Eqva ASA

Investor Presentation • May 16, 2024

EQVA ASA

First quarter report 2024

EQVA:

A knowledge-based active owner of industrial service companies that contribute to the green transition in maritime, power intensive and renewable industries.

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

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. Business update
• 1. Operational and financial highlights
• 1. Acquisition of Kvinnherad Elektro and Vassnes Group
• 1. Establishment of an Industrial Service Company Nordic Industrial Solutions
• 1. Outlook

Enclosure

• Consolidated financial statements

The financial report does not meet the requirements for an IAS 34 report, but the accounting principles (as stated in the annual accounts) are followed in the group

This is EQVA: An industrial investment company

Overview of ownership interests - built on 3 platforms

Experienced management team

Executive management

Even Matre Ellingsen CEO

Former Group CEO in Astrup Fearnley.30+ years of capital market experience. Extensive board experience from both regulated and nonregulated businesses.

Petter Sørdahl CFO

10+ years of experience from financial markets, M&A and business development

Trygve Kjerpeseth CEO BKS / Group Head of Risk and Projects

30+ years of experience from senior project management

Tom Jensen CEO Fossberg Kraft

30 years of leadership experience with primary focus on production and procurement

Sverre Olav Handeland General Counsel

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

Eqva is well positioned for further growth

Both through organic growth and M&A activity

Q1 and YTD 2024 highlights

Strategic priorities

Strong performance and financial results in BKS Sale of Havila Charisma, freeing up resources	SPA signed for Kvinnherad Elektro and Vassnes-Gruppen Launched Nordic Industry 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 – The share

In 2024 there has been paid NOK 0,2 in dividend.

Ordinary dividends combined with possibility of dividends related to special events

Total Return

2024 YTD = 38% 3Y = 119,5%

(date 14/5-2024)

Number of shares :71,57 mill Market cap NOKm 260

• 1. Business update
• 2. Operational and financial highlights
• 1. Acquisition of Kvinnherad Elektro and Vassnes Group
• 1. Establishment of an Industrial Service Company Nordic Industrial Solutions
• 1. Outlook

Enclosure

• Consolidated financial statements

Q1 Highlights – 58% y/y organic growth and increased margins

Strong development in the Products, Solutions & Renewables segment

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 545m and positive outlook for FY2024 – mainly driven by BKS

Products, Solutions & Renewables

• Significant revenues growth – up 58 % compared to last year
• EBITDA margin increased to 8.2 %, compared to 6.9 % last year

M&A

• Signed agreement for acquisition of Kvinnherad Elektro, a high-potential Power & Automation provider. The business combination establishes EQVA as a prominent and fully integrated system supplier within the piping and power and automation disciplines. The agreement is set to be completed during Q2 2024, with the transaction becoming effective from ultimo Q2 2024.
• 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 545m, high activity on current projects

• Order book increases to NOK 545m, 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 11

• 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

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

Segment overview

Key financial figures – Q1 2024

• High-end EBITDA margin at 18.3 % for EQVA
  • Strong revenue growth in Products, Solution & Renewables is driven by BKS – up NOK 82m from last year (+
  • Solid EBITDA margin of 8.2 % in Products, Solutions & Renewables – compared to 6.9 % last year
  • The profit from sale of PSV Havila Charisma is included in Q1

NOK million	Products, Solutions & Renewables	Real estate	Other*	Elim.	EQVA group
Revenues	223.5	1.9	34.6	-1.9	258.1
Materials and consumables	106.5	0.0	0.0	0.0	106.5
Payroll expenses	71.5	0.0	3.8	0.0	75.3
Other opex	27.1	0.1	3.7	-1.9	29.0
EBITDA	18.3	1.8	27.1	0.0	47.2
EBITDA %	8.2 %	94.1 %	78.5 %	0.0 %	18.3 %

*Includes effects from sale of Havila Charisma

Products, Solutions & Renewables

Capitalising on strong order book – increasing volumes and margins

• Significant organic revenue growth 58 % where EBITDA compared to last year was up 89 %
• 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 power plant in final phase of construction
  • Construction of Haugsvær power plant on track
  • Preparing construction of Gjosa power plant
  • In tender phase of new projects in hydro and solar power

Strong financial position

Balance sheet as of 31 March 2024

• NOK in million Equity ratio of 41 % at the end of Q4
• Net interest-bearing debt was NOKm 129 at the end of Q1.
• Cash position of NOKm 79 at the end of Q1
• The construction loans in Fossberg Kraft increased due to project development during Q1. These loans (NOKm 40) will be repaid when projects are delivered to customer during 2024.
• Strong cash generation expected going forward in 2024

NOK million

Orderbook remains solid

Supports continued optimistic outlook in turbulent market sentiment

• NOK in million • Products, Solutions & Renewables orderbook at NOK 545 million
  • BKS orderbook at NOK 531 million
  • Fossberg Kraft orderbook NOK 14 million. New project in pipeline, Gjosa (7.6 GWh) not included in orderbook – the power plant will be owned and operated by Fossberg Kraft.
• Continued strong order intake and orderbook gives traction to sustain high activity level and further growth in 2024 Q4 2023

• 1. Business update
• 1. Operational and financial highlights
• 3. Acquisition of Kvinnherad Elektro and Vassnes Group
• 1. Establishment of an Industrial Service Company Nordic Industrial Solutions
• 1. Outlook

Enclosure

• Consolidated financial statements

EQVA strengthens the company's position within the power and automation market

EQVAASA intend to acquire Kvinnherad Elektro AS with effect from ultimo Q2 2024

The shares in Kvinnherad Elektro AS will be acquired by BKS Holding AS, a wholly owned subsidiary of EQVA ASA. The transaction includes Kvinnherad Elektro's 51 % ownership stake in Vassnes Solutions AS and its 3 subsidiaries.

The acquisition is aligned with EQVA's strategic focus

• The power and automation market has a positive outlook and high activity level
• EQVA seeks to take a broader position in the power and automation segment through organic growth and M&A activities
• EQVA is already a significant service provider of power and automation solutions to maritime- and land-based industry through its ownership in BKS
• After consolidation, BKS will together with Kvinnherad Elektro and Vassnes Group be prominent and fully integrated system supplier within the piping, power and automation disciplines, and increase its total number of FTE's from 350 to 550.

EQVA will strengthen its position in power and automation

• Increase EQVA's annual revenues by NOK 160 175 millions
• Get access to a broader customer base
• Get access to a highly qualified employee-base of 200 FTE's including engineers and electricians
• Utilize from competence-, system- and support-synergies across the EQVA group

The acquired companies complies with regulatory standards and certificates

EQVA consolidated - will be a strong power and automation player in the region

EQVA will after the acquisition total ~270 dedicated employees within the power and automation segment – which accounted for approx. NOK 250 millions in 2023* revenues.

Issue a broad specter of deliveries

• Design of electrical installations
• Engineering / installation of electrical systems
• Installation of solar panels
• Instrumentation
• Staffing

Well diversified power & automation portfolio

• BKS Power & Automation and Vassnes group have large, renown clients in the maritime sector
• All three companies deliver services to large customers in land-based industry
• Approximately half of Kvinnherad Elektro's projects are for smaller clients or households

Maritime Landbased industry Other

Kvinnherad Elektro is located in Rosendal and Husnes, while Vassnes group is located in Ølen – both close to BKS's HQ location.

BKS Power & Automation NOK 75m

Kvinnherad Elektro NOK 67m

Vassnes group NOK 108m

=

EQVA consolidated - Power & Automation NOK 250 millions in 2023* revenues + +

*Subject to final audit

• 1. Business update
• 1. Operational and financial highlights
• 1. Acquisition of Kvinnherad Elektro and Vassnes Group
• 4. Establishment of an Industrial Service Company – Nordic Industrial Solutions
• 1. Outlook

Enclosure

• Consolidated financial statements

Eqva's ambition and ownership agenda for Nordic Industry Solutions

Become the leading industrial services provider in Norway

Execute on low-risk M&A strategy and continue to unlock synergies across acquired companies

Organic growth

Increasing market share and service offerings enabling NIS to tender for larger and more complex projects

Establishing NIS

Accretive M&A

Pursue pipeline of potential acquisitions that will further strengthen NIS's market position, expand its service offering, its geographical footprint and reduce leverage. Retain acquirees culture, strengths and management

Public offering

Plan to IPO NIS (12-18m) to attract more attention and a broader investor base

M&A in closing – New NIS structure after acquisitions

2 | Status M&A

• 1. Business update
• 1. Operational and financial highlights
• 1. Acquisition of Kvinnherad Elektro and Vassnes Group
• 1. Establishment of an Industrial Service Company Nordic Industrial Solutions
• 5. Outlook

Enclosure

• Consolidated financial statements

2024 Outlook

Pro-forma figures

Financial guidance for 2024 as of 16 May 2024

Current EQVA Group

FY'2024 revenue (million) 650-750

FY'2024 EBITDA margin 5-7%

Including announced M&A: Kvinnherad Elektro and Vassnes Group*

FY'2024 revenue (million) 900-1,000

FY'2024 EBITDA margin 5-7%

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

*Accounted for full year effect.

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

Consolidated statement of profit or loss 31 March 2024

(NOK 1,000)	Q1 2024 Unaudited	Q1 2023 Unaudited	Q1 2023 Unaudited
		Adjusted for discontinued operation
Revenues	257 498	141 920	200 154
Other operating revenues	575	5	164
Operating income	258 073	141 925	200 318
Materials and consumables	106 547	49 616	83 921
Payroll expenses Other	75 319	74 254	84 135
operating expenses	29 136 211 001	17 988 141 858	23 866 191 922
Operating expenses
profit/loss Operating before depreciation and amortisation	47 072	67	8 396
(EBITDA)
Impairment of non-current assets	0	0	0
Depreciation	4 456	2 319	2 776
profit/loss (EBIT) Operating	42 616	-2 252	5 620
Financial income	493	40	47
Financial expenses	-8 136	-2 508	-2 589
Share of profit/loss of associate	-2	0	-3 400
Profit / loss before tax	34 971	-4 720	-322
Income tax expense*	0	0	0
Profit/Loss from continued operations	34 971	-4 720	-322
Profit/Loss from discontinued operation	0	4 398	0
Profit/Loss for period the	34 971	-323	-323
Attributable to :
of Equity holders parent	34 722	-863	-863
Non-controlling interest	249	542	542
Total	34 971	-321	-321

Please note

• Discontinued operations includes Havyard Leirvik companies

	Q1 2024 Unaudited	Q1 2023 Unaudited	Q1 2023 Unaudited
		Adjusted for discontinued operation
(NOK) Earnings per share	0,48	-0,01	-0,01
Diluted earnings per share (NOK)	0,48	-0,01	-0,01
Earnings from continued operations
Earnings per share (NOK)	0,49	-0,07	0,00
Diluted earnings per share (NOK)	0,49	-0,07	0,00

Consolidated statement of financial position 31 March 2024

ASSETS	Q1 2024 Unaudited	Q4 2023 Audited
Non-current assets
Deferred benefit tax	0	0
Goodwill	248 260	248 260
Licenses and R&D , patents	28 540	29 319
Property , plant and equipments	111 348	111 840
Right of assets use	12 543	12 276
Investment in associates	973	21 319
Loan associates to	0	4 988
Other receivables non-current	433	3 809
Total non-current assets	402 097	431 810
Current Assets
Inventory	5 655	5 780
Accounts receivables	201 484	99 493
Other receivables current	15 576	22 096
Contract assets customer contracts	80 350	72 480
Cash and cash equivalents	86 493	35 984
Total current assets	389 558	235 834
TOTAL ASSETS	791 655	667 643

EQUITY AND LIABILITIES	Q1 2024	Q4 2023
	Unaudited	Audited
Equity
Share capital	3 599	3 599
Share premium reserve	195 175	195 175
Treasury shares	-24	-30
Retained earnings	119 878	86 360
Non-controlling interests	568 5	319 5
Total equity	324 196	290 424
Non-current liabilities
Deferred liability tax	0	0
Lease liabilities	9 096	8 870
Loans and borrowings	91 226	125 293
Other long-term liabilities	32 169	41 770
liabilities Total non-current	132 491	175 933
Current liabilities
Accounts payables	102 072	55 666
Taxe payables	1 579	1 579
Public duties payables	43 215	28 820
Loans and borrowings , current	117 825	78 423
Lease liabilities	3 251	3 380
Other liabilities current	67 025	33 420
Total liabilities current	334 967	201 287
Total liabilities	467 458	377 220
TOTAL EQUITY AND LIABILITIES	791 655	667 643

Appendix

BKS 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.

Blue-chip customer base

Full-service provider:

Kvinnherad Elektro in brief

Strong position in the regional power and automation market

Company highlights

• Founded in 1941 and HQ in Rosendal, Kvinnherad.
• 42 FTE's engineers and electricians.
• Full-service supplier for power and automation installations, meaning presence throughout the entire value-chain in industrial deliveries from idea to installation.
• The company has a long and good cooperation with local shipyards, fish farming and the smelting industry, as well as other small- and large industry players in the region around the Folgefonn peninsula.
• 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 land-based industry in the region.

Full-service provider:

Financial performance

Vassnes Group in brief

Strong position in the regional power and automation market

Company highlights

• Founded in 2012 and HQ in Ølen, Rogaland.
• The Vassnes group (VG) is owned by Kvinnherad Elektro 51% and Miranda Invest 49%. The parent company is Vassnes Solution AS with 3 subsidiaries.
• In total 160 FTE's engineers and electricians.
• ISO-certified: ISO 9001:2015, ISO 14001:2015 and ISO 45001:2018
• Full-service supplier for power and automation installations, meaning presence throughout the entire value-chain in industrial deliveries from idea to installation.
• The company has a long and good cooperation with local shipyards, offshore companies and the smelting industry, as well as other small- and large industry players in the region Haugalandet and western Norway.
• Goal to be a "preferred electrical supplier to the marine- and offshore market both nationally and internationally for our quality, expertise and ability to deliver".
• Revenues, NOKm EBITDA, NOKm *Subject to final audit. 68,8 120,1 61,5 119,7 89,0 114,0 7,7 6,7 1,0 4,5 -0,1 5,2 2018 2019 2020 2021 2022 2023*

Full-service provider:

Financial performance

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

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

Financial performance (consolidated IFRS)

Portfolio, GWh/year

Additional information

Company presentations available on eqva.no

Click here to see company presentation

Click here to see company presentation

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

Ellen Hanetho Board member

20+ years of business development

Anne Bruun-Olsen Board member

Senior Partner Cushman & Wakefield Realkapital

Kari Markhus Board member

Employee representative

companies.

Employee representative

financial & strategic

Top shareholders as of 6 May 2024

Shareholders	Number of shares	Ownership
Nintor AS	16,938,645	23.53%
Havila Holding AS	10,000,000	13.89%
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

Norway aims to be a frontrunner in the shift toward low emission solutions

New regulation is driving a paradigm shift in the maritime and landbased industry sectors towards low emission solutions

EQVA is exposed to a variety of industrial sectors

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

Strong foundation for further value creation

New regulation is driving a paradigm shift in the maritime and landbased industry sectors towards low emission solutions

The Norwegian government and EU green deal support solutions in maritime and landbased industries (i.e. Enova in Norway) where emission cuts are solved by improving efficiency through digitalization.

Uptake of more advanced technology is

expected to increase in the coming years due to government requirements and stakeholder expectations.

Digitalization Energy conversion Decarbonization, sustainability and clean energy

The Norwegian government aims to facilitate emission-free solutions along the coast.

• reducing emissions from domestic shipping and fishing vessels by half by 2030

Ambitions of IMO's GHG Strategy¹ :

• 40% reduction of CO2e by 2030, compared to 2008
• Uptake of zero or near-zero GHGe technologies, fuels and/or energy sources to represent at least 5%, striving for 10%, of the energy used by 2030
• GHGe from international shipping to reach net zero by or around 2050

Maritime service conversion

The cost of energy and climate emissions expected to rise with regulatory measures e.g., carbon tax.

EU's CO2 Emission Trading System (ETS)²

• Achieved 35% reduction of CO2e from power generation and energy-intensive industries between 2005 and 2021
• 2030 target for ETS emissions increased to -62% (previously -43%), compared to 2005
• Expanded to include the maritime sector

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