Vow ASA — Earnings Release 2020

Apr 28, 2020

Q1 TRADING UPDATE

Henrik Badin, CEO Vow ASA Oslo, 28 April 2020

DISCLAIMER

This presentation has been prepared by the management of Vow ASA using commercially reasonable efforts to provide estimates and information about the company and prospective new markets.

The presentation includes and is based, inter alia, on forward-looking information and statements that are subject to risks and uncertainties.

In addition, important factors that could cause actual results to differ materially from those expectations include, among others, economic and market conditions in the geographic areas and industries that are or will be major markets for Vow's businesses, market acceptance of new products and services, changes in governmental regulations, interest rates, fluctuations in currency exchange rates and such other factors as may be discussed from time to time in the Presentation.

Vow ASA is making no representation or warranty, expressed or implied, as to the accuracy, reliability or completeness of the information contained in the Presentation, and neither Vow ASA nor any of its directors, officers or employees will have any liability to you or any other persons resulting from your use of the information in the Presentation.

VOW AT A GLANCE

• World leading technology and solutions that bring an end to waste and stop pollution
• Converting biomass and waste into valuable resources and generating clean energy
• Customers in cruise, aquaculture and a wide range of land-based industries
• Headquartered in Norway, with subsidiaries in US, France and Poland
• Listed on the Oslo Stock Exchange since 2014 under ticker VOW
• Revenues of NOK 381 million in 2019¹

Passionate about preventing pollution and giving waste value

HIGHLIGHTS FOR THE FIRST QUARTER

• Growth in revenues, mainly due to inclusion of ETIA
• Scanship (Projects and Aftersales) reported NOK 14.9 million EBITDA combined and record high margin at 16.1 %
• ETIA (Landbased) reported satisfactory gross margins. EBITDA slightly negative as it continues building organization for growth
• Several new milestone awards in land-based industry verticals
  • Contract to supply Unipetrol Group a patented Biogreen process for plastic waste valorisation technology
  • Contract with CSSC for the delivery of its waste management system including garbage handling and food waste processing to a cruise vessel
  • Biochar project in Helsingborg for NSR, a leading recycling company, with SEK 21 million total project value
• All-time-high in order backlog, partly due to currency effects
• Projects continuing mostly uninterrupted, despite the corona (covid-19) pandemic

IN THESE COVID-19 TIMES

PROFITABLE GROWTH

Revenues (in NOK million)

EBITDA (in NOK million)

EBITDA margin (in %)

(in NOK million – at end of period)

BACKLOG FOR THE LONGER TERM

Foundation for continued growth in the cruise market

Number of vessel deliveries with Scanship systems inside. A total of 38 newbuilds and 127 Scanship systems.

SELECT LANDBASED PROJECTS AND STATUS

Project	Delivery and vertical	Status
Unipetrol	Plastic to liquid fuel	Project for recycling plastic and polymeric • waste into liquid fuel • Contract signed in March 2020
NSR1	Waste valorization Turning urban garden waste into value. NSR project for processing the wood residues into biochar for agronomic applications.	• Ongoing project in Sweden (Helsingborg) • Plant to be operational early next year
Envigas	Metallurgical Industry	• Two new BGR750 machines were shipped to Sweden end of March Progressing installation of the plant • • Plan to be operational within 1-2 months
Undisclosed client	Industry decarbonization Industry decarbonization in consumer goods production. Offsetting natural gas and carbon sequestration.	Ongoing project in Switzerland for major • consumer goods manufacturer • Plant to be operational this year

¹Nordvästra Skånes Renhållnings AB, a regional municipal waste company in South-West Sweden

CONCLUDING REMARKS

• First quarter 2020 was another quarter with strong performance and profitable growth. Record margins in Scanship segments
• Several new milestone awards on land, order backlog reached all-time-high
• Overall progress in projects mostly unaffected by the covid-19 pandemic, activity in aftersales expected to slow down in the second quarter
• Currently tendering and in discussions with yards for deliveries to ships confirmed in their orderbooks
• Capitalised for further growth

THANK YOU FOR YOUR ATTENTION

Vow ASA | Lysaker Torg 12 | 1366 Lysaker | Norway | www.vowasa.com