Fjord Defence Group ASA — Investor Presentation 2021

Jul 7, 2021

Company Presentation

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July 2021

Arbaflame creating value from certified bio-waste

Arbaflame reduces CO2 emissions with a product portfolio that contributes to the circular economy

Source: (1) Global Energy & CO2 Status Report 2019, IEA

More than 10 years development towards first commercial plant

Source: Company information

Vast conversion potential in the EU with major upside potential globally

Coal plant capacity 2000 Installed capacity 2000-2020 Under construction Planned capacity Total capacity 2x capacity 1 060 GW 1 000 GW 200 GW 300 GW 2 560 GW Targeting coal plants in need of conversion, leaving potential for a serious ramp-up

EU is leading the phase-out of coal

Source: Bloomberg New Energy Finance; Hawkins Wright, Black Pellet Market Outlook 2020; United States Department of Agriculture; Renewable Energy Institute, Japan; FutureMetrics, Japan Biomass Outlook, Fortum; Carbon Brief; S&P Global Market Intelligence

Arbaflame provides the solution for displacing coal-fired power generation

Source: Company information Note: 2) FSC = Forest Stewardship Council, PEFC = Programme for the Endorsement of Forest Certification, SBP = Sustainable Biomass Program Sequestration…

ArbaCore having a significant cost advantage of coal

Source: Factset as of 10.05.2021; Bank of England; BP

Note: 1) Coal (API4) price per 21 April 2021, assumed calorific value of 25GJ/t, 2.9kg CO2 per kg coal and assumed coal plant efficiency of 45%; 2) ETS price per 21 April 2021 and assumed coal plant efficiency of 45%; 3) Expected production cost of ArbaCore for ArbaTwo

ArbaCore is a superior coal substitute compared to white pellets

ArbaCore advantages over white pellets for coal replacement		ArbaCore has been successfully verified in 14 coal power plants
	Coal-fired power plants can switch to ArbaCore with minimal CAPEX compared to white pellets
	Water resistant – can be stored outdoors
	40% lower volume for same energy content → lower logistics costs
	Safer handling
	Outstanding mechanical properties → lower particle size distribution
	Lower handling, storage and transport cost → can be handled similar to coal	ArbaCore	can be stored outside, and coal firing power producers can utilize existing equipment

We selected the Arbaflame pellets based on superior safety and fuel properties

Les Marshall, Senior Technical Officer, Ontario Power

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• Located outside of Kongsvinger
• Production capacity: 70,000 Te per year / nameplate capacity of ~80,000 Te per year
• Bio -chemicals (1/3 of value creation - phase 1)
• ArbaCore off -take with Power Plant Rotterdam corresponding to a backlog of EUR 68.5m
• ArbaRaf LOI with TransFurans for off -take of full capacity of chemicals for the next 5 years
• Start Production: 2021
• CO2 reduction of 140,500 Te/year
• Feedstock secured from adjacent sawmills

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Step-wise roll-out of production capacity in both short- and long-run

Reduce suppliers and prefabricate modules assembled on site will reduce cost & lead time

Contributing to the transition with sustainable and value adding bio-chemicals

Liquid markets that can easily absorb Arbaflame's production in the foreseeable future

Source: Grand View Reasearch; Maya Research Analysis 2020; Global Markets Insights; Research and Markets; Allied market research

Arbaflame has a strong team and quality partners executing the R&D programs

Source: Company Information Note: Including 50,000 hours

Arbaflame Highlights

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Strong fundamental market drivers

Significant current demand for ArbaCore; existing coal-fueled power producers in Europe need to convert or to shut down(1)

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Superior product with high ESG impact

ArbaCore has superior qualities and economics compared to available alternatives

Displacing coal with ArbaCore reduces CO2 emissions with >90%¹

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First full-scale project in operation 2021

Construction of ArbaOne completed in H1'2021 following 10 years of R&D and testing.

Capacity of 70,000 t ArbaCore and target volume of 2.825 t of bio-chemicals

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Attractive project economics with high scalability

Standardized modular design driving down cost and ensuring scalability.

Several new projects in the pipeline

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Proprietary process yielding high-quality bio-chemicals

ArbaRaf is a proprietary production process following ArbaCore with significant positive environmental impact and higher earnings capacity