Fjord Defence Group ASA

Investor Presentation • Aug 23, 2023

Presentation Q2 2023

23 August 2023

Disclaimer

• · The information in this presentation has been prepared by Aquila Holdings ASA (the "Company"). By attending the media of by reading the presentation slides, you agree to be bound by the following limitations and provisions:
• · This presentation has been prepared by the Company as and be as of the cate here of. By relying on this presentation does not cover all matters relevant of an assessment of an investment in the company.
• · No representation or waranty (expressed or in reliance should be placed on, any information, induding projections, estimates, targes and opinions, contained herein, and no lability whatsoever is accepted as misstatements contained herein, and, accordingly, none of the Company, any achise or any soch persons offices or employees accepts any incirecty or incirecty from the use of this presentation The information herein's subject to charge completion, supplements or amendments without notice.

page 2

• · The presentation is based on the economic regultions as n effect on the date hered, and may contain certain or ware booking statements By their nature, forward-looking statements in over isk and une reflect the Company's current expectations and assumptions as to future events and circumstances hat may not prove accurate it should be unders now affect the information contained in this document, which neither the Company no its a disass are under an obligation to update, revise or affirm.
• · This complete presentation is for informational procession the Constitute an offer to sell shares in the presentation is not a prospects, discosser document or offering accument and does not purport to be completed as tem or condition of the Transaction of the Transaction is stricts confidential and may not be reproduced or redistributed, in whole or in part, to any other person.
• · This presentation has not been reveal by any regulatory authority or stock exchange. The (e)distribution of this presentation and/or any prospectus or other documentation into insticlines other than Norway may be restitute or form part of any offer or invitation to sell or issue, or any solicitation of any offer to acquires offered by any prisdiction in which such an offer or soliciation is ulawnu. Neither this presentation nor anything contained herein shall form the basis of any contribution into whose possession this presentation comes should inform themes about and observe any such restrictions. Any failure to comply with these restrictions may constitute a vidation of the securities laws of any such restrictions.
• · The contents of this presentation are not to be construct or tax abine. Each respient should consult with its own legal business investment ard ax adviser as to legal, business, investment and tax advice.
• · Any investment in the Company in other in estars who understand the risks associated with this type of investment and who can afford a loss of all or part of the investment. Investors should carefully revear of in the following sides before making any investment decision.
• · The presentation and any purported lability in connection with it is subject to the exclusive jurisdiction of the Novegian oourts.

Quarterly highlights

• •
• · Fair value of multi-client library USD 34.3 million
• · Fair value of investment portfolio USD 6.0 million
• •
• · Cash earnings (loss) for the quarter USD (0.2) million
• •
• · Subsequent to quarter end, announced NOK 5 million share repurchase program
  • · As of 18 August, company holds 16.2 million own shares, equal to 6.8% of share capital

* Bank deposits, trade receivable and marketable securities

Revised strategy

• · Outlook supporting solid oil demand
  • · Global demand projected by IEA to reach 102 mb/d in 2023, a new record
  • · Demand expected to increase through 2028
• Demand outlook supporting historically high oil prices and E&P investment
  • · ILX and near-field exploration on long-term uptrend
  • · Energy security driving exploration in select geographies
• · Key strategic opportunities currently being evaluated to expand the seismic business line
  • · Expansion opportunities may be organic as well as inorganic
• · Will selectively look at other investments but will take an opportunistic and cautious approach

Multi-client portfolio

Norwegian North Sea - Utsira

Discounted cash-flow valuation: USD 26.3 million

Observations

• · Historical investment USD 82.3 million
• · State of the art high-density ILX OBN survey covering 2,000 square kilometers of highly prospective acreage; processing completed Q3 2020
• Industry-funded reprocessing project with CGG
  • · Progressing according to plan and cost
  • · Completion estimated summer 2024
  • · New data will be licensed as "upgrade product" to existing licensees of underlying data
• June 2023, Vår Energy announced acquisition of Neptune Energy Norge; change of control fees expected upon closing of transaction Q1 2024

Egypt - Gulf of Suez

Discounted cash-flow valuation: USD 7.9 million

Observations:

• · State of the art node and streamer survey, designed to understand subsalt geology; processing completed Q3 2022
• · Revenue-share agreement with Schlumberger
  • · Cap at USD 13.7 million
  • · Late sale USD 1.6 million Q3 2022
  • · USD 12.1 million remaining revenue share; book value USD 7.9 million
• · Neptune Energy acquired by Eni June 2023; change of control fees expected upon closing of transaction Q1 2024

Financial assets

• · Fairfield in March 2022
• Industry-leading node deployment speed; system optimal for shallow water surveys
• · Node-agnostic technology provides flexibility
• · Earnout structure with cap of USD 12.0 million over three years
  • · Year-three floor payment of USD 1.5 million, subject to certain milestones
  • · Booked financial asset of USD 3.0 million

Investments

• · Select investments in listed and unlisted securities
• Current focus on energy and industrial sectors
• Will take a cautious approach
• · Transformative transactions will also be considered
• Fair value of investment portfolio USD 6.0 million
  • · Capsol Technologies USD 4.4 million
  • •

Net asset value

• · Multi-client library base on discounted probability-adjusted late sales
• · related to seismic handling equipment
  • . Cap USD 12.0 million
  • Floor USD 1.5 million, subject to certain milestones
  • Book value USD 3.0 million .
• Investments based on market trading prices (with exception of Arbaflame)

Comprehensive income

USD millions

Comprehensive income	Q2 2023	Q2 2022
Revenue	1.5	1.8
Changes in fair value of investments (loss)	(1.7)	(4.5)
Other gains and (losses)
Cost of sales	(1.2)	0.1
Selling, general and administrative expenses	(0.5)	(0.5)
Amortization multi-client	(1.6)	(0.7)
Operating profit (loss)	(3.4)	(3.8)
Net financial income (loss)	(0.2)	(0.3)
Income tax (expense)		0.1
Profit (loss) for the period	(3.7)	(4.0)

• · Revenue relates to Utsira late sale as well as reprocessing early sales
  • Cost of sales primarily related to Utsira reprocessing costs

page 9

• SG&A includes extraordinary costs of approximately USD 150 thousand; will continue to see costs related to previous operations and select other advisory services

Financial position

USD millions

Assets	30.06.2023	31.12.2022
Multi-client library	34.3	37.5
Investments	6.0	6.8
Financial assets	3.0	3.0
Trade receivables	0.5
Other current assets	0.6	3
Bank deposits, cash in hand	3.0	2
Total assets	47.4	52.8

Equity and Liabilities	30.06.2023	31.12.2022
Equity	42.5	47.7
Trade payables	0.5	0.1
Taxes payables	2.3	2.3
Other current liabilities	2.1	2.8
Total equity and liabilities	47.4	52.8

• Seismic investments representing approximately 80% of total assets
• · No financial indebtedness
• · Equity ratio 89.6%
• · Available liquid funds USD 8.7 million
• Net asset value NOK 2.04 per share

Cash flow

USD millions

Cash flow	Q2 2023	Q2 2022
Profit (loss) before tax	(3.7)	(4.1)
Taxes (paid)/ received		(0.0)
Depreciation and amortization	1.6	0.7
Changes in fair value of investments	1.7	4.5
Changes in other gains and losses
Interest expense	0.0	0.0
Share based payment cost	0.0	0.0
Other working capital changes	(0.5)	(1.7)
Cash flow from operating activities	(0.9)	(0.6)
Cash flow from investment activities
Cash flow from financing activities
Interest paid	(0.0)	(0.0)
Cash flow from financial activities	(0.0)	(0.0)
Net change in cash	(0.9)	(0.7)
Cash and cash equivalents balance 01.01	3.9	3.9
Cash and cash equivalents balance per 31.03	3.0	2.7

Outlook

• · Volatility in the energy sector expected to remain given market uncertainty
• Robust overall demand expected to support historically high prices and drive capital investment
• · Multi-client late sales will benefit from attractive market trends
  • · Sales will be lumpy; does not speak to any change in longterm values and sales potential
• · Will evaluate new investment opportunities as well as transformative transactions
• · Will continue to consider distributions to shareholders or share repurchases

OBN multi-client library and investments.

Askekroken 11 0277 Oslo Norway

aquilaholdings.no copyright © 2023 Aquila Holdings