Argeo AS — Investor Presentation 2021

Apr 26, 2021

Digitizing the ocean space

Company Presentation

26th of April, 2021

Strictly private and confidential

Argeo mission

Transforming the ocean surveying and inspection industry

..by utilizing autonomous underwater and surface vehicles and unique sensor and imaging technology

..to significantly increase efficiency and quality

..and to substantially reduce the CO2 footprint for the industry

Unique imaging and modelling technology

"Faster, better, greener and at a lower cost"

Sustainable development goals is an integral part of Argeo's philosophy

Argeo highlights

A first mover with zero legacy

1	Large addressable market	15 billion per year1 • Total market size of ~NOK 11 – • Both tapping into existing markets and approaching fast growing emerging markets
2	Introducing new and highly efficient solutions	• Unique imaging and modelling from in-house engineering solutions – high barriers to entry • Significantly lower costs, higher speed and improved data quality compared to current solutions
3	Sustainable solutions with strong ESG focus	• Vital surveys for environmental impact and development of renewable energy Up to 68% reduction in fuel consumption compared to traditional surveys using ROVs2 •
4	Successful private placement and set for growth	• Successful and substantially oversubscribed private placement of mNOK 175 • Already taken delivery of the first AUV and ordered a newbuild AUV with secured contract in Deep Sea Minerals
5	Attractive financials	• Already cash-generating operations and low capex requirements going forward • Targeting revenues of NOK 80 million and EBITDA NOK 15 million for 2021 • Targeting revenues of above NOK 1 billion and EBITDA of above NOK 450 million in 2025

A technology focused imaging and geo-engineering specialist

Company overview

• Argeo was established by an experienced team of professionals in 2017 with HQ in Asker, Norway
• International expansion to North and South America with first office opening in Houston
• Strong focus on robotized solutions that save time and cost for the customer
• Proof of concept from successful projects within aquaculture and infrastructure with excellent feedback from clients
• Recently acquired a Hugin AUV in the secondhand market
• Procurement of new build SeaRaptor 6000 AUV for Mineral Exploration and general survey applications
• Signed multi-year mineral exploration contract for Asia-Pacific region starting February 2022

Market segments

Key market services

• Data acquisition, imaging and underground modelling for large infrastructure projects and aquaculture • High accuracy imaging needed to reduce project risk and construction costs • Input to wind farm design, including design and location of foundations, substations etc. • Investigation of routes for power cable and assessment of environmental impact • Inspection of existing infrastructure • Light intervention • Input to offshore field design, including design and location of platform and subsea infrastructure • Investigation of routes for pipelines • Detection damage/erosion on existing installations • Inspection and light intervention • General survey • Exploration and characterization of Deep Sea Mineral (DSM) deposits • Environmental impact studies • Wide use of sensors and in-house Mineral Hunter system under development by Argeo Robotics • Significant upside in future Multi Client data library developed

Sustainable development goals - focus on reducing carbon footprint in all operations

Management team with strong industrial track record

Argeo team – experienced professionals from the seismic and oil & gas sectors Executive team and America's expansion

Trond Figenschou Crantz CEO / Founder

Thorbjørn Rekdal

CTO

PGS

• 20+ years of leadership experience from Schlumberger and PGS
• Extensive technical, operational and commercial experience

• 20+ years of leadership experience from

• Head of PGS Research and Commercialization • PhD in Geophysics

• M.Sc. In Robotics and Cybernetics and MBA

Odd Erik Rudshaug CFO

• 35+ years experience from shipping and oil & gas
• Co-founder & CFO for RXT, experience from PGS and EMGS
• M.Sc. Business & Economics

Bjørn Jensen

COO

• 20+ years of leadership experience from Magseis, iSurvey and PGS
• Global operational responsibility for all PGS marine seismic operations
• M.Sc. In Engineering Cybernetics

To Be Announced CCO

• Recruitment process started

To Be Announced EVP EAME/NSA

• Establishing US office in Houston
• Recruitment process started

To Be Announced

VP Marketing

• Recruitment process started

Source: Company Page 6

Highly experienced board

Argeo's tools are high-capability AUV's with complimentary abilities

Benefits

HUGIN 1000 Autonomous Underwater Vehicle

Kongsberg Hugin robots

Mobilization in a 20" + 10" ISO container, anywhere in the world

Unmanned from continent to continent is coming with full force

The Argeo Surface robots

Near-shore Autonomous robot for survey or Hugin surface link to shore

Next generation Long Endurance Autonomous robot

Mariner Long Endurance – key features

• Low carbon footprint
• Uninterrupted shore-to-shore operations; up to 30+ days mission duration
• Unsupervised geophysical, hydrographical and AUV survey
• Link and Dock with Hugin and Eelum system
• Multi sensor installation for shallow water survey
• Launch and Recovery from shore or ship of opportunity.
• Containerized shipping and operation

SeaRaptor 6000 meter Autonomous Underwater Vehicle

The growing Argeo deep water «fleet»

Planned project scheduling

Factory Acceptance Test: Q1-2022 Mobilizing for Asia Pacific (AP) DSM: Q1-2022 Building AP Commercial projects: Q3-2021- Q2-2022 Norwegian DSM Campaign tendering: Q3-2022

SR6K– key features

Length:	5.8 meter
Weight (in air):	1.200 kg
Depth rating:	6000 meters

The AUV is modular and very mobile (air transportable) with supporting systems which can be strategically placed in our Geomarkets for rapid deployment between regions. All data collected will be processed onboard (the AUV) using onboard-postprocessing and mosaicking software to allow quick turnaround during missions and improved decision making for the customer.

The AUV will be equipped with the latest:

• Kraken MinSAS 120 Synthetic Aperture Sonar (providing large swath area coverage and high-resolution imagery and bathymetry data collection.
• Teledyne Reason T50-S Multi-Beam dual frequency 200/400 kHz Echo Sounder
• Teledyne Benthos Chirp III Sub Bottom Profiler
• iXblue PHINS 6000 INS
• Teledyne RDI Tasman DVL
• CathX Hunter Laser & Camera System.

In addition to a whole host of extra environmental sensors, extra batteries and LARS systems

Eelume Autonomous Underwater Inspection Drone (UID)

Argeo Light Intervention and Inspection services Eelume– key features

The Next Generation Inspection, Maintenance and Repair (IMR) Tool

The snake-like robot Eelume is designed to live permanently underwater and carry out tasks that would normally require the use of a remote-controlled robot from the surface.

Eelume's value proposition will disrupt the Subsea IMR and Offshore wind O&M value chain and significantly improve economics and environmental footprint

Features full autonomy operation with long endurance hibernation and remote operations from Argeo's Control centers internationally

Transforming the ocean surveying and inspection industry

Game changer for offshore wind developers – significant time and cost savings

Page 14 Source: Arkwright research Note: 1) Argeo AUV survey vs. ROV survey

With current technology, operations are dependent on the need for costly surface vessels with limited operational time

High potential benefit for the end-user by introducing a disruptive technology reducing the need for surface vessels

Source: Compiled information from Management, Equinor, Douglas Westwood, IHS, and Arkwright research Remotely operated vehicle; 2) Upper-chart based on selected sample of vessels in North sea spending at least 50% of operational time on IMR in 2014-2018. Extreme values excluded. 16 vessels in sample. Lower chart based on Management and Arkwright research

High barriers to entry

Argeo has already spent three years building a competitive pure-play company with focus on unique technology and its own Digital Ocean-Twin project

An autonomous and digitized ocean solution Argeo's competitive advantage Barriers to entry

«Jeg sier en ting til John Markus. Du klarer ikke å forklare hvor genialt Cognite Data

Fusion (CDF) er. Du er for ydmyk», sa Røkke i oktober, og understreket følgende:

• Asset light and pure-play
• Unique sensor technology
• Digital Ocean-Twin from satellites to seabed
• Proprietary integrated multidata imaging & modelling

• A dedicated team with the right competency

• Access to AUV's and time to build a track record

• Invention, engineering and commercialization of proprietary technology
• Competency to build a digital twin concept
• Establish expertise and develop a 3D digital ML/AI imaging & modelling environment
• Establish a team with the right combination of competency

«Digitalisering er fremtiden».

Argeo Digital Ocean Space - SaaS Digital Twin Solution

Integrated solution supported by Digital Twin technology for data acquisition simulation, project life-cycle activities and results modelling

Value proposition to customers

Fastest and most cost-effective survey solutions	• A significantly more flexible and faster pure-play provider not dependent on the shipping model • More than 50% time savings and 60% cost reduction compared to traditional ROV survey solutions
Significantly reduced emissions	• Minimized need for vessel infrastructure and up to 60% reduction in CO2 emissions from operations
AUVs provide more effective data acquisition	• Lowers the number of operators and allows for smaller support/"mother" vessels • Allows for higher speed and more effective data acquisition than by using ROVs
Improved data quality	• AUVs improve the image resolution and data quality by bringing the sensors closer to their targets

Proof of concept from a highly successful project for Nordlaks Havfarm II

Argeo and Multiconsult responsible for subsea survey and geological modelling for safe anchoring

About the project

Nordlaks Havfarm II is a NOK 2 billion project that aims to improve the environmental fish welfare production conditions

Seafarms will be located in areas that cannot be utilized for farming with current available equipment

Argeo delivery

• Full AUV survey
• 1 day mobilization
• 6 days acquisition and demobilization
• 40 km2 area covered

Selected illustrations

New Bridge (Mjøsa): Ultra High Resolution Seismic

Yet another hallmark project for Argeo

About the project

• NOK 4 billion bridge project crossing Mjøsa lake in eastern Norway
• Significant responsibility given to Argeo by developer, Nye Veier

Argeo delivery

• UHR surface seismic
• Integrated geological modelling and interpretation provided by Nye Veier
• Absolute 3D subsurface GEO-MOD (geo modelling) at construction grade (20-35 cm)

Selected illustrations

Data acquisition in cooperation with Multiconsult

3D subsurface integration modelling as a separate project for Nye Veier

Survey conducted by Argeo to result in significant reduction in construction costs

Commercialization and ramp up of product sales

Status commercial project pipeline 2021-2024 (MNOK)

Step-wise roll-out in key markets

• Use the team's experience from rapid buildup of organizations to build and develop organizational capacity and capability
• Invest in AUVs in order to capture additional market share within each of the company's key segments
• Utilize broad industry network to acquire vehicles in the market at attractive pricing and delivery terms
• Hire additional personnel through a structured process where key candidates are shortlisted and identified
  • Argeo will be able to handle large and growing markets with a relatively small organization

Source: Company

Used AUV's New AUVs - Hugin, SeaRaptor, Hover capable AUV or similar

Accumulated number of AUVs

Robust and profitable case with a low required utilization for breakeven

NOK million

• Due to the pure-play and light business model, Argeo require a relatively low fleet utilization for operations to be breakeven
• Example from 2022 in business plan (first year of "full operation"):
  • Breakeven on net earnings at 20%
  • Well below the relatively conservative estimate of 42% in business plan
• Robust business case!

40% 50% 60% 70% 80% Utilization

EBITDA at various utilization rates – 2022

Summary