AKVA Group — Investor Presentation 2016

May 30, 2016

Bryne, May 30th, 2016

AKVA group Capital Markets Day – Agenda

0930 – 0940	Welcome (CEO)
0940 – 1020	AKVA – status and main strategies going forward (CEO & CFO)
1020 – 1030	Break
1030 – 1100	Land based technologies – status and potentials for the salmon industry (GM Aquatec Solution)
1100 - 1130	Atlantis Subsea Farming – a solution to more exposed sites? (COO TnS)
1130 – 1200	Emerging market – AKVA's potentials are outside salmon? (COO Export)
1200 - 1215	Break
1215 – 1245	Automation – a key to increased efficiency? (COO TnS & Technical Manager)
1245 – 1315	Rental – a key to grow recurring revenues (CFO)
1315 - 1330	Closing Q&A
1330 / 1430	Seafood lunch

AKVA – status and main strategies going forward CEO Trond Williksen & CFO Eirik B Monsen Capital Market Day - AKVA group ASA Bryne, May 30th, 2016

AKVA group – uniquely positioned for future growth

Presence in all main farming regions

Map of activities Revenue per region, Q1 2016

Nordic 77 % Americas 10 % Export 13 %

Revenue by product groups and species

By product groups – Q1 2016 By species – Q1 2016

• Cage based technologies = Cages, barges, feed systems and other operational systems for cage based aquaculture
• Software = Software and software systems

• Land based technologies = Recirculation systems and technologies for land based aquaculture

• Salmon = Revenue from technology and services sold to production of salmon

• Other species = Revenue from technology and services sold to production of other species than salmon
• Non Seafood = Revenue from technology and services sold to non seafood customers

AKVA group serves all salmon farmers in the World

Strategic priority to increase the proportion of OPEX based revenue

OPEX based vs CAPEX based revenue, Q1 2016 Comments

• OPEX based revenue defined as our revenue booked as OPEX in our customers P&L
• Aim of increasing relative share of OPEX based revenue through software and services – by developing software, farming services, technology services and rental further
• Introduction of rental business model in Norway in late 2014. Already successfully introduced in UK and Canada
• Rental is an "all inclusive" service providing for instance light or picture for an agreed period of time (2 to 5 years duration) reducing CAPEX and reducing operational work for the customer
• AKVA Marine Services, our provider of diving, ROV and other services to the salmon farming sector (Farming Services)
• Development of Farming Services still in an early stage opportunities for consolidation

AKVA Marine Services AS – our new Farming Services vehicle

• We expect this market to grow in the coming years and we expect a consolidation of the players
• The merger is expected to be finalized in Q2 2016
• AKVA group ASA will own 65% of the new merged company AKVA Marine Services AS
• AKVA Marine Services will be a lean and effective player in the Farming Services industry
• AKVA Marine Services will cover the farming services market in Rogaland and Hordaland
• AKVA Marine Services AS entered into a letter of intent regarding a possible acquisition of Techno Dive AS on May 10th , 2016
• Techno Dive AS is a leading provider of safe and efficient subsea work. With worldwide experience through countless projects
• Techno Dive is considered to be a good fit with AKVA Marine Services and is expected to strengthen its position in the Farming Services segment further

Strong demand for salmon - high and stable salmon prices expected going forward

Annual harvest volumes of Atlantic salmon Salmon price history and forecast, NOK/kg

Notes: 1) Actual prices and Fish Pool forwards

Aquaculture is becoming increasingly technology-intensive

Farming capex, NOK/kg harvested 1) Comparison of cage in 1980 to cage in 2014

Source: Salmon farmer annual reports

Notes: 1) Based on reported farming capex and harvest volumes for Marine Harvest, Salmar, Cermaq, Lerøy, Grieg, NRS and Bakkafrost, 2015 figures are based on company guidance

Industry entering into a stagnant phase – with rapidly increasing costs

Source: Deloitte, Directorate of fisheries

Industry phase development effects on technology demand

LAND BASED TECHNOLOGY

CLOSED CONTAINMENT TECHNOLOGY AT SEA

ATLANTIS SUBSEA FARMING AS

• Established in partnership with the companies Sinkaberg-Hansen AS and Egersund Net AS – 33.3% of the shares each
• Purpose of developing submersible fish-farming facilities for salmon on an industrial scale
• Has applied for six development licences to enable large-scale development and testing of the new technology and operational concept
• Through its innovative development work, ATLANTIS aims both to contribute to better and more sustainable use of current farming sites as well as to enable use of more exposed sites than is currently possible. The goal is to achieve production gains and improve fish welfare by submerging the facilities, as they will be far less exposed to the environmental and physical conditions than in a surface position
• Although ATLANTIS represents a significant leap forward in terms of innovation, it is also an objective for the concept to keep costs at a level that helps strengthen the industry's competitive position. The aim is also that the technology and operating methods developed through ATLANTIS can be made available and adopted by the industry relatively quickly

The growing global movement to participate in sustainable aquaculture

Continued growth expected – still in early stage of development

Cycle development

Growth drivers

• The salmon industry is still the frontier. Analysts expects limited volume growth in salmon farming in 2014-2020. This implies high salmon prices which is the prime driver for growth in the technology and service industry
• Additional growth from increased regulation, adding complexity and adding need for compliance
• Additional growth from other species and regions
• Additional growth from maturation of the industry – the players are getting more specialized

On track – with a good start of the year

First Quarter 2016 – Highlights

• All business segments are performing well best Q1 ever
• A broad mix of products and services contribute financially becoming a stronger and more diversified Group
• Mid term target of 10% EBITDA achieved over the last 12 months
• Land based had a a good quarter becoming an important part of AKVA
• Farming Services positioning ourselves for profitable growth
• Ending the quarter with the highest order backlog ever the strong market activity continues into Q2
• Strong financial position

Improved performance year on year

^{25 227 191}214 211 202 174 222 270 180 246 310 301 330 ³⁰⁵³²⁵ 402 355 344 393 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 MNOK CAGR +21%

Revenue

Improved performance year on year

EBITDA

EBITDA in %

CBT (Revenue & EBITDA %)

LBT (Revenue & EBITDA %)

Available cash

Working capital

ROCE

Equity

Dividend payments of 25.7 MNOK in Q4 2015 and 25.8 MNOK in Q4 2014

Net debt/EBITDA

Order Inflow

Order Backlog

The large Land based contract of ~ MNOK 186 (MDKK 150) announced in a stock notice on April 4th, 2016 is not included in the Q1 2016 order backlog. It will be included in the Q2 order backlog in the next quarterly report

20 largest shareholders

No of shares		% Account name	Type	Citizenship
13 203 105	51,1 %	EGERSUND GROUP AS		NOR
3 900 000	15,1 %	WHEATSHEAF INVESTMEN ATT: ANTHONY JAMES		GBR
965 820	3,7 %	VERDIPAPIRFONDET ALF		NOR
489 813	1,9 %	STATOIL PENSJON C/O JP MORGAN CHASE		NOR
489 417	1,9 %	EIKA NORGE		NOR
484 300	1,9 %	MP PENSJON PK		NOR
436 173	1,7 %	SKANDINAVISKA ENSKIL SEB S.A. CLIENT ASSE	Nominee	LUX
370 447	1,4 %	VERDIPAPIRFONDET DNB		NOR
309 841	1,2 %	NORDEA NORDIC SMALL		FIN
300 000	1,2 %	MERTOUN CAPITAL AS		NOR
241 576	0,9 %	VPF NORDEA KAPITAL C/O JPMORGAN EUROPE		NOR
238 692	0,9 %	OLE MOLAUG EIENDOM A		NOR
196 300	0,8 %	DAHLE BJØRN		NOR
181 000	0,7 %	VPF NORDEA AVKASTNIN C/O JPMORGAN EUROPE		NOR
173 550	0,7 %	ROGALAND SJØ AS Jan N. Bringedal		NOR
140 000	0,5 %	VERDIPAPIRFONDET EIK VPF		NOR
130 280	0,5 %	ARCTIC FUNDS PLC BNY MELLON SA/NV		IRL
130 000	0,5 %	SIX SIS AG ACCOUNT 2	Nominee	CHE
125 645	0,5 %	STATOIL FORSIKRING A C/O JP MORGAN CHASE		NOR
114 752	0,4 %	MOLAUG OLE		NOR
22 620 711	87,6 %	20 largest shareholders
3 213 592	12,4 %	Other
25 834 303	100,0 %	Total number of shares as per 27.05.2016

Origin of shareholders, 5 largest countries

No of shares %		Origin	No of shareholders
19 986 669	77,4 %	Norway	902
4 403 511	17,0 %	Great Britain	29
560 710	2,2 %	Luxembourg	4
227 873	0,9 %	USA	12
217 990	0,8 %	Switzerland	6
437 550	1,7 %	Other	82

Total number of shareholders: 1035 - from 21 different countries

Share development

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• Undisputed #1 supplier of technology and services to the aquaculture sector
• Salmon farming is driven by high demand, high prices and increased technological sophistication
• New salmon farming growth to come from land-based and more exposed locations with higher technological requirements
• AKVA group is well positioned for continued growth and margin improvement – active dividend policy

Land based technologies – Status and potentials for the salmon industry going forward Morten Nielsen, General Manager Aquatec Solutions A/S Capital Market Day - AKVA group ASA Bryne, May 30th, 2016

Technologies for land based production of aquatic organisms in aquaculture with application for a range of spices, freshwater and saltwater

Land based technologies – how the different applications are defined

In land based aquaculture, the technology definitions are primary related to:

• type of water (freshwater and saltwater)
• new water required to per 1 kg of feed

Liter of added water required per kg of feed
Flow through	40.000
Re-use	10.000
Basic recirculation	500
Zero water change	50

System for all between flow trough to zero water change are currently in operation for different species

Flow trough

Basic recirculation

Zero Water Change

10

Land based technologies – AKVA's business units and brands

• Danish company based in Vejle, acquired by AKVA in 2015
• 30 employees
• Specialized in RAS systems for salmonids
• Primarily larger projects deliveries of complete solutions to the salmon industry

• Extensive reference lists of projects in the salmon industry in Norway Faroe Islands, Scotland, Chile and Tasmania

• Danish company based in Copenhagen and Frederica, acquired by AKVA in 2006

• 50 employees
• RAS systems for salmonids and other species in different geographies. Freshwater and saltwater
• Projects deliveries of complete solutions and services

• Extensive reference lists of projects in the salmon industry as well as other species in other geographies

• Norwegian company based in Sømna and Brønnøysund, acquired by AKVA in 2013

• 44 employees
• Flow through systems, tanks, piping, special solutions for land based salmon facilities. Leading provider of cleaner fish facilities in Norway
• Projects deliveries of complete solutions and services, including on site installations
• Extensive reference lists of projects in the salmon industry in Norway and some projects in other geographies

Land based technologies – business volumes and relative importance

• Cage based technologies = Cages, barges, feed systems and other operational systems for cage based aquaculture
• Software = Software and software systems
• Land based technologies = Recirculation systems and technologies for land based aquaculture

Facts about land based technologies:

• Land based technologies constituted 20% of all revenues and 40% of order backlog in AKVA in Q1 2016
• The business segment is expected to grow in importance in the years to come

Other paradigms appearing

Land based technologies – drivers for development in the salmon industry

• The salmon industry has traditional been the driver for development of RAS systems for industrial use
• limited water resources
• saving in heating cost
• search for expansion possibilities
• Experiences gained after operating RAS systems for smolt till now
• stable water quality with control of all parameters
• less use of chemicals to maintain water quality
• improved smolt quality
• less mortality
• faster production cycles
• better capacity utilization
• efficiencies and cost gains

Development in in investment and feeding in land based production of salmon smolt Aquatec Solutions selected references

Investment per smolt in DKR

Kg feed per day in ton

16

Examples published with permission from Hiddenfjord on Faroe Islands

2007 2008 2009 2010 2011 2012 2013 2014 2015 Gram Hiddenfjord Aðrir

Smolt average weight Faroe Island 2006-2015

Land based technologies – experiences from new facilities

Examples published with permission from Hiddenfjord on Faroe Islands

Land based technologies – experiences from new facilities

Examples published with permission from Hiddenfjord on Faroe Islands

Smoltvekt gram

Smolt weight in grams	100	200	300	400	500	600
Growth per day in grams	11,0	12,0	13,2	14,3	15,5	16,6
Time to 6 Kgs.	17,6	15,8	14,2	12,8	11,6	10,7

Land based technologies – experiences from new facilities

Examples published with permission from Hiddenfjord on Faroe Islands

Land based technologies – potentials for suppliers in the salmon industry

Estimated industry investments with increasing smolt size – Norwegian market

………… and then potentials for land based technologies in other markets and species comes in addition

Q & A

Atlantis Subsea Farming

Capital market day, May 30th 2016 Inge Forseth, AKVA group ASA

A new generation submerged fish farm

Project history

April 2016

Innovation licences

Innovation licenses can be assigned to projects that involve significant innovation and substantial investment. It aims to facilitate the development of technology that can help to solve one or more of the environmental- and land challenges that aquaculture is facing, such as construction of prototypes and test equipment, industrial design, equipment installation and full-scale trial production.

Objective: Develop technology and operational solutions for submersible large scale fish farms

• Open up new areas for aquaculture
• Avoid sealice
• Good fish welfare and growth in controlled environment
• Less risks for escapees
• Cost effective
• New products and new markets for the technology providers
• Circumference > 160 m, about 200 000 fish

Risk management

Underwater feeding

Fish health operations

Daily operations (dead fish removal, surveillance, cleaning, etc)

Submerge and raise the cage – safe and remote

Air to the salmon Artificial air space, underwater airspace

This is not easy!

Experiments in the Flumetank

Model 1:12,5 Learning arena

Flumetank

• Currents (0,5 m/sec) and waves (2,5 Hs)
• Measurements of strains by load cells,

Way forward

Perspective no 1: New areas, less sealice

Perspective no 2: Growth in value cration within a cluster

Perspective no 3: The international markets for technology and sevices

SALMON. TROUT & SMOLTS 3,57% OTHER AQUACULTURE 96% Global Aquaculture Production SALMON. TROUT & SMOLTS OTHER AQUACULTURE

Big fish farming plans in nearly every country

• Most countries with suitable natural resources now have a strategy to build an aquaculture industry
• Some regions can easily match salmon production
• Sustainability is a key factor for success (Environmentally, Socially and Financially)
• Most look to Norway and AKVA for know-how and proven technology

Norwegian salmon technology and competence transfer to emerging markets

• Norway = Over 40 years of industrial salmon farming
• Norway is the main technology driver in fish farming technology development worldwide
• Norway has unique competence, proven fish farming concepts and a good regulatory framework – all emerging markets need this
• AKVA group transfers this competence and technology to emerging markets

Big worldwide potential – but challenging emerging markets

• AKVA has supplied technology to more than 50 countries in 40 years
• Approximately 800 MNOK sales in emerging markets in last 5 years
• Proven and certified technology adapted to emerging market needs
• Main strategy is to be a one-stop-shop of complete fish farms
• Managing challenges and complexity of emerging markets AKVA group has unique competence and experience today:
• Senior team (sales and project management) with extensive international experience, market and cultural knowledge
• Professional legal contracts
• International Trade & Finance
• Site surveys, risk assessments and project management
• Health and Safety focus
• Code of Conduct / Global Compact 10
• Anti-Corruption Program

Emerging Market - Sales Regions (cage farming)

Technology is important – but not enough!

Salmon farm in Russia

Feed Barges to Saudi Arabia (Red Sea)

Installing 1 of 8 offshore farms in Tunisia

Offshore cage farm for Sea Bass and Sea Bream in Tunisia

Training course for Tunisian customers

Cage farm for Rainbow Trout in China (Tibet region – Elev. 2600m)

Cage farm for Rainbow Trout in China (Tibet region – Elev. 2600m)

Norway is not the only cold place in the world… (Tibet mountain lake in China)

Large gap between old and new technology (Not AKVA technology)

Large gap between old and new technology (Not AKVA technology)

Learning fish farming the hard way… Large gap between old and new technology (not AKVA technology)

Learning fish farming the hard way… Large gap between old and new technology (Not AKVA technology)

Hydro dam cage farm for Rainbow Trout in Iran

Mooring operations in Iran (Persian Gulf)

Tilapia farms in Lake Kariba, Zambia

(not AKVA technology)

Tilapia farms in Lake Kariba, Zambia (not AKVA technology)

Farms in emerging markets need same technology concepts as salmon farming (Not AKVA technology)

Tilapia farms in Lake Kariba, Zambia

(not AKVA technology)

Tilapia farm in Lake Victoria, Uganda (not AKVA technology)

Tilapia farm in Lake Victoria, Uganda (not AKVA technology)

Fish farm in China

(not AKVA technology)

Pangasius farming in ponds in Vietnam (Mekong Delta) (not AKVA technology)

Tilapia juvenile farm at Lake Victoria, Uganda

(not AKVA technology)

Tilapia juvenile pond farm in Uganda (Not AKVA technology)

Offshore Yellowtail farming in submergible cages in Japan

Atlantis Subsea Farming – This can open large new emerging markets (open sea farming)

Automation – a key to increased efficiency? Inge Forseth, COO– TnS and Tore Obrestad, Technical Manager, Nordic Capital Market Day - AKVA group ASA Bryne, May 30th, 2016

The fish farm

The fish cage

• Biology
• 200.000 fish
• 100g 5.000g
• Biomass > 1.000 ton
• Production of 1.100 ton
• Total feed = 1.265 ton (FCR 1,15)
• Economy
• Total value 71,5MNOK (65,-/kg)
• Result 38,5MNOK (35,-/kg in margin)
• Feed cost 14,55MNOK
• Improve the utilizing of feed by 2%
  • • 2% in saved feed cost by 290kNOK/cage
  • • 2% more fish = 1.430kNOK/cage sales price
  • • 2% better result =770kNOK/cage

The farm center – feeding barge

• Feed storage (models 130t to 850t)
• Fully equipped
• Power supply from generator/land
• Feeding system
• Control room
• Ensilage system (dead fish treatment system)
• Living area

Local control room

Fish farmers specialist on: Feeding

• Control of feeding system and camera Environment

• Sensors status and actions

• Marine Harvest indre Skjervøy

• One person can control feeding of 24 pcs 160/200m cage, a maximum of 160 ton feed/day

Remote control room

• Nordlaks AS

• 20 sites

• 70.000 ton yearly production
• 4 persons feeding all from this room!

AKVAconnect – Typical setup

Rental – a key to grow recurring revenues CMD Bryne, 30 May 2016 CFO Eirik Børve Monsen

What is Rental?

• It is not leasing
• It is not delayed payment
• It is not finance of capex in any way
• Customer never owns the product
• It is an end result for the customer
• It is fully maintained with no hidden costs
• It is installed at no extra cost
• It is redeployed within reason at no cost

Rental Model – Type of Rental Contracts

• We supply a fully inclusive rental contract
• Price paid includes the following
• Installation
• Spare Parts
• Travel
• Accommodation
• Expenses
• 24/7 support

Products in AKVA group for rent

• Our rental concept is offered on the following products:
• Complete feeding systems
• Feeding systems accessories (rotor spreader, etc)
• Complete camera systems
• Control room for remote control of sites
• Environmental sensors
• Infrastructure
• Mort collecting systems
• Bio AKVA
• Lights for cages
• Net cleaning systems
• Photofish
• AKVA SubSea Feeder

AKVA group have more than 40 years of experience in the aqua culture industry. Our goal is that you as our customer and partner shall succeed

Possible future products for rental?

• Barges?
• Workboats?
• Cages and nets?
• Generator systems?
• Other

Rental vs purchase – the difference

• When customer purchases: They are buying a product

• When a customer rents: They are paying for an end result

Camera - This is what you buy

Camera - This is what you are renting

AKVA group rental for the customer

• Rental enables the customer to do larger equipment installation on the OPEX
• Local management can guarantee working product on site (Outsourcing / SLA)
• No excuses!!
• Makes it easy to do business
• Clear pricing
• Easy to add new sites etc
• Guarantee for low downtime, due to the best service apparatus in the market
• Extra products available at any time

Clear pricing

• Gives a clear cost structure

• No hidden costs
• Fixed monthly fee for the full rental period
• Same pricing for everybody
• Separate price list, updated quarterly

A rental agreement includes

• Freight of all related equipment to the sight
• Installation and start up
• Training how to use the system
• Service and maintenance to secure low down time and optimal configuration
• Repair and change of default products without extra cost
• Fixed monthly price during the whole rental period
• No start up fee
• Free support

Rental - duration

The customer decide the duration of the rental period, i.e. it is customized for each customer. Duration between 2 8 years

Case study: Camera rental to customer X

• Why does customer x chose rental?
• Release CAPEX by renting cameras (booked as OPEX)
• A good service agreement (SLA): 24/7 support and reparation and change of default equipment without extra cost
• Tailor-made camera solution for the specific site for the next 4 years with regards of type of camera, number of screens in the control room
• Option to change / modify the camera solution after 4 years, access to new technology earlier than if owning the equipment. Usually the customer use their own equipment until it is broken/old

Case study: Camera rental to customer X

4 years rental of a camera system for 8 cages:

• Video base for barge, display on 4 screens
• Smart hawk surveillance camera
• IP CAP surface camera
• Smart eye 360 Twin underwater camera
• HT dual winch
• All brackets, cables, etc tailor made for this site

Price for system full installed, configured and fully maintained over the whole rental period:

Monthly fee for total system NOK 38.000 Monthly fee for each cage NOK 4.750

Example: How does AKVA group rental work?

Value proposition for the customer

A rental agreement gives you the opportunity to focus on your core business (the biomass), while AKVA group ensure optimal performance from the equipment

AKVA rental model – what is required from us?

• 24/ 7 follow up included in the SLA - requires presence

• Skills – requires good aquaculture knowledge

Our service stations in Norway

AKVA group have the industries largest services apparatus located along the Norwegian coastline and in all other main salmon producing regions in the world. Customer focus and aquaculture knowledge are two of our core values

AKVA group is the leading supplier of technology and services to the aquaculture industry

Rental – the concept

• AKVA group's rental model is based on our experience in the Scottish market over many years

– In UK many of our customers prefer to rent (vs traditional CAPEX sale)

• Rental gives good cash flow for AKVA group

• Generate CAPEX and increased interest bearing loan in our balance sheet

• Generate depreciation and interest cost in our P&L

• Increased duration of our order backlog

• We have separate funding facility with our bank for growing this business

Rental - Benefits to AKVA group

Steady recurring revenue – OPEX based revenue

Better relationship with customers - less conflict points

Sustainable model for delivering high level of service – gives us an efficient utilization of overall service resources

Rental Model – key to success

• All inclusive model has been a key component

• Do not believe we would have had same success with a "rent" product and pay for service model

• Big important factor in making the rental a win/win

• Planned monthly amount for customer no surprises
• Recurring stable income for us

Rental - Challenges and opportunities

Educate and mature the Norwegian customers, hence Norwegians generally like to own their assets

Will be solved through consistent high quality rental deliveries in Norway over time – building stone by stone

We believe this is a win-win game for the customer and us