Fjord Defence Group ASA

Investor Presentation • Nov 7, 2024

Presentation Q3 2024

7 November 2024

Disclaimer • The information in this presentation has been prepared by Aquila Holdings 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:
• This presentation has been prepared by the Company based on information available as of the date hereof. By relying on this presentation you accept the risk that the presentation does not cover all matters relevant of an assessment of an investment in the company.
• No representation or warranty (expressed or implied) is made as to, and no reliance should be placed on, any information, including projections, estimates, targets and opinions, contained herein, and no liability whatsoever is accepted as to any errors, omissions or misstatements contained herein, and, accordingly, none of the Company, any advisor or any such persons' officers or employees accepts any liability whatsoever arising directly or indirectly from the use of this presentation. The information herein is subject to change, completion, supplements or amendments without notice. • This complete presentation is for informational purposes only and does not constitute an offer to sell shares in the Company. This presentation is not a prospectus, disclosure document
• The presentation is based on the economic, regulatory, market and other conditions as in effect on the date hereof, and may contain certain forward-looking statements. By their nature, forward-looking statements involve risk and uncertainty because they reflect the Company's current expectations and assumptions as to future events and circumstances that may not prove accurate. It should be understood that subsequent developments may affect the information contained in this document, which neither the Company nor its advisors are under an obligation to update, revise or affirm.
• or offering document and does not purport to be complete. Nothing in this presentation should be interpreted as a term or condition of the Transaction. The presentation is strictly confidential and may not be reproduced or redistributed, in whole or in part, to any other person.
• This presentation has not been reviewed or approved by any regulatory authority or stock exchange. The (re)distribution of this presentation and/or any prospectus or other documentation into jurisdictions other than Norway may be restricted by law. This presentation does not constitute or form part of any offer or invitation to sell or issue, or any solicitation of any offer to acquire any securities offered by any person in any jurisdiction in which such an offer or solicitation is unlawful. Neither this presentation nor anything contained herein shall form the basis of any contract or commitment whatsoever. Persons into whose possession this presentation comes should inform themselves about and observe any such restrictions. Any failure to comply with these restrictions may constitute a violation of the securities laws of any such restrictions. • The contents of this presentation are not to be construed as legal, business, investment or tax advice. Each recipient should consult with its own legal, business, investment and tax
• adviser as to legal, business, investment and tax advice.
• Any investment in the Company involves inherent risks and is suitable only for investors 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 review the summary of risk factors set out in the following slides before making any investment decision.
• The presentation and any purported liability in connection with it is subject to Norwegian law and is subject to the exclusive jurisdiction of the Norwegian courts.

Quarterly highlights

• Multi-client revenues USD 0.9 million
• Fair value of multi-client library USD 26.3 million
• Fair value of investment portfolio USD 5.2 million
• Available liquid funds of USD 6.6 million*
• Cash earnings (loss) for the quarter (USD 1.0) million**
• Net asset value NOK 1.47 per share
• * Bank deposits, net trade receivable and marketable securities
• ** Revenue, cost of sales, SG&A

Subsequent events

• New NOK 5.0 million share repurchase program announced 10 June 2024
  • The program was ended 11 October
  • Company currently holds 18.9 million own shares, representing 8.06% of shares outstanding
• On 4 November 2024, Kristian Zahl assumed the position of interim CEO

Multi-client portfolio Discounted cash-flow valuation: USD 26.3 million • Industry-funded Utsira reprocessing project with Viridien

• (formerly known as CGG) and TGS
  • Progressing according to plan and cost with final deliverables completed in August. Data was delivered to clients during the third quarter and final payment was received in October
  • Sales initiatives and client discussions ongoing
• Egypt fiscal conditions appear to be improving
  • E&P activity in the Gulf of Suez expected to be positively impacted by better fiscal stability and access to USD
  • Still uncertainty regarding timing of late sales, but on the margin improved outlook

Financial assets

• Ocean bottom node operations sold to TGS (Magseis Fairfield) in March 2022
• 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
  • No associated costs for Aquila
• Booked value of financial asset USD 1.5 million

Investments

• Selected investments in listed and unlisted securities
• Fair value of investment portfolio USD 5.2 million at end Q3 2024 Capsol Technologies USD 4.9 million Dolphin Drilling shares sold during Q3 2024
  -
  -

Net asset value

• Multi-client library valued at NOK 1.28 per share (book value USD 26.3 million)
• Other seismic assets NOK 0.07 per share (book value USD 1.5 million)
• Investments based on market trading prices constituting NOK 0.25 per share (book value USD 5.2 million)

Comprehensive income Comprehensive income Q3 2024 Q3 2023

USD millions
Revenue	0.9	2.1
Changes in fair value of investments (loss)	(1.0)	0.6
Other gains and (losses)	(0.5)	-
Cost of sales	(1.5)	(1.2)
Selling, general and administrative expenses	(0.3)	(0.5)
Amortization multi-client	(1.6)	(1.6)
Operating profit (loss)	(4.0)	(0.6)
Net financial income (loss)	0.0	(0.1)
Income tax (expense)	-	-
Profit (loss) for the period	(4.0)	(0.7)
Other comprehensive income (loss) for the period	-	-
Total comprehensive income (loss) for the period	(4.0)	(0.7)

• Revenue relates to Utsira reprocessing
• Cost of sales primarily related to Utsira reprocessing costs
• SG&A in line with run-rate
• Cash earnings (loss) (USD 1.0) million*

* Revenue, cost of sales, SG&A

Financial position Assets 30.09.2024 31.12.2023

Financial position
USD millions
Assets	30.09.2024	31.12.2023
Multi-client library	26.3	31.1
Investments	5.2	6.6
Financial assets	1.5	2.0
Trade receivables	1.5	1
Other current assets	0.1	1.3
Bank deposits, cash in hand	1.7	2.0
Total assets	36.3	43.9
Equity and Liabilities	30.09.2024	31.12.2023
Equity	30.2	38.1
Trade payables	0.0	0.5

Equity	30.2	38.1
Trade payables	0.0	0.5
Taxes payables	2.3	2.3
Other current liabilities	3.8	2.9
Total equity and liabilities	36.3	43.9

page 10

• Seismic investments representing approximately 76% of total assets
• No financial indebtedness
• Equity ratio 83.3%
• Available liquid funds USD 6.6 million*
• Net asset value NOK 1.47 per share

* Bank deposits, net trade receivable and marketable securities

Cash flow

Cash flow
USD millions
Cash flow	Q3 2024	Q3 2023
Profit (loss) before tax	(4.0)	(0.7)
Depreciation, amortization and net impairment	1.6	1.6
Changes in fair value of investments	1.0	(0.6)
Changes in other gains (losses)	1	-
Other working capital changes	0.4	(0.7)
Cash flow from operating activities	(0.5)	(0.4)
Cash received/paid from investments	0.4	-
Cash flow from investment activities	0.4	-
Cash flow from financing activities
Investment in own shares	(0.2)	(0.2)
Cash flow from financial activities	(0.2)	(0.2)
Net change in cash	(0.2)	(0.6)
Cash and cash equivalents balance 01.07	1.9	3.0
Cash and cash equivalents balance per 30.09	1.7	2.4

Outlook

• Oil prices to stay in the higher historical range as demand continues to grow
• Exploration activity will continue both near-field as well as new prospects
• Economic uncertainty in Egypt remains, but situation appears to be improving; should benefit Gulf of Suez survey
• Multi-client late sales remains lumpy and unpredictable
  • Driven by licensing rounds and oil company scheduling
  • Underlying multi-client values still attractive
• Aquila continues to review strategic transactions
• Distributions to shareholders and/or share repurchases evaluated on a continuing basis

OBN multi-client library and investments.

Askekroken 11 0277 Oslo Norway

aquilaholdings.no copyright © 2023 Aquila Holdings