Fjord Defence Group ASA

Investor Presentation • May 10, 2023

Carbon Transition Q1 2023

10 May 2023

Disclaimer

• The information in this presentation has been prepared by Carbon Transition ASA (the "Company"). By attending the meeting where this presentation is made, or by reading the presentation slides, you agree to be bound by the following limitations and provisions:
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Quarterly highlights

• Fair value of multi-client library USD 35.9 million
• Fair value of investment portfolio USD 7.6 million
• o Net gain of USD 0.8 million
• Revenue from reprocessing Utsira represented USD 2.4 million and from multi-client late sales Utsira USD 0.5 million
• Available liquid funds of USD 13.0 million*
• Cash earnings USD 0.3 million for the quarter
• Net asset value NOK 2.15 per share

New name announced – Aquila Holdings

Revised seismic and investment strategy

• Attractive seismic multi-client business
• o Multi-client library and related seismic assets represent approximately three quarters of total assets
• o Will consider expansion opportunities
• Investment arm
• o Select investments in listed and unlisted securities
• o Currently targeting opportunities in energy and industrial sectors
• Meet the criteria for risk and return set by the board of directors

Seismic business

World shifting towards energy security

• Revised strategy with more emphasis on traditional energy assets
• Optimize revenues from seismic assets
• Evaluate new investments within seismic domain
• Potential expansion opportunities
• Low-cost operation

Multi-client strategy

OBN seismic data for near-field exploration

• Multi-client library fair value of USD 35.9 million
• Generating robust revenue
• Expect additional late sales in 2023 from both Norway and Egypt
• Seismic demand picking up and market is tightening
• o Seismic contracts being converted to multi-client projects can open new opportunities for attractive investments
• The company holds significant knowledge and experience in the seismic market from its legacy operations which can be utilized for growth

Multi -client portfolio

Norway and Egypt – prolific hydrocarbon basins

Utsira

• Reprocessing identifies new drillable prospects in mature areas
• State of the art technology through collaboration with CGG
• Delivering priority area in Q3 2023
• Reprocessing project is on schedule and at cost
• New products will expand overall value of Utsira library
• Ongoing client discussions reveal robust demand

Gulf of Suez

• Actively marketing Gulf of Suez data to Egyptian clients
• Upcoming bid rounds will spur further interest in area
• Increasing drilling activity
• M&A activity may generate change of control revenues

Investment arm

Select investments in securities

• Select investments in listed and unlisted securities
• Current focus on energy and industrial sectors
• Fair value of investment portfolio USD 7.6 million
• o Capsol Technologies USD 5.1 million
• o Dolphin Drilling USD 2.3 million

Net asset value

Summary NAV per share review

	USD millions	NOK per share
Multi-client library	35 9	1 67
Financial assets	3 0	0 14
Seismic business	38 9	1 81
Investments	7 6	0 36
Net liabilities current	(0 4)	(0 0)
Net value asset	46 2	2 15

Observations

• Seismic business represents largest share of NAV
• o Multi-client investments
• o Node equipment earn-out agreement
• Investment portfolio; focusing more broadly

Comprehensive income

USD millions

Comprehensive income	Q1 2023	Q1 2022
Revenue	2 9	1 4
Changes in fair value of investments (loss)	0 8	(1 3)
Other gains and (losses)	-	0 7
Cost of sales	(2 1)	(0 3)
Selling , general and administrative expenses	(0 5)	(0 9)
Amortization multi-client	(1 6)	(0 5)
Reverse impairment multi-client	-	6 5
Depreciation & impairment	-	(0 6)
Operating profit (loss)	(0 5)	4 1
Net financial income (loss)	0 1	(0 0)
Income (expense) tax	0 0	0 3
(loss) Profit for the period	(0 4)	4 4

Observations

• Revenue Utsira late sales USD 0.5 million, Utsira reprocessing USD 2.4 million
• COS Utsira reprocessing represents USD 2.0 million
• SG&A includes approximately USD 70 thousands nonrecurring
• Amortization Utsira of USD 0.9 million and Gulf of Suez of USD 0.7 million
• Net financial income of USD 84 thousands
• Income tax revenue Received cash for previous paid WHTax in India USD 7 thousands
• Cash earnings of USD 0.3 million

Financial position

USD millions

Assets	31 03 2023	31 12 2022
Multi-client library	35 9	37 5
Investments	7 6	6 8
Financial assets	3 0	3 0
Trade receivables	1 7	-
Other current assets	0 3	3 2
Bank deposits , cash in hand	3 9	2 2
Total assets	52 5	52 8
Equity and Liabilities	31 03 2023	31 12 2022
Equity	46 2	47 7
Trade payables	0 1	0 1
Taxes payables	2 3	2 3
Other liabilities current	4 0	2 8
Total equity and liabilities	52 5	52 8

Observations

• MCL Utsira USD 27.3 million, Gulf of Suez USD 8.6 million
• Financial assets of USD 3.0 million NPV node equipment earnout
• Trade receivables related to late sales and reprocessing
• Other current assets from Utsira reprocessing and prepaid costs
• Taxes payable is related to Egypt taxes
• Other current liabilities
• o Egypt taxes USD 2.1 million
• o Accrual Utsira reprocessing USD 1.0 million
• o VAT USD 0.9 million

Ratio analysis

• Equity ratio 87.9%
• Net asset value per share of NOK 2.15
• Available liquid funds of USD 13.0 million*

*Bank deposits, trade receivables and marketable securities

Cash flow

USD millions

Cash flow	Q1 2023	Q1 2022
Profit (loss) before tax	(0 4)	4 1
Taxes (paid)/ received	0 0	0 3
Depreciation and amortization	1 6	(4 5)
Changes in fair value of investments	(0 8)	1 3
Changes in other gains and losses	-	(0 7)
Interest expense	0 0	0 1
Share based payment cost	0 0	0 0
Other working capital changes	2 4	(0 8)
Cash flow from operating activities	2 8	(0 2)
Disposal of , plant and equipment property	-	0 5
Cash flow from investment activities	-	0 5
Repayment of interest bearing debt	-	(0 9)
Investment in own shares	(1 1)	-
Interest paid	-	(0 0)
Cash flow from financial activities	(1 1)	(0 9)
Net change in cash	1 .7	(0 6)
Cash and cash equivalents balance per March	3 9	3 4

Observations

• Amortization of Utsira and Gulf of Suez USD 1.6 million
• Gain in fair value of investments unrealized with USD 0.8 million
• Increase in working capital with USD 2.4 million
• No investment in the quarter
• Purchase of own shares with USD 1.1 million

Outlook

• Volatility in the energy sector expected to continue given global market uncertainty
• Current energy prices support capital investment by oil companies
• Overhang of past underinvestment and growing need for energy security contribute to increased capital expenditures
• Despite robust industry fundamentals, timing of multi-client late sales is unpredictable
• o Should expect sales to be lumpy
• o Does not speak to long-term underlying multi-client values and future sales potential
• We will continue to evaluate new investment opportunities in line with our broader strategic focus
• o Potential opportunities within seismic business
• o Select investments in securities
• o Risk profile and investment decisions evaluated with the board
• Distributions to shareholders or share repurchases will be considered to the extent this is believed to be the best allocation of capital

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