Vow ASA — Earnings Release 2020

Apr 28, 2020

Vow ASA : Vow delivers strong first quarter, maintains positive outlook as projects continue largely unaffected by pandemic

Vow ASA : Vow delivers strong first quarter, maintains positive outlook as projects continue largely unaffected by pandemic

Vow ASA reported revenues of NOK 116 million for the first quarter of 2020. The

year-on-year growth of 24 % is mainly a result of the acquisition of ETIA, which

was included in the accounts from 1 October 2019. EBITDA in the first quarter

was of NOK 14 million, representing a margin of 12 %.

The company was awarded several new contracts during the first quarter and

projects continued mostly uninterrupted. Performance was particularly strong in

Projects and Aftersales (Scanship) with a combined EBITDA margin of 16.1 %.

Order backlog at the end of the first quarter was all-time high NOK 975 million,

partly a result of currency effects.

"These are truly strange times. While people, businesses and governments across

all continents are fighting the covid-19 pandemic, Vow is reporting a strong

first quarter of 2020 and only minimal adjustments in our project portfolio. In

the cruise segment, all deliveries during 2020 are for newbuilds scheduled to

enter operations from 2022 and deliveries are being prepared according to plan,"

says Henrik Badin, CEO of Vow.

"We are also experiencing continuing demand for our technology and solutions in

land-based markets, and we remain optimistic about our plans for growth within

several industry verticals," he says.

"These are also uncertain times. Cruise ships are docked, and some shipyards

have been temporarily closed. Meanwhile, we are currently tendering and in

discussions with yards for deliveries to ships confirmed in their orderbooks.

Our overall sound order backlog and positioning in new industry verticals

constitute a strong foundation for continued growth," Badin says.

The corona pandemic (covid-19) has caused major disruptions to the world

economy. The company is closely monitoring the situation, implementing measures

to protect the people and operations, as well as to prepare for the potential

operational and financial consequences of the situation.

Vow's business is continuing mostly as planned, without any significant changes

in the delivery schedule of systems to the cruise industry. The company expects

meanwhile, that its Aftersales segment will be increasingly affected going

forward, since most cruise ships have been docked since March. Meanwhile, Vow

maintains that revenues in the first half of 2020 is expected to be higher than

in the second half of 2019.

Vow expects to benefit from the growing concern for climate and the environment

in the cruise industry, and with the acquisition of ETIA, the company is now

also increasingly relevant towards a wide range of land-based industries.

See enclosed Operational update 1Q 2020 and Presentation 1Q 2020 with further

details.

Today at 11.00 CET, the company's CEO  Henrik Badin will host an online video

conference. After a brief introduction, he will answer questions from the

audience. The session will be held in English. A replay of the webinar will be

made available on www.vowasa.com (http://www.vowasa.com) (http:/www.vowasa.com)

shortly after. To register and join the webinar, please copy and past the

following link into your browser and fill in the required information:

https://www.vhgo.no/vow/

For further queries, please contact:

Henrik Badin - CEO

Vow ASA

Tel: + 47 90 78 98 25

Email: henrik.badin@vowasa.com (mailto:henrik.badin@vowasa.com)

About Vow ASA

In Vow and our subsidiaries Scanship and Etia we are passionate about preventing

pollution and giving waste value. Our world leading solutions convert biomass

and waste into valuable resources and generate clean energy for a wide range of

industries.

Cruise ships on every ocean have Vow technology inside which processes waste and

purifies wastewater. Fish farmers are adopting similar solutions, and public

utilities and industries use our solutions for sludge processing, waste

management and biogas production on land.

Our ambitions go further than this. With our advanced technologies and

solutions, we turn waste into biogenetic fuels to help decarbonize industry and

convert plastic waste into fuel, clean energy and high-value pyro carbon.

Our solutions are scalable, standardized, patented and thoroughly documented,

and our capability to deliver is well proven. They are key to end waste and stop

pollution.

Located in Oslo, the parent company Vow ASA is listed on the Oslo Stock Exchange

(ticker VOW from 13 January 2020).

This information is subject to the disclosure requirements pursuant to section

5-12 of the Norwegian Securities Trading Act.