciation		24 615	18 720	95 239	80 739
Amortization		12 419	14 926	51 913	52 147
Impairment		-	-	-	39 895
OPERATING PROFIT (EBIT)	5	-9 828	-14 470	67 601	-56 493
Net interest expense		-18 480	-11 862	-63 158	-31 030
IFRS 16 Interest expenses		-5 902	-5 511	-22 741	-19 576
Other financial items		-18 957	-4 812	-11 014	-44 766
Net financial items		-43 338	-22 184	-96 913	-95 372
PROFIT BEFORE TAX		-53 166	-36 654	-29 312	-151 864
Taxes1		-12 623	634	-6 485	-20 789
NET PROFIT		-40 544	-37 288	-22 827	-131 075
Net profit (loss) attributable to:
Non-controlling interests		-642	140	-692	134
Equity holders of AKVA group ASA		-39 901	-37 429	-22 135	-131 209
Earnings per share equity holders of AKVA group ASA		-1,10	-1,03	-0,61	-3,61
Diluted earnings per share equity holders of AKVA group ASA		-1,10	-1,03	-0,61	-3,61
Average number of shares outstanding (in 1 000)		36 437	36 373	36 416	36 369
Diluted number of shares outstanding (in 1 000)		36 437	36 373	36 416	36 369

Income tax 2023 based on best estimate

STATEMENT OF INCOME STATEMENT OF COMPREHENSIVE INCOME

CONDENSED CONSOLIDATED INTERIM STATEMENT OF COMPREHENSIVE INCOME (NOK 1 000)	Note	2023 Q4	2022 Q4	2023 YTD	2022 YTD
NET PROFIT		-40 544	-37 288	-22 827	-131 075
Other comprehensive income that may be reclassified subsequently to income statement:
Translation differences on foreign operations		-13 098	-7 407	-4 408	17 817
Income tax effect		-	-	-	-
Total		-13 098	-7 407	-4 408	17 817
Gains(+)/losses(-) on cash flow hedges		370	10 278	7 681	-9 147
Income tax effect		-81	-2 261	-1 690	2 012
Total		288	8 017	5 991	-7 135
Total other comprehensive income, net of tax		-12 810	610	1 583	10 682
TOTAL COMPREHENSIVE INCOME, NET OF TAX		-53 354	-36 678	-21 244	-120 393
Attributable to:
Non-controlling interests		-642	140	-692	134
Equity holders of AKVA group ASA		-52 711	-36 818	-20 552	-120 527

STATEMENT OF CHANGES IN EQUITY

CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY	Note	2023	2022	2023	2022
(NOK 1 000)		Q4	Q4	YTD	YTD
Balance at start of period before non-controlling interest		1 176 160	1 180 819	1 144 000	1 296 885
The period's net profit		-39 901	-37 429	-22 135	-131 209
Sale of own shares		-	-	-	3 801
Gains/(losses) on cash flow hedges (fair value)		288	8 017	5 991	-7 135
Dividend		-	-	-	-36 375
Share-based payments		6 768	-	6 768	-
Adjustment related to prior periods		7 716	-	7 716	216
Translation differences		-13 098	-7 407	-4 408	17 817
Equity before non-controlling interests		1 137 932	1 144 000	1 137 932	1 144 000
Non-controlling interests		10 225	336	10 225	336
Book equity at the end of the period		1 148 157	1 144 337	1 148 157	1 144 337

STATEMENT OF FINANCIAL POSITION STATEMENT OF CASH FLOW

CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION	Note	2023	2022
(NOK 1 000)		31.12.	31.12.
Intangible fixed assets	1,3	1 157 266	989 063
Deferred tax assets		77 283	44 902
Tangible fixed assets		671 833	635 245
Long-term financial assets		312 778	314 337
FIXED ASSETS		2 219 160	1 983 547
Stock		628 614	600 394
Trade receivables		468 193	592 838
Other receivables		113 002	125 679
Cash and cash equivalents		219 390	277 988
CURRENT ASSETS		1 429 199	1 596 899
TOTAL ASSETS		3 648 359	3 580 446
Equity attributable to equity holders of AKVA group ASA		1 137 932	1 144 000
Non-controlling interests	1,3	10 225	336
TOTAL EQUITY		1 148 157	1 144 337
Deferred tax		46 814	18 242
Other long term debt		59 777	36 637
Lease Liability - Long-term		405 231	403 340
Long-term interest bearing debt	1	862 317	702 481
LONG-TERM DEBT		1 374 139	1 160 700
Short-term interest bearing debt	4	37 500	80 625
Lease Liability - Short-term		90 795	79 095
Trade payables		328 421	310 629
Public duties payable		133 036	81 277
Contract liabilities		293 599	468 729
Other current liabilities		242 712	255 057
SHORT-TERM DEBT		1 126 063	1 275 410
TOTAL EQUITY AND DEBT		3 648 359	3 580 446

CONDENSED CONSOLIDATED STATEMENT OF CASH FLOW	2023	2022	2023	2022
(NOK 1 000)	Q4	Q4	YTD	YTD
Cash flow from operating activities
Profit before taxes	-53 166	-36 654	-29 311	-151 864
Taxes paid	-425	-5 133	-12 184	-11 370
Share of profit(-)/loss(+) from associates	-2 106	-1 102	-10 256	-7 087
Net interest cost	24 382	17 372	85 899	50 606
Gain(-)/loss(+) on disposal of fixed assets	-583	-318	-1 339	-766
Gain(-)/loss(+) on financial fixed assets	-5 641	4 551	-10 953	-5 504
Depreciation, amortization and impairment	50 536	41 548	195 805	214 762
Changes in stock, accounts receivable and trade payables	202 948	-108 630	114 218	-51 344
Changes in other receivables and payables	-122 107	80 908	-123 038	205 137
Net foreign exchange difference	-2 671	-10 016	-16 442	-21 216
Cash generated from operating activities	91 167	-17 475	192 399	221 353
Cash flow from investment activities
Investments in fixed assets	-35 418	-43 910	-175 160	-167 859
Proceeds from sale of fixed assets	660	369	2 218	6 969
Acquisition of subsidiary net of cash acquired	-35 320	0	-35 648	0
Proceeds from sale of associates	0	0	0	40 000
Net cash flow from investment activities	-70 078	-43 541	-208 590	-120 890
Cash flow from financing activities
Repayment of borrowings	-11 288	-14 700	-160 393	-81 622
Proceed from borrowings	0	43 125	195 833	43 125
IFRS 16 interest	-5 902	-5 511	-22 741	-19 576
Net other interest	-18 480	-12 008	-63 158	-31 177
Dividend payment	0	0	0	-36 668
Dividents payment from NCI	8 052	0	8 052	0
Net cash flow from financing activities	-27 618	10 906	-42 407	-125 918
Cash and cash equivalents at beginning of period	225 918	328 098	277 988	303 442
Net change in cash and cash equivalents	-6 528	-50 110	-58 598	-25 454
Cash and cash equivalents at end of period	219 390	277 988	219 390	277 988

NOTE 1:

General information and basis for preparation

AKVA group consists of AKVA group ASA and its subsidiaries.

Ownership in Newfoundland Aqua Service Ltd was increased from 70% to 98,5% in October 2023 through execution of option.

In August 2023, AKVA group ASA acquired 51% of the shares in Submerged 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 2022. There have been no changes to significant accounting policies since the preparation of the annual financial statements for 2022. 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 2023 are available upon request from the company's office at Plogfabrikkveien 11, 4353 Klepp Stasjon, Norway or at

HTTPS://WWW.AKVAGROUP.COM/INVESTORS/FINANCIAL-IN-FO/ANNUAL-REPORTS/.

NOTE 2:

Accounting principles

All significant accounting principles applied in the consolidated financial statement are described in the Annual Report 2022 (as published on the OSE on 15 March 2023).

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 2023.

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 Q4 2023.

Related to restructuring of the Land Based Business area in Q3 2022 impairment tests were performed at different CGU levels. The result was an impairment of right-of-use asset and other fixed asset of MNOK 40.

Furthermore, a write down was made to loan to AquaCon of MNOK 28 in Q3 2022.

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.

On 31.08.2023, the Group acquired 51% of the issued share capital of Submerged AS, obtaining control of Submerged AS. Submerged AS is a technology company and qualifies as a business as defined in IFRS 3 Business Combinations. Submerged AS was acquired to strengthen AKVA groups digital product offering.

The amounts recognised in respect of the identifiable assets acquired and liabilities assumed are as set out in the table to the right.

MNOK 25 of the total consideration payable in cash was transferred on October 1st.

The goodwill of MNOK 22 arising from the acquisition consists of key employees considered to have unique competence and significant synergy effects for AKVA group. None of the goodwill is expected to be deductible for income tax purposes.

Acquisition-related costs amount to MNOK 0.9.

Submerged AS contributed MNOK 6.6 revenue and MNOK -1.5 to the Group's profit for the period between the date of acquisition and the reporting date.

If the acquisition of Submerged AS had been completed on the first day of the financial year, Group revenues for the year would have been MNOK 12.9 and Group profit would have been MNOK -4.0.

The non-controlling interest (49 per cent ownership interest in Submerged AS) recognised at the acquisition date was measured by reference to the fair value of the non-controlling interest and amounted to NOK 18 million. This fair value was estimated by applying an income approach. The following were the key model inputs used in determining the fair value:

■ Assumed discount rate of 15 per cent

Values at the acquisition date in	Book value	Adjusted value	Fair value
(NOK 1000)
ASSETS
IP - Brand RFR	-	-	-
IP - Technology RFR	-	13 158	13 158
IP - Customers MEEM	-	-	-
Deferred tax of adjusted value	701	-	701
Research and development	6 009	-	6 009
Patents	220	-	220
Machinery and equipment	775	-	775
RoU Asset	944	-	944
Other non current financial assets	164	-	164
Inventory	3 306	-	3 306
Accounts receivables	845	-	845
Accrued income	148	-	148
Other receivables	-10	-	-10
Cash	4 671	-	4 671
	17 773	13 158	30 931
LIABILITIES
Deferred tax	-	-2 895	-2 895
Long term interest bearing loans	-6 233	-	-6 233
Other short term interest bearing loans	-200	-	-200
Lease liability	-944	-	-944
Trade payables	-558	-	-558
Tax payable	810	-	810
Public duties payable	-900	-	-900
Prepayments from customers	-420	-	-420
Other current liabilities	-892	-	-892
	-9 337	-2 895	-12 232
Total identifiable net assets	8 436	10 263	18 699
Goodwill arising on acquisition			22 023
Non-controlling interests in 49 % of Submerged AS			18 379
Total consideration			59 101
Purchase price, payable in cash (51%)	-30 141	-	-30 141
Contingent consideration	-	-	-
Total consideration transferred	-30 141	-	-30 141
Cash acquired with subsidiary	4 671	-	4 671
Purchase price, payable in cash	-30 141	-	-30 141
Net cash outflow	-25 470	-	-25 470

NOTE 4:

Events after the reporting period

No events after the 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 Sømna AS (formerly 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 and Submerged AS. The products included in software includes digital solutions and professional services. In addition to AKVA group Software AS and Submerged 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

CONDENSED CONSOLIDATED BUSINESS SEGMENTS	2023	2022	2023	2022
(NOK 1 000)	Q4	Q4	YTD	YTD
Sea based technology
Nordic operating revenues	359 323	303 937	1 675 660	1 630 339
Americas operating revenues	166 287	197 844	616 702	660 162
Europe & Middle East operating revenues	92 022	90 276	373 665	394 600
INTRA SEGMENT REVENUE	617 632	592 057	2 666 028	2 685 100
Operating costs ex depreciations	563 056	542 280	2 395 149	2 422 707
OPERATING PROFIT BEFORE DEPRECIATIONS (EBITDA)	54 576	49 777	270 878	262 393
Depreciation & amortization	37 564	33 919	147 528	141 265
OPERATING PROFIT (EBIT)	17 012	15 858	123 350	121 128
Digital Nordic operating revenues
	23 910	13 427	74 920	58 175
Americas operating revenues	11 801	9 244	47 911	32 999
Europe & Middle East operating revenues	4 161	1 412	9 619	5 109
INTRA SEGMENT REVENUE	39 873	24 082	132 450	96 283
Operating costs ex depreciations	38 263	19 338	107 362	73 143
OPERATING PROFIT BEFORE DEPRECIATIONS (EBITDA)	1 609	4 744	25 088	23 140
Depreciation & amortization	10 565	6 628	39 069	21 311
OPERATING PROFIT (EBIT)	-8 955	-1 884	-13 981	1 829
Land based technology
Nordic operating revenues	130 963	155 605	622 162	588 112
Americas operating revenues	5 439	1 758	10 283	6 058
Europe & Middle East operating revenues	5 618	5 618	-	-
INTRA SEGMENT REVENUE	142 020	162 981	632 444	594 170
Operating costs ex depreciations	157 498	190 424	665 004	721 434
OPERATING PROFIT BEFORE DEPRECIATIONS (EBITDA)
Depreciation and amortization	-15 477 2 407	-27 443 1 000	-32 560 9 208	-127 264 12 291
Impairment	-	-	-	39 895

NOTE 6:

Top 20 shareholders as of 31. December 2023

Number of shares	Ownership %	Shareholders		Citizenship
18 703 105	51,0 %	EGERSUND GROUP AS		NOR
6 600 192	18,0 %	Israel Corporation Ltd		ISR
1 901 267	5,2 %	PARETO AKSJE NORGE VERDIPAPIRFOND		NOR
1 095 436	3,0 %	VERDIPAPIRFONDET NORDEA AVKASTNING		NOR
964 745	2,6 %	SIX SIS AG	Nominee	CHE
791 167	2,2 %	VERDIPAPIRFONDET ALFRED BERG GAMBA		NOR
621 997	1,7 %	VERDIPAPIRFONDET NORDEA KAPITAL		NOR
602 614	1,6 %	VERDIPAPIRFONDET NORDEA NORGE PLUS		NOR
543 332	1,5 %	FORSVARETS PERSONELLSERVICE		NOR
316 155	0,9 %	J.P. Morgan SE	Nominee	LUX
302 998	0,8 %	MP PENSJON PK		NOR
256 590	0,7 %	J.P. Morgan SE	Nominee	FIN
237 430	0,6 %	VERDIPAPIRFONDET EQUINOR AKSJER NO		NOR
230 663	0,6 %	AKVA GROUP ASA		NOR
221 502	0,6 %	VERDIPAPIRFONDET ALFRED BERG NORGE		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
100 800	0,3 %	JAKOB HATTELAND HOLDING AS		NOR
34 003 776	92,7 %	20 largest shareholders
2 663 957	7,3 %	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, https://www.akvagroup.com/investors/the-share/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.

Capital Employed is a non-IFRS financial measure calculated by total assets less cash and IFRS 16 RoU assets minus current liabilities less liabilities to financial institutions (short term) and lease liability (short term).

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

NIBD - Net interest-bearing debt is a non-IFRS financial measure, equal to our interest-bearing debt plus lease liability minus our cash and cash equivalents 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 quarterly 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
(NOK 1 000)	2023 Q4	Q4
Cash and cash equivalents	219 390	277 988
Not utilized overdraft facilities at period end	300 000	452 675
Available cash	519 390	730 663
Total assets	3 648 359	3 580 446
Cash and cash equivalents	-219 390	-277 988
IFRS 16 - RoU Asset	-475 141	-451 379
Current liabilities	-1 126 063	-1 275 410
Liabilities to financial institutions - Short-term	37 500	80 625
Lease Liability - Short-term	90 795	79 095
Capital employed	1 956 059	1 735 389
Operating profit	-9 828	-14 470
Depreciation and amortization	50 536	41 548
Impairment	0	0
EBITDA	40 708	27 078
Liabilities to financial institutions	899 817	778 542
Lease liabilities	496 026	482 434
Other non-current liabilities	59 777	41 201
Non-interest bearing part of non-current liabilities	-59 777	-36 637
Long term financial assets	-67 161	0
Cash and cash equivalents	-219 390	-277 988
Net interest-bearing debt	1 109 292	987 552
Operating profit last twelve months	67 601	-56 493
Average Capital employed last twelve months	1 932 199	1 815 688
ROACE	3,5 %	-3,1 %
Current assets	1 429 199	1 596 899
Cash and cash equivalents	-219 390	-277 988
Current liabilities	-1 126 063	-1 275 410
Current lease liabilities	90 795	79 095
Current liabilities to financial institutions	37 500	80 625
Working capital	212 041	203 221

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

Our offices

Head Office AKVA group ASA Plogfabrikken 11, N-4353 Klepp Stasjon, Norway post@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 Sømna, 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) 968 209 494 AKVA group Hellas, Athen Tel (+30) 69 441 660 14

20 AKVA group China, Ningbo Tel (+45) 75 88 02 22