HAV Group ASA — Interim / Quarterly Report 2021

May 27, 2021

Q1.2021

GREEN SHIFT THROUGH INNOVATIVE SOLUTIONS

HAV G roup ASA

HAV Group ASA

HAV is the Norwegian word for ocean. HAV, the ocean, is where everything started, and what it´s all about.

The HAV Group is an international provider of technology and services for maritime and marine industries.

The Group's vision is to contribute to the global green shift with innovative solutions and high-end products.

HAV Group was established in 2021 and comprises four subsidiaries with several decades of combined experience in the industry, in addition to special expertise in guiding the marine and maritime industries through the green shift towards the goal of zero emissions.

The Group shall create shareholder value by contributing to its subsidiaries and projects through:

Actively taking part in the companies´strategic development

Extracting synergies through economies of scale, standardization of processes and systems

Stimulating intercompany business development and R&D processes

Pursue value accretive growth, organic and through consolidation

THE HAV GROUP

HAV Design AS ENERGY-EFFICIENT, LOW- AND ZERO EMISSION SHIP DESIGNS

With its simulation-based concept development solutions, HAV Design is at the forefront when it comes to guiding the shipping industry through the green shift.

For several years, HAV Design has conducted research and development work in close cooperation with some of the best knowledge communities in the world. The result is a proven track record from more than 100 ship designs, state-of-the-art know-how, and virtual design tools.

At HAV Ocean Lab, we offer our customers a virtual test tank with digital twins of ships and ocean areas, which is unique in a commercial context.

The goal is to minimise the environmental impact and increase our customers' competitiveness.

This has given HAV Design a strong position in several ship segments, and recently especially within SOVs for the offshore wind industry, live fish carriers for the aquaculture industry and ferries for the transport industry.

HAV Hydrogen AS EKSPERTS IN ENABLING MARITIME ZERO EMISSION

HAV Hydrogen is a total supplier of hydrogen-based energy systems for vessels. A world leading total supplier of low and zero emission propulsion and control systems

technology to create energy-efficient ships with a lower environmental impact.

HAV Hydrogen delivers complete and scalable hydrogen systems for use on both big and small vessels, newbuildings and retrofits, that are designed for operation in heavy seas. Norwegian Electric Systems (NES) expertise is within sustainable energy design and smart control for a wide range of vessels for the global marine market.

Combined with HAV Hydrogen's development work in hydrogen for ships, HAV's cross-cutting expertise makes us a powerhouse for the green transition in shipping.

Norwegian Electric Systems AS YOUR EXPERT IN ENERGY DESIGN AND SMART CONTROL

HAV Hydrogen is a total supplier with expertise in pre-studies, hydrogen systems, ship integration and cooperation with the policy instrument system and private investors. Over time, the HAV Group has used advanced computer Energy Design - knowledge about vessel operations and competence of integrating the latest available energy sources gives us the opportunity to design optimal propulsion systems. NES designs efficient and environmentally friendly solutions, creating added value for the customers.

Smart Control - new requirements and demand for more efficient and safe operations, calls for smarter vessels. Flexible software platforms and new solutions for navigation, automation and control – ensures safety by smart and easy operation.

Norwegian Greentech AS YOUR EXPERT IN CLEAN WATER AND BALLAST WATER MANAGEMENT SYSTEMS

Compact and highly energy-efficient systems for ballast water management (BWMS) and process water treatment for the sea- and landbased aquaculture industry.

Norwegian Greentech has developed a unique system of smart, cost-effective and scalable BWMS-models in compliance with both IMO and USCG BWMS-regulations.

The Norwegian Greentech BWMS has automatic control of the UV-dose ensuring superior energy performance, smallest footprint, low life-cycle costs and intuitive man/machine interface.

More than 500 systems sold, most of them to major international shipowners, is our best confirmation that Norwegian Greentech's chemical-free BWMS IS the preferred solution in the market.

HIGHLIGHTS STATUS AND OUTLOOK

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Global megatrends with ambitious goals and increasingly stringent environmental requirements provide incentives and requirements for the maritime industry to reduce its environmental footprint considerably.

HAV Group is well established with references, customer base, order back log, renowned knowledge, technology and products within digitalisation and sustainability for contributing to the green shift in the maritime and marine industries.

Sales activity, pipeline and market development prognosis give expectations for growth in contract awards in 2021, and further growth from 2022 and onwards.

HAV Group's focus and growth areas will be based on the demand for low-and zero emission technology for enabling the maritime industry to fulfil regulatory demands and climate goals for 2030 and 2050.

Alternative fuels will be an important catalyst for reducing emissions. HAV Hydrogen and the FreeCO2ast project is on schedule for AIP in Q3 21, enabling technology for larger vessels sailing longer distances emission free using Hydrogen.

Expects increased revenues with similar EBITmargins (%) for HAV Group in 2021 compared to 2020 levels.

• Turnover of NOK 307.7 in Q1.21.
• EBIT of NOK 19.2 (6.3%) in Q1.21.
• Profit before tax of NOK 17.6 million (5.7%) in Q1.21.
• The Group's operating profit (EBIT) in in Q1.21 was in line with expectations.

• Milestones in Q1.21

• New fleet agreements for Norwegian Greentech.

• Turnkey delivery to offshore wind ship for NES.
• Developement project with European player for a new zero-emission ship concept.
• Norwegian Electric Systems has received approval for Raven INSTM in USA.

• Financial update;

HAV Group ASA is a "spin-off" of Havyard Group ASA. Business not related to yard activities was separated into a 'green' group, named HAV Group ASA. A capital issue of NOK 90 million and transfer of loan facility from Havyard Group ASA of NOK 55 million was done as a part of the transaction. Stock listed at Euronext Growt 4th. of March 2021.

INCOME STATEMENT

The operating revenue for the HAV Group in the first quarter of 2021 was NOK 307.7 million, compared to NOK 186.8 million in first quarter of 2020. The increase is mainly due to exstensive delivery of trading compared to 2020.

For the first quarter of 2021, the Group recorded earnings before interest and tax (EBIT) of NOK 19.2 million, while the EBIT for the first quarter of 2020 was NOK 23.4 million. This corresponded to an EBIT margin of 6.3 % in the first quarter of 2021 compared to 12.5% in the first quarter of 2020. The lower margin is due to the exstensive share of trading in HAV Design.

Comments to figures & standard

The HAV Group is a result of a "spin off" from Havyard Group ASA and listed at Euronext Growt Oslo from 4th. of March 2021. The figures for Q1 are based on a retrospective view, grouping the companies from 1.of January 2021 to 31.of March 2021. The numbers from Q1 2020 is based on a "carve-out" of the company figures as of Q1.20. Both years figures are unaudited and presented according NGAAP standard.

(NOK 1,000)	Q1 2021	Q1 2020	2020
	Unaudited	Unaudited	Unaudited
Revenues	307 246	186 280	654 363
Other operating revenues	459	568	1 593
Operating income	307 705	186 848	655 956
Materials and consumables	236 368	116 917	415 382
Payroll expenses	28 978	23 993	108 753
Other operating expenses	19 115	18 577	56 069
Operating expences	284 461	159 486	580 204
Operating profit before depreciation and amortisation (EBITDA)	23 243	27 362	75 752
Impairment of non-current assets
Depreciation	4 001	3 948	26 736
Operating profit/loss (EBIT)	19 243	23 414	49 016
Financial income	3 669	14 929	56 470
Financial expenses	5 264	46 447	72 768
Share of profit/loss of associate
Profit / loss before tax	17 648	-8 104	32 719

Earnings per share (NOK) 0,50 -0,23 0,93

CONSOLIDATED STATEMENT OF PROFIT OR LOSS

Hav Group ASA

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(NOK 1,000)	Q1 2021	Q1 2020	(NOK 1,000)	Q1 2021	Q1 2020
ASSETS	Unaudited	Unaudited	EQUITY AND LIABILITIES	Unaudited	Unaudited
Non-current assets			Equity
Licenses, patents and R&D	88 581	86 642	Paid-in Equity	117 758	69 129
Deffered tax benefit	0	1 247	Retained earnings	-37 196	-63 716
Total intengible assets	88 581	87 889	Non-controlling interests	4 930	5 564
			Total equity	85 493	10 978
Fixed assets
Property, plant and equipments	2 103	2 942	Liabilities
Total tangible fixed assets	2 103	2 942	Provisions for liabilities
			Deferred tax liability	515	6 794
Financial fixed assets			Total provisions for liabilities	515	6 794
Other Non-current assets	188	273
Total fixed assets	90 872	91 103	Other long-term liabilities
			Liabilities to Financial institutions	75 000	13 250
Current Assets			Other long-term liabilities	454	24 126
Inventory	5 364	6 839	Total other long term liabilities	75 454	37 376
Accounts receivables	50 940	98 751	Total long term liabilities	75 969	44 170
Accrued revenue	121 520	88 509
Other current receivables	168 402	324 434	Current liabilities
Total receivables	346 226	518 534	Accounts payables	76 919	218 946
			Tax payables	4 319	1 357
			Public duties payables	11 045	29 412
Cash and bank deposit	210 794	72 999	Advance from customers	330 377	228 417
Total current assets	557 020	591 533	Other current liabilities	63 770	149 355
			Total current liabilities	486 430	627 488
TOTAL ASSETS	647 892	682 636	Total liabilities	562 399	671 658
			TOTAL EQUITY AND LIABILITIES	647 892	682 636

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

Hav Group ASA

FINANCIAL POSITION

The total assets in the Group is reduced from NOK 682.7 million to NOK 647.9 million from the year-end 2020 to end of first quarter 2021.

Current assets is reduced from NOK 591.5 million at the end of 2020 to NOK 557.0 million at the end of first quarter 2021. Cash and bank deposit increased by NOK 137.8 million and total receivables is reduced by NOK 172.3 million.

The total equity has increased from NOK 10.9 million to NOK 85.5 million from the year-end to end of quarter 2021. The equity ratio has increased from 1.6 % at the end of 2020 to 13.2 % in the end of first quarter 2021. The heavy increase includes the capital issue of NOK 90 million done in February 2021.

Total liabilities are reduced from NOK 671.7 million at year-end 2021 to NOK 562.4 million end of first quarter 2021.

2021 Q1 (Unaudited)
(NOK million)	HAV Design	Norwegian Electric	Norwegian Greentech	HAV Hydrogen	Elimination	Konsern	SEGMENTS
Operating revenues, External	247,8	24,4	34,5	0,5	0,0	307,2
Other operating revenues	0,3	0,1	0,0	0,0	0,0	0,5	HAV Design
Total Operating income	248,5	56,6	34,5	0,5	-32,3	307,7	• EBIT of NOK 17.5 (7.0%) in first quarter of 2021.
EBITDA	20,3	3,2	1,2	0,0	-1,5	23,2	• Profit before tax of NOK 17,4 million (7.0%) in first quarter of 2021.
Depreciation	2,8	1,2	0	-	0	4,0	EBIT margin lower in Q1.21 compared to Q1.20 due to extensive share of trading with lower
Operating profit/(loss) (EBIT)	17,5	2,0	1,2	-	-1,5	19,2	margin.
Net financial items	-0,1	0,2	-0,8	-	-0,8	-1,6
Profit/(Loss) before tax	17,4	2,2	0,4	-	-2,3	17,6
Total assets	362,2	160,0	115,8	0,6	9,2	647,9	Norwegian Electric
Equity	50,8	-4,4	11,6	0,0	27,5	85,5	• EBIT of NOK 2.0 (3.5%) in first quarter of 2021.
Liabilities	311,5	164,4	104,2	0,6	-18,3	562,4	• Profit before tax of NOK 2.2 million (3.8 %) in first quarter of 2021.
							EBIT margin improved in Q1.21 due to finalization of loss-projects in 2020.
2020 Q1 (Unaudited)
(NOK million)	HAV Design	Norwegian Electric	Norwegian Greentech	HAV Hydrogen	Elimination	Konsern	Norwegian Greentech
Operating revenues, External	74,0	129,1	21,2	-	-38,0	186,3	• EBIT of NOK 1.2 (3.5%) in first quarter of 2021.
Other operating revenues	0,5	0,1	0,0	-	0,0	0,6	• Profit before tax of NOK 0.4 million (1.1%) in first quarter of 2021.
Operating income	74,5	129,2	21,2	-	-38,0	186,8	EBIT margin lower in Q1.21 compared to Q1.20 due to higher share of trading with lower
EBITDA	20,8	1,8	3,7	-	-5,6	20,7	margin and increased organizational cost to be prepared for growth.
Depreciation	0,3	0,3	0,0	-	-3,3	-2,7
Operating profit/(loss) (EBIT)	20,5	1,5	3,7	-	-2,3	23,4
Net financial items	-24,4	-6,5	-0,6	-	0,0	-31,5	HAV Hydrogen
Profit/(Loss) before tax	-3,9	-5,0	3,1	-	-2,3	-8,1
							• Offical start-up Q4 20. (Based on R&D activities in Havyard Group ASA) • Main focus is approval process and support of internal and external Hydrogen projects.
Total assets	400,7	248,7	81,7	-	-48,5	682,6	• Company - and business development for commercialization of R&D.
Equity	12,6	-24,6	7,5	-	15,5	11,0	• Additional resources onboard from Q3 to speed up progress.
Liabilities	388,1	273,3	74,3	-	-64,0	671,7

SEGMENT INFORMATION

Aggregate cash flow from operating activities is positive with NOK 87.6 million in first quarter 2021, compared to a positive cash flow of NOK 22.7 million in first quarter 2020. The main reason for the positive cash flow is a transfer of a loan facility of NOK 55 million as a result of the spin of to HAV Group ASA, profit in the period, depreciation and net increase in receivables.

Aggregate cash flow from investing activities was negative with NOK 3.9 million in first quarter of 2021, compared to a negative cash flow NOK 4.6 million in first quarter of 2021. The negative cash flow from investments is related to investement i R&D activities.

Aggregate cash flow from financing activities is positive with NOK 96.1 million in first quarter of 2021, compared to a negative cash flow of NOK 2.3 million in first quarter of 2020. The positive cash in the period is mainly related to capital issue of NOK 90 million as a result of the spin of

(NOK 1,000)	Q1 2021	Q1 2020	CASH FLOW
	Unaudited	Unaudited
CASH FLOW FROM OPERATIONS
Profit/(loss) before tax	17 648	-8 104
Depreciation	4 001	3 948
Net financial items	1 595	31 519
Changes in inventory	2 258	578
Changes in accounts receivables	-3 288	-6 286
Changes in accounts payable	-199 244	20 027
Changes in other current receivables/liabilities	264 636	-18 952
Net cash flow from/(to) operating activities	87 606	22 729
CASH FLOW FROM INVESTMENTS
Investments in property, plant and equipment	0	-392
Investment in intangible assets	-3 930	-4 185
Changes in long term receivables	20	20
Net cash flow used in investing activities	-3 910	-4 557
CASH FLOW FROM FINANCING ACTIVITIES
Repayment non-current debt	-250	-519
Increase interest bearing long term debt	7 250	0
Capital increase	90 000	0
Interest payment	-884	-1 792
Net cash flow from/ (used in) financing activities	96 116	-2 311
Net change in cash and cash equivalents	179 812	15 861
			to HAV Group ASA.
Cash and cash equivalents at start of the year	30 981	57 138
Cash and cash equivalent recognised in the balance sheet	210 794	72 999
Restricted cash at end of year	2 556	2 751

CONSOLIDATED STATEMENT OF CASH FLOW

Hav Group ASA

ORDER STATUS

The external order back-log is NOK 519 million as of the end of first quarter 2021. Norwegian Greentech and Norwegian Electrics has increased their order books during first quarter of 2021, but in total a reduction for the Group due to extensive trading deliveries from HAV Design in this quarter.

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SHARES AND SHAREHOLDERS

In total 35 000 000 shares with Par value NOK 1. All shares have equal rights. In total 863 sharehlders per Q1.2021. HAV Group ASA has no treasury shares per Q1.2021.

SHARES AND SHAREHOLDERS

HAV GROUP ASA - TRANSACTION & HISTORICAL DATA

HAV Group ASA is a "spin-off" from Havyard Group ASA. The stock was listed on Euronext Growt Oslo from 4th. of March.

More Information regarding this transaction to be found on newsweb.oslobors.no by ticker HYARD and HAV.

Historic information regarding companies in HAV Group ASA to be found in Quarterly - and Annual reports for Havyard Group ASA under Investor relations -> Reports & Presentations at www. Havyard.com.

Ownership
	66,46 %
	6,19 %
	2,20 %
	1,93 %
	1,59 %
	1,16 %
	1,11 %
	19,36 %
	100 %

Shareholders as of 31.03.2021	Controlled by	Number of shares	Ownership
HAVYARD GROUP ASA		23 262 068	66,46 %
FARVATN CAPITAL AS		2 166 500	6,19 %
JAHATT AS		770 500	2,20 %
NORDNET LIVSFORSIKRING AS		674 160	1,93 %
MP PENSJON PK		555 500	1,59 %
CLEARSTREAM BANKING S.A.		405 500	1,16 %
Morgan Stanley & Co. International		388 667	1,11 %
Other shareholders (<1 %)		6 777 105	19,36 %
Number of shares		35 000 000	100 %