Eidesvik Offshore — Investor Presentation 2024

Aug 27, 2024

Presentation Q2 2024 27 August 2024

Disclaimer

This presentation has been produced by Eidesvik Offshore ASA (the "Company") based on information which is publicly available. This presentation is for information purposes only. Further to the aforementioned, this presentation is the result of an effort of the Company to present certain information which the Company has deemed relevant in an accessible format. The presentation is not intended to contain an exhaustive overview of the Company's present or future financial condition and there are several other facts and circumstances relevant to the Company and its present and future financial condition that has not been included in the this presentation. No representation or warranty (express or implied) is made or intended to be made as to the accuracy or completeness of any or all of the information contained herein and it should not be relied upon as such. The recipient of this presentation acknowledges that it will be solely responsible for its own assessment of the information.

This presentation contains forward-looking statements. Such forward-looking statements give the Company's current expectations and projections relating to its financial condition, the market in which it operates and the future performance of the Company. Such forward-looking statements involve known and unknown risks, uncertainties and other important factors beyond the Company's control that could cause the Company's actual results, performance or achievements to be materially different from the expected results, performance or achievements expressed or implied by such forwardlooking statements. Such forward-looking statements are based on numerous assumptions regarding the Company's present and future business strategies and the environment in which it will operate in the future.

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Financial highlights / Q2 2024

P&L key figures	Q2 2024 vs. Q2 2023	Balance sheet key figures Q2 2024 vs. FY2023
MNOK 186 (184) in freight revenue	MNOK 2 953 (1 977) in consolidated backlog	MNOK 2 847 (2 716) in assets	MNOK 444 (499) in cash
MNOK 71 (73) in adj. EBITDA	38% (39%) in adj. EBITDA margin	MNOK 378 (378) in NIBD	61% (59%) in equity ratio

Business update / Q2 2024

• We have signed a yard supervision agreement with Agalas to support them in the construction and delivery of their cable installation vessel at Sefine yard

Subsequent events:

• Equinor Energy AS declared options to extend the contract for the supply vessel Viking Energy. The contract extension runs from April 2025, extending the firm period to April 2030. The contract also includes options for further extensions. Viking Energy has been in continuous operation for Equinor since its launch in 2003

Project Apollo

• Conversion of PSV Viking Energy to operate with an ammonia combustion engine as the first in the world
• Ammonia operation is planned to start in the first half of 2026
• In addition to chartering the vessel Equinor also contributes with financing of the conversion
• The project has been granted EUR 5 million in support from the EU

Operational update / Q2 2024

• Fleet utilisation in Q2 2024 was 95%
  • Supply utilization was 92% during the quarter
  • Subsea/Wind utilization was 99% during the quarter
• Viking Lady 15-year class and upgrades
• One LTIs during the quarter

Contract backlog / Q2 2024

* Do not include variable contractual mechanism, 100% utilization.

** Assumes hull 71 (newbuild) to operate 50/50 in the subsea and offshore wind space

1 445

Contract coverage incl. JV / Q2 2024

Contract coverage incl. JV

MNOK 3 045 backlog incl. JV

Market update – positive outlook in all segments

Q2 2024 financial results

Financial results (NOK1000)	Q2 2024		Q2 2023	YTD 2024	YTD 2023	FY2023
Freight revenue	186,0	1 %	184,4	365,5	313,2	699,5
Gain on sale	0,0		15,5	0,0	16,4	21,6
Other income	11,8		40,6	15,7	44,4	51,3
Total Revenue	197,8		240,5	381,2	374,0	772,4
EBITDA	82,5		128,7	149,9	156,5	333,6
EBITDA adj. for sale gains and other	70,7	-3 %	72,6	134,2	95,7	255,5
Adjusted EBITDA margin	38 %		39 %	37 %	31 %	37 %
Result from JVs and associated	3,2		-2,9	1,6	-11,9	-4,4
Operating result	41,2		418,1	65,0	404,2	577,2
Operating result adj.*	29,4		29,9	49,3	11,3	95,3
Pre-tax result	32,5		407,5	41,9	382,4	533,2

* for impairment and gain on sale and other income

• ~1% increase in freight revenue and ~1.5% reduced adj. EBITDA margin
• Quarter affected by decreased utilisation in supply due to class renewal/upgrades
• Improvement in JV result due to insurance proceeds and improved rates

Adj. EBITDA

Segment performance

Revenue & EBITDA margin

EBITDA Q2 2024 vs. Q2 2023

• Level revenue due to lower utilisation offset by higher freight rates
• EBITDA reduction of NOK 3.2 million, where margin decreased from 41% to 37%
• Utilisation was 92% compared to 94%

Supply

Subsea/ Wind

• Increased revenue of NOK 8.8 million (9%) due to insurance proceeds and improve drates in subsea
• EBITDA improvement of NOK 6.6 million where margin increased from 53% to 55%
• Utilisation was 99% compared to 100%

* Consolidated Viking Reach, Seven Viking included with 50%.

Balance sheet

Balance Sheet (NOK1000)	30.06.2024	31.12.2023
Total non-current assets	2 110	1 931
Cash and cash equivalents	444	499
Other current assets	293	287
Total assets	2 847	2 716
Equity	1 740	1 616
Equity ratio	61 %	59 %
Non-current liabilities	694	748
Current liabilites	413	352
Total equity and liabilites	2 847	2 716

Equity ratio Debt ratio Vessels Cash Other assets

Comments for the year

• Non-current assets increased from year end, mainly due to the initial payment related to the newbuild contract in February
• Cash balance reduced due to the above
• Current NIBD/EBITDA is 1.0x*
• Strong equity ratio of 61%
• Net interest-bearing debt of NOK 378 million

Cash flow YTD 2024

Highlights summary

Continued solid operational and financial performance

Strong backlog, opportunity to capitalize on improving market in future years

Strong balance sheet and key financial indicators

Positive market outlook in all operating segments

Positioned for profitable growth opportunities

Contact details

CFO - Helga Cotgrove +47 90 73 52 46

VP IR - Sindre Stovner

+47 91 78 64 31

investor.relations@eidesvik.no

Appendix

Company overview

STRATEGY

Green PSV

• Strengthen our position as the market leader within green PSV

Subsea

• Actively seek partnerships that will create new business opportunities

Offshore Wind

• Increase footprint in segment, focus on long-term profitable contracts

Key words for future projects

• Long-term partnerships and long-term positive cash flows

Energy transition fleet

Supply Subsea / Offshore wind

Viking Energy

NS Frayja (management)

Viking Wind Power

Seven Viking

Viking Prince

Viking Princess

Viking Avant

NS Orla (management)

Subsea Viking

Viking Neptun (management)

TBN (delivery early 2026)

Viking Reach

Contract status

Vessel	Q3 2024	Q4 2024	Q1 2025	Q2 2025	Q3 2025	Q4 2025	Q1 2026	Q2 2026	Q3 2026	Q4 2026	Q1 2027	Q2 2027
Seven Viking
Viking Reach
Subsea Viking
Viking Wind Power
TBN
Queen Viking
Viking Lady
Viking Princess
Viking Prince
Viking Energy
Viking Avant

Firm Options

Debt maturity profile 30 June 2024

Financial development

	FY2021	FY2022	FY2023	1H2024
Utilization	94 %	95 %	94 %	95 %
Revenue (NOKm)	588	919	772	381
Adj. Revenue (NOKm)	586	649	699	365
EBITDA (NOKm)	179	494	334	150
EBITDA margin	30 %	54 %	43 %	39 %
Adj. EBITDA (NOKm)	177	224	261	134
Adj. EBITDA margin	30 %	35 %	37 %	37 %
EBIT	109	551	577	65
Adj. EBIT*	-37	72	95	49
Equity Ratio	19 %	40 %	59 %	61 %
GIBD (NOKm)	2 026	1 197	876	822
LTV**	0,72	0,66	0,40	0,36
NIBD/adj. EBITDA***	9,6x	2,4x	1,4x	1,0x

* Adjusted for gain on sale, other income and reversal of impairments ** LTV YTD2024 is based on broker values per 30.06.2024 *** Adjusted last twelve months, excluding IFRS 16

• Maintaining operational solid key figures during first half 2024
• Key metrics such as equity ratio, LTV and NIBD/adj. EBITDA are among the industry healthiest

NIBD/adj. EBITDA

We aim to be the market leader within green offshore vessels.