Eqva ASA

Investor Presentation • Feb 28, 2024

Eqva ASA

Fourth quarter report 2023

1. Business update

• 1. Operational and financial highlights
• 1. Outlook

Enclosure

• Consolidated financial statements

Q4 Highlights – 75% y/y organic growth and increased margins

Strong development in the Products, Solutions & Renewables segment

*Pro-forma: Excl. discontinued operations (Havyard Leirvik)

New contracts awarded – orderbook remains solid

Orderbook at NOK 487m (+62% y/y), high activity on current projects

• 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
• Significant share of ongoing projects 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

• 1. Business update
• 2. Operational and financial highlights
• 1. Outlook

Enclosure

• Consolidated financial statements

Segment overview Key financial figures – full year 2023

• Adjusted EBITDA margin excluding discontinued operations at 6.1 %
• Products, Solutions & Renewables delivers a strong year
  • 8.6 % adjusted EBITDA margin for the segment
  • Negatively impacted by non-recurring effects; insolvency of customer, impact approx. NOK 9m (BKS), insolvency of sub-contractor, impact approx. NOK 4m (Fossberg Kraft), and a one-time management fee from Eqva of NOK 8m (BKS).
• FY2023 financials were impacted by poor performance from the Maritime Services segment (Havyard Leirvik)
  • The shipyard Hayard Leirvik was sold to Tersan in November 2023. The transaction was settled by NOK 30m in net cash

NOK million	Products, Solutions & Renewables	Maritime Services	Real estate	Other / Elim.	Eqva group*	Eqva group ex. discontinued*
Revenues	687.1	107.6	10.1	-10.0	794.8	687.2
Materials and consumables	294.0	66.5	0.1	0.0	360.6	294.1
Payroll expenses	259.3	38.7	0.0	14.0	312.1	273.3
Other opex	95.7	19.5	0.7	-9.3	106.6	90.8
EBITDA	38.2	-17.2	9.3	-14.8	15.6	29.0
Non-recurring events	21.0					13.0
Adjusted EBITDA	59.2					42.0
Adjusted EBITDA %	8.6%					6.1%

*Consolidated financial statements for Eqva includes Havyard Leirvik accounts until the end of Q3 2023 (discontinued).

Products, Solutions & Renewables

Capitalising on strong order book – increasing volumes and margins

• Significant organic revenue growth 75% where EBITDA compared to last year was up 109%
• Growth primarily driven by BKS high activity levels on ongoing projects
  • Strong order intake and orderbook gives traction to sustain high activity level in 2024
  • Growth is capitalizing on current cost levels significantly increasing profit margins
• Fossberg Kraft two ongoing projects
  • Delivery of Skjeggfoss power plant delayed by approx. 1 month due to insolvency of sub-contractor
  • Construction of Haugsvær power plant on track
  • In tender phase of new projects in hydro and solar power

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 employees spread across 5 companies
• BKS is a fully integrated system supplier of 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 complete cross-functional deliveries
• Goal to be a preferred and competitive supplier and partner to maritime, offshore and land-based industries in Norway
• 27 per cent CAGR (2018-2023)

Financial performance

Full-service provider

Solid financial position

Balance sheet as of 31 December 2023

• NOK in million Equity ratio of 40 % at the end of Q4
• Net interest-bearing debt was NOK 158m at the end of Q4. Increased sales have led to increased use of RCF
• Cash position of NOK 28m at the end of Q4
• The overdraft facility in BKS was increased to NOK 50m to strengthen the working capital due to strong growth
• The construction loans in Fossberg Kraft increased due to project development. These loans will be repaid when projects are delivered to customer.
• Strong cash generation expected in Q1 2024

NOK million

Orderbook remains solid

Supports continued optimistic outlook in turbulent market sentiment

• NOK in million • Products, Solutions & Renewables orderbook at NOK 487 million
  • BKS orderbook at NOK 460 million
  • Fossberg Kraft orderbook NOK 27 million
• Continued strong order intake and orderbook gives traction to sustain high activity level and further growth in 2024

NOK million

Equity

• 1. Business update
• 1. Operational and financial highlights
• 3. Outlook

Enclosure

• Consolidated financial statements

2024 Outlook

Pro-forma figures

Financial guidance for 2024 as of 28 February 2024

Current Eqva Group

FY'2024 revenue (million) 600-700

FY'2024 EBITDA margin ** 5-7%

Including announced M&A *

FY'2024 revenue (million) 1,200-1,400

FY'2024 EBITDA margin 5-7%

* LOI signed, transaction expected closed Q1 2024

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

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

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

A specialised hydropower plant developer and operator

Eqva is well positioned for further growth

Both through organic growth and M&A activity

NOK in million Strategic priorities

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.

Eqva – An industrial investment company

Overview of ownership interests

Eqva aims to present dividend strategy

Expected running dividend in the range of 2-4% of NAV

Possibility of dividends related to special events

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

Consolidated statement of profit or loss 31 December 2023

(NOK 1,000)	Note	2023 Unaudited	2022 Unaudited	2022 Audited
		Adjusted for discontinued operation	Adjusted for discontinued operation
Revenues	3,4	676 391	221 697	456 431
Other operating revenues		10 846	2 138	2 562
Operating income	3,4	687 236	223 836	458 994
Materials and consumables		294 053	78 296	228 756
Payroll expenses		273 345	117 857	172 360
Other operating expenses		90 802	49 531	67 219
Operating expenses		658 199	245 684	468 335
Operating profit/loss before depreciation and	3	29 037	-21 848	-9 342
amortisation (EBITDA)
Impairment of non-current assets		0	-1	0
Depreciation		11 054	7 099	9 860
Operating profit/loss (EBIT)	3	17 983	-28 946	-19 202
Financial income	3,5	2 044	4 084	4 138
Financial expenses	3,5	-28 145	-19 643	-21 045
Share of profit/loss of associate	3	-3 061	668	668
/ Profit loss before tax	3	-11 178	-43 836	-35 441
Income tax expense*	7	0	-15 796	-15 796
Profit/Loss from continued operations	3	-11 178	-28 037	-19 647
Profit/Loss from discontinued operation	3	-1 913	8 391	0
Profit/Loss for the period	3	-13 091	-19 647	-19 647
Attributable to :
Equity holders of parent		-15 022	-21 410	-21 410
Non-controlling interest		1 931	1 763	1 763
Total		-13 091	-19 647	-19 647

Please note

• M&A activities in 2022 Products, Solutions & Renewables was only included in the Q3 and Q4 numbers

• Discontinued operations includes Havyard Leirvik companies

	2023	2022	2022
	Unaudited	Unaudited	Audited
	Adjusted for discontinued operation	Adjusted for discontinued operation
Earnings per share (NOK)	-0,21	-0,30	-0,30
Diluted earnings per share (NOK)	-0,21	-0,30	-0,30
Earnings from continued operations Earnings per share (NOK) Diluted earnings per share (NOK)	-0,16 -0,16	-0,39 -0,39	-0,27 -0,27

Consolidated statement of financial position

31 December 2023

(NOK 1,000)

ASSETS	2023 Unaudited	2022 Audited
Non-current assets
Deferred benefit tax	1 529	0
Goodwill	248 349	248 260
Licenses and R&D , patents	31 452	32 208
Property , plant and equipments	113 726	128 927
Right of assets use	10 193	10 933
Investment in associates	20 324	25 544
Loan associates to	4 415	4 840
financial Investment in assets	2 007	16 163
Other receivables non-current	28 409	2 648
Total non-current assets	460 404	523 469
Current Assets
Inventory	6 556	13 681
Accounts receivables	137 452	90 955
Other receivables current	42 771	25 552
Contract assets customer contracts	66 403	51 537
Cash and cash equivalents	36 163	61 117
Total current assets	289 345	242 843
ASSETS TOTAL	749 749	712 366

EQUITY AND LIABILITIES	2023	2022
	Unaudited	Audited
Equity
Share capital	3 599	3 599
Share premium reserve	195 175	195 175
Treasury shares	-30	-16
Retained earnings	97 045	109 991
Non-controlling interests	319 5	3 387
Total equity	301 108	312 136
Non-current liabilities
Deferred liability tax	1 740	0
Lease liabilities	12 252	9 624
Loans and borrowings	140 710	152 868
Other long-term liabilities	40 534	41 474
Total liabilities non-current	195 236	203 967
Current liabilities
Accounts payables	73 339	56 147
Taxe payables	2 533	1 360
Public duties payables	27 350	37 524
Loans and borrowings , current	58 423	22 498
Contract liabilities	0	861
Lease liabilities	1 444	1 619
Other liabilities current	90 317	76 255
liabilities Total current	253 405	196 263
Total liabilities	448 641	400 230
EQUITY LIABILITIES TOTAL AND	749 749	712 366

Appendix

Additional information

Company presentations available on eqva.no

Click here to see company presentation

Click here to see company presentation

Experienced management team

Executive management

Erik Høyvik CEO

15+ years of experience in maritime- and landbased industries

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 In-house lawyer

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

Backed by strong board and industrial owners

The board of Directors

Even Matre Ellingsen Chairman

Former Group CEO in Astrup Fearnley. Extensive board experience from both regulated and non-regulated businesses.

Vegard Sævik Board member

Employed in Havila Holding and holds several board positions.

Rune Skarveland Board member

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

Ellen Hanetho Board member

20+ years of financial & strategic business development

Top shareholders as of 26 February 2024

Shareholders	Number of shares	Ownership
Nintor AS	16,938,645	23.53%
Havila Holding AS	10,000,000	13.89%
Neve Eiendom AS	8,168,462	11.35%
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	10,261,698	14.25%
Total shares	71,987,316

Anne Bruun-Olsen Board member

Senior Partner Cushman & Wakefield Realkapital

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 activities in 2024

• ESG report 2023 to be published alongside the annual report on Eqva's web pages in Q1 2024
  • Full sustainability report will be made in reference to GRI recommendations
• 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

A part of Eqva

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

Case Study: BKS on framework agreement with OneSubsea for construction to Ormen Lange field

Shell to increase production from the Ormen Lange field. Increased value of production NOK 80 bn.

120 km from shore, 900 m depth, water temperature below freezing point, operated from land base.

Ormen Lange is the second largest gas field on the Norwegian Continental Shelf. At plateau production it produces 25% of UK's gas consumption.

Norwegian based (new) subsea technology (OneSubsea) is to increase production from 75% to 85% of the reserves.

BKS is working as a sub supplier to OneSubsea constructing a 430-ton subsea compressor.

«Havila Charisma»

– an asset play for Eqva, 50% ownership

General information

Havila Charisma

Built	December 2012
Design	Havyard 833L
Yard	Havyard Leirvik AS
Class	+1A1 Offshore service vessel (+, Supply) Battery (Power) Clean (Design) COMF (C-3, V-2) DK (+) DYNPOS (AUTR) E0 HL (2.8) LFL (*) NAUT (OSV(A)) SF Shore power
LOA	92.80 m
Breadth	19.60 m
Draught	6,569 m
DWT	4976 t
Deck area	1082.4 m2
Accommodation	27 persons
Flag	Norwegian
MMSI	257 419 000
IMO NO	9631890
Call sign	LCWZ
Vessel type	PSV

Retrofitted to reduce emissions

Installment of battery and shore power system

• In 2018, Havila Charisma had a battery and shore power system installed
  • NES battery containers with a 625 kWh energy capacity with the possibility to expand to 750kWh
• Fuel savings of 15–20% fuel compared to previous levels
  • Estimated annual fuel savings: 344,000 liters of diesel
  • Estimated annual emissions reduction of CO2: 920 tons
• 'Havila Charisma' has also been modified to be able to deliver seismic services in the form of permanent reservoir monitoring