Vow ASA — Investor Presentation 2021

Feb 25, 2021

SECOND HALF AND FULL YEAR 2020

Henrik Badin, CEO Vow ASA Oslo, 25 February 2021

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.

ABOUT US

• Provider of world leading technologies to eliminate pollution, enhance circular economy and mitigate climate change
• Offering patented unique solutions that turn waste and biomass into CO2 neutral energy, decarbonised energy, low-carbon fuels and biocarbon
• Our technology is ready, it integrates easily into industrial processes and does not depend on large and complicated infrastructure to be effective
• Proven and scalable delivery model, record high backlog of orders and large installed base for leading players in a wide range of industries, providing recurring business
• International footprint, headquartered in Norway with subsidiaries in US, France and Poland

FINANCIAL AND OPERATIONAL HEADLINES

KEY TAKEAWAYS 2020

Before non-recurring items of NOK 8 mill in Landbased ¹ y-o-y

Fifth consecutive year of growth, record high performance within Cruise projects

• Annual revenues up 21 percent year-over-year to NOK 460 million, and with EBITDA 47 million including group admin.
  • Continued high activity in cruise newbuilds. Projects delivered NOK 71 million in EBITDA in 2020, nearly doubled from 2019
  • Aftersales reduced as cruise ships are docked. Would in a normal year have added more than NOK 20 million in EBITDA
  • Gross margins in Landbased on par with Projects, segment EBITDA was negative as we build for growth
• Order backlog remains high, providing good visibility and revenues well into 2024/25
• For 2020 full year profit before tax was NOK 28 million, compared with NOK -7.3 million in 2019
• A year marked by continued strong performance in cruise projects and transformative achievements on land

For full P&L, balance sheet and cash flow statement, please see Report for H2 2020

FINANCIALS

LTM Revenues (in NOK million)

LTM EBITDA (in NOK million)

Before non-recurring items in 2019 – NOK 19 million and in 2020 – NOK 8 million

(in NOK million)

PROJECTS | CRUISE

• Revenues in 2020 increased by 31 % compared with 2019, driven by increased backlog and several system deliveries in the period
• EBITDA nearly doubled compared with 2019, strong performance resulted in record-high margin of 23 %
• Delivery model now being replicated in Landbased
• Order backlog secures revenues well into 2024/25

AFTERSALES | CRUISE

• Covid-19 slowdown in cruise operations continued to affect Aftersales in Q4
• Access to ships was restricted. Revenues and profit margin reduced, since most expenses are fixed
• Gradual rebound expected as cruise operators take their ships back to sea from summer season 2021

	54 NOK million
	revenues	NOK million	2H 19	2H 20	2019	2020
Share of total	12%	Revenues	65.9	13.6	125.7	53.3
		EBITDA	10.4	-5.0	22.5	-0.2
		EBITDA margin (%)	15.7%	-	17.9%	-

LANDBASED

• Growing demand for Vow technology already reflected in increasing revenues
• Gross margins like that in Projects. Significant spending on sales, R&D and fixed assets included in EBITDA
• Non-recurring costs related to standardisation and streamlining of landbased activities NOK 8 million
• Several milestone contracts awarded for valorisation of waste, biomass, and industry decarbonising

Landbased activities acquired in 2019, in accounts from October that year. EBITDA before non-recurring items

RECENT DEAL FLOW

11 February 2021

Signed letter of intent with Betula Energy in Bamble to deliver equipment to biocarbon plant

3 February 2021 30 October 2020

Awarded EUR 5.7 million cruise ship contract with major European shipbuilder

2 February 2021

Signed letter of intent with Elkem to deliver biocarbon from Follum plant

28 January 2021

Vow and Arcelor Mittal join forces to build biogas plant in Luxembourg

Strategic partnership with Repsol on industry decarbonization

STRATEGIC PARTNERSHIPS

• A global multi-energy provider and one of the first energy companies to make a net-zero emissions commitment by 2050 and with intermediate goals for 2025, 2030+ and 2040.
• Partnership to explore multiple applications such as solutions to produce CO2 neutral and decarbonised energy
• ETIA technology and Vow's overall delivery model central elements.
• Memorandum of understanding to build biogas production plant to reduce CO2 emissions from metallurgical processes.
• Cooperation on engineering, business modelling and financing of a dedicated biogas plant, with the aim to have the plant operational in 2022.
• Plant will be based on Vow's patented 'Biogreen' pyrolysis technology. Biogas will replace use of fossil natural gas in the metallurgical plant.
• By-products such as biocoke and biochar will add further economics to the concept
• Joining forces, competence and technology solutions to produce biocarbon at Vow Industries' planned plant in Norway
• Sustainable feedstock comprised of forestry wood mass, wood waste and other wood materials
• Elkem aims to secure long-term access to low-cost, high-quality renewable biocarbon to replace fossil reduction material, and further improve its competitive position for the sustainable future

STRATEGY AND OUTLOOK STRATEGY AND OUTLOOK

Introducing Vow Industries and Vow Green Metals

TRENDS AND FORCEFUL DRIVERS

CIRCULAR ECONOMY

Across industries, growing realisation that waste is value, an asset which must be monetised. Waste no more!

POLICIES

National and international law makers and governments are pushing for new legislation and regulation, i.e. EU Green Deal

ECONOMICAL

Cost of capital, EU taxonomy, carbon tax and rising consumer concerns drives business towards sustainable solutions

TECHNOLOGY

Engineers, entrepreneurs and industrialists are bringing down the cost of technology in new solutions

DECARBONISING INDUSTRIES

Strong demand from heat intensive industries for solutions that can replace fossil coal and fossil energy

THE INCUBATOR: VOW INDUSTRIES

Valorising waste | Decarbonising industry

Intake (examples)

Organic waste and biomass

Plastics and polymers

An inhouse incubator for development of companies based on Vow's technology

Offtake (examples)

Biocarbon (biocoke, biochar, biocoal)

Carbon products (graphite, graphene and recycled carbon black)

CO2 neutral gas and hydrogen (decarbonised energy)

Low-carbon fuels

Business idea CO2 removal certificates

SPINNING OFF VOW GREEN METALS¹

… and distributing to shareholders

Contemplating launch of Vow Green Metals as new and separate entity

• Plans to spin off Vow Green Metals and distribute shares to current Vow shareholders
• Aims for separate listing before summer 2021
• Vow Green Metals will build, own and operate plants and deliver high-value biocarbon and CO2 neutral gas for metal industries
• Deliveries to Vow Green Metals will represent additional order backlog and NOK 200-250 million in revenue for Vow in 2021/22
• Vow Industries will remain in current structure, as an incubator for other potential spin-offs in the future

VOW GREEN METALS

The Follum plant

• Business idea | Build, own and operate full scale plant based on Vow's process technology
• Production | Biocarbon to replace fossil coke as a reducing agent in the metallurgical industry in Norway, as well as providing CO2 neutral gas for district heating and low-carbon fuels
• Setup | Base for development of fully standardized and replicable facilities
• Financing | Through Enova grants, debt and equity

ACCELERATING GREEN TRANSITION

INDUSTRIAL RATIONALE

• Large, international industrial groups are undergoing a significant restructuring in order to achieve their goals of CO2 neutrality
• Demand for biocarbon is expected to increase significantly in the next few years, driven partly by increasing CO2 taxation and corporate net zero strategies
• Pipeline includes expansion in the Nordics as well as larger production facilities to meet industry needs
  • Norwegian market 400.000 tonnes (40% of 1 mill tonnes total fossil market by 2030)
  • Nordic market 1.8-2 mill tonnes (40% of 4.5-5 mill tonnes total fossil market by 2030)
• Several possible locations. Access to feedstock, infrastructure and proximity to client will be key

Scalable and profitable

CONCLUDING REMARKS

• 2020 a year marked by continued strong performance in cruise projects and transformative achievements on land
• Global trends, regulatory and financial drivers create strong interest and demand for our technology and patented unique solutions
• Vow provides industry with the means to turn waste and biomass into CO2 neutral energy, decarbonised energy, low-carbon fuels and biocarbon
• With the launch of Vow Green Metals, we are expanding our business, developing, owning and operating plants, stand alone or together with partners, gearing up to offer 'decarbonisation as a service'
• Spinning off Vow Green Metals with separate listing before summer 2021 to accelerate growth and increase shareholder values

THANK YOU FOR YOUR ATTENTION

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