Frøy ASA – Company presentation

FRØY.NO Confidential

March 2021

Important notice

This presentation (the "Presentation") has been prepared by Frøy ASA (the "Company" and together with its subsidiaries (the "Group"). This Presentation has been prepared for information purposes only. This Presentation does not constitute an offer to buy or subscribe for any shares in the Company.

This Presentation speak only as of its date, and the views expressed are subject to change based on a number of factors, including, without limitation, macroeconomic and equity market conditions, investor attitude and demand, the business prospects of the Group and other specific issues. This Presentation and the conclusions contained herein are necessarily based on economic, market and other conditions, as in effect on, and the information available to the Company as of, its date. This Presentation does not purport to contain a complete description of the Group or the market(s) in which the Group operates, nor does it provide an audited valuation of the Group. The analyses contained in this Presentation are not, and do not purport to be, appraisals of the assets, stock or business of the Group or any other person.

Neither the Company nor any of its affiliates (nor any of its or their respective directors, officers, employees, professional advisers or representative) makes any representation or warranty, express or implied, with respect to the fairness, correctness, accuracy, reasonableness or completeness of such information. No responsibility or liability (whether in contract, tort or otherwise) is or will be accepted by the Company or any of its affiliates (or any of its or their respective directors, officers, representatives, employees, advisers or agents) as to, or in relation to, this Presentation.

This Presentation contains forward looking information. The words "believe", "expect", "could", "may", "anticipate", "intend" and "plan" and similar expressions identify forwardlooking statements. All statements other than statements of historical facts included in this Presentation are forward-looking statements. Such forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the Group's actual results, performance, achievements and value to be materially different from any future results, performance, achievements or values expressed or implied by such forward-looking statements. Such forward-looking statements are based on numerous assumptions regarding the Group's present and future business strategies and the environment in which the Group will operate in the future. No warranty or representation is given by the Company as to the reasonableness of these assumptions. Further, certain forward-looking statements are based upon assumptions of future events that may not prove to be accurate.

This Presentation is governed by and shall be construed in accordance with Norwegian law with Oslo District Court as legal venue.

Presenting team

Helge Gåsø Chief Executive Officer and Founder

Sondre Vevstad

Investor Relations

Frøy at a glance

FRØY.NO 1) Including 5 newbuilds, 78% owned Steigen and chartered vessel Viktoria Lady 2) Including 8 newbuilds 3) Including rebuild Folla 4) Unaudited proforma 2020 figures

Integrated part of the salmon farming infrastructure

Frøy operates 3 business segments

FRØY.NO Notes: (1) Based on unaudited proforma 2020 figures (2) Including 78% owned Steigen, chartered vessel Viktoria Lady as well as Reisa delivered in January 2021 (3) Including chartered vessel Sveafjord

Confidential

+15,000

+10,000

Full-service provider with unparalleled scale and scope

Broad and complementing service offering across production areas provides scale and diversification benefits

Modern and diversified fleet supporting the service model

A premium fleet enabling safe and efficient operations.

Vessel platform with flexibility to offer wide range of services and technologies

FRØY.NO Note: Peer group comprises Sølvtrans, Rostein, DESS, AquaShip, Intership, AQS, Abyss, FSV and AKVA Marine Services 1) Wellboats and service vessels, including newbuilds 2) Wellboats only 3) Including two vessels held for sale 5) Including 78% owned Steigen, chartered Viktoria Lady and Reisa delivered in January 2021 Source: Company data, Salmonbusiness

Growth dependent on specialist competence and infrastructure

ü Salmon farmers´ volume growth dependent on increased MAB utilization
ü Effective infrastructure and operations key to ensure sustainable growth

- ü Bio security and maintaining compliant within the increasingly complex regulatory framework Bio zone regulations favors larger operators

ü Increased size and complexity of farming infrastructure ü Recurring need for specialist competence,

inspection and maintenance

Site complexity

methods

ü Exposed Offshore farming likely driver for increased transport distances
ü Post-smolt expected to increase both frequency and intensity of wellboat operations
ü Consolidation of slaughter facilities likely driver of transport distances and intensity

Notes: 1) Norwegian localities, 1,000 tonnes WFE

FRØY.NO Sources: Aqua service company websites, Kontali, Intrafish, Ilaks, Food Safety Authority, Fiskeridirektoratet, Kystverket, company data

Frøy sees multiple avenues for growth

Aqua service experiences a stability detached from salmon prices

• Smolt

Business critical	• Business critical service offering that covers all stages of the production phase • Smolt • Growth • Harvest
Few direct substitutes	• Limited direct substitutes that can perform similar tasks due to • Location of sites • Scale and complexity of operations
Cheap insurance	• Relatively small component of total production cost to salmon farmer • Standby tool as lack of capacity constitutes the largest risk from a profitability perspective
Regulatory alignment	• Increased regulatory requirements implicitly results in vessels needed on standby

FRØY.NO Notes: (1) Weekly Oslo FCA (free carrier) volume weighted average of sizes NOK/kg excluding export margin (2) Top 9 Wellboat operators (as previously defined), 2-year average Source: company filings, Nasdaq

Frøy has a balanced revenue model with diversified revenue streams

		Revenue model	Strategy
Adj. 2020 revenues1
Spot	~25%	Framework agreements • Mainly smaller aqua services vessels • Typical services include regular maintenance operations;	Frøy has disciplined focus on long-term contracts for all new wellboats and large service vessels
Framework agreements	~15%	• Cleaning of nets/pens • Inspections • Biological treatments • Other maintenance services	Smaller aqua service vessels mainly operate on framework agreements and in the spot market
Time charter	~60%	Time charter agreements • Mainly relevant for larger services vessels and wellboats • Typically, 3-8-year contracts • Of wellboat newbuilds • 5 - 8 year contracts	Diversified portfolio of services, geographies and clients to secure high utilization and stable margins and profitability

Source: Company data; Note: 1) Revenue split excl. fuel and other revenues.

Long term contracts provides visibility and stability

Source: Company data 1) Calculated as of 31.12.20, weighting based on m3 capacity per vessel

Segment financials

FRØY.NO Notes: 1) FrøyGruppen wellboat segment consists of Frøy Rederi AS and Fisketransport AS, NTS wellboat segment consists of Norsk Fisketransport AS. 2) FrøyGruppen service segments consists of Frøy Akvaservice AS, Frøy Akvaressurs AS, Frøy Vest and Frøy Nord. 3) NTS Sea transport segment consists of NTS Shipping AS. 4) 2018 and 2019 Revenue and EBITDA adjusted for gain on sale of wellboats, 2020 EBITDA adjusted for NOK 24m cost related to delayed newbuild and mechanical failure on vessel. Overview does not include Frøygruppen AS and corporate costs.

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Frøy ASA

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