AKVA Group — Investor Presentation 2021

Sep 29, 2021

Investor Call

Klepp, 29 September 2021

Knut Nesse, CEO Ronny Meinkøhn, CFO

Highlights

• Private placement corresponding to 10% of outstanding shares in AKVA at a subscription price of NOK 96,50 per share
• Share sale existing shareholders at a purchase price of NOK 96,50 per share
• Establishment of investment platform for investments in land-based projects worldwide
• Signed RAS contract with AquaCon subject to financing
• Call for extraordinary general meeting October 20, 2021

2

Market outlook and strategic agenda

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

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

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

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

4

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

Conventional production

• WFE Restricted fresh supply requires market effort to convert demand from fresh to frozen
• Asian markets critical for growth required to increase and broaden marketing efforts
• Innovation critical to achieve growth
• New freezing technologies required to secure increased quality for frozen intercontinental exports
• Growth capex >20 bln NOK and additional maintenance capex
• Expectations 2030+ may limit investments/production
• ~160 bln NOK1 in CAPEX investments needed to reach land-based capacity of 800 th. tons by 2030
• RAS suppliers critical to achieve growth

AKVA Group implications:

• Strong Cage Farming segment
• Exponential growth in Land Based revenue
• Likely high margins within Land Based technology given potential shortage of RAS supplier capacity

5

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

Land-based farming to be a part of the solution in to 2030 to fill the consumer gap

…however, massive headwind in land-based full grow out segment

Company	Share price 31.12.2020	Share price 31.08.2021	Change (%)
Salmon Evolution	6,9	8,6	26
Proximar Seafood	18,6	8	-57
Nordic Aqua Partners	88	63,9	-27
Kingfish Company	33,5	23,6	-30
Atlantic Sapphire	120	46,8	-61
Aqua Bounty	76	39,4	-48
Andfjord Salmon	55	40,7	-26

AKVA believes land-based farming has a great potential

Main challenge is access to equity financing

• Land-based business has been too dependent on Norwegian capital
• Key projects will be oversea projects closer to the consumers in North America and Asia
• Access to international equity financing is the key to realizing projects

Establishment of investment platform

• AKVA and Israel Corp. has agreed to establish an investment platform
• Investments in land-based projects worldwide using AKVA technology and solutions bearing in mind ESG considerations
• Both parties will contribute with MUSD 10 each and this can be in a preestablished project
• The goal is to raise further commitments from co-investors and partners up to MUSD 100
• The investment platform will target projects which are "closer to the consumer" (i.e. North America, Middle East and Asia)

AquaCon: 16,000 tonnes in Maryland, USA

• Location: Maryland, USA • Parent entity: AquaCon AS • First phase capacity: 16,000 tonnes
• (Norwegian company)

• Total planned capacity: Approx. 50,000 tonnes

• Basic engineering and design work completed

• Development work continuing (e.g. feed system)
• Delivery contract signed subject to financing
• Contract value ~ 150 million USD for the first phase (16,000 tonnes)

Project overview Project status AKVA's delivery scope

• Complete delivery of production technology and production infrastructure
• Installation done by third party
• AKVA delivers supervisory and commissioning services

10

A significant ramp up of Land Based activity is expected

Strategic guidance

Organic topline growth

Operational excellence

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

3 Digital platforms: AKVAconnect, AKVA Observe and Fishtalk

12

Attractive share issue to accelerate strategic agenda

Strategy for Land Based Salmon Farming

Market leading Zero Water Concept RAS enabling sustainable and costeffective production

2

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

3

1

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

Future of digitization in aquaculture

Precision Farming Sea based Solutions

Marine Infrastructure

for secure containment and efficient operations

• Plastic and Steel pens
• Nets
• Moorings
• Boats
• Net Cleaning services and FNC8s

Precision Feeding for optimizing feed

conversion and growth

• Barges
• Feed systems
• Camera systems
• AKVAconnect
• AKVA Observe
• Fishtalk

Digital

to support precision farming with leading, open and modular digital solutions

• AKVAconnect
• AKVA Observe
• Fishtalk

Lice Solution to minimize number of lice treatments (Farmer's "license to operate")

• Tubenet
• Plastic Cages
• Feed system - Sub surface feeding
• Camera systems
• Lights
• Digital

Increased focus on operational excellence

1

2

3

«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

17

The transaction will accelerate our strategic agenda in all business segments

• Israel Corp. to become an important strategic partner for AKVA
• The investment platform will be the driving force for realizing of new landbased full grow out project
• Attractive subscription price of NOK 96,50 per share

Israel Corp.

Israel Corp. (TASE: ILCO) is a reputable public investment company, that owns and invests in high quality companies with established managements and go-to markets.

Israel Corp. new investments focuses mainly on food (tech), agriculture (tech), healthcare and industry 4.0

Israel Corp. strives to generate return on its investment through active board participations and its operational and managerial expertise.

Its current core holdings include:

• c.46% stake in ICL Group (NYSE:ICL, TASE:ICL), leading global specialty minerals company that creates impactful solutions for humanity's sustainability challenges in the global food, agriculture, and industrial markets
• c.33% stake in Bazan Group (TASE:ORL), Israel largest refinery and petrochemical complex

Partnership with Israel Corp.

• Israel Corp. and AKVA will form a strategic partnership with the purpose to share and utilize experiences related to technology, digital and food industry
• Israel Corp. will be entitled to appoint one board member in AKVA while it holds a strategic ownership position
• Israel Corp. will be part of an Advisory Committee to provide advice to the CEO and management of AKVA in matters of strategy, technology and innovation
• AKVA and Israel Corp. to be General Partner for the investment platform
• The goal is to invest in land-based projects either by direct investment or through the investment platform
• Egersund Group will still hold the majority ownership in AKVA