AKVA Group — Investor Presentation 2020

Nov 24, 2020

Welcome to Capital Markets Day

November 24, 2020 at 13.00 (CET)

Disclaimer

• All opinions and statements in this notice are, regardless of source, given in good faith, and may only be valid as of the stated date of this notice and may be subject to change without notice. AKVA group has taken all reasonable steps to ensure that the information contained in this notice is true and not misleading. Notwithstanding such efforts, we make no guarantee as to its accuracy or completeness.
• This notice includes forward-looking statements. Forward-looking statements are based on current plans, estimates and projections, and therefore investors should not place undue reliance on them. Words such as "expect", "anticipate", "believe", "intend", "estimate, "should" and other similar expressions are intended to identify forward-looking statements, but are not the exclusive means of identifying such statements. Forward-looking statements speaks only as of the date they are made, and we undertake no obligation to update any forwardlooking statement in light of new information or future events.
• Forward-looking statements involve inherent risks and uncertainties, most of which are difficult to predict and generally beyond AKVA group's control. Although it is believed that the plans, objectives, expectations, estimates and intentions expressed in such forward-looking statements are reasonable, investors should bear in mind that a number of important factors could cause actual results to differ materially from the plans, objectives, expectations, estimates and intentions expressed in such forward-looking statements, including assumptions relating to general economic conditions in Norway and worldwide. Numerous factors exist and may occur that could cause AKVA group's actual operations, result or performance to differ from the forward-looking statements.
• Any use of information contained in this notice is at your own individual risk. AKVA group assumes no liability for any losses caused by relaying on the information contained in this notice, including investment decision taken on the basis of this notice.
• This notice is not intended for, and must not be distributed to, individuals or entities in jurisdictions where such distribution is unlawful.

Content

TOPIC

• 1. AKVA group introduction (short video)
• 1. Macro perspectives and Overall strategy
• 1. Financial perspective
• 1. Innovation agenda
• 1. Cage based
• 1. Land based
• 1. International sales
• 1. Digital (presentation + video)
• 1. Q&A
• 1. Closing

Presented by

Knut Nesse, CEO

Ronny Meinkøhn, CFO Espen Fredrik Staubo, CIO Erlend Sødal, COO Cage based Nordic Johan Fredrik Gjesdal, COO Land based Per Andreas Hjetland, CCO Cage based Andrew Campbell, COO Cage based International

Market outlook 2020-2030 – CMD 24.11.20

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Historical strong volume development despite recent supply constraints – ~12% estimated underlying untapped demand potential

Global demand and price development for salmon 2010-2019 Consumption of salmon and trout WFE in mill. tons

Key demand drivers

Focus on environment and health increasing demand for more environmentally friendly and healthy sources of protein

Salmon among favored species for consumption in developed and emerging seafood markets

Distribution to new markets fueling demand, ~45% of total volume growth 2015-2019

Product developments (e.g. smoked, marinated, sushi) resulting in salmon gaining market share

Modified Atmosphere Packaging (MAP) has prolonged shelf life and enabled grocery retailer distribution

Source: Kontali, NASDAQ, Cardo Partners analysis

…especially impressive transition of HORECA volumes to retail during COVID pandemic – retail volumes expected to remain strong due to changes in preferences

EU and US retail volumes significantly up in 2020 Year-on-year change in in-home consumption volumes for salmon, %

COVID lockdown resulted in HORECA volumes being diverged into retail

• Volume supported by increased in-home consumption and 8% decrease in spot price2
• Increased consumer experience and confidence in preparing seafood meals, e.g. +~40% "salmon recipe" searches on Google

1) Including France, Italy, Germany, Spain, UK

2) Weeks 12–36 in 2020 vs. 2019

Source: Kantar/Gfk, Nielsen, SB1M, Cardo Partners analysis

Indications of change in consumers preferences, resulting in salmon capturing a larger share of the dinner table Illustration of retail vs. HORECA in EU, % of total Salmon consumption

Changes in consumer preferences could result in retail stabilizing at a higher level

• 1H 2020 lockdown resulted in HORECA volumes almost disappearing
• Recovery of HORECA expected post-COVID, but potential higher retail level driven by change in customer behavior during pandemic

Consumers willing to pay a premium for salmon vs. other proteins

Salmon versus other protein sources

• Current price level shows that consumers are willing to pay premium prices for salmon vs. other proteins, likely due to health benefits and superior taste

• Airborne salmon challenging in terms of sustainability given ~3x CO2e/kg emissions compared to locally produced salmon

• High share of omega-3 fatty acids

• Rich in vitamin D and proteins
• Low in calories and saturated fat

1) Salmon: Norwegian salmon export price; Beef: Australian and New Zealand 85% lean fores, CIF US import; Chicken: Whole bird spot price, whole iced, Georgia docks; Pork: 51-52% lean hogs, US price Source: SINTEF (Carbon footprint), IMF (Price benchmark)

Technology for sustainable biology

Salmon health benefits vs. other proteins

Increasing customer awareness on sustainable products – trend expected to accelerate over the next decade

Recent survey shows high consumer focus on sustainable products N = 6 000 across 11 countries, conducted by Accenture for ACC in 2019

Possible megatrends likely to further increase environmental focus

Selected examples

Climate change among top challenges – likely to continue changing consumer behavior

Carbon footprint

scarcity

Water

Locally produced food in high demand, both due to need for freshness and carbon footprint challenges

Security of food supply becoming increasingly important due to population growth, more extreme weather and fragile supply networks

Source: Accenture, AKVA Group perspectives

The North American and Asian markets have historically been dependent on (and limited by) import from Norway and Chile

Underlying demand growth implies 1–2 million ton volume increase by 2030

2015 2020 2025 2.5 1.0 2030 1.5 2.0 3.0 3.5 4.0 4.5 5.0 4.5 3.7 Consumption of salmon WFE in mill. tons High demand growth (~5%)1 Historic development Base case price-neutral volume growth (~3%) High High (+2M tons) Base case (+1.1M tons) "What you need to believe in" in 2030 Base Extrapolation of historical ~3% price-neutral volume growth rate2 Supply potential 2% 4% 0.1 0.3 4% 7% Note: Will require additional funding of marketing activities '15-'19 '19-'30 Doubling in volume growth for Europe and North America (CAGR) 3x Chinese consumption (kg/capita) CAGR of 10,5% 7% volume growth other regions (CAGR) 2019 2030 '15-'19 '19-'30

1) +2 percentage point increased price-neutral volume growth compared to base case

2) Extrapolation based on ~3% real-term value growth in salmon market 2016-2019 measured in Euro and adjusted for inflation

Extrapolation of underlying demand growth for salmon 2015-2030

Source: Kontali, Cardo Partners analysis

Traditional growth and new emerging technologies have the potential to cover underlying demand

Supply sources/ drivers			Indicative supply potential 2030, mill. tons		Volume 2019, tons	What to believe in?
Conventional	Traditional growth		0.3–0.6 0.12–0.25			• 1-2% supply growth driven by increased capacity and utilization • Currently challenging supply outlook in Chile and Canada (conv.) • Innovation required to maintain and grow existing volume
	Post-smolt				2.5M	• 5-10% increase in conventional production driven by shorter production cycles and lower mortality due to time in sea
	Effective lice prevention/ treatment		0.1–0.4			Improved solutions for lice treatment/prevention can lead to • maximal biomass allocations in Norwegian "traffic light" system and reduced mortality rates
Un conventional	Landbased			0.2–0.8	7K	• Land-based has a role to play, either as "niche" production or as preferred growth area (dependent on cost competitiveness)
	Offshore/ open sea		0.1–0.2		~0	• Current development licenses in Norway • Significant potential if applicable in new regions
Low High		Total: 0.9–2.3
Source: AKVA Group and Cardo Partners analysis

Freight, tariffs and distribution increase the competitiveness of land-based – 51-65 NOK/kg required to be competitive dependent on region

Norway-China free trade agreement talks in final stages – likely to remove Chinese tariffs on Norwegian salmon Current 2x air freight rates vs. pre-COVID levels – high uncertainty regarding development over next 10 years

Source: Fiskeridirektoratet, NOFIMA 2018 numbers on production costs, Nordea, NAP, World Trade Organization, Seaborn

Land-based production achieves favorable payback if 40-50 NOK/kg production costs

2030 high-level market scenarios driven by land-based cost position and consumers' environmental awareness

All four scenarios involve significant land-based volumes, but also sustained conventional growth

Land-based supply Fresh undersupply Conventional

All scenarios imply a 60+ NOK/kg salmon price in 2030 Source: AKVA Group and Cardo Partners projections

Scenario 4: Land-based driver of supply growth in long-term, but limited by time frame until 2030

Scenario 4: The paradigm shift of land-based farming will require major capex investments until 2030 and beyond

1. Estimated 200 NOK/kg capex investment for land-based and 20 NOK/kg for conventional production

AKVA Overall Strategy

Underlying demand growth implies 1–2 million ton volume increase by 2030

Salmon demand has increased by 1.1 mill tons from 2009-2019. "Base case" assumes similar demand growth till 2030 Consumption of salmon WFE in mill. tons

Step change Innovation and new Digital solutions required to enable salmon farmers to leverage on expected demand growth and increase Cage based and Land based production.

Overall strategy for Cage Based Salmon Farming: Continue in the forefront offering Solutions and services to improve fish health and productivity and increase production

Strong ramp up of Innovation and R&D capabilities:

• 1. Innovation resources/spending from 2021: + 50% to support Organic growth ambitions.
• 2. Centralize Innovation facilities. One Centre of Excellence.
• 3. Further develop Existing Core Products and Solutions.
• 4. Step change innovation: Dedicated resources.
• 5. Combining traditional farming technologies with digital opportunities.

The fish has less access to surface and surface flow of water is barred from swimming area

An AC600 Feed barge with AKVA Hybrid battery package and water borne feeding

AKVA subfeeder and lights Tubenet™ Atlantis subsea farming

Completely submerged cage. The fish is offered only sub sea areas

Technology for sustainable biology

Hybrid feeding barge

deeper water from light and feeding AKVA Observe

The fish voluntarily seek

AI assisted feeding operation and management

AKVA's Overall strategy for Land Based Salmon Farming

Market leading Zero Water Concept RAS enabling sustainable and costeffective production

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Delivering complete scope of fish farming technology (e.g. feeding, fish tanks, fish handling, camera, lights, sensors, control system)

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Data driven insight and intelligent farming systems enabling consistent and optimized production - "Precision Farming"

Production Advisory Services – RAS production competence group helping customers maximizing output and reducing cost

Standard 5,000 tonnes modules

Build up LB organization in Norway

AKVA group Innovation agenda – Centre of Excellence

Strengthened Management Team

-with a total of 125 years of aquaculture experience

Strategic guidance

Organic topline

Operational excellence

• growth. Deliver min. 25% EBIT-increase Y-o-Y
• Step by step improve ROACE to min. 15% by 2023.

Min. 50% increase in Innovation spending to support new Product development and Organic growth

3 Digital platforms: AKVAconnect, AKVA Observe and Fishtalk.

ESG focus

• Good Environmental, Social and Governance principles (ESG) are key to AKVA group global activities.

• Our business is inherently dependent on a

benefits human health, and AKVA supports the salmon industry producing in a sustainable way. • Our Corporate Governance principles has for years been available for all stakeholders at our

healthy environment. Farm raised salmon

• web-pages. • This presentation gives a broader picture of how ESG-focus permeates our daily business focus from R&D to sourcing and delivery of solutions and services.
• We have started an internal processes to make our ESG-focus more visible and measurable and to prioritize actions by their importance.

Solutions improving sustainability – product examples:

• 1. Tube net: Reduced lice infestations, less discharge of lice medication, improve health of salmon and cleaner fish.
• 1. Water feeding less energy, reduced CO2 emissions and less micro plastic.
• 1. Hybrid barges less energy use and CO2 emissions and better environment for the employees.
• 1. Net and Copper recycling and waste management at our net cleaning stations.
• 1. Land based RAS solution with zero-water exchange concept

AKVA Business profile

Solutions & Products: Supported by R&D and result of continuous investment in Innovation.

Business Model: Primarily "Asset light".

Service & After sales (S&AS):

May be more capital intensive and provides higher return.

Larger projects: Strive to be "cash-positive".

International scalability.

Financial Outlook – by CFO Ronny Meinkøhn ³⁶

High focus on organic growth

…supported by strong innovation agenda and further development and improvement of digital solutions

Topline growth:

• Mainly organic
• Leverage on strong product base and global presence
• Low M&A focus but financial capacity available

Innovation Agenda:

• Significant ramp up of activities and organization
• Increased focus on Land Based technology
• 2021 spending up 50%

Digital solutions:

• Step change in development and improvement of digital solutions
• Spending up 25% in 2021

Strong topline growth in all business segments

…and paradigm shift on Land-based farming combined with strengthened international footprint

Salmon to remain key focus area

…and preparing to increase OPEX based revenue through our asset light service model

Species OPEX based revenue

Increased focus on operational excellence

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«The AKVA way» - our operational excellence program

• Strengthening of the performance culture
• Simplifying work methods and organizational set-up
• Increase efficiency to reduce overall costs on projects and products while increasing customer satisfaction

Implement group ERP system

• Standardize business processes and increase visibility
• Improve supply chain management and project execution

Strengthening of project- and business controlling

• capabilities
• Monitoring of performance and development of KPIs integrated in business reviews
• Transparent and consistent reporting at all levels

Ambitious financial targets

Minimum 25% increase in EBIT year-on-year 2021-23

Minimum 15% return on average capital employed (ROACE) in 2023

• ROACE is calculated ex balance sheet items of IFRS 16
• Adjusted for exceptional items in Q4 2019

Financed to execute organic growth strategy

• Including 300 MNOK unused credit facility Danske Bank end of Q3 2020

• Current NIBD/EBITDA covenant threshold of 4,25

Divestment of AKVA Marine Services

• Decided to initiate sales process and Danske Bank has been engaged as financial advisor
• Focus to create a robust process to take care of shareholder values

Financial outlook - summary

Innovation Agenda – presentation for CMD 24.11.20

Starting point: Innovation to enable Salmon farming industry to exploit the Untapped Demand Potential with sustainable growth

AKVA group mission: Innovation for the industry to successfully achieve the growth potential

• Sustain and develop conventional sea-based salmon production
• Build a sound complimentary land-based RAS industry

World class R&D to secure Long term success for AKVA group…

… by matching Customer needs with latest Sciences and Technologies to deliver tomorrow's successful sustainable Industry Solutions

AKVA group is already in the forefront with Innovative and sustainable solutions offering fundamental improvements for the industry…

Subsea farming:

• Secure fish health and preventive lice solutions
• Farming on more exposed sites
• Stable and controlled production environment

AKVA Observe - Digital AI assisted feeding solutions:

• Precision feeding, real-time AI and computer vision assisted farming
• AI assisted feeding management and analysis tool

Hybrid feeding barge and waterborne feeding

• Reduce energy need up to 90%
• Reduce local environmental impact, noise and microplastics

Zero Water Change RAS technology

• Recirculating 99,9% of water and reduce water in final sludge
• Remove phosphorus and nitrogen and allow for recirculation of phosphorus

AKVA subfeeder and lights Tubenet™ Atlantis subsea farming

The fish voluntarily seek deeper water from light and feeding

AKVA Observe

and management

The fish have less access to surface and surface flow of water is barred from swimming area

Hybrid feeding barge

An AC600 Feed barge with AKVA Hybrid battery AI assisted feeding operation package and water borne feeding

Completely submerged cage. The fish are offered only sub sea areas

…but with industry growth prospects, we further strengthen Innovation key enabler for AKVA group strategy of Organic growth

Strong ramp up of Innovation and R&D capabilities:

• Innovation resources/spending from 2021: + 50%. Organic growth.
• Centralize Innovation facilities. Efficiency. Future opportunities. Cross-functional solutions.
• Existing Core Products and Solutions: Support incremental improvements.
• Step change innovation: Dedicated resources.
• New RAS Innovation department
• Exploit synergies and competencies sea-based landbased RAS
• Build further capabilities and competencies merging traditional farming technologies with digital opportunities – "Fish Farming Industry 4.0"

Realizing AKVA group's full potential as an Industry leader in both Sea Based and Land Based

Successful implementation requires balancing short- and long-term development: «Sustain development» and «Step change innovation»

Sustain position on core products

• Incremental development
• Structured regular input from customers, sales, service, production
• Surveillance of competitor products
• Next generation larger projects – product road maps
• Critical for retaining sound EBIT
• Organic growth

Step change solutions

• Based on insights and trends to generate ideas
• Ideation process
• Substantial growth potential
• Higher risk
• Require dedicated investments

We must do both!

Our ambition: To release at least one new step change solution per year. Requires a changed approach.

Dedicated AKVA group Team, investments and processes to facilitate Step Change innovations.

Major industry challenges offer opportunities for new Innovative solutions

• Local and global Environmental concerns and Consumer Health focus
• Fish health
• Cost efficient production for further consumer demand
• Inherent process risk
• Limited new farming areas available in sea
• Salmon farming closer to main markets

Develop the optimal grow-out RAS factory for the future

New digital technologies

AKVA group examples of step change innovations

• Tubenet™ - regular, next generation, HDPE based, Steel cages
• AKVA Observe Advanced feeding assistant computer vision and machine learning
• Further Machine assistant decision support from all sensors of data for both sea-based farming and land based
• Atlantis subsea farming

….reflecting the demanding task to combine creativity with structure

Generating ideas from insights

• Truly Innovative products demand a creative process combining insights with idea generation
• Differs from incremental product development and improvements on existing products
• Today's Industry and technology trends open for opportunities in many different areas

Systematic exposure of ideas from a multitude of Industry contact points (other than normal market interaction):

• Customer development projects (Examples: Atlantis with SinkabergHansen, joint R&D licenses (CAC) with Mowi and Skretting, Fiddler (NRF funded) with Mowi and Norce)
• Start-up companies, networks and clusters (Stiim Aqua Cluster, NCE Aquatech Cluster, Blue Planet)
• Trade organizations (Sjømat Norge)
• Research projects with customers and universities (Examples: DIGIRAS – EU funded three year program for RAS)

Closing comments: AKVA group's Innovation program covers the major capacity growth areas

Supply sources/ drivers		Indicative supply potential Volume 2030, mill. tons 2019, tons		AKVA group present position and growth prospects
Conventional	Traditional growth				• World leading supplier of a full range of products • Spear heading new technologies targeting major growth concerns (preventive lice technology, more exposed sites, energy and environmental impact)
	Post-smolt		0.12–0.25	2.5M	• Major supplier of RAS systems today, strong build up of innovation capacity • Synergy of both land-based and sea-based technologies • Combining digital and traditional technologies
	Effective lice prevention/ treatment		0.1–0.4		• Sub sea farming; Tubenet™, Atlantis
Un	Land Based		0.2–0.8	7K	• Major supplier of RAS systems today, strong build up of innovation capacity • Synergy of both land-based and sea-based technologies • Combining digital and traditional technologies
conventional	Offshore/ open sea		0.1–0.2	~0	Involved in several development license projects today •
Low High		Total: 0.9–2.3

Source: AKVA Group and Cardo Partners analysis

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Cage Based – presentation at CMD 24.11.2020

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How international salmon farmers know us for decades:

AKVA group – offering "everything needed" for sustainable salmon farming…

From single components to complete solutions… Extensive presence to serve the Global industry

AKVA groups Digital solutions are becoming more and more advanced to support high productivity in salmon production

Global supplier. Local presence in key markets. Pictures of AKVA people and some supplier or customer sites

For the Global salmon industry it is attractive to have a solid and trusted global supplier with local presence in all the markets they have operations.

AKVA group's global presence

1/3 of Cage Based revenues comes from International salmon business Chile No. 1. Remaining from Canada, UK & Ireland and other

CB Revenue split MNOK International success requires balancing proven solutions with understanding of local differences. Some examples:

• Plastic cages
• ~No Seals and Sea Lions • All equipment regulated NS 9415
• Internet connection, the norm
• Low current, clear water

• Metal cages • Seals and Sea Lions • Equipment regulations

in process.

• Internet connection, the exception
• High current, high algae load

Well-proven and innovative solutions and services from AKVA group attractive to the industry in both countries: Nets, feed barges, Digital solutions, sensors, cameras, ROV technology, net cleaning etc

A broad range of solutions offered

Plastic pens

Nets

Steel pens Feed Barges Feeding Systems Lights

Work Boats

Battery packs Digital Sensors

Farming in the deep:

Innovative solutions to improve fish health farming economy

• Avoid or reduce unwanted surface influences like lice, algae, currents, high temperatures.
• Better fish health and reduced mortality
• Improved fish welfare and reduced frequency and cost of reactive lice treatments
• Facilitate salmon farming at more exposed sites
• Knowledge-based development in cooperation with Institute of Marine Research, SINTEF Ocean etc.
• Reduced lice infestations is needed to sustain production growth (Norwegian Traffic Light system)
• Help farmers sustain fish health, reduce risk and increase profits.

Benefits from Deep sea farming: AKVA commercial solutions in operation

AKVA group also offers several solution to reinforce TubenetTM and the other Deep sea farming concepts: Subfeeder and light; Waterborne feeding solutions, Camera, sensors and AI solutions for optimal feeding control; solutions to mix water & oxygen.

TubenetTM our patented concept to reduce lice infestations without touching the fish

«One de-licing less per salmon generation is sufficient to defend the additional CAPEX of Tubenet™»

Industrialized sustainable fish farming: Biology, nature forces and high-tech solutions AKVA group is providing advanced technology tools for Monitoring, control and optimizations of daily farm operations under harsh conditions

Extensive Service and After sales to serve our customers…..

AKVA deliver broad range of services related to:

• Nets & Moorings inspection & maintenance
• Sensors/Cameras inspection and maintenance
• Feeding systems maintenance
• Net cleaning services
• Remote Underwater Operated Vehicles (ROV) services

Annual revenues from Service and After sales are about 800 MNOK, whereof ~ 75-80% in Norway.

Support salmon industry to increase productivity, reduce footprint and negative environmental impact. (We believe in footprint reduction through profitability)

Improving fish health, productivity and profitability Reducing negative environmental impact

1. Tubenet™ to reduce lice infestations

2. Better fish health, reduced mortality, reduced reactive handling of fish.

3. Saving labor and costs of de-licing
4. May increase volume 6-12% (Traffic light system Norway)
5. 1. AKVA Observe. Artificial intelligence/Machine learning. Optimizing feeding
6. 1. ROV/FNC, products and services for underwater inspection, maintenance and netcleaning better environment and better growth
7. 1. Waterborne feeding and hybrid solutions significant (90%) reduction of energy costs

1. Tubenet™

• Reduced emission from lice handling
• Less fish mortality and reduced risk of escape
• 1. AKVA Observe/AI: Reducing feed waste
• 1. Re-cycling of nets.
• 1. Waterborne feeding and hybrid fuel solutions significantly reduced CO2 emissions (90%), reduced microplastic, improved working conditions with reduced noise and smoke
• 1. Landbased RAS solution with Zero-water exchange concept

Land Based – presentation at CMD 24.11.20

Long-list for land based salmon farming projects keeps growing – contracting of up to 1M tonnes towards 2030 seems more likely than ever

Source: AKVA group analysis and project mapping Aug 2020

Significant investments in both full grow-out and smolt production facilities towards 2030

Source: AKVA group analysis and Mckinsey analysis (smolt)

AKVA with a phased business development process to ensure the most attractive opportunities being converted into delivery projects

AKVA´s overall strategy for land based salmon farming

Market leading Zero Water Concept RAS enabling sustainable and costeffective production

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Delivering complete scope of fish farming technology (e.g. feeding, fish tanks, fish handling, camera, lights, sensors, control system)

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Data driven insight and intelligent farming systems enabling consistent and optimized production - "Precision Farming"

Production Advisory Services – RAS production competence group helping customers maximizing output and reducing cost

Standard 5,000 tonnes modules

Build up LB organization in Norway

AKVA group Innovation agenda – Centre of Excellence

AKVA's Zero Water Concept RAS is the most sustainable production technology for land based salmon farming 3

	Flow-through (0% re-use)		Re-use (60% re-use)		RAS – standard (96% - 99%) re use)		RAS – Zero Water Concept (99,9% re-use)
	New water constantly flowing into and through the system, filtering of waste water flowing out (1:1)		Flow-through with re-use of water including mechanical filtration and CO degassing 2		Full recirculation of water with mechanical filtration, biological filtration and CO degassing 2		RAS technology including removal of dissolved nutrients by phosphor precipitation and de-nitrification
Water usage, Liters per kg feed per day	30.000		12.000		300 – 500		30 - 50
Energy usage, kWh per kg fish produced	1 – 2 Aeration and oxygenation	Degassing, oxygenation, desalination and intake pumping	4 - 6	RAS part 3-4 kWh Cooling 1-4 kWh	4 - 8	RAS/ZWC 3-4 kWh Cooling 1-4 kWh	4 - 8
Removal of nutrients, % removal	N: 25% P: 50% SS: 60%	Nitrogen, Phosphorus and Suspended Solids	N: 25% P: 50% SS: 60%		N: 40% P: 90% SS: 95%		N: 70% - 90% P: 93% - 98% SS: 99%

Source: AKVA group

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AKVA with differentiating Zero Water Concept RAS

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Using only 10% of the water of basic RAS

AKVA's delivery scope to be standardized around core technology products 3

Complete production technology
AKVA core RAS technology	AKVA core farming technology	Auxiliary equipment
• Complete RAS modules incl. ZWC • Water pumps, mechanical and biological filter systems, degassing systems, UV disinfection, process and emergency oxygenation system etc.	• Feeding system Fish tanks • • Fish handling and grading systems • Camera and sensors • Lights • Control system	• Water intake/ treatment • Waste water/ sludge handling • Heating and cooling • Walkways Mortality handling • system • Emergency generators • Etc.

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AKVA with a standardised 5000 tonnes module for grow-out

• Output of 5,000 tonnes live Atlantic salmon per year
• Can be expanded to 10,000 tonnes by adding five more growouts
• The 5,000 tonnes layout takes up 35,000 m2, but with flexibility to arrange sub-modules to fit logistics or property needs
• The standardized module will allow for more efficient project delivery by AKVA and hence reducing time from engineering to first harvest of fish
• Continuous improvement and optimization of standard module

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Precision Farming: Digitizing land based salmon farming to reduce risk and optimize production 3

Operations State of the art monitoring and control systems

• Efficient and consistent operations: auxiliary system integration, real time recommendations, automation
• Optimal and safe production: smart water quality and RAS performance management utilising cutting edge sensors and AI
• Reduced risk: intelligent alarms, anomaly detection and predictive models

Farm management Data driven decision

• AI augmented intelligent feeding and optimised feeding strategies
• AI enabled, automated biomass measurements and growth predictions
• Cost / production optimization

Cloud ecosystem Fully cloud native

portfolio

making across the production cycle

• Cloud native data portfolio enabling scalability, development agility and opportunity
• Open APIs empowering our customers and 3rd party ecosystem
• Machine learning across all data sources and customers

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Production Advisory Services will be a key offering to make sure customers achieve consistent output with the highest productivity 3

• Establishment of a land based RAS production competence group with cross functional competence
• Water treatment
• Biology and fish health
• Technical
• Feeding
• Farming operations and production protocols
• Advisory services on planning, production protocols and technical / operational perspectives to ensure a production of 4 - 5 kg fish with the desired quality, at a consistent level with the lowest possible cost
• Offered as a payed service in relation to start-up and first production cycle, but also sold as a service to projects at a later stage

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International Sales – CMD 24.11.20

AKVA group Feed and service barges Turned into an international success story

• AKVA group has the last 15 years delivered 276 Feed barges.
• 85% delivered to Norway (market share 35–45%).
• In 2017 AKVA group established a dedicated sales force to boost the international sales.
• This has resulted in a steady increase outside Norway. A total of 29 barges are sold to 14 other countries, including US, Chile, Russia, Canada, Scotland, Ireland, Iceland, Australia, New Zealand, Mediterranean and Middle East.

International sales to Scotland in 2017/18

• Customer: 2 of the biggest production sites in Scotland
• 3 barges with 450 650-tonnes feed capacity
• The barges has endured rough weather and proven AKVA's barge quality
• These deliveries were combined with AKVA group cage & infrastructure installations

First International sales to Chile and US -2019/20

AKVA group – Chile was in Q4 2019 awarded a contract of four AM 600-ton Barges to a customer in Chile. These barges have accommodation for 20 people and are equipped so they can live on the barge for several weeks.

AKVA group – North America was early 2020 awarded a contract of two AJ 96- ton Barges equipped with AKVA group feeding systems, for delivery into USA.

"A Feed barge" much more than Feed storage & distribution: Advanced control center, veterinary lab and living quarters

• Our new Feed barges with V-shaped hull, gives a unique, softer and more controlled behavior in exposed sites with rough sea. 16 such barges have been delivered and are in daily operation.
• AKVA group has developed a new series of barges, 400 600 – 800 tonnes of feed capacity.
• The barges are standardized but allowing for a certain customization according to customer needs and preferences.
• Depending on country, location and type of AKVA feed barge, 2 -20 people may live there for shifts of 1-4 weeks, with "facilities almost like home"

October 2020:

"The toughest Feed and Service Barge ever" delivered to Norway Royal Salmon's Artic Offshore Farming (AOF) west of Tromsø…"

Purpose :

"Service base" for Norway Royal Salmon's Artic Offshore Farming (AOF) where 2 semi-submersible steel structures will be placed, west of Tromsø, to operate their new "Development license"

• New AKVA group feeding technology: waterborne feeding.
• 64 x 12 meters; V-shaped hull with Ballast system. Certified for 6.5 meters significant wave height
• Living quarters "like a hotel". Own freshwater production and Sewage treatment system.
• Control room and digital systems enabling full remote control
• Integrated boat garage, enabling the boat crew to embark and disembark with the boat into the barge.

New international Barge sourcing strategy, to secure global delivery capacity and reducing lead times, in the years to come.

• Last 15 years, about 60% of AKVA group barges have been built at shipyards in Estonia or Poland.
• Following the new sourcing strategy, AKVA group entered in 2019 into an agreement with a shipyard in Vietnam. 13 barges are contracted from there so far.
• For barge deliveries to Australia and Canada, AKVA group have chosen to build at local shipyards.
• During next 3-5 years AKVA group expect global demand of 100 -150 new Feed barges, and our target is to deliver 25-35% of these.
• All AKVA barges are designed and built according to NS9415 / DNV-GL.
• Specialized, multi-disiplinary teams follow up on each site during the building process.

AKVA group Shipyard partners

• 1. Estonia
• 2. Vietnam
• 3. Australia
• 4. Newfoundland

Major reduction of Costs and CO2 emissions with AKVA group Waterborne feeding systems and battery package

• AKVA Hybrid Battery package (CAPEX of 2.0-2.5 MNOK) has a payback time of 1-2 years (reduced fuel costs)
• Waterborne feeding and Hybrid solutions Generator capacity may be reduced.
• AKVA group Waterborne feeding important impact, less microplastic realised into the environment.
• Significant reduction in operation time for generators increased lifetime and reduced maintenance and service costs
• Annual fuel costs and CO2 emission may be reduced 90%, according to tests.
• Better environment for workers (10 15 hours daily with no generator noise or emissions).

*)Calculations based on 8 feeding lines and average of 8 hours feeding/day

AKVA Digital – CMD 24.11.2020

AKVAconnect Fishtalk AKVA Observe

• Real time control
• Open architecture
• API's to support 3rd party integrations
• Connect to Artificial Intelligence solutions such as AKVA Observe
• Connection to cloud services

Fishtalk

• Biological status from brood stock to harvest
• Large global installation base
• Many users with new functionality and integration requests
• Key priority in the step wise development program

Y Fishtalk Plan Ξ		Akva Marine v (KN)
Total 30 batches Fish group All	March 2020 $\sim$ O 2 13 $\overline{14}$ O1 03 04 05 06 07 O8 09 10 10 $\mathbf{n}$ 12 2 15 16	$+$ Month Year All 23 17 ° 21 22 24 18 19 20
Batch 1 511 g 10 March, 2020 5000 g 10 March, 2021 EτI	$ <$ < a Transfer Vaccination oto Hatching 11 Sorting $\downarrow$ Input Co ca Hatching	$K^+$ $K^-$ DEI Sale Multiple-actions
Planned actions Transfers 18 planned Vaccination 18 planned Harvest 18 planned	Department Grow out Department Avg. weight Department Grow out 45 g Avg. weight Count Avg. weight 45r 100,000 Count Biorriass Count 2947912 g Biomass Unit summary Biomass 10-1-3 Bl-1-4 Bl-1-5 相引え! Department HI-1-3 HI-1-4 1-1-1-5 $10-1-2$ Hi-l-B. HI-1-7 HI-1-8 HI-1-9 Avg. weight 10-1-6 10-1-7 10-1-8 HI-1-9 Histor Histor Histor Histor Count Histor H(4,1) $141 - 1 - 1$ $H = 1 - 1$ Biomass 44-141 BB-E HE-LT HI-1-1 HI-1-1 H(L) Ht-L-t $H1-1-1$ Department HF-1-1 HE-1-1 16-14 $10-1-1$ Avg. weight HIGHT $10 - 1 - 1$ HI-14 $10 - 1 - 1$ Department Grow out Count 16-14 36461 $141 - 14$ $16 - 1 - 1$ Avg. weight 45g Biomess 100,000 HI-1-T HI-14 10-1-1 Count $14-1-1$ 2947912g HI-1-1 HI-1-1 Biomass $H1-1-1$ $144-1-1$ Department HI-1-3 HI-1-4 HI-1-5 18-1-2 Avg. weight HI-17 HI-1-8 HI-1-9 HI-1-6 Count HI-1-1 HI-1-1 HI-1-1 HI-1-1 Biomass	Grow out 45 E 100,000 2947912 g Grow out 45 g 100,000 2947912 g Grow out 45g 100,000 2947912 g Grow out 45 g 100,000 2947912 g
Batch 2 511 g 10 March, 2020 5000 g 10 March, 2021	$+$ K<	K <
Batch 3	$\vert \cdot \vert$ $\vert \cdot \vert$ $+$	c <

AKVA Observe – Precision Feeding

Integration with feeding system

Technology for sustainable biology

Aquaculture powered by Artificial Intelligence

Now: 5 minutes Break, to be followed by Q&A and Closing remarks

97

Appendix

Scenario 1: Europe will be key supplier of fresh salmon to North American and Asian markets

Scenario 1: Conventional pen farming to grow at full capacity to alleviate the world's growing demand for Salmon

1. Estimated 200 NOK/kg capex investment for land-based and 20 NOK/kg for conventional production

Scenario 2: Asia supplied locally and from Europe – Chile with a challenging longterm market condition

Scenario 3: Lack of airborne freight resulting in significant drop in fresh consumption in NaM and Asia

Aquaculture powered by Artificial Intelligence

Observe founded through Entrepreneur First 2017

First deployment on Chilean site

Observe founded through Entrepreneur First 2017

First deployment on Chilean site

2018 Patents developed

Commercial deployments in Chile & Scotland

Observe founded through Entrepreneur First 2017

First deployment on Chilean site

2018 Patents developed

Commercial deployments in Chile & Scotland

2019 AKVA distributorship deal

Scaled to major geographies

Select team members

2 Patents

5 Observe Awards

15+ Academic Papers

3 PhDs

3 Mengs

2017	Observe founded through Entrepreneur First
	First deployment on Chilean site
2018	Patents developed
	Commercial deployments in Chile & Scotland
2019	AKVA distributorship deal
	Scaled to major geographies
2020	Our future…

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