Fjord Defence Group ASA

Investor Presentation • Aug 22, 2024

Presentation Q2 2024

22 August 2024

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.

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• · 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 27.9 million
• · Fair value of investment portfolio USD 6.6 million
• •
• · Cash earnings (loss) for the quarter (USD 0.6) million**
• •
• * Bank deposits, net trade receivable and marketable securities
• ** Revenue, cost of sales, SG&A

Subsequent events

• · Annual general meeting on 23 May 2024 resolved to delete 5,069,150 shares that have been bought back by the Company under a buy-back program
• · The share capital decrease pertaining to the deletion of such shares has been registered; new share capital NOK 234,690,967 divided on 234,690,967 shares, each with a par value of NOK 1.00
• · New NOK 5.0 million share repurchase program announced 10 June 2024
• · Company currently holds 17.1 million own shares, representing 7.3% of shares outstanding

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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
  • •
• · Booked value of financial asset USD 2.0 million

Investments

• Selected investments in listed and unlisted securities
• Fair value of investment portfolio USD 6.6 million at end Q2 2024
  • Capsol Technologies USD 5.8 million
  • •

Net asset value

• Multi-client library valued at NOK 1.36 per share (book value USD 27.9 million)
• Other seismic assets NOK 0.10 per share (book value USD 2.0 million)
• Investments based on market trading prices constituting NOK 0.32 per share (book value USD 6.6 million)

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Comprehensive income

USD millions

Comprehensive income			Q2 2024 · Q2 2023 · Revenue relates to Utsira reprocessing
Revenue	0.8	1.5	· Cost of sales primarily related to Utsira
Changes in fair value of investments (loss)	0.8	(1.7)	reprocessing costs
Cost of sales	(1.0)	(1.2)	· SG&A in line with run-rate
Selling, general and administrative expenses	(0.3)	(0.5)	· Cash earnings (loss) (USD 0.6) million*
Amortization multi-client	(1.6)	(1.6)
Operating profit (loss)	(1.4)	(3.4)
Net financial income (loss)	(0.0)	(0.2)	* Revenue, cost of sales, SG&A
Income tax (expense)
Profit (loss) for the period	(1.4)	(3.7)

Other comprehensive income (loss) for the period
Total comprehensive income (loss) for the period	(3.7)

Financial position

USD millions

Assets	30.06.2024	31.12.2023
Multi-client library	27.9	31.1
Investments	6.6	6.6
Financial assets	2.0	2.0
Trade receivables		1
Other current assets	0.7	1.3
Bank deposits, cash in hand	1.9	2.0
Total assets	39.2	43.9

Equity and Liabilities	30.06.2024	31.12.2023
Equity	34.4	38.1
Trade payables	0.1	0.5
Taxes payables	2.3	2.3
Other current liabilities	2.4	2.9
Total equity and liabilities	39.2	43.9

• Seismic investments representing approximately 76% of total assets
• · No financial indebtedness
• · Equity ratio 87.8%
• Available liquid funds USD 8.2 million*
• Net asset value NOK 1.68 per share

* Bank deposits, net trade receivable and marketable securities

Cash flow

USD millions

Cash flow	Q2 2024	Q2 2023
Profit (loss) before tax	(1.4)	(3.7)
Depreciation, amortization and net impairment	1.6	1.6
Changes in fair value of investments	(0.8)	17
Other working capital changes	0.6	(0.5)
Cash flow from operating activities	0.0	(0.9)
Cash received/paid from investments	(0.2)
Cash flow from investment activities	(0.2)
Cash flow from financing activities
Investment in own shares	(0.1)
Cash flow from financial activities	(0.1)
Net change in cash	(0.2)	(0.9)
Cash and cash equivalents balance 01.04	2.1	3.9
Cash and cash equivalents balance per 30.06	1.9	3.0

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.

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