Aqua Bio Technology — Investor Presentation 2014

Nov 26, 2014

Third Quarter Results Presentation

26 November 2014

Q3 2014 Highlights

• Restorsea dispute settled
• Strong profitability; EBITDA margin above 50 per cent
• Analysis of broader market approach initiated
• Strong financial position maintained
• NOK 27 million cash reserve

Income Statement

NOK million	Q3 2014	Q3 2013	YTD 2014	YTD 2013
Income	6.7	4.8	17.3	19.0
Operating costs	-3.1	-3.0	-12.7	-10.4
EBITDA	3.6	1.8	4.6	8.5
EBIT	2.0	0.4	-0.2	4.3
EBT	2.1	0.6	0.0	4.9
Net result	2.1	0.6	0.0	4.9
EBITDA margin	53.7%	37.9%	26.6%	44.9%

• All royalty and exclusivity payments received according to contracts
• Revenues may fluctuate from quarter to quarter, due to ABT's early phase position and customer structure
• Operating costs in Q1-Q3 2014 affected by legal costs relating to Restorsea dispute

Income development last four quarters

Balance Sheet

NOK million	30 Sep 2014	31 Dec 2013	30 Sep 2013
Fixed assets	14.0	16.6	18.2
Current assets	60.9	61.7	60.3
- of which is cash	27.0	27.0	26.0
Total equity	66.1	65.9	67.4
Long term debt	7.1	9.0	9.2
Short term debt	1.7	3.4	2.0
Total balance	74.9	78.3	78.6

Cash flow

NOK million (Year to date)	2014	2013
Cash at beginning of period	27.0	21.0
From operations	4.2	5.8
From investments	-2.3	-0.6
From financing	-1.9	-0.2
Cash at end of period	27.0	26.0
Cash change in period	0.0	5.0

Restorsea dispute resolved

• Case irrevocably settled at beginning of third quarter
• Substantial non-recurring legal costs carried by ABT in 2014
• New agreement expands ABT-Restorsea partnership
• Restorsea exclusivity now also embraces Beauty Propelline and Dermaclarine
• Financial terms unchanged from initial contract
• ABT able to focus on further developing the Company going forward

Addressing a broader market

• ABT ingredients for medical purposes to be explored
• Research and trials over recent years suggest that ABTs hatching fluid technology holds potential also outside the cosmetics industry
• Significant documentation of technology and efficacy already in place
• ABTs key personnel have experience from the pharmaceutical industry
• Natural and sustainable ingredients in demand also by medical products manufacturers

A strategy for expansion

1.	Support exclusivity partners Restorsea and Amway in their efforts to reach commercial success in the cosmetics market with skin care products based on ABT technology.	Ongoing
2.	Active in-licensing of relevant technologies from partners; develop ABT as a powerhouse in commercializing third party technologies for skin care and other applications.	Ongoing
3.	Explore possible applications for ABT's hatching fluid technology outside the cosmetics industry, i.e. medical use.	Initiated

Outlook

• Transparent revenue stream
• 2014-2017 contracted income stream substantial
• Commercial success of exclusivity partners represent upside potential
• Operating costs returning to normal levels
• Strategy of broadened market approach holds potential
• In-licensing agreements expected in coming months
• Medical market may represent significant long term potential
• Robust financial position
• Equity ratio almost 90 pst; strong cash position

4th Quarter and Full Year 2014 Results 11 February 2015

Investor contact

Arvid Lindberg, CEO +47 9824 5410 arvid@aquabiotech.no

www.aquabiotechnology.com