Eqva ASA

Investor Presentation • Nov 24, 2020

Havyard Group ASA

www.havyard.com

Contributing to the maritime green shift through innovative solutions

Fearnley Securities Annual Renewables Seminar November 24, 2020

Gunnar Larsen, CEO Havyard Group ASA

Havyard Group ASA

Havyard Group ASA will create value through active ownership in companies which deliver sustainable solutions

• The Group aspires to continue to be an active contributor in the global green shift through the establishment and development of companies
• With a foundation of experience and expertise, and focus on efficiency, safety and the environment, the Group's companies develop and deliver innovative solutions of high quality to customers in seafood, energy and transport

The Group's strategic focus:

• Actively take part in the companies' strategic development
• Stimulate to and lead intercompany business development and R&D processes
• Extract synergies through economies of scale, standardization of processes and systems, etc.

Havyard Group ASA

• Established in 2000, listed on Oslo Børs in 2014
• Developed from local Norwegian shipyard to global maritime technology provider
• Developed from a strong position in offshore oil segment to technology for sustainable energy, sea food and transport segments
• Well situated with companies within ship design and equipment with state of the art knowledge meeting the future demands for clean, efficient and safe technology
• Key financials YTD per Q2 20
  • Turnover MNOK 1,298
  • EBIT MNOK 54
  • Backlog per 2Q1 of MNOK 2,314, of which nonshipyard companies account for 45% and 65% of the non-shipyard backlog is to external clients

New Havyard Ship Technology

• Major restructuring of "old" shipbuilding activity in 2020
• Presently 6 vessels in production, 2 to be delivered this year.
  • 3 Live Fish Carriers and 3 Service Operation Vessels (SOV) for offshore wind industry
  • Last vessel to be delivered in Q3 21
• Challenging Covid19 situation.
  • Permissible delays in delivery of the vessels
  • Government is providing financial support
• Restructuring to service yard
  • Profitable market
  • Easier financing
  • Lower risk

Havyard Design & Solutions

• «The one who experiments the most, quickest and cheapest will win»

• Long experience with proven track record from more than 100 ship designs, state of the art know-how, and virtual design tools
• Delivers advisory services, analyses, calculations and simulations for optimising operations
• Basic and detailed ship design with equipment packages and interface integration

Smart ship design with focus on energy efficiency, low emissions and safe operations

Havyard Design & Solutions

• Havyard Design & Solutions is a leading designer of SOVs for offshore wind industry, live fish carriers and electric car ferries
• Know-How about Hydrogen powered vessels through participation in R&D project
• Well positioned for the further development within low and Zero emission vessels within several segments

• Norwegian Electric Systems is a world leading supplier of low/zero emission energy and propulsion systems for for a wide range of vessels
• Focused on being a collaborator and a system supplier, designing optimal propulsion, energy and control systems to ensure efficiency and safety by smart and easy operation

Products

• Diesel-electric, hybrid, and full electric propulsion systems
• Navigation and communication systems
• Control and monitoring systems
• Digital twin
• Sales for newbuilding, retrofits and service market

Climate goals and political ambition represent major opportunities

major opportunities

• Full-electric operations or hybrid solutions and optimized ship designs will play an important role in the short-sea segment to meet future IMO requirements
• High untapped potential as only 1-6% of the global fleet is prepared for alternative fuels
• NES products and services are applicable to most vessel types, and well positioned within growing markets such as SOVs and Live Fish Carriers

Climate goals and political ambition represent

CLEAN WATER FOR A SUSTAINABLE FUTURE

• Norwegian Greentech (NGT) was established by the present management team in 2010 based on technology and know-how within water treatment for aquaculture and maritime use
• Developed its own Ballast Water Treatment System (BWTS) based on the future International Ballast Water control and management conventions
• Delivers BWTS for most ship types and sizes world wide, both newbuilds and retrofit
• Established fleet agreements with several owners, including recent 120 vessel deal with Wilson
• NGT also delivers filter and UV solutions for the sea and land based aquaculture industry

CLEAN WATER FOR A SUSTAINABLE FUTURE

• The international Ballast Water Management Convention entered into force in 2017
  • All newbuild must install ballast water treatment systems
  • Sailing vessels must install water treatment systems within 2024
• This represents a market of approx. 60.000 vessels
• NGT is well established in delivering BWTS to aquaculture, e.g. live fish carriers.
• The company is also well positioned with technology to exploit the rapidly growing land based aquaculture market
• Typical revenue potential of MNOK 0,5 to 2 per vessel, plus after market spare parts sales and service

Conservative market utilization estimates shows strong growth potential for NGT in the coming years

HAVYARD HYDROGEN

Maritime Zero emission energy systems

Hydrogen energy systems for larger ships, sailing longer distances

• Knowledge and technology developed in MNOK 100 FreeCO2ast R&D project
• Scalable from smaller to larger vessels, up to 3.2MW fuel cell
• Flexible solution with in-hull or on top hydrogen storage for easy design of newbuilds and retrofits
• Designed for operation in open seas with heavier sea moment
• Knowledge and tools for advising clients in choosing energy systems and alternative fuels
• Can together with other Havyard companies deliver ship design and complete control- and energy systems from bridge to propeller

HAVYARD HYDROGEN

Maritime Zero emission energy systems

www.havyard.com

Timing is right

• Norwegian and international climate goals will require more Zero emission shipping
• Hydrogen is presently the better alternative where batteries come too short
• Increasing market interest for maritime hydrogen solutions
• Several government contracts already specify hydrogen power for vessels
• Time to market in line with foreseeable projects

Summary

www.havyard.com

Contributing to the maritime green shift through innovative solutions

• Refocused on cleantech and reduced risk through downscaling of ship building activities
• Well positioned to exploit increasing demand for maritime cleantech through the Group's ship design, technology and equipment companies
• Ongoing process to strengthen the Group's financial position and further develop the cleantec activities