Vow ASA — Earnings Release 2018

May 24, 2018

SSHIP | increased profits

Oslo, 24 May 2018 – Waste management and wastewater purification specialist Scanship recorded first quarter 2018 EBITDA earnings of NOK 9.0 million (1Q17 NOK 5.7 million) and an EBITDA margin of 11.6% (1Q17 8.9%). Applying last year accounting standard on 1Q 2018, revenues are up 20% and EBITDA earnings are 89% higher than same period last year.

"The result for the period is driven by higher activity with increased equipment supplies to shipyards. Record high backlog build-up creates good forward visibility and enables us to continue profitable growth", says Henrik Badin, CEO of Scanship Holding ASA (Scanship).

The cruise industry grows with an all-time high forward newbuild orderbook of approximately 100 cruise ships. This activity translates into an increasing demand for Scanship systems. Focus on sustainability and cleaner oceans are further both creating opportunities for the company within retrofitting ships and in the aquaculture industry, where Scanship delivers technology for sustainable fish farming and circular economy.

Order backlog at the end of first quarter was NOK 514 million. This includes four total clean ship contracts with Fincantieri for Viking Ocean Cruises newbuilds, one AWP retrofit contract with Norwegian Cruise Line for Oceania Insignia, and one sludge treatment contract in the Aquaculture industry with SalMar AS.

The company has implemented IFRS15 in 2018. The effects of this accounting standard will to a larger extent concentrate project progress, the recognition of revenue and cost, to delivery periods. This as opposed to earlier accounting principle where progress was more evenly distributed from commencement of engineering until equipment delivery. The underlying value creation in the business will not change, but quarterly variation may be expected due to the new IFRS15 standard. For comparison purposes, Scanship will in addition to IFRS15 reporting standard also provide numbers based on the old accounting principle IAS18/11 during 2018.

Key figures

	1Q 2017	1Q 2018	1Q 2018
(in NOK million)	(IAS18/11)	(IAS18/11)	(IFRS15)
Total revenues	66.3	80.0	77.4
EBITDA	5.7	10.8	9.0
Order backlog (at end of
period)	309	511	514

Scanship is preparing regular operational and financial updates to the market in addition to consolidated six-month interim reports. The report for the six months ending 30.06.2018 will be available August 28, 2018.

For further queries, please contact:

Henrik Badin - CEO Scanship Holding ASA Tel: + 47 90 78 98 25 Email: henrik.badin@scanship.no

ABOUT SCANSHIP HOLDING ASA

Scanship delivers world leading solutions for cleaner oceans. Scanship provides advanced technologies for processing waste and purifying wastewater. Owners operating Scanship systems have the solution to convert all waste and wastewater into clean energy and purified water which meets the highest international discharge standards. Any residuals form the Scanship processes can be recovered for reuse. Scanship provides its technology and services to the cruise and aquaculture fishfarming industries.

This information is subject to the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act.