Frøy ASA

Earnings Release • Feb 22, 2023

Frøy ASA – Q4 2022: Strong operational performance – proposed dividend of NOK 1.5 per share

Frøy ASA – Q4 2022: Strong operational performance – proposed dividend of NOK 1.5 per share

Frøy ASA (“Frøy”) reports strong operations and high activity in Q4 22. Adjusted EBITDA and adjusted EBITDA margins improved in all segments compared to Q4 21.

The Frøy Board of Directors will propose a total dividend of NOK 1.50 per share for the financial year 2022 to the Annual General Meeting in June 2023. The dividend will be split into two tranches of NOK 0.75 per share to be paid in June and October 2023. Furthermore, the Board of Directors will propose to the Annual General Meeting to introduce half-yearly dividend payments going forward.

Highlights from Q4 22:

• Revenues of NOK 579 million vs. Q4 21 NOK 561 million.

• EBITDA excl. gain from sale of assets of NOK 195 million (Q4 21: NOK 176 million)

• Backlog 31.12.22 of approx. NOK 6 billion including options

CEO of Frøy ASA, Tonje Foss comments; “I´m happy to see the strong performance and high activity in all segments in the quarter. I would like to express my appreciation to all of my colleagues in the organization for the dedication and consistent hard work that you have put down in 2022. Continuous improvements by all of you assist our clients to meet their key objectives; to reduce cost, improve fish welfare and reduce the risk of escapes. Delivering smarter and more efficient solutions is Frøy´s key success criteria.”

“A busy operational quarter was accompanied by multiple incoming requests for new capacity. We plan for future growth and consider ordering additional wellboat and service vessels to meet demand from our clients. Frøy has a well-maintained fleet of more than 80 vessels, built at low newbuild prices compared to the newbuild prices seen today. Over time, we expect that the increased prices for newbuilds will push time charter rates and prices on framework agreements higher also for the existing fleet of vessels.”

Frøy is among the leading employers along the Norwegian coastline with more than 800 employees. Frøy´s aqua service specialists develop and deliver business critical farming operations to global leading aquaculture companies. The unique aquaculture cluster in Norway has been built up based on stable and predictable framework conditions allowing for long term sustainable investments. The Norwegian Government´s proposal to introduce a new resource rent tax on salmon farming has raised many questions on how the proposed tax will impact future growth outlook for the Norwegian aquaculture industry. Frøy has issued a letter in the public consultation round, highlighting both the importance of stable and predictable framework conditions and the impact less favorable conditions may have on value creation in local communities along the Norwegian coast. To date, Frøy has yet to experience any direct demand consequences following the proposed tax changes. Frøy will prioritize to grow and support salmon farmers in the regions where they choose to grow and operate. In 2023, Frøy will operate two wellboats in Iceland and will continue to explore opportunities to diversify further internationally.

The Company will host a live presentation in Norwegian language at 09:00 a.m. CET at Felix Konferansesenter, Bryggetorget 3, 0250 Oslo.

The presentation will also be broadcasted via a live webcast: https://events.webcast.no/viewer-registration/Ff3L4lro/register

A recorded version of the Norwegian webcast and a recorded English webcast will be made available on https://froygruppen.no/investor/ in the afternoon.

For further information, please contact:

Tonje Foss, CEO +47 996 10 116

Sondre Vevstad, Interim CFO +47 936 54 555

Important notices

This information is considered to be inside information pursuant to the EU Market Abuse Regulation and is subject to the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act.

This announcement is not and does not form a part of any offer to sell, or a solicitation of an offer to purchase, any securities of the Company. The distribution of this announcement and other information may be restricted by law in certain jurisdictions. Copies of this announcement are not being made and may not be distributed or sent into any jurisdiction in which such distribution would be unlawful or would require registration or other measures. Persons into whose possession this announcement or such other information should come are required to inform themselves about and to observe any such restrictions. Matters discussed in this announcement may constitute forward-looking statements. Forward-looking statements are statements that are not historical facts and may be identified by words such as "believe", "expect", "anticipate", "strategy", "intends", "estimate", "will", "may", "continue", "should" and similar expressions. The forward-looking statements in this release are based upon various assumptions, many of which are based, in turn, upon further assumptions. Although the Company believes that these assumptions were reasonable when made, these assumptions are inherently subject to significant known and unknown risks, uncertainties, contingencies and other important factors which are difficult or impossible to predict and are beyond its control. Actual events may differ significantly from any anticipated development due to a number of factors, including without limitation, changes in investment levels and need for the Company’s services, changes in the general economic, political and market conditions in the markets in which the Company operates, the Company’s ability to attract, retain and motivate qualified personnel, changes in the Company’s ability to engage in commercially acceptable acquisitions and strategic investments, and changes in laws and regulation and the potential impact of legal proceedings and actions. Such risks, uncertainties, contingencies and other important factors could cause actual events to differ materially from the expectations expressed or implied in this release by such forward-looking statements. The Company does not provide any guarantees that the assumptions underlying the forward-looking statements in this announcement are free from errors nor does it accept any responsibility for the future accuracy of the opinions expressed in this announcement or any obligation to update or revise the statements in this announcement to reflect subsequent events. You should not place undue reliance on the forward-looking statements in this document. The information, opinions and forward-looking statements contained in this announcement speak only as at its date, and are subject to change without notice. The Company does not undertake any obligation to review, update, confirm, or to release publicly any revisions to any forward-looking statements to reflect events that occur or circumstances that arise in relation to the content of this announcement.

This stock exchange announcement was published by Sondre Vevstad interim CFO in Frøy ASA on 22 February 2023 at 06:30 CET.