AKVA Group — Investor Presentation 2016

May 11, 2016

Q1 2016 Presentation

Oslo - May 11th, 2016 Trond Williksen, CEO Eirik Børve Monsen, CFO

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

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

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 %

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

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 Marine Services AS – our new Farming Services vehicle

• AKVA group ASA acquired 58% of AD Offshore AS on April 7th, 2016
• The acquisition of AD Offshore AS was a natural step in AKVA group's strategy to strengthen its position in the aquaculture industry service segment. We expect this market to grow in the coming years and we expect a consolidation of the players. Through this acquisition, AKVA group ASA will be well positioned to participate in this development. AD Offshore AS presents significant synergies with our existing activity in this segment
• The process of merging YesMaritime AS and Rogaland Sjøtjenester AS with AD Offshore AS is expected to be finalized in Q2 2016
• AKVA group ASA will own 65% of the new merged company
• The name of the new entity will be 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 – Signed LOI with Techno Dive

• AKVA Marine Services AS entered into a letter of intent regarding a possible acquisition of an inshore/offshore diving and aquaculture farming services provider Techno Dive AS on May 10th, 2016. The parties aim to complete customary due diligence investigations and negotiations of a final purchase agreement by mid-June 2016, and if final terms are agreed, to complete the transaction by the end of June 2016. A transaction is expected to be settled in cash
• Techno Dive AS is a leading provider of safe and efficient subsea work. With worldwide experience through countless projects. The company is considered to be a good fit with AKVA Marine Services and is expected to strengthen its position in the Farming Services segment further.

Plastsveis – exercising call option to buy the remaining 30% of the shares

• AKVA group ASA has exercised a call option to buy the remaining 30% of the shares in Plastsveis
• The option could be exercised from January 2016 and onwards.
• The call option was exercised in March 2016 and the transaction was finalized on April 11th, 2016.
• AKVA group ASA paid MNOK 0,5 for the remaining 30% of the shares, giving a total price for 100% of the shares of MNOK 19.5. EBITDA in 2015 was MNOK 7.3

Atlantis Subsea Farming AS

• Established in partnership with the companies Sinkaberg-Hansen AS and Egersund Net AS – 33.3% of the shares each on February 1st, 2016
• 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

Financial performance Q1 2016 – by CFO Eirik Børve Monsen

• 17.9% ROCE profitable operations combined with strong capital discipline in all units
• All segments contributing to positive financial performance taking advantage of a diversified operation
• Land based on track
• Controlling the operation in Chile through challenging market conditions

Q1 2016 - Financial highlights, continued

Stabilizing on a historical higher EBITDA-level both in NOK and in %

The medium term target of 10% EBITDA on a annual basis – achieved in the last twelve months financials

Cage Based Technologies

CBT (Revenue & EBITDA %)

Nordic

• Good performance in Q1 traditional low season
• A wide range of products continue to contribute financially AKVAsmart products, Barges and Polarcirkel cages

Americas

• Low activity in Chile mostly service sales
• Canada with similar start as last year a lean and efficient operation
• Australia a small but profitable operation

Export

• UK with a decent start of the year high level of OPEX based revenues
• Turkey with a very good start of the year increased activity in the Sea Bass and Sea Bream industry
• Export to emerging markets slow, but some activity Iran

SW (Revenue & EBITDA %)

• AKVA group Software AS with good start of the year
• Wise lausnir ehf with improved performance YoY
• WiseBlue Norwegian subsidiary of Wise lausinr ehf – small but profitable
• Software continues to invest in new product modules, which is expected to strengthen the financial performance of the SW segment further

LBT (Revenue & EBITDA %)

• 20% of total Group revenue in Q1
• Significant improved financial performance YoY
• Plastsveis AS with a very good start of the year
• Aquatec Solutions A/S with a good Q1
• AKVA group Denmark A/S with a decent Q1 but

P&L	2016	2015	2015
(MNOK)	Q1	Q1	Total
OPERATING REVENUES	392 5 ,	325 0 ,	1 425 3 ,
Operating depreciations costs ex	352 9 ,	298 4 ,	1 290 2 ,
EBITDA	39 6 ,	26 6 ,	135 2 ,
Depreciation	14 6 ,	10 5 ,	47 5 ,
EBIT	25 0 ,	16 1 ,	87 7 ,
interest Net expense	-1 9 ,	-1 3 ,	-5 4 ,
Other financial items	-7 7 ,	1 5 ,	3 -4 ,
financial items Net	-9 5 ,	0 2 ,	-9 6 ,
EBT	15 4 ,	16 3 ,	78 1 ,
Taxes	3 0 ,	9 4 ,	19 7 ,
PROFIT NET	12 5 ,	11 4 ,	58 4 ,
profit (loss) attributable Net to:
Non-controlling interests	0 9 ,	0 1 ,	6 1 ,
holders of ASA Equity AKVA group	6 11 ,	3 11 ,	56 8 ,
Revenue growth	20 8 % ,	4 7 % ,	14 4 % ,
EBITDA margin	10 1 % ,	8 2 % ,	9 5 % ,
EPS (NOK)	0 45 ,	0 44 ,	2 20 ,

• Increased depreciation mainly due to increased rental CAPEX and amortization

• Low interest cost due to low net debt and low interest rate.
• Mostly currency and acquisition cost - considered to be on the higher side

• Minority shareholders (30%) in Plastsveis AS and Wise Blue AS. Plastsveis AS will be a 100% owned company from Q2 2016 and onwards.

Group financial profile – remains strong

Available cash Working capital

Including a 90 MNOK credit facility in Danske Bank

• Strong working capital level despite record high activity
• Due to strong capital discipline in the Group

Group financial profile – remains strong, continued

ROCE Equity

Good nominal increase in equity YoY due to profitable operation

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

Net debt (MNOK) and net debt/EBITDA Change in net debt (TNOK)

debt Net 31 12 2015	136 117
EBITDA	39 615 -
paid Income taxes	9 646
paid Net interest	1 856
paid Capex	23 114
/ Acquisitions Divestments	-
Paid dividend	-
Buyback shares own	-4 155
of fixed Sale assets	-140
effects Currency	7 691
Other changes working capital in	64 003 -
change Net	65 605 -
debt Net 31 03 2016	70 512

BALANCE SHEET	2016	2015
(MNOK)	31 03	31 03

ASSETS	1 117	942
Intangible non-current assets	360	274
Tangible non-current assets	110	76
Financial non-current assets	10	2
Inventory	180	183
Receivables	306	349
Cash and cash equivalents	151	57
LIABILITIES AND EQUITY	1 117	942
Equity	431	402
Minority interest	4	2
bearing debt Long-term interest	192	126
Short bearing debt interest -term	30	14
bearing liabilities Non-interest	461	398

Capex (TNOK) and capex / sales (%)

Annualized CAPEX as % of revenue in 2015 was 5%

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 INVESTMENTS LIMITED		GBR
853 662	3,3 %	VERDIPAPIRFONDET ALFRED BERG GAMBA		NOR
539 300	2,1 %	MP PENSJON PK		NOR
489 417	1,9 %	EIKA NORGE		NOR
457 400	1,8 %	SKANDINAVISKA ENSKILDA BANKEN S.A.	Nominee	LUX
397 904	1,5 %	STATOIL PENSJON		NOR
370 447	1,4 %	VERDIPAPIRFONDET DNB SMB		NOR
321 576	1,2 %	VPF NORDEA KAPITAL		NOR
300 000	1,2 %	MERTOUN CAPITAL AS		NOR
238 692	0,9 %	OLE MOLAUG EIENDOM AS		NOR
208 100	0,8 %	VERDIPAPIRFONDET EIKA ALPHA VPF		NOR
196 300	0,8 %	DAHLE BJØRN		NOR
181 000	0,7 %	VPF NORDEA AVKASTNING		NOR
173 550	0,7 %	ROGALAND SJØ AS		NOR
166 000	0,6 %	HAVBRUKSCONSULT AS		NOR
130 000	0,5 %	SIX SIS AG	Nominee	CHE
114 752	0,4 %	MOLAUG OLE		NOR
110 579	0,4 %	KLUGE GUNNAR		NOR
102 096	0,4 %	STATOIL FORSIKRING A.S		NOR
22 453 880	86,9 %	20 largest shareholders
3 380 423	13,1 %	Other
25 834 303	100,0 %	Total number of shares as per 31.03.2016

Origin of shareholders, 5 largest countries

No of shares	%	Origin	No of shareholders
20 502 409	79,0 %	Norway	930
4 026 854	15,5 %	Great Britain	22
571 898	2,6 %	Luxembourg	3
226 180	1,0 %	USA	10
217 427	0,8 %	Switzerland	6
289 535	1,0 %	Other	83

Total number of shareholders: 1054 - from 23 different countries

Share development

Last 5 years

Outlook – by CEO Trond Williksen

Order backlog Order inflow

• Highest order backlog ever
• The good market activity continues
• MNOK 283 of total order backlog at end of quarter is related to Land based technology (LBT)

• The large Land based contract of approximately 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

• Good mid term outlook due to high market activity and large order backlog, especially in the Nordic market segment

• Good demand in the Nordic cage based segment continues, with shift towards sale of technology for more efficient production
• Land based segment with growing activity is expected to continue becoming a larger part of AKVA
• UK and Canada experience slightly less project sales so far compared to last year still expected to perform well
• Continued low expectations in Chile due to challenging situation for our Chilean customers. Our exposure in Chile is reduced over the last years
• Turkey and Australia are expected to continue to perform well in the next quarters with good order backlog
• Exports to emerging markets with a more optimistic start of the year. Activity still expected to fluctuate due to nature of business
• We continue our effort to build service and after sales as a key business element in all markets and segments

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

You are welcome – at Bryne on May 30th, 2016