HAV Group ASA — Investor Presentation 2021

Nov 26, 2021

HAV Group ASA

Q3 2021

A sustainable future at sea

Agenda

• • Q3 highlights
• • HAV Group ASA in brief
• • Subsidiaries and market opportunity
• • Financials
• • Market outlook
• • Q&A

Q3 highlights

Q3 highlights

Key developments

Norwegian Electric Systems

• Increasing order backlog - System generator for three ferries that will be converted for battery operation and zero emissions, including delivery of four land-based charging stations.

Norwegian Greentech

• Increasing order backlog

Ownership

The Board in Havyard Group ASA, the main shareholder in HAV Group (66,4%), has proposed an extraordinary dividend in the form of up to 50% of its shares in HAV Group. Subject to approval by an extraordinary general meeting in Havyard Group on 14 December 2021, this will reduce Havyard's ownership in HAV to approx. 33,3% and consequently increase the free float of the listed shares in the company.

REVENUES

NOK 81 million (127)

EBIT NOK 11 million (-4)

CASH FROM OPERATIONS NOK 240 million (-3.4)

CASH BALANCE NOK 404 million (44)

EXTERNAL BACKLOG

NOK >540 million

NUMBER OF SHAREHOLDERS 1120

MARKET CAP AS OF 25 NOV NOK 560 million

HAV Group ASA in brief

HAV Group ASA

HAV Group value creation

Actively taking part in the companies' strategic development

Stimulating intercompany business development and R&D processes

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

Pursuing value accretive growth, organic and through consolidation

Provider of ocean technologies with focus on ship design, equipment and system solutions

Four subsidiaries with a leading position within its segments

Experienced management team and Board of Directors

Executive management

Gunnar Larsen CEO, HAV Group 34 years of industry experience, 13 years with HAV

Håvard Gjelseth Managing Director, NGT 25 years of industry experience, 10 years with NGT

Stig Magne Espeseth Managing Director, HAV Design 32 years of industry experience, 16 years with HAV Design

Kristian Osnes Managing Director, HAV Hydrogen 10 years of industry experience, 3 years with HAV

Geir Larsen Managing Director, NES 29 years of industry experience, 1 year with NES

Pål Aurvåg CFO HAV Group 16 years of industry experience, 6 year with HAV

Board of Directors and corporate governance

Subsidiaries and market opportunity

HAV Design

Simulation based ship design

• • Through a digital tool-kit, knowledge and innovation HAV Design offer environmentally friendly, safe and functional designs
• • Sold designs for >120 vessels globally
• • Designed 18 zero emission vessel designs and 10 vessels designs for renewable energy
• • Leading positions within offshore wind, electric ferries and aquaculture
• • Recent projects include Windmill SOV's for ESVAGT, CSV for REM Offshore, electric ferries for Fjord1, hybrid-electric hydrogen ready cruise vessels for Havila Kystruten and live fish carriers for Frøy

Segment information

N O Km	Q 3 2 0 2 1	Q 3 2 0 2 0	Y T D 2 0 2 1	Y T D 2 0 2 0
Op ing inc t era om e	5 8. 8	7 0. 5	5 1 5. 8	2 1 9. 5
E B I T	2 2. 5	-2. 0	6 5. 9	3 8. 9
Pro f i t be for tax e	2 3. 2	3 1. 6	7 0. 1	2 3. 8

Positioned for further growth

• • Developed its unique design philosophy and design process through years of experience, R&D investments and collaboration with leading ship owners
• • Proprietary methods for configuration, simulation and model testing
• • Enabling strong ability to predict and document real life performance of the vessel
• • Established position within growth segments
• • Well-positioned for the further development within low and zero emission vessels within several segments

Norwegian Greentech

Clean water experts

• • Norwegian Greentech was established in 2010 and designs, delivers, installs and services highly energy-efficient compact ballast water treatment systems (BWTS)
• • The in-house developed BWTS is particularly suited for retrofits due to its small size and flexible installation.
• • NGT has already secured fleet agreements, for delivery of BWMS, with several major ship owners
• • Typical revenue potential of NOK 0.5 – 2 million per vessel
• • Large potential for after marked revenue due to increasing number and age of installed units
• • NGT also deliver water treatment solutions for land-based aquaculture (control system, particle filters and UV-sterilization)

Segment information

O N Km	Q 3 2 0 2 1	Q 3 2 0 2 0	Y T D 2 0 2 1	Y T D 2 0 2 0
Op t ing inc era om e	4 7. 5	1 7. 4	1 2 1. 8	5 9. 9
E B I T	3. 4	-4. 0	1 0. 7	3. 4
f for Pro i t be tax e	2. 7	-2. 9	8. 4	3. 2

Water cleaning technology to be applied over a range of industries

High demand for land-based salmon

• • NGT has supplied water treatment solutions for more than 10 aquaculture projects
• • Land-based salmon is set for stellar growth
  • • About 100,000 annual tons of land-based volumes expected by 2025
  • • Potentially multiplying by 3x-7x by 2030
• • Water treatment system is an essential part of land-based fish farming facilities
• • NGT is positioned to take part in the massive expected growth in land-based fish farming
• • NGT's technology is also applicable for the growing demand for treatment of public drinking water and wastewater facilities

Land-based fish farming expected to grow 10x by 2025

Norwegian Electric Systems

Green innovation for the oceans

• • Norwegian Electric System is a leading supplier of low/zero emission energy, propulsion and control systems for for a wide range of vessels
• • Designing optimal propulsion, energy and control systems to ensure efficiency and safety by smart and easy operation
• • The preferred supplier of product and system solutions "from bridge to propeller"
• • A leading supplier of maritime technology for digitalization and the 'green shift'

Segment information

N O Km	Q 3 2 0 2 1	Q 3 2 0 2 0	Y T D 2 0 2 1	Y T D 2 0 2 0
Op t ing inc era om e	3 1. 9	4 2. 2	1 5 3. 3	3 0 0. 6
E B I T	-9. 5	9. 9	-4. 0	1 3. 0
f for Pro i t be tax e	-9. 0	1 0. 5	-3. 9	0. 6

The one stop shop to meet future IMO targets

NES' fully integrated solutions enabling customers to meet greenhouse gas emission targets

Marine System Integration

Integration of different energy sources like diesel or gas generator-sets, batteries and hydrogen fuel-cells

Hybrid and electric propulsion systems

Required engineering, project management, commissioning and seatrails assistance

Complete charging systems

The system includes both off and onshore equipment, automation system and Wi-Fi communication between the vessel and the charging station on land

Ship Performance Monitor (SPM)

Highly adaptable monitoring software, designed to help manage and improve the ship and fleet efficiencies

Smart Control systems

Integrated Automation System (IAS), Power Management System (PMS), Black Out Safety System (B.O.S.S) and Remote Assistance System (RAS) enhance the total integration in a safe and optimal way

The Raven Integrated Navigation System (INS)

Flexible, safe and user-friendly interface for vessel control and platform for integration of autonomous functionality

Emission reduction by energy optimizing and digitization

HAV Hydrogen

Enabling maritime zero emission

HAV hydrogen delivers

• • maritime energy systems for hydrogen-based energy carriers,
• • and the competence to optimize and approve these solutions.

The FreeCO2ast project will develop a high-capacity hydrogen energy system, approved for zero emission sailing with high speed over longe sailing distances. Awarded 95 MNOK Pilot E founding.

The system is designed for high scalability in both fuel cell size and storage tank. This means that the system can be used on various of sizes and types of vessels

The approval will be done on a 3.2 MW fuel cell system compared to other projects in the 400kW scale

Safety solutions is designed for in-hull installation, not top deck

The world needs significant emission reduction

HAV Hydrogen in pole position to take part in upcoming hydrogen projects:

• • Competence in place
• • Developed a unique system solution to tackle complex issues
• • Established partnerships with industry majors
• • The government aiming to facilitate emission free solutions along the Norwegian coast - sets requirements for hydrogen ferries on the longest ferry crossing
• • EU Green deal initiatives will stimulate zero emission demand

Financials

Key financials (unaudited)

O N Km	Q 3 2 0 2 1	Q 3 2 0 2 0	2 0 2 1 Y T D	2 0 2 0 Y T D	2 0 2 0
Op t ing inc era om e	8 1	1 2 7	6 9 2	5 0 0	6 5 6
E B I T D A	1 4	0	9 7	5 5	6 7
E B I T	1 1	-4	6 7	4 3	4 9
Ne t f ina nc e	0	3 5	0	-3 0	-1 6
Ne t p f i t ro	1 1	3 1	6 7	1 3	3 3
E B I T m in arg	1 3 %	-3 %	1 0 %	9 %	% 7

• • Operating income in Q3 is moderate due to less trading compared to Q2 2021.
• • Positive margin development in Q3

Q3 2021 balance sheet

NO Km	Q3 20 21	Q3 20 20
	udi ted una	udi ted una
As set s
No ent set n-c urr as s
Tot al i nta ible set ng as s	86. 3	83. 1
Fix ed ets ass
Tot al t ible fix ed ets ang ass	3.4	3.0
Fin ial fixe d a ts anc sse	0.1	0.2
fixe To tal d a ts sse	89. 8	86. 4
Cu nt a ts rre sse
Tot al r iva ble ece s	190 .5	769 .8
Ca sh and ba nk dep osi t	404 .5	43. 7
To tal t as set cur ren s	594 .9	825 .6
To tal ets ass	684 .8	911 .9

NO Km	Q2 20 21	Q2 20 20
	udi ted una	udi ted una
Eq uity d l iab iliti an es
Eq uity
To tal uity eq	134 .0	31. 2
Lia bili ties
fo To tal vis ion r lia bili ties pro	0.5	10. 0
To tal lon ter m l iab iliti g es	71. 1	49. 7
To tal t li ab iliti cur ren es	479 .1	831 .0
To tal liab iliti es	550 .2	880 .7

• • Total Assests and liabilities reduced due to extensive deliveries/finalization of projects.
• • Cash increased by NOKm 360 compared to YTD 2020
• • Equity increased by NOKm 100
  • • Capital issue
  • • Profit

Cash flow statement

NO Km	Q3 20 21	Q3 20 20
	udi ted una	udi ted una
Ca sh flo w f tio rom op era ns
Ne t ca sh flow fro m/t atin ctiv itie o o per g a s	239 .9	-3.6
Ca sh flo w f inv est nts rom me
Ne sh flow ed in i ctiv itie t ca stm ent us nve s a s	-11 .3	-9.1
Ca sh flo w f fin ing act ivit ies rom anc
Ne sh flow ed in f ina nci ivit ies t ca act us ng	144 .8	-0.7
Ne t c han in c ash d c ash uiv ale nts ge an eq	373 .4	-13 .5
Ca sh and Ca sh uiv niz ed in t he bal she et eq .rec og anc e	404 .5	43. 7

• • Positive Cash from operations
  • • Profit – NOKm 66
  • • Net increase in receivables NOKm 162
• • Negative Cash from investments
  • • Activated cost related to R&D
• • Positive Cash from Financing
  • • Capital increase – NOKm 90
  • • Long term debt NOKm 62
  • -> both part of HAV Group spin-off
  • • Installments & interest payment NOKm 7.4

External backlog of NOKm 542

• • Order back log
  • • Total increased backlog in Q3.
    • • Increase in both NES and NGT

Market Outlook

Summary, outlook and priorities

S fu da ls fo tro ta ng n m en r i im lea h t te m ar e c n c	T he i t im d m ine in du tr ies b j t to tre do la tor ic d p b l ic in ion to du t he m ar e a n ar s are su ec me n us reg u y, ec on om an u op p res su re re ce • iro l im f i ion ta ts ts t en v nm en p ac o op era s H A V Gr is d ive i f ie d i t im tec ho log d for inn t ive lu t ion to t he in du tr ies inc 2 0 0 5 ou p a rs ma r e y co mp an y ren ow ne ov a so s se s s e •
Es ta b l is he d ies co m p an f fe i t h lea d in in w g o r g	W l d lea d ing l ier f low /ze iss ion ls ion d c tro l sy tem or su p p o ro em en erg y, p rop u an on s s • P ion ing inn ion in de ig d c ion f z iss ion ls d e im ize d s h ip de ig t tru t t ee r ov a s s n a n on s c o ero -em ve ss e an ne rg y op s ns • Su l ier f h ig h ly f f ic ien t, c t w ter lea ing tem in l la bo t ion i t h tec hn log ica l lea de p p o en erg e om p ac a c n sy s s co ra o rs y- w •
Pr f i ta b le t io d o op er a ns a n bu t ba la he t ro s nc e s e	Y T D 2 0 2 1 E B I T o f N O K 6 7 m i l l ion inc in tar t to be in l ine i t h t he E B I T % t h ir d q ter 2 0 2 1 rea se ma rg g e m ore w p er ua r • – Ex ter l ba k log f a im te ly N O K 5 4 0 m i l l ion na c o p p rox a • Re in 2 0 2 1 a d in he f N O K 8 0 – 9 0 m i l l ion te t 5 5 ve nu es re ex p ec ra ng e o • Ro bu t ba lan he t a d a h ba lan t N O K 4 0 4 m i l l ion s ce s e n ca s ce a •
Po i io d fo h t t s ne r g ro w d l i da t io an co ns o n	Ac t ive d de lop f inn t ive ies lev ing ten d n tw k to de lop lu t ion h a ow ne r a n ve er o ov a co mp an era g co mp e ce an e or ve ne so s, su c s • w , hy dro for lon d is ls tem tan g en en erg y sy s s g ce ve ss e Su bs tan t ia l o ic a d ino ic g t h o tun i t ies rg an n rg an row p p or •

HAV Group positioned to capture demand growth for innovative solutions for maritime industries