Q1 2015 Presentation Oslo - May 8 th , 2015 Trond Williksen, CEO - PowerPoint PPT Presentation

Q1 2015 Presentation Oslo - May 8 th , 2015 Trond Williksen, CEO Eirik Børve Monsen, CFO Your Aquaculture Technology and Service Partner

Agenda 1 Highlights 2 Financial performance 3 Outlook 4 Q&A Your Aquaculture Technology and Service Partner

Highlights Q1 2015 - by CEO Trond Williksen Your Aquaculture Technology and Service Partner 3

On track - record high order backlog First quarter 2015 – Highlights • Overall good performance – on track ‐ Benefitting from being a diversified Group both geographically and product vice • Strong first quarter in Chile, Canada and UK • A good start for Cage Based segment in Norway, but ‐ with a different product mix compared to Q1 2014, and ‐ some of the deliveries moving in to Q2 2015 • Slow start for the Land Based segment and for export to emerging markets • High market activity resulting in the best order backlog ever – 547 MNOK Your Aquaculture Technology and Service Partner 4

On track - record high order backlog Revenue EBITDA +24% +53% MNOK MNOK 325 310 32 27 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 Your Aquaculture Technology and Service Partner 5

On track - record high order backlog Order Backlog Order Inflow +21% +51% MNOK MNOK 547 520 452 367 243 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 Your Aquaculture Technology and Service Partner 6

AKVA group – uniquely positioned for future growth 1 2 4 Cage-based Land-based Software The most recognized • brand in aquaculture technology Plastic and Land-based • • Software steel cages facilities Leading technology • solutions and service partner to the global Infra- Land-based aquaculture industry structure equipment Global presence - • subsidiaries in 8 Feed countries systems, sensors 740 employees and • cameras Market cap of NOK • 3 Technology ~670m and net debt and of NOK 82m farming services Your Aquaculture Technology and Service Partner

Presence in all main farming regions Map of activities Revenue per region, Q1 2015 Export 12 % Americas 21 % Nordic 67 % Nordic Americas Export Your Aquaculture Technology and Service Partner

Strategic priority to increase the proportion of reoccurring revenue Technology sale vs reoccurring revenue, Q1 2015 Comments • Introduction of rental business model in Norway in Q4 2014. Already successfully introduced in UK and Canada. • First installations of rental equipment in Norway done in Q1 2015 Reoccurring • Rental is an “all inclusive service” providing for instance light or 28 % picture for an agreed period of time (2 to 5 years duration) - reduced CAPEX and reducing operational work for the customer • Acquisition of YesMaritime in 2014, a provider of diving, ROV and other services to the salmon farming sector (Farming services) • Development of Farming Services still in an early stage – Technology opportunity for consolidation 72 % • Aim of increasing relative share of reoccurring revenue through software and services – by developing software, farming services, technology services and rental further Your Aquaculture Technology and Service Partner

Revenue by product groups and species By product groups – Q1 2015 By species – Q1 2015 Land Non based Seafood 11 % 11 % Other Software Species 9 % 9 % Cage Salmon based 80 % 80 %  Salmon = Revenue from technology and services sold to production of salmon  Cage based technologies = Cages, barges, feed systems and other  Other species = Revenue from technology and services sold to production of operational systems for cage based aquaculture other species than salmon  Software = Software and software systems  Non Seafood = Revenue from technology and services sold non seafood  Land based technologies = Recirculation systems and technologies for customers land based aquaculture Your Aquaculture Technology and Service Partner 10

Centralized operations and wireless communication in the hotspot • Technology trend aimed at improving farming performance by enhancing overview, control and specialized feeding competence through centralized control centers • AKVA group supports the trend through development of the new digital wireless communication system and AKVAconnect linking the operations in the farms to a centralized operation centers • Trend supports a significant growth in sales for AKVA on sensors, cameras, control systems and solutions for automation as experienced in 2015 Your Aquaculture Technology and Service Partner 11

Contract on land based cleaner-fish facility – new sealice prevention technology • Contract of 23.5 MNOK signed with Namdal Rensefisk AS for technology to new cleaner-fish production facility – owned and operated by Bjørøya Fiskeoppdrett AS, Aquagen AS, Midt Norsk Havbruk AS and Nova Sea AS • Use of Cleaner-fish at the core of the strategy solving the sealice challenge facing the salmon industry • Namdal Rensefisk AS is in the forefront of developing farming of cleaner fish as a sustainable way of handling sealice in the Norwegian salmon industry • The land based facility holds new technologies enabling sustainable land based farming of cleaner fish Your Aquaculture Technology and Service Partner 12

Financial performance Q1 2015 – by CFO Eirik Børve Monsen Your Aquaculture Technology and Service Partner 13

Q1 2015 - Financial highlights Revenue MNOK 350 330 325 310 301 • 305 Good overall financial performance – taking advantage of the 300 diversified operations 250 2012 • 200 2013 Rental business in Norway with a good start – with P&L impact 150 from next quarter 2014 100 2015 • Strong balance sheet maintained 50 - 1Q 2Q 3Q 4Q Your Aquaculture Technology and Service Partner 14

Q1 2015 - Financial highlights , continued EBITDA EBITDA % MNOK MNOK 12% 40 35 10% 30 8% 25 2012 2012 6% 20 2013 2013 15 4% 10 2014 2014 2% 5 2015 2015 0% - 1Q 2Q 3Q 4Q -5 -2% -10 -4% 1Q 2Q 3Q 4Q • Stabilizing on a historical higher EBITDA-level both in NOK and in % • Medium term target of 10% EBITDA still valid Your Aquaculture Technology and Service Partner 15

Cage Based Technologies CBT (Revenue & EBITDA %) Nordic 300 ● Good start of the year, but with slightly different product mix YoY 17% 259 Americas 250 241 ● 39 Strong Q1 in Chile - the positive development in this market 15% continues. However we continue to monitor the development 62 closely 200 64 13% ● Canada continues the good performance from 2014 with the best 24 10,9 % Q1 ever 150 11% Export 8,9 % 100 ● 9% UK continues the good performance from 2014 with the best Q1 156 155 ever 50 7% ● Turkey have a profitable Q1 with good sales ● 0 5% Low activity in Export to emerging markets YoY 2014 Q1 2015 Q1 Nordic Americas Export EBITDA % Your Aquaculture Technology and Service Partner 16

Software SW (Revenue & EBITDA %) 35 31 17% 1 30 5 26 ● 1 15% AKVA group Software AS continues to deliver stable and 25 4 high margins – with improved revenue and margins YoY 14,0 % ● 20 Wise lausnir ehf have a good start of the year – with 13% improved performance YoY 15 ● 11,4 % Software continues to invest in new product modules, 25 11% which is expected to strengthen the financial performance 22 10 of the SW segment further 9% 5 0 7% 2014 Q1 2015 Q1 Nordic Americas Export EBITDA % Your Aquaculture Technology and Service Partner 17

Land Based Technologies LBT (Revenue & EBITDA %) 50 43 45 2 24% 40 35 ● Overall a slow start for LBT segment in Q1 35 1 ● AKVA group Denmark have a good order backlog, 30 however delayed start-up and progress in some 14% projects explains the low margin in LBT in Q1 25 41 ● 20 Plastsveis is on track with a profitable Q1 and a good 34 5,9 % order backlog 15 4% 10 -1,9 % 5 0 -6% 2014 Q1 2015 Q1 Nordic Americas EBITDA % Your Aquaculture Technology and Service Partner 18

Financials – Detailed P & L P&L 2015 2014 2014 Q1 Q1 Total (MNOK) OPERATING REVENUES 325,0 310,4 1 246,1 Operating costs ex depreciations 298,4 278,7 1 142,7 EBITDA 26,6 31,7 103,4 Depreciation 10,5 8,3 35,7 EBIT 16,1 23,5 67,6 • Low interest cost du to low net debt and low Net interest expense -1,3 -1,5 -4,8 interest rate Other financial items 1,5 -1,4 0,0 Net financial items 0,2 -2,9 -4,7 • Mainly currency – considered as acceptable level EBT 16,3 20,5 62,9 Taxes 4,9 4,9 8,4 • Minority shareholders (30%) in Plastsveis AS NET PROFIT 11,4 15,6 54,5 Net profit (loss) attributable to: Non-controlling interests 0,1 0,1 -0,6 Equity holders of AKVA group ASA 11,3 15,5 55,1 Revenue growth 4,7 % 39,7 % 35,6 % EBITDA margin 8,2 % 10,2 % 8,3 % EPS (NOK) 0,44 0,60 2,13 Your Aquaculture Technology and Service Partner 19

Group financial profile - strong Available cash ROCE -6 MNOK +3.9 percentage points 15,2 % 14,1 % 12,3 % MNOK 183 8,4 % 8,3 % 153 147 144 144 96 86 68 63 Q1 - 2014 Q2 - 2014 Q3 - 2014 Q4 - 2014 Q1 - 2015 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 Your Aquaculture Technology and Service Partner