Eqva ASA

Investor Presentation • Aug 29, 2024

EQVA ASA

Second quarter report 2024

EQVA:

A knowledge-based active owner of industrial companies that contribute to the green transition in maritime, power intensive and renewable industries. Established growth strategy focused on organic growth and acquiring attractive, profitable companies. Enabling EQVA to broaden product and service scope.

Through well established governance models, we help to develop and strengthen each portfolio company by driving strategy developments, operational improvements, financing, and transactions. We energize companies.

Full-service provider of technical, sustainable solutions and services to maritime and landbased industries

A specialised hydropower plant developer and operator

1. This is EQVA ASA

• 1. Operational and financial highlights
• 1. Outlook

Enclosure

• Consolidated financial statements

This is EQVA: An industrial investment company

Overview of ownership interests - built on 3 platforms

Experienced group management

Even Matre Ellingsen

CEO

Former Group CEO in Astrup Fearnley. Extensive experience from both regulated and non-regulated businesses. 15 years with Pareto and 10 years with Astrup Fearnley

Petter Sørdahl

CFO

15+ years of experience from audit, financial markets, M&A and business development. Previous experience at EY and Astrup Fearnley

Eqva is well positioned for further growth

Both through organic growth and M&A activity

YTD 2024 highlights

Strategic priorities

Strong performance and financial results in BKS

Sale of PSV Havila Charisma, ready to focus on core strategy

SPA signed for Kvinnherad Elektro and Vassnes-Gruppen

Launched Nordic Industrial Solutions

Extraordinary dividend paid out

Diversified product and market portfolio with broad revenue stream

Capitalise on key

macro trends Opportunistic M&A

The group has a well-diversified product and market portfolio, and further growth will be established through a combination of company-based development, utilization of synergies between the companies in the group as well as value-creating M&A activities.

Building an industrial platform for growth and value creation A two-year journey so far – shareholder value created

EQVA – More than 3000 shareholders along the coast

99 %

5 Reasons to invest in EQVA ASA

Established growth strategy focused on organic grow and acquiring attractive, profitable companies. Enabling EQVA to broaden product and service scope.

8 portfolio companies today

A decentralized business model with effective corporate governance models and active ownership as well as proven management. Rapid and flexible decisionmaking, with decisions made close to customers and suppliers

A clear focus on performance facilitates self-financed, longterm growth and favorable returns for shareholders and a proven ability to develop operations

Strong financial position, strong cash flow from operating activities based on a solid financial position and low leverage

Sustainable business, Sustainability characterizes the entire business and creates conditions for longterm profitability and growth. We are an active partner helping our customers to decarbonize. Ref. (Boliden) Green Zink, Hydro Husnes upgrade (increase energy efficiency and reduce emissions)

• 1. This is EQVA ASA
• 2. Operational and financial highlights
• 1. Outlook

Enclosure

• Consolidated financial statements

YTD Highlights – Solid operational performance

44% y/y organic growth and increased margins

Solid operational performance in EQVA, driven by volume increase and improved sales and margins in the Products, Solutions & Renewables segment

Robust order book of NOK 556m and positive outlook for FY2024 – mainly driven by BKS

Products, Solutions & Renewables

• Significant revenue growth – up 44 % compared to last year
• EBITDA margin increased to 8.2 %, compared to 6.6 % last year

M&A

• Completed divestment of ownership in PSV Havila Charisma
• Other M&A activities are showing good progress

New contracts awarded – orderbook remains solid

Orderbook at NOK 556m, high activity on current projects

• Order book increases to NOK 556m, up from NOK 487m as of Q4 2023
• Increased contract scope on existing customers like Boliden, Hydro, Aker Solutions, Scale AQ and Westcon
• New contracts secured with key customers in process, offshore and landbased industries
• Stable and high volumes on frame agreements with main customers

Page 13

• Significant share of ongoing and new projects are related to clean energy, decarbonization and optimized energy usage
  • Growing demand for such expertise, and it is expected that such climate and environmental projects will form an even larger part of the business in the years to come

Foto: Kai-Inge Melkeraaen

Boliden Odda, one of the world's most climate-effective zinc plants to become even more climate-friendly

Strong financial position

Balance sheet as of 30 June 2024

• NOK in million Equity ratio of 43 % at the end of Q2
• Net interest-bearing debt* was NOK 108m at the end of Q2
• Cash position of NOK 48m at the end of Q2
• The construction loans in Fossberg Kraft increased due to project development during Q2. These loans (NOK 46m) will be repaid when projects are delivered to customer during 2024.
• Strong cash generation expected going forward in 2024

NOK million

Segment overview Key financial figures – YTD Q2 2024

• High-end EBITDA margin at 12.3 % for EQVA

• Strong revenue growth in Products, Solution & Renewables is driven by BKS – up NOK 145m from last year (+44 %)
• Solid EBITDA margin of 8.2 % in Products, Solutions & Renewables – compared to 6.6 % last year
• The profit from sale of PSV Havila Charisma in Q1 2024 is included. Adjusted for the sale, EBITDA margin was 6.0 % for EQVA.

NOK million	Products, Solutions & Renewables	Real estate	Other*	Elim.	EQVA group
Revenues	474.7	3.8	35.0	-4.7	508.7
Materials and consumables	237,7	0.0	0.0	0.0	237.7
Payroll expenses	147.3	0.0	7.8	0.0	155.1
Other opex	50.5	0.3	7.2	-4.7	53.3
EBITDA	39.1	3.5	19.9	0.0	62.5
EBITDA %	8.2 %	92.4 %	57.0 %		12.3 %

*Includes effects from sale of Havila Charisma

Products, Solutions & Renewables

Capitalising on strong order book – increasing volumes and margins

• Significant organic revenue growth 44 % where EBITDA compared to last year was up 79 %
• Growth primarily driven by BKS
  • High activity levels on ongoing projects
  • Strong order intake and orderbook gives traction to sustain high activity level going forwards
  • Continued improvement of profit margins
• Fossberg Kraft two projects under construction
  • Skjeggfoss and Haugsvær power plants in final phase of handover to customer
  • Preparing construction of Gjosa power plant
  • In tender phase of new projects in hydro and solar power

NIS in brief 60% y/y increased sales, adj. EBITDA up y/y from 4.6% to 8.1%

Company highlights

• Founded in 2008 and HQ in Sunde, Kvinnherad
• ~350 FTE's spread across 5 companies, of which 70 are technicians and electricians in the power and automation segment
• BKS is a full-service supplier for technical installations, meaning presence throughout the entire value-chain in industrial deliveries from idea to installation.
• It performs a wide range of tasks, from simple missions to more complex total deliveries
• Goal to be a preferred and competitive supplier and partner to the maritime, offshore and landbased industry in Norway.

Financial performance

Blue-chip customer base

Full-service provider:

• 1. This is EQVA ASA
• 1. Operational and financial highlights
• 3. Outlook

Enclosure

• Consolidated financial statements

2024 Outlook – Increased turnover and margins Pro-forma figures

Financial guidance for 2024 as of 29 August 2024

Current EQVA Group*

FY'2024 revenue (million) 750-850 (+100)

FY'2024 EBITDA margin 6-8% (5-7%)

Due to strong performance in BKS we have increased our revenue estimate and our expected EBITDA margin for 2024

Long-term EBITDA margin target for the group at 7-9 per cent

* Guidance figures are excluding the effect of the sale of Charisma (occurred in Q1 2024)

IR: Please direct any questions to petter.sordahl@eqva.no

Consolidated statement of profit or loss

30 June 2024

(NOK 1,000)	Note	2024 YTD	2023 YTD	2023
		Unaudited	Unaudited	Audited
Revenues	3,4	471 789	330 717	659 340
Other operating revenues		36 911	1 962	10 846
Operating income	3,4	508 700	332 679	670 185
Materials and consumables		237 736	135 973	275 452
Payroll expenses		155 146	139 360	273 345
Other operating expenses		53 319	38 527	95 803
Operating expenses		446 201	313 859	644 600
Operating profit/loss before depreciation and amortisation (EBITDA)	3	62 499	18 820	25 585
Impairment of non-current assets		0	0	0
Depreciation		8 366	5 810	15 111
Operating profit/loss (EBIT)	3	54 133	13 010	10 474
Financial income	3,5	6 764	2 163	7 120
Financial expenses	3,5	-16 180	-4 977	-33 325
Share of profit/loss of associate	3	0	-4 823	-3 061
Profit / loss before tax	3	44 717	5 373	-18 791
Income tax expense	6	0	0	1 098
Profit from continued operations	3	44 717	5 373	-19 889
Profit from discontinued operation	3	0	-7 745	-1 913
Profit for the period	3	44 717	-2 372	-21 802
Attributable to :
Equity holders of parent		43 866	-3 615	-23 733
Non-controlling interest		850	1 243	1 931
Total		44 717	-2 372	-21 802

Please note

• Discontinued operations includes Havyard Leirvik companies

(NOK 1,000)	Note	2024 YTD Unaudited	2023 YTD Unaudited	2023 Audited
Earnings per share (NOK)		0,62	-0,03	-0.33
Diluted earnings per share (NOK)		0,62	-0,03	-0.33
Earnings from continued operations
Earnings per share (NOK)		0,62	-0,03	-0.33
Diluted earnings per share (NOK)		0,62	-0,03	-0.33

Consolidated statement of financial position

30 June 2024

ASSETS	Note	2024 YTD	2023
		Unaudited	Audited
Non-current assets
Deferred tax benefit		0	0
Goodwill		248 260	248 260
Licenses, patents and R&D		28 253	29 319
Property, plant and equipments		112 972	111 840
Right of use assets	10	14 183	12 276
Investment in associates		0	21 319
Loan to associates		0	4 988
Other non-current receivables		6 853	3 809
Total non-current assets		410 522	431 810
Current Assets
Inventory		5 982	5 780
Accounts receivables		119 882	99 493
Other current receivables		19 696	22 096
Contract assets customer contracts		147 580	72 480
Cash and cash equivalents		47 991	35 984
Total current assets		341 130	235 833
TOTAL ASSETS		751 651	667 643

EQUITY AND LIABILITIES	Note	2024 YTD	2023
		Unaudited	Audited
Equity
Share capital	8	3 599	3 599
Share premium reserve		195 175	195 175
Treasury shares	8	-24	-30
Retained earnings		115 829	86 360
Non-controlling interests		6 169	5 319
Total equity		320 749	290 424
Non-current liabilities
Deferred tax liability	7	671	0
Lease liabilities	9,10	11 561	8 870
Loans and borrowings	9	86 257	125 293
Other long-term liabilities	9	25 126	41 770
Total non-current liabilities		123 616	175 932
Current liabilities
Accounts payables		109 903	55 666
Taxe payables	7	254	1 579
Public duties payables		32 179	28 820
Loans and borrowings, current	9	105 232	78 423
Lease liabilities	9,10	2 430	3 380
Other current liabilities		57 288	33 420
Total current liabilities		307 287	201 288
Total liabilities		430 902	377 220
TOTAL EQUITY AND LIABILITIES		751 651	667 643

Appendix

eqva.no

Nordic Industrial Solutions (NIS) in brief

Proven track record of successful projects spanning various industrial sectors and serving a wide range of clients

Company highlights

• Nordic Industrial Solutions provides service and maintenance to the Norwegian industry, functioning as a full-service provider of technical installations with a presence throughout the value chain, from design to installation and maintenance
• The company serves a variety of industrial sectors, including smelters, land-based industry, the maritime industry, the offshore industry and the aquaculture industry
• In addition to organic growth, NIS seeks to acquire service companies that will secure market growth, quality deliveries, optimise resource allocation, and benefit from operational and financial synergies
• NIS' strategic goal is to be a preferred and competitive supplier and partner to the maritime, offshore, and land-based industry in Norway

Corporate structure 1

Service offering by sector

	Offering	Example projects	Customer examples
melters S	• Total offering of service, maintenance and modification projects to large clients within the smelting industry	• Maintenance and modification at Hydro Husnes
Offshore	• Maintenance and service personnel on framework agreements • Design, engineering, prefabrication, and installation	• Operation and maintenance personnel on "Jotun FPSO"
me Mariti	• Installation within hydraulic, HVAC, machine systems, ship systems etc.	• Rebuilding of propulsion systems to become greener (batteries, hydrogen)
d based Lan	• Delivering complete tank facilities, pumps, osmosis facilities etc.	• Delivery of a complete tank facility to Equinor at Mongstad
Aquaculture	• Instalments and production of components/facilities; floating rigs, pipes, tanks and maintenance of various equipment	• Super Duplex pipe delivery for Arctic Offshore Farming
Other	• Mainly construction and defence: Analysis, engineering, production, installation etc.	• Service and maintenance of pumps, steel, doors, ship equipment etc.

Macro trends and growth drivers per segment

NIS and its diverse portfolio of companies are poised to benefit from favorable macro trends

• Increased activity related to the upgrade and modernization of existing smelters
• Upgrades focusing on energy-saving initiatives
• Shift towards electrification and digitalization
• Increasing demand for domestically produced alloys (historically large import volumes from Russia)
• Focus on ensuring delivery security for clients

• Increased demand for full-service deliveries
• Upgrades related to energy-saving
• Shift towards electrification and digitalization
• Focus on ensuring delivery security for clients

• Increased lifespan of existing installations entails significant investments

• Growing activity in the oil services sector Offshore Aquaculture

  • Increased focus on energy security

• Lower activity recent years due to increased cost and taxation

• Customers prefer full-service suppliers
• Expect increased activity in connection with land-based facilities

• Increased newbuild activity due to weakened NOK
• Demand for dry-docking, maintenance, and refurbishment services
• Regulatory ESG requirements and incentives for electrification

• Expect increased activity within the defence sector and Norwegian Navy
• Expected increase in other segments where NIS is not yet present, potentially leading to substantial projects, to be pursued through strategic M&A initiatives

Key figures 2015 – YTD Q2 2024 NIS Group – consolidated (pro forma)

NIS Group - Pro forma
PROFIT & LOSS (NOKm)	2015	2016	2017	2018	2019	2020	2021	2022	2023	2024 YTD
Operating revenue	99.6	143.7	145.4	186.7	288.7	268.4	313.6	385.3	619.7	450.1
Cost of goods sold	-28.0	-47.6	-39.9	-48.2	-80.3	-54.6	-77.6	-103.6	-238.6	-219.6
Payroll	-45.7	-64.0	-76.0	-100.4	-149.9	-156.5	-173.3	-208.0	-260.2	-145.3
Other operating expenses **	-18.0	-19.7	-17.7	-23.6	-37.8	-40.9	-48.5	-57.0	-79.2	-48.9
EBITDA	7.9	12.4	11.8	14.4	20.7	16.4	14.2	16.7	41.6	36.3
EBITDA margin	7.9 %	8.6 %	8.1 %	7.7 %	7.2 %	6.1 %	4.5 %	4.3 %	6.7 %	8.1 %
Non-recurring items*						-10.1	-10.9	-2.0	-9.3
Adjusted EBITDA	7.9	12.4	11.8	14.4	20.7	26.5	25.1	18.7	50.9	36.3
Adjusted EBITDA margin	7.9 %	8.6 %	8.1 %	7.7 %	7.2 %	9.9 %	8.0 %	4.9 %	8.2 %	8.1 %

NIBD *** 25.0

* Non-recurring items (Covid, restructuring cost, insolvency of customer)

** Management fee NOKm 8 in 2023

*** BKS Eiegedom owned by EQVA ASA from Q1-23 - NIBD/Net interest Beraring Debt: Interest Bearing Debt - Cash (Cash-less restricted cash)

Fossberg Kraft in brief

Develops, owns and operates small and specialized hydropower plants

Company highlights

• Founded in 2018

• "Take-off" agreement with UK investment fund Downing for completed plants signed in 2021
• Successfully sold 7 plants to Downing from 2021 to 2023 with corresponding mgmt. and "take-off" agreement
• 80+ years of combined experience from project development and hydropower plants
• Currently exploring opportunities within solar, also in hybrid with hydro

Financial performance (consolidated IFRS)

Value creation illustration

	Plant sourcing		Engineering, development and construction		Operations
• • • •	Fall lease catchment rights and agreement with landowners Securing concession (NVE) and building permit Assessments, design and calculation Clarify whether plant is to be owned by Fossberg Kraft or subsequently sold to Downing under "take-off" agreement	• •	Fossberg Kraft in charge of construction of the plants – services bought at a fixed price, i.e. Fossberg Kraft takes minimal project risk Reporting and documentation to NVE	• •	If the plant is owned by Fossberg Kraft, the company runs maintenance and operations internally, and income is determined by production volume and price agreements If the plant is sold to Downing, Fossberg Kraft profits off the project margin as well as the agreement for operations and maintenance

Portfolio, GWh/year

Additional information

Company presentations available on eqva.no

Click here to see company presentation

Click here to see company presentation

Experienced group management team Executive management

Even Matre Ellingsen CEO

Former Group CEO in Astrup Fearnley. Extensive experience from both regulated and non-regulated businesses. 15 years with Pareto and 10 years with Astrup Fearnley

Petter Sørdahl CFO

15+ years of experience from financial markets, M&A and business development in Astrup Fearnley and EY

Trygve Kjerpeseth CEO NIS/BKS / Group Head of Risk and Projects

30+ years of experience from executive positions and senior project management in large oil and gas companies

Anders Nilsen CEO Fossberg Kraft

15+ years of experience from construction industry, including project management and structural engineering in private and public sector

Sverre Olav Handeland General Counsel

15+ years of experience as a partner in a law firm, 8 years as an in-house lawyer in HG Group.

Daniel Hjertaker Molvik Head of Strategy and Business Development

Extensive background and experience from financial markets and roles within strategy and business development. EY, Astrup Fearnley and Aker Biomarine

Backed by strong board and industrial owners

The Board of Directors

Rune Skarveland Chairman

CEO Skarveland AS from '97-'08 and held several board positions in property development, industrial and hydropower companies

Tore Thorkildsen Board member

Founder and former CEO of BKS. Has held several board positions. 20+ years of experience in sales.

Trond Skarveland Board member

15 years of industrial leadership experience. Has held several board positions in property development, industrial and hydropower

companies.

Board member

20+ years of financial & strategic business development

Anne Bruun-Olsen Board member

Senior Partner Cushman & Wakefield Realkapital

Kari Markhus Board member

Employee representative

Board member

Employee representative

Ellen Hanetho

Top shareholders as of 16 August 2024

Shareholders	Number of shares	Ownership
Havila Holding AS	10,000,000	13.89%
Nintor AS	8,469,323	11.77%
ILG AS	8,469,322	11.77%
Neve Eiendom AS	8,193,462	11.38%
ROS Holding AS	5,660,027	7.86%
Eikestø Eiendom AS	4,960,847	6.89%
Fureneset Eiendom AS	4,960,847	6.89%
Eikestø AS	2,999,511	4.17%
Fureneset Invest AS	2,999,511	4.17%
Emini Invest AS	1,290,000	1.79%
HSR Invest AS	1,290,000	1.79%
Innidimman AS	1,290,000	1.79%
MP Pensjon PK	1,167,768	1.62%
Other shareholders	10,236,698	14.22%
Total shares	71,987,316

EQVA is exposed to a variety of industrial sectors

Secures a diversified and recurring revenue stream from industries along the western coast of Norway

Sustainability is key to our continued growth Key ESG highlights

• ESG is integrated in corporate governance structures and our companies' strategies
• We work proactively with our stakeholders in the transition process
• EQVA aims to be a frontrunner on ESG, and a strategic priority is to increase the quality of its sustainability reporting initiatives in 2024

ESG update

• ESG report 2023 was published on EQVA's web pages in Q1 2024
• One primary objective for 2024 is to undertake preparations to ensure compliance with CSRD standards for reporting

Opportunistic approach to value-added acquisitions

M&A criteria – increase Scale and Scope

Consolidation of industrial services companies that contribute to green transition in maritime, power intensive and renewable industries

Expand footprint in selected markets

Value accretive to shareholders

Cultural fit

Synergy potential