AKVA Group — Investor Presentation 2023

Feb 10, 2023

Q4 2022 Presentation

Oslo, 10 February 2023

Knut Nesse, CEO Ronny Meinkøhn, CFO

Agenda|Q4 2022

Highlights and Outlook

Financial Performance

Knut Nesse, CEO Ronny Meinkøhn, CFO

Q&A Session

Highlights|Q4 2022

• Record high Sea Based order intake of MNOK 823
• Award of new RAS contract (February 2023) with NOAP for next 4,000 tonnes (phase 2). Estimated contract value of MEUR 40
• Market for post smolt projects in Norway still on hold due to the resource tax
• Acceptable profitability within Sea Based and Digital but still challenging profit margins in Land Based
• 70% of the cost saving target of MNOK 100 is implemented by the end of Q4

Operation Innovation

• Solid progression in further development of our three innovation agendas
• High focus and positive development on deep sea farming concepts
• Important milestones have been reached regarding our digital solutions

Key figures|Q4 2022

Key figures|Full year 2022

*Notes:

• EBITDA / EBIT in 2021 are adjusted for costs of 49,7 MNOK related to cyber-attack
• EBITDA and EBIT in 2022 is impacted by costs related to restructuring and cost saving programs of MNOK 58 / MNOK 98

Development order intake and order backlog

Announced cost saving program being executed

Restructuring of Land Based business according to plan

• The financial performance in Land Based is below expectations and not acceptable
• New blueprint organization established at headquarter Klepp and recruitment campaigns have been initiated
• Better access to talents in general, engineering resources and aquaculture experience in the Stavanger / Jæren region
• Gradually downscaling of organization in Denmark, also due to high turnover of personnel
• New organization will be located in the main market place for post smolt, and with same location as AKVA management, Sea Based and Digital organizations
• Rightsizing and restructuring of organization at Sømna to focus on core products like fish tanks and fish handling
• Cost savings of minimum MNOK 62 where approx. 50% was realized end of Q4 2022. Last 50% to be achieved during 2023

AKVA implications of new resource tax

Activity level

• AKVA's current products and services within Sea Based and Digital in Norway are supporting core activity and minor implications are expected on activity level
• AKVA does not expected new investment decisions within post smolt segment in Norway before uncertainty related to resource tax is concluded

AKVA input regarding hearing of proposed resource tax

• AKVA group does not believe that the proposal for a new resource tax will contribute to the desired political development of the industry, and we are strongly against the government's proposal. Given that resource rent tax is introduced, we would particularly encourage that:
• 1. An upper percentage is set for the total tax burden. Alternatively, we propose to lower the tax rate sharply
• 1. The resource tax must be designed so that investments in hatcheries/post-smolt are still economically attractive
• In addition, we will request a rapid decision-making process to reduce uncertainty for the supplier industry

Strategic and Operational Status

Underlying demand growth implies 0.7-1.3 million ton volume increase by 2030

1) +1.5 percentage point increased price-neutral volume growth compared to base case Source: Kontali, Cardo Partners analysis Extrapolation of underlying demand growth for salmon 2012-2030 Consumption of Atlantic salmon WFE in mill. tons Base case price-neutral volume growth (~3%) High demand growth (~4.5%)¹ Historic development Supply drivers Demand drivers Main supply and demand drivers 2022-2030: +0.7-1.3 mill. tons Supply potential Global health and wellness megatrend drives adoption of salmon as a sustainable and healthy source of protein Technological advances for improved utilization of existing licenses Inflationary pressures may shift consumption towards cheaper protein sources Slow scale-up of new farming technologies (landbased and offshore) Uncertainty regarding future regulations in several farming regions impacting future supply growth Growth in demand driven by emerging salmon markets and product development in existing markets Norwegian resource tax reducing investments in new technology for future license utilization 2012 2014 2016 2018 2020 2022 2024 2026 2028 2030 1.5 4.5 1.0 2.5 2.0 3.0 3.5 4.0 5.0 2.9 4.2 3.6

Innovation agenda for Land Based Salmon Farming

Market leading RAS technology enabling sustainable and cost-effective production

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

1

Data driven insight and intelligent farming systems enabling consistent and optimized production - "Precision Farming" 3 4

2

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

Post-smolt RAS concept is validated

Precision Farming Sea Based Solutions

Marine Infrastructure for secure containment

and efficient operations

• Plastic and Steel pens
• Nets
• Moorings
• Net Cleaning services and RoV's

Precision Feeding for optimizing feed conversion and growth

• Barges
• Feed systems
• Camera systems
• AKVA connect
• AKVA observe
• AKVA fishtalk

Digital

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

• AKVA connect
• AKVA observe
• AKVA fishtalk

Deep farming to minimize number of lice treatments

• Tubenet
• Nautilus
• Plastic pens
• Feed system
• Sub surface feeding
• Camera systems
• Lights
• Digital

Deep sea farming concepts

NAUTILUS™ TUBENET™ ATLANTIS

Current digital solutions

54 sites worldwide on recurring revenue model (25 new sites in 2022) Global market share of 60% 167 sites worldwide on recurring

revenue model (125 new sites in 2022)

Medium term targets

Long term organic topline growth of min. 10% Y-o-Y

Deliver min. BNOK 4 in revenue in 2024

Operational excellence and cost saving programs

Deliver min. 8% EBIT in 2024

Step by step improve ROACE to min. 15% by 2024

Innovation spending to support new Product development and Organic growth

3 Digital platforms: AKVA Connect, AKVA Observe and AKVA Fishtalk

Agenda|Q4 2022

Introduction and Highlights

Q&A Session

Q4 2022 – Income statement

• Revenues decreased by MNOK 53 compared to Q4 21
• EBIT decreased by MNOK 33 from MNOK 19 in Q4 21 to MNOK -14 in Q4 22
• Reduced profitability compared to Q4 21 is all related to the Land Based business area

million NOK	2022	2021	2022	2021
	Q4	Q4	YTD	YTD
Revenue	779	833	3 376	3 122
of materials Cost	474	539	2 107	1 873
Payroll expenses	224	182	881	797
Other operating expenses	5 4	5 1	230	200
EBITDA	2 7	6 1	158	252
EBITDA margin	3,5 %	7,3 %	4,7 %	8,1 %
costs1 ex. cyber-attack EBITDA	2 7	6 1	158	302
1 margin ex. cyber-attack EBITDA costs	3,5 %	7,3 %	4,7 %	9,7 %
and Depreciation, amortization impairment	4 2	4 2	175	183
EBIT	-14	1 9	-56	7 0
margin EBIT	% -1,9	% 2,3	% -1,7	% 2,2
costs1 ex. cyber-attack EBIT	-14	1 9	-56	120
1 ex. cyber-attack EBIT margin costs	-1,9 %	2,3 %	-1,7 %	3,8 %
Financial Net Items	-22	-19	-95	-67
(loss) before Income tax	-37	-0	-152	3
costs1 (loss) before ex. cyber-attack Income tax	-37	-0	-152	2 5
tax2 Income	1 4	-6	-7	-9
income (loss) Net	-51	6	-145	1 1
1 (loss) income ex. cyber-attack Net costs	-51	6	-145	5 0
per share (NOK) Earnings	-1,41	0,16	-3,99	0,34
2 Earnings per share (NOK) ex. special items	-1,41	0,16	-3,99	1,49

¹Cyber-attack costs of 49,7 MNOK in Q1 2021

Revenue development

• Last twelve months order intake and revenue was MNOK 3,414 and MNOK 3,376, respectively
• Revenue decreased by 6% compared to Q4 21
• Strong order intake in Sea Based in Q4 22 indicates increased activity level start of 2023

Revenue by Market and Segment

• Reduced activity level in Q4 22 compared to Q4 21 is mainly related to the Nordic market

• Lower activity in Europe & Middle East due to the situation in Russia

• Sea Based represents 76% of total revenue in Q4 22

• Decrease in activity level is all related to Sea Based. Positive development in Digital (+14%) compared to Q4 21

* Note: Market definition is location of customer

EBITDA and EBIT development

• Profitability in Q4 22 impacted by high cost base and challenging profit margins in Land Based
• Acceptable profitability in Sea Based and Digital

Cash flow and financial position

^▪ Q4 21 to Q1 22 includes MNOK 300 available credit facility Danske Bank

▪ Private placement of MNOK 322 completed in Q4 21

*Note: NIBD/EBITDA ratio for the period Q4 21 is adjusted for non-recurring cyber-attack costs of MNOK 49,7 in agreement with Danske Bank *Note: NIBD/EBITDA ratio for the period Q3 22 to Q4 22 is adjusted for non-recurring costs of MNOK 138 in agreement with DNB

Lease Liability (IFRS 16)

NIBD/EBITDA covenant threshold of 4,50

Development Net interest-bearing debt

Capital expenditure

• Total CAPEX of MNOK 44 in Q4 22 and MNOK 168 for the full year 2022
• MNOK 26 of growth CAPEX in Q4 22 relates to investments in our three innovation agendas

CAPEX (MNOK)

Development return on capital employed

• ROACE decreased from 6,7% in Q4 21 to -3,1% in Q4 22 and negatively impacted by restructuring and high inflation costs in 2022
• Target of minimum 15% in 2024

▪ ROACE is calculated with the average balance sheet items last four quarters

▪ ROACE is calculated ex balance sheet items of IFRS 16

* Note: Costs of MNOK 49,7 related to cyber-attack in Q1 21 is excluded when calculating ROACE for the period Q1 21 to Q4 21

Dividend

• A dividend of NOK 1 per share was paid in Q1 2022
• Due to the slow financial performance in 2022 the company has decided not to pay any dividend in the first half of 2023

Sea Based Technology

• Total revenue decreased by 9%
• Strong increase in order intake from MNOK 695 in Q4 21 to MNOK 823 in Q4 22
• EBITDA margin increased compared to Q4 21 but negative impacted by the lower activity level

Nordic

• Revenue decreased by 18% in Q4 22 compared to Q4 21
• Total order intake of MNOK 554 and 43% higher than Q4 21

Americas

• Strong increase in revenue of 26% in Q4 22 compared to Q4 21
• 17% increase in order intake in Q4 22 compared to Q4 21

Europe & Middle East

• Revenue decreased by 27% in Q4 22 compared to Q4 2021 while order intake decreased by 33% in the same period

Revenue (MNOK) and EBITDA-margin (%)

Sea Based order intake and backlog development

12M Revenue & Order intake (MNOK)

Order backlog & Order intake(MNOK)

Development OPEX based revenue

• Recurring revenue was MNOK 28 higher in Q4 22 compared to Q4 21
• Activity level at Egersund service stations increased by 10% in Q4 22 compared to Q4 21

Land Based Technology

• Order intake of MNOK 34 in the quarter compared to MNOK 21 in Q4 21
• Revenue increased by 1% in Q4 22 compared to Q4 21
• Poor financial performance impacted by high cost base and challenging project margins

Land Based order intake and backlog development

Order backlog & Order intake(MNOK)

• Revenue increased by 14% in Q4 22 compared to Q4 21
• Improved profitability is all related to increase in activity level and more robust recurring revenue base

Digital order intake and backlog development

Order backlog & Order intake(MNOK)

Outlook

• Order backlog is sound and forms a good foundation to execute our organic growth strategy
• Salmon prices expected to remain strong driven by reduced supply.
• The implications from the introduction of new resource tax are uncertain. Most likely this will continue to have a negative impact on the activity level on short and medium term, especially in the post smolt market in Norway
• Medium financial targets remain unchanged and AKVA is targeting minimum BNOK 4 in revenue and minimum 8% EBIT in 2024
• Annual cost savings of MNOK 100 are implemented to improve profitability
• AKVA will continue to invest and improve our solutions, both within Sea Based, Digital and Land Based Technology

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.

Overview slide

and service

partner

Listed on Oslo stock exchange since 2006

Deliveries in 65 countries over 40 years

Companies in 11 countries. 1 469 employees

Balance sheet CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION ^{2022 2021}

(NOK 1 000)	31.12.	31.12.
Intangible fixed assets	989 063	934 157
Deferred tax assets	21 831	11 229
Tangible fixed assets	635 245	642 568
Long-term financial assets	314 337	342 196
FIXED ASSETS	1 960 476	1 930 149
Stock	600 394	556 076
Trade receivables	592 838	550 787
Other receivables	123 331	105 091
Cash and cash equivalents	277 988	303 442
CURRENT ASSETS	1 594 551	1 515 397
TOTAL ASSETS	3 555 027	3 445 546
Paid in capital	1 208 146	1 208 539
Retained equity	-77 884	88 346
Equity attributable to equity holders of AKVA group ASA	1 130 262	1 296 885
Non-controlling interests	336	140
TOTAL EQUITY	1 130 598	1 297 025
Deferred tax	9 204	21 187
Other long term debt	36 637	39 056
Lease Liability - Long-term	391 413	404 673
Long-term interest bearing debt	702 481	454 065
LONG-TERM DEBT	1 139 736	918 981
Short-term interest bearing debt	80 625	300 858
Lease Liability - Short-term	91 022	78 201
Trade payables	310 629	275 604
Public duties payable	81 277	63 699
Contract liabilities	468 729	354 905
Other current liabilities	252 413	156 273
SHORT-TERM DEBT	1 284 693	1 229 540
TOTAL EQUITY AND DEBT	3 555 027	3 445 546

Cash flow statement

CONDENSED CONSOLIDATED STATEMENT OF CASH FLOW		2022 2021	2022	2021
(NOK 1 000)		Q4 Q4	YTD	YTD
Cash flow from operating activities Profit before taxes	-36 654	-28	-151 865	2 549
Taxes paid	-5 185	-8 747	-11 422	-34 683
Share of profit(-)/loss(+) from associates	-1 102	-2 339	-7 087	-8 461
Net interest cost	17 372	7 518	50 606	38 868
Gain(-)/loss(+) on disposal of fixed assets		-318 -562	-766	-1 567
Gain(-)/loss(+) on financial fixed assets	1 222	-3 150	31 167	10 342
Depreciation, amortization and impairment	41 548	41 835	214 762	182 662
Changes in stock, accounts receivable and trade payables	-108 630	59 947	-51 344	-108 105
Changes in other receivables and payables	85 071	-58 169	209 301	22 221
Net foreign exchange difference	5 972	-12 071	-10 911	-43 075
Cash generated from operating activities		-704 24 235	272 440	60 752
Cash flow from investment activities
Investments in fixed assets	-43 910	-21 011	-167 859	-80 335
Proceeds from sale of fixed assets		369 366	6 969	2 626
Payment of shares and participations		0 0	0	-36 217
Net cash flow from investment activities	-43 541	-20 644	-160 890	-113 926
Cash flow from financing activities
Repayment of borrow ings	-29 124	-23 861	-96 046	-91 810
Proceed from borrow ings	43 125	-71 184	43 125	6 695
Loan issue		0 329	0	-22 142
IFRS 16 interest	-5 511	-5 148	-19 576	-20 605
Net other interest	-11 862	-2 370	-31 030	-18 263
Dividend payment		0 0	-36 668	-32 956
Equity issue		0 321 676	0	321 676
Net cash flow from financing activities	-3 371	219 441	-140 195	142 595
Net change in cash and cash equivalents	-47 617	223 031	-28 644	89 422
Net foreign exchange differences	-2 494	-5 574	3 190	-7 576
Cash and cash equivalents at beginning of period	328 098	87 925	303 442	224 884
Cash and cash equivalents divested entities		0 -1 940	0	-3 287
Cash and cash equivalents at end of period	277 988	303 442	277 988	303 442

Largest shareholders

20 largest shareholders

No of shares	Account % name		Type Citizenship
18 703 105	51,0 % EGERSUND GROUP	AS	NOR
6 600 192	Corporation 18,0 % Israel	Ltd	ISR
1 578 731	4,3 % PARETO AKSJE	NORGE VERDIPAPIRFOND	NOR
1 084 222	VERDIPAPIRFONDET 3,0 %	NORDEA AVKASTNING	NOR
968 622	SIX SIS AG 2,6 %		Nominee CHE
791 167	2,2 % VERDIPAPIRFONDET	ALFRED BERG GAMBA	NOR
640 885	VERDIPAPIRFONDET 1,7 %	NORDEA KAPITAL	NOR
602 614	1,6 % VERDIPAPIRFONDET	NORDEA NORGE PLUS	NOR
543 332	FORSVARETS 1,5 %	PERSONELLSERVICE	NOR
355 301	VERDIPAPIRFONDET 1,0 %	EQUINOR AKSJER NO	NOR
316 155	0,9 % J.P. Morgan SE		Nominee LUX
302 998	PENSJON 0,8 % MP PK		NOR
294 282	0,8 % AKVA GROUP ASA		NOR
256 590	SE 0,7 % J.P. Morgan		Nominee FIN
232 613	VERDIPAPIRFONDET 0,6 %	ALFRED BERG NORGE	NOR
130 000	0,4 % NESSE & CO AS		NOR
129 988	PACTUM AS 0,4 %		NOR
128 000	0,3 % VERDIPAPIRFONDET	ALFRED BERG NORGE	NOR
125 795	0,3 % DAHLE		NOR
104 336	VERDIPAPIRFONDET 0,3 %	ALFRED BERG AKTIV	NOR
33 888 928	92,4 % 20 largest shareholders
2 778 805	Other shareholders 7,6 %
36 667 733	100,0 % Total shares

Origin of shareholders, 5 largest countries

of No shares	%	Origin	of No shareholders
28 087 357	Norway	76,60 %	1349
6 600 192	Israel	18,00 %	1
1 000 296	Switzerland	2,73 %	6
349 429	Luxembourg	0,95 %	3
303 383	Finland	0,83 %	4
94 541	Denmark	0,26 %	23
21 796	Liechtenstein	0,06 %	1

Share development

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Total number of shareholders: 1510 - from 32 different countries