HAV Group ASA — Earnings Release 2024

Mar 14, 2025

HAV GROUP ASA

Fourth quarter financial results 2024

Gunnar Larsen, CEO Pål Aurvåg, CFO 13.03.25

Agenda

• 1. Q4 highlights
• 1. HAV Group in brief
• 1. Business segment update
• 1. Financials
• 1. Summary and outlook
• 1. Q&A

A sustainable future at sea

Q4 2024 HIGHLIGHTS

Key developments

• Solid order backlog of NOK 1,227 million as of 31 December 2024, up 103% from year-end 2023, reflecting strong order intake in recent quarters
• New orders for more than NOK 200 million signed in Q4
• Recent contract wins still in start-up phase and have not yet started to generate noticeable income/margin contribution
• Q4 revenue of NOK 310.1 million (2023: NOK 113.5 million)
• EBITDA NOK 7.9 (-26.1), significant improvement versus latest quarters
• Significantly improved financial performance in Energy design and smart control systems segment

Subsequent events

• Contracts for delivery of power systems for 8 x Wilson bulk carriers
• Breakthrough contract within land-based aquaculture.
• In total orders for more than NOK 100 millions.

A sustainable future at sea www.havgroup.no

Operating income	EBITDA	Cash balance
NOK 310.1m	NOK 7.9m	NOK 250.4m
Order intake	External backlog	Book-to-bill
NOK 214.0m	NOK 1,227m	X0.69

Order intake & backlog | Strong growth

Q4/23 Q1/24 Q2/24 Q3/24 Q4/24

Order intake per quarter Order backlog development

NOK 200 million contract to develop SOV for ESVAGT (17 July 23) is not included in external backlog per Q2)

A sustainable future at sea

www.havgroup.no

HAV Group in brief

A sustainable future at sea

Enabling optimized vessel performance, safety and operating costs

Value proposition: Improves vessel and cargo owners' competitiveness by providing advice and optimized solutions throughout a ship's lifecycle

Vision: A sustainable future at sea

Technology: Ship design, energy design and smart control systems, hydrogen-based energy systems, and water treatment systems

Experts in guiding the marine and maritime industries towards low and zero emission shipping

Headquarters Fosnavåg. Norway Employees 172 CEO Gunnar Larsen

Operating income Q4 2024 NOK 310.1m Order backlog Q4 2024 NOK 1,227m

Market cap per 13/03-25 NOK 203m

Supplier of innovative ship design. pioneering the design and construction of zero and low-emission vessels.

Supplier of sustainable energy systems. electric propulsion. automation. and NavCom systems for a wide range of vessels for the global maritime market.

Supplier of zero-emission hydrogen-based energy systems for vessels.

Supplier of ballast water treatment systems and process water treatment systems for aquaculture and maritime use.

A sustainable future at sea www.havgroup.no

Our main industry segments

Segment information

A sustainable future at sea

Ship design

• Development of the most efficient vessels possible. covering every aspect of vessel performance and functionality. through:
  • Concept development
  • Detail design
  • Equipment selection
  • Procurement
  • Systems engineering
  • Integration
• Simulation-based ship design
  • Ability to analyse and document real-life performance of a vessel
• Sold designs for more than 130 vessels globally
• Leading market position within offshore wind. electric ferries and aquaculture

Q4 highlights

• High revenue in the quarter, due to major equipment deliveries in the period
• Result affected by loss provision related to a specific project and low capacity utilisation in the period. Cost adjusting measures implemented
• Signing of conversion contracts on earlier delivered designs
• Positive sales pipeline within offshore wind, aquaculture and O&G

Energy design and smart control systems

• Supplier of low and zero-emission energy. propulsion and control systems for the global marine market
• Energy design from bridge to propeller: knowledge about vessel operations and competence in integrating energy sources allows design of optimal power and propulsion systems
• Smart control: Software platforms for navigation. automation and control to ensure efficient and safe operations

Q4 highlights

• Solid financial results in the period
• New contracts:
  • Green Yard Kleven for delivery of energy design, integrated automation system and future oriented bridge system and battery package to newbuild field support vessel.
  • Two onshore charging stations for use by the four autonomous, zeroemission ferries that will operate the Lavik-Oppedal crossing on the west coast of Norway.
  • Conversion project for two vessels, Misana and Misida owned by SeaCargo. This is similar to the conversion project SC Connector.
• Order backlog of NOK 1,021 million at end of Q4

Events subsequent to the end of Q4:

• Awarded contracts for delivery of power systems for 8 x Wilson bulk carriers.

Water treatment systems

• Ballast water treatment systems (BWTS) for ships
  • Compact and highly flexible systems with very low energy consumption
  • For retrofit and vessel newbuilds
• Process water treatment systems for the aquaculture industry:
  • Live fish carriers
  • Land-based aquaculture
• Sold 780+ systems worldwide
• IMO and USCG certified

Q4 highlights

• Main sales and marketing focus of ballast water treatment systems (BWTS) shifted from retrofit to newbuilds
• Signed contract for water treatment products to live fish carrier
• Signed contract within land-based aquaculture with Artec Aqua for delivery to Salmon Evolution phase 2
• Increased order backlog
• Well positioned with freshwater maker product both for ship in general and for aqua market
• Subsequent events:
  • o Signed contracts for more than 20 MNOK in the live fish carrier segment
  • o Signed breakthrough contract in land-based aquaculture with Eyvi for Arctic Seafarm at Nesna

A sustainable future at sea www.havgroup.no

Hydrogen-based energy systems

• Complete and scalable zero-emission hydrogenbased energy systems
• Suitable for vessels newbuilds and retrofits
• Granted preliminary approval by the Norwegian Maritime Authority for a maritime-based energy system with liquid hydrogen tank below deck from the Norwegian flag
• Leading competence in guiding clients in selecting and implementing the optimal technology for hydrogen based zero-emission fuels giving the lowest TCO

Status

Maris Fiducia cooperation | ZEPOD® for 5 x dry-bulk newbuild

• HAV Hydrogen awaiting Maris Fiducia's placement of newbuild contract with its chosen shipyard, at which time HAV Hydrogen will enter into discussions to agree on commercial terms and delivery structure for the cooperation project

A sustainable future at sea www.havgroup.no

Order backlog: segment breakdown

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Financials

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Revenue and EBITDA development

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Q4 2024 key financials

NOKm	Q4 2024	Q4 2023	2024	2023
	Unaudited	Unaudited	Unaudited	Audited
Operating income	310.1	113.5	765.2	617.1
EBITDA	7.9	-26.1	-34.8	9.1
EBIT	3.6	-30.3	-51.3	-7.9
Net finance	6.9	-2.5	14.4	1.9
Net profit/loss	10.4	-32.8	-36.8	-6.0
EBITDA margin	1.2 %	-26.7 %	-6,7 %	1.5 %

Comments

• Revenue increase vs Q4 last year mainly driven by higher levels of trading, higher service activity and sales income
• Recent contract wins are still in start-up phase and have not yet started to generate noticeable income/margin contribution
• Net finance related to unrealized agio
• Net profit improvement compared to previous quarters

Ship design

NOKm	Q4 2024	Q4 2023	2024	2023
Operating income	183,2	23.8	334,9	249.3
EBITDA	2,8	0.8	7,9	50.1
Profit before tax	3,1	1.1	9,8	50.4

Energy design & smart control systems

NOKm	Q4 2024	Q4 2023	2024	2023
Operating income	122,3	68.0	364,5	220.8
EBITDA	14,2	-16.8	-12,9	-17.6
Profit before tax	17,2	-20.4	-6,6	-20.7

A sustainable future at sea

www.havgroup.no

Water treatment systems

NOKm	Q4 2024	Q4 2023	2024	2023
Operating income	17.0	22.2	97.7	156.0
EBITDA	-1.4	-1.2	0.3	3.1
Profit before tax	-3.6	-3.3	-7.7	-4.1

Hydrogen-based energy systems

NOKm	Q4 2024	Q4 2023	2024	2023
Operating income	0.0	0.2	0.9	0.5
EBITDA	-2.4	-2.2	-10.1	-8.1
Profit before tax	-2.4	-2.4	-10.8	-8.7

Q4 2024 balance sheet

NOKm	2024	2023	NOKm	2024	2023
	unaudited	audited		unaudited	audited
Non-current assets
Total intangible assets	85.1	90.3	Equity
			Total equity	81.3	91.2
Fixed assets
Total tangible fixed assets	11.0	10.4
Financial fixed assets	0.2	0.1	Liabilities
Total fixed assets	96.3	100.9	Total provision for liabilities	7.5	7.5
Current assets			Total long-term liabilities	13.8	31.5
Total receivables	249.4	174.6	Total current liabilities	499.1	297.3
Cash and bank deposit	250.4	152.0
Total current assets	505.3	326.6	Total liabilities	520.3	336.3
Total assets	601.6	427.5	Total equity and liabilities	601.6	427.5

Comments

Assets:

• Cash and bank deposit increased by NOK 98.4 million and total receivables increased by NOK 74.8 million from year end.

Equity:

• Total equity has decreased by NOK 9.9 million to NOK 81.3 million per Q4 2024. This is mainly caused by negative result.
• Sales of own shares increased equity to approx. NOK 30 million.
• Start-up of several recently won projects has resulted in a significantly higher total balance (due to advance payments from customers), which means that the equity ratio has decreased from 21.3% year-end 2023 to 13.5% per Q4 2024.
• DNB has waived all financial covenants for Q3 and Q4 reporting. The company and the bank have agreed to set a new covenant structure that reflects HAV Group's growth phase and project-based business within Q1 2025 reporting.

Total liabilities:

• Total liabilities increased from NOK 336.3 million at year end 2023 to NOK 520.3 million per Q4 2024. Main reason is increased in advance payments from customers.

Q4 2024 cash flow statement

NOKm	Q4 2024	Q4 2023	FY 2024	FY 2023
	Unaudited	Unaudited	Unaudited	Audited
Cash flow from operations
Net cash flow from/to operating activities	96.5	-78.0	99.0	-5.4
Cash flow from investments
Net cash flow used in investments activities	-4.1	4.2	-11.6	-26.8
Cash flow from financing activities
Net cash flow used in financing activities	9.3	-6.9	11.1	-39.6
Net change in cash and cash equivalents	101.6	-80.7	98.5	-71.9
Cash and cash equiv. recognized in the balance sheet	250.4	152.0	250.4	152.0

Comments Q4 2024 (NOKm)

Positive cash flow from operations of NOK 96.5 million

• Positive result of NOK in period 10.4
• Net payable/receivable changes 90.0
• Depreciation 4.3
• Net Finance -6.9

Negative cash from investments

• Mainly related to investments in intangible assets.

Positive cash from financing

• Sales of own shares 29.6
• Repayment non- current debt -20.0

Summary and market outlook

A sustainable future at sea

Summary

HAV Group achieved its projected revenue growth in 2024 compared to 2023

EBITDA in Q4 2024 was a significant improvement versus latest quarters

New orders for more than NOK 200 million signed in Q4 2024

Solid order backlog of NOK 1,227 million at year-end 2024, up 103% from one year prior

A sustainable future at sea

Outlook

• Global megatrends, including regulatory changes as well as increasing pressure on vessel and cargo owners to remain competitive, provide commercial incentives and regulatory requirements for the maritime industry to invest in vessels' lifecycle performance. HAV Group possesses the technologies and products that enable shipowners to optimize their vessels' operational, financial and environmental performance.
• The global shipbuilding market is predicted to remain at a stable level in the coming years, providing ample opportunities for HAV Group.
• Although international trade conflicts create unwanted market uncertainty, the large majority of HAV Group's market exposure is towards European and Norwegian customers – thereby limiting the group's exposure to transcontinental tariff regimes.
• Looking ahead, HAV Group reiterates its previous guidance and expects significant revenue growth in 2025, driven by recent contract wins and robust tender activity, with associated margin improvements.

A sustainable future at sea