Q1 2019 Presentation Oslo 10 May 2019 Hallvard Muri, CEO Simon - - PowerPoint PPT Presentation

Q1 2019 Presentation

Oslo – 10 May 2019 Hallvard Muri, CEO Simon Nyquist Martinsen, CFO

Highlights Financial performance Outlook Q&A

Agenda

Highlights Q1 2019 – by CEO Hallvard Muri

• 1.1 billion NOK order intake - strong across all regions
• Another quarter with positive development in the Cage

Based segment, driven especially by Nordic CBT and Egersund Net

• Major land based contract awarded by Svaberget Smolt AS
• f appr. 300 MNOK
• Barge Supply and Sales Contract signed with Grieg NL

Seafarms Ltd in Q3 2018, not included in order backlog yet

• Last twelve months order intake of 3,023 MNOK, compared

to 2,555 MNOK full year 2018

Order intake

Record high order intake – 1.1 billion NOK

427 421 471 543 342 376 732 762 303 92 87 218 300 33 45 38 778 2Q17 48 3Q17 2Q18 33 4Q17 471 1Q18 3Q18 51 44 4Q18

SW LBT CBT

53 34 546 557 639 448 997 1Q19 1 107 43 46 +73%

• 45% increase in revenue compared to Q1 2018
• Revenue growth from acquisition and organically
• Americas another positive quarter with revenue of 145

MNOK, up from 113 MNOK in Q1 2018

• Strong order intake development in Nordic CBT, driving

revenue, increase of 20 % compared to last year

• Good development in both net sales and net service after

integration of AKVA / Egersund net organizations

Strong revenue growth

537 484 557 589 627 637 726 852 1Q19 2Q17 4Q17 3Q17 1Q18 2Q18 3Q18 4Q18 +45%

Revenue

• EBITDA of 97 MNOK in the quarter, including 15 MNOK in effect of

reclassification due to IFRS 16 (leases)

• Americas continued positive development with an EBITDA of 15

MNOK compared to 6 MNOK in Q1 2018, driven first and foremost by improved margins.

• Nordic CBT segment 10% increase in EBITDA YoY, previous
• perational challenges at Helgeland Plast no longer hampering

results

• Steady improvement in the Land Based segment with an EBITDA of

11 MNOK compared to 9 MNOK in Q1 2018

• The effect of IFRS 16 is 15 MNOK in the quarter, mainly related to

property rental agreements

EBITDA development

65 61 60 59 52 71 57 82 8 7 3Q17 4Q17 2Q17 1Q18 2Q18 3Q18 4Q18 1Q19 97 +64%

EBITDA

IFRS 16 - EN IFRS 16 - AKVA

• First quarter 2019 – Highlights

– Strong start of the year; order backlog at end of March of 1.6 BNOK – Highest order intake ever in a quarter of 1.1 billion NOK – Significant order with Svaberget Smolt AS awarded in March 2019 – Integration of Egersund Net as planned and development in net sales and service strong – Dividend of 0.75 MNOK per share paid out in March 2019 – Divestment of Wise lausnir ehf continued to be pushed out in time due to regulatory process in Iceland

Highest order backlog ever

698 751 844 951 825 726 908 982 620 629 537 479 449 359 448 629 1 381 3Q17 1Q18 2Q17 3Q18 4Q17 2Q18 1 430 4Q18 1Q19 1 318 1 380 1 274 1 085 1 356 1 611 +13% Land Based

Order backlog

Key financial metrics

43 54 59 97 Q1 19 Q1 16 Q1 18 Q1 17 +125%

EBITDA

385 510 589 852 Q1 17 Q1 19 Q1 16 Q1 18 +121%

Revenue

0,45 0,60 0,94 0,87 0,06 0,11 0,10 0,15 Q1 17 Q1 16 Q1 19 Q1 18 +100%

EPS

In August 2018, number of shares increased from 25 834 303 to 33 334 303. When calculating the EPS in 2018 the monthly average shares outstanding has been used. Amortization from intangible assets related to acquisitions

AKVA group Agents and distributors

Our presence

AKVA group’s geographical regions – absolute and relative

Revenue in geographical regions

54 52 49 105 90 106 74 61 98 128 113 125 139 177 145 423 334 379 372 412 392 506 633 Q2 17 557 537 484 Q3 18 Q3 17 Q4 17 Q1 18 Q2 18 Q4 18 Q1 19 852 589 627 637 726 42 EME Nordic Americas 66% Q2 17 Q2 18 22% 69% Q4 18 Q3 17 Q3 18 Q1 18 Q1 19 17% 20% 79% 68% 63% Q4 17 23% 70% 9% 74% 11% 19% 17% 20% 24% 10% 11% 18% 14% 6% 9% 61%

• Egersund Net contributing with 90 MNOK in the quarter
• Stable development for the rental business (Scotland and

Norway) in 2019.

• Service in ASA Nordic started the year with higher revenue and

margins compared to Q1 2018 following a strong end to last year

• Stable revenue from the Software business, 44 MNOK in Q1

2019, compared to 47 MNOK in Q1 2018

• Higher activity level in the Norwegian marine service business in

Q1 2019 compared to Q1 2018, and with healthy order backlog

Development in OPEX based revenue

146 140 145 130 141 149 151 144 31 94 90 5 10 15 20 25 30 35 50 100 150 200 250 300 1Q18 3Q17 27,5% 27,1% 2Q17 1Q19 22,1% 29,0% 26,1% 4Q17 22,5% 2Q18 28,2% 3Q18 33,8% 4Q18 245 234 % of total revenue OPEX Based revenue Egersund Net

Revenue by product group and species

By product groups – Q1 2019 By species – Q1 2019

Cage Based Technology = Cages, barges, feed systems and other operational systems for cage based aquaculture S&AS Cage Based = Service and after sales for cage based aquaculture Software = Software and software systems Land Based Technology = Recirculation systems and technologies for land based aquaculture S&AS Land Based = Service and after sales for land based aquaculture Salmon = Revenue from technology and services sold to production of salmon Other species = Revenue from technology and services sold to production of other species than salmon Non Seafood = Revenue from technology and services sold to non seafood customers

456 401 471 503 526 539 610 774 23 74 56 46 28 Salmon 2Q17 37 54 589 32 4Q17 484 52 34 Non seafood 3Q18 54 55 46 2Q18 47 51 726 42 4Q18 637 1Q19 3Q17 Other species 538 557 627 852 1Q18 279 260 287 351 370 334 352 500 104 102 99 82 98 140 201 189 112 83 124 108 116 124 129 118 1 1 1 3Q17 726 46 44 Software 44 42 4Q17 47 557 1 CBT 1Q18 2Q18 40 2Q17 1 637 3Q18 627 484 1 4Q18 41 1Q19 38 LBT S&AS LBT CBT S&AS 537 589 852

• Significant improvement at Helgeland Plast but still a way to go to achieve full effect of investments
• Norwegian feed barge business – strong competition and limitations in supply (suppliers/yards)
• Continued positive market sentiment in Chile and increasing margins following improvement

programs

• Secured new larger Land Based orders in Norway
• Revisited strategy within Software and control systems in the works
• Plans for establishing foothold in New Foundland developing well
• Egersund Net integration – sales success of “total solutions”
• Senior Mng. Team strengthened; new (interim) CDO and new CTO

Q1 – Operational Highlights

Underwater feeding Fish health operations Daily operations (dead fish removal, surveillance, cleaning, etc) Risk management Submerge and raise the cage – safe and remote Air to the salmon Artificial air space

1. Atlantis Subsea Farming AS applied for 6 development licenses the 29th of January 2016 2. The Norwegian Directorate of Fisheries have informed the company that the company’s concept has progressed another step further in the process to get awarded development licenses. 3. The Directorate will go ahead with processing the application limited to 2 licenses, but have rejected the application in terms of the other 4 permits applied for. 4. On May 9th 2017 the company appealed the decision of rejecting the 4 permits. 5. On June 16th 2017 the Directorate forwarded the appeal to the Norwegian Ministry of Trade, Industry and Fisheries, for their final decision. 6. On December 18th 2017 The Ministry rejected the appeal. The decision is final and cannot be appealed. 7. On February 22nd 2018, The Directorate announced that the Company has been granted one license. 8. Atlantis Subsea Farming AS is now in a technology testing phase with regards to execution of the project.

Financial performance Q1 2019 – by CFO Simon Nyquist Martinsen

• Last twelve months order intake and revenue now at 3,023

MNOK and 2,842 MNOK respectively

• The order book has increased to 1,611 MNOK at the end of

Q1 2019, which is a 255 MNOK increase in the quarter

• Several periods of strong order intake in Norway are now

flowing through to revenue

• The sales teams of Egersund Net and AKVA have joined

forces, sales of new nets and net services are developing as expected

Revenue

Q1 2019 – Financial highlights

393 408 354 449 510 537 484 557 589 627 637 726 852 Q3 Q1 Q2 Q4 2016 2017 2018 2019

• Strong contribution from Americas as well as inclusion of

Egersund Net when comparing to the same quarter last year

• The pipe factory in Mo i Rana experienced a strong

quarter with high and efficient production

• EBITDA positively affected by 15 MNOK due to

implementation of IFRS 16

• The margins in the Land Based segment continue to

improve with an EBITDA margin of 10,1% compared to 8,5% in Q1 2018

EBITDA (MNOK)

Q1 2019 – Financial highlights

40 43 38 24 54 65 61 60 59 52 71 57 97 20 40 60 80 100 Q1 Q3 Q2 Q4 2016 2017 2018 2019 5 10 15 Q2 12,6% 10,6% Q1 7,8% Q3 Q4 10,1% 10,0% 11,4% 10,4% 12,1% 8,3% 10,8% 11,1% 5,3% 10,8%

EBITDA %

Nordic

• The margins in the Norwegian barge business are

significantly better than the last half of 2018, still an untapped potential in project execution

• The pipe factory in Mo i Rana experienced a strong

quarter with high and efficient production

• The activity in the Marine Services is increasing and we

have higher revenue and EBITDA than last year

• Egersund Net, Egersund Trading, UAB Egersund Net and

Grading System fully consolidated

• Emel Balik (Turkey) and NOFI Oppdrettsservice (Skjervøy)

is accounted for using the equity method due to

• wnership of 50% and not controlled by AKVA group

Cage Based Technology

227 493 103 123 104 73 2 4 6 8 10 12 100 200 300 400 500 600 700 800 9,1% 434 2018 Q1 11,1% 2019 Q1 689

EBITDA % Americas EME Nordic

Revenue and EBITDA %

Americas

• Americas have significantly grown revenue by 29%

compared to the same quarter last year, on top of a strong order backlog of 218 MNOK at the end of the quarter

• Americas region has grown in EBITDA by 143 %

compared to Q1 2018, mainly driven by the operation in Chile EME

• After some larger deliveries in the EME region in 2018,

the revenue in the quarter has decreased to 74 MNOK compared to 105 MNOK the same quarter last year

• The operations in Greece, Spain and Middle East are well

positioned for growth in the area

• Our operation in Turkey is well positioned when the

downturn in the Turkish market picks up again

Cage Based Technology

227 493 103 123 104 73 2 4 6 8 10 12 100 200 300 400 500 600 700 800 2018 Q1 9,1% 11,1% 434 2019 Q1 689

EBITDA % Americas Nordic EME

Revenue and EBITDA %

• Major land based contract awarded by Svaberget

Smolt AS of approximately 300 MNOK in the quarter

• Pipeline of projects continue to be good
• Increase in revenue from 109 MNOK in Q1 2018 to

119 MNOK in Q1 2019, a growth of 10% YoY

• Margins are improving quarter by quarter and

stronger than full year 2018 of 9,9%

• Strong order backlog of 629 MNOK by the end of

Q1, although current visibility of phasing suggest revenues for Q2 will be down compared to Q1

Land Based Technology

104 101 18 2 4 6 8 10 12 14 20 30 40 50 60 70 80 90 100 110 120 109 8,5% 5 10,1% 2019 Q1 2018 Q1 119

EBITDA % Nordic Americas EME

Revenue and EBITDA %

• Increased integration and cooperation

between SW division and development of control systems

• Plans are established for upgrades of

technical platform of Fishtalk

• Cooperation agreement entered into with

Observe (AI), first module (feeding assistant) already in market.

• As noted in stock notice of 06.09.2018

AKVA group has entered into an agreement to divest Wise lausnir ehf

• Estimated closing, dependent upon

clearance from completion authorities is Q2/Q3

Software

42 39 5 5 10 20 30 5 10 15 20 25 30 35 40 45 50 1 2018 Q1 22,2% 1 44 18,6% 2019 Q1 47

EBITDA % EME Americas Nordic

Revenue and EBITDA %

(MNOK)

2019 2018 2019 2018 2018 Q1 Q1 YTD YTD Total Order backlog 1 611 1 430 1 611 1 430 1 356 Order intake 1 107 639 1 107 639 2 555

P&L

OPERATING REVENUES 852 589 852 589 2 579 IFRS 16 OPEX*

• 15
• 15
• Operating costs ex depreciations

770 530 770 530 2 342 EBITDA 97 59 97 59 238 Depreciation 23 14 23 14 69 IFRS 16 Depreciation* 14

• 14
• Amortization

12 8 12 8 39 EBIT 49 37 49 37 130 Net interest expense

• 5
• 3
• 5
• 3
• 14

IFRS 16 Interest expense*

• 5
• 5
• Other financial items
• 4
• 4
• 4

Net financial items

• 11
• 7
• 11
• 7
• 18

EBT 38 30 38 30 112 Taxes 9 6 9 6 22 NET PROFIT 29 24 29 24 89 Net profit (loss) attributable to: Non-controlling interests 0,4

• 0,0

0,4

• 0,0
• 0,3

Equity holders of AKVA group ASA 29 24 29 24 90

Number of shares 33 306 25 806 33 306 25 806 28 306 Revenue growth 44,6 % 15,6 % 44,6 % 15,6 % 23,5 % EBITDA margin 11,4 % 10,0 % 11,4 % 10,0 % 9,2 % EPS (NOK)

0,87 0,94 0,87 0,94 3,17

Financials – Detailed P&L

• Of which Land Based is 629 MNOK
• Investment in subsidiaries accounted for by equity

method YTD Q1 classified as other operating revenues

• f 2.5 MNOK
• Increased depreciation mainly due to investments in

AKVA Marine Services/Helgeland Plast and depreciation/amortization including Egersund Net and subsidiaries (8MNOK in quarter)

• *IFRS 16 changes are affecting the EBITDA positively by

15 MNOK in the quarter, and the Net profit negatively by 4 MNOK

• Minority shareholders (49%) in Wise Blue AS and (30%)

in Grading Systems Ltd

Group financial profile – remains strong

180 197 206 420 462 418 307 336 422

1Q18 1Q19 1Q17 2Q17 4Q18 3Q17 4Q17 2Q18 3Q18

Available cash

• Including 258 MNOK of a 303 MNOK credit

facility in Danske Bank, as of Q1 2019

• Secured additional 100 MNOK of long term loans

and established a new 200 MNOK revolving credit facility, in Q2.

Working capital Average working capital

118 124 122 127 382 356 292 2 4 6 8 10 12 14 16 50 100 150 200 250 300 350 400 3Q18 5,8% 4Q18 4Q17 1Q18 3Q17 6,8% 1Q17 6,7% 2Q17 6,2% 8,4% 8,2% 2Q18 15,8% 13,8% 10,3% 1Q19 175 186

• The graph shows absolute working capital and working

capital relative to last twelve months revenue

• Seven months of revenue from Egersund Net included

in the % graph, while the balance sheet is included in

• total. With revenue of 12 months included it would be

9% 98 102 100 135 137 152 217 262 304 1 2 3 4 5 6 7 8 9 10 11 50 100 150 200 250 300 350 3Q17 2Q17 5,0% 5,7% 5,5% 1Q17 6,5% 4Q17 6,3% 1Q18 6,7% 2Q18 9,0% 3Q18 10,2% 4Q18 10,7% 1Q19

• The graph shows 12 months average

working capital and average working capital relative to last twelve months revenue

• With revenue of 12 months of Egersund Net

it would be 10,9%

CAPEX

5 10 15 10 000 20 000 30 000 40 000 50 000 60 000 70 000 80 000 90 000 5,8% 16 881 5,9% 4,0% 11,2% 19 495 (TNOK) 2,6% 57 368 2Q 2017 35 556 1Q 2017 31 666 3Q 2017 4Q 2018 2Q 2018 14,2% 78 936 4Q 2017 4,3% 42 852 25 517 1Q 2018 1Q 2019 3Q 2018 6,8% 42 225 4,2% CAPEX/Sales % CAPEX 21 928 Rental Ordinary 5 091 8 536 Intangible

CAPEX breakdown 2019 CAPEX and CAPEX/Sales %

Net interest bearing debt/EBITDA of 1.9

Net interest bearing debt (MNOK) and net debt/EBITDA

310 279 356 309 371 632 605 531 2,0 1,6 1,4 1,5 1,3 2,6 0,35 0,70 1,05 1,40 1,75 2,10 2,45 2,80 3,15 100 200 300 400 500 600 700 1,6 1Q17 3Q18 2Q18 1Q18 2Q17 4Q17 3Q17 2,5 4Q18 298 1Q19 1,9 NIBD/EBITDA (12 mth rolling) NIBD Change in net interest bearing debt (TNOK)

• NIBD/EBITDA of 1,7 with inclusion of full year Egersund Net EBITDA (7 months included

in the ratio)

• Excluding IFRS 16 liabilities

Net interest bearing debt 31.12.2018 604 547 EBITDA

• 96 928

Income taxes paid 7 401 Net interest paid 10 205 Capex 35 556 Acquisitions / Divestments

• Paid dividend

24 980 Sale of fixed assets

• 104

Currency effects 2 560 Other changes in working capital

• 57 145

Net change

• 73 475

Net interest bearing debt 31.03.2019 531 071

Group financial profile – remains strong, continued

Equity and Equity / Total Balance NIBD / Equity

446 473 476 500 491 504 1 017 1 063 1 055 10 20 30 40 50 100 200 300 400 500 600 700 800 900 1 000 1 100 30,1% 3Q17 4Q17 3Q18 31,3% 1Q17 29,4% 2Q17 31,4% 28,0% 1Q18 2Q18 26,8% 38,2% 39,3% 4Q18 38,4% 1Q19 0,70 0,63 0,58 0,71 0,63 0,74 0,62 0,57 0,49 0,0 0,1 0,2 0,3 0,4 0,5 0,6 0,7 0,8 2Q18 1Q17 4Q17 3Q18 2Q17 3Q17 4Q18 1Q18 1Q19

• Total effect of IFRS 16 on the balance sheet end of March 2019 is 446 MNOK, negatively affecting the equity ratio when comparing to previous quarters
• Equity ratio would be 31,6% including IFRS 16 liabilities

Group financial profile – remains strong, continued

ROCE ROACE

9,6% 13,4% 1Q17 11,1% 2Q17 3Q17 14,3% 15,4% 4Q17 4Q18 16,4% 1Q18 2Q18 7,9% 3Q18 7,0% 1Q19 7,9% 14,5% 14,0% 2Q18 11,3% 3Q17 8,6% 12,5% 1Q17 2Q17 16,9% 4Q18 4Q17 16,8% 1Q18 11,9% 3Q18 9,1% 1Q19

• Including seven months of EBIT from Egersund Net
• 8,5% based on full year EBIT inclusion of Egersund Net
• Graphs shows actual effect based on full balance sheet, and consolidated

P&L figures of Egersund Net from 01.09.2018

• ROCE is calculated ex balance sheet items of IFRS 16
• Including seven months of EBIT from Egersund Net
• 11,3% based on full year EBIT inclusion of Egersund Net
• ROACE is calculated with the average balance sheet items last four

quarters

• ROACE is calculated ex balance sheet items of IFRS 16

Cash flow statement

CONDENSED CONSOLIDATED STATEMENT OF CASH FLOW 2019 2018 2019 2018 2018

(NOK 1 000)

Q1 Q1 YTD YTD Total Net cash flow from operations 78 950 46 664 78 950 46 664 204 735 Net cash flow from change in w orking capital 57 145 45 596 57 145 45 596

• 50 821

Net cash flow from operational activities 136 095 92 260 136 095 92 260 153 913 Net cash flow from investment activities

• 22 695
• 23 355
• 22 695
• 23 355
• 270 673

Net cash flow from financial activities

• 102 347
• 56 013
• 102 347
• 56 013

158 880 Net change in cash and cash equivalents 11 053 12 892 11 053 12 892 42 121 Net foreign exchange differences

• 3 329
• 2 841
• 3 329
• 2 841
• 2 227

Cash and cash equivalents at the beginning of the period 156 862 116 969 156 862 116 969 116 969 Cash and cash equivalents at the end of the period 164 587 127 020 164 587 127 020 156 862

Balance sheet

BALANCE SHEET 2019 2018 2018 (MNOK) 31.03 31.03 31.12

ASSETS 3 196 1 755 2 703 Intangible non-current assets 1 077 580 1 085 Tangible non-current assets 336 250 332 Financial non-current assets 72 5 73 IFRS 16 - RoU Asset 443

• Inventory

455 247 462 Receivables 625 518 571 Cash and cash equivalents 135 105 133 Assets held for sale 53 49 47 LIABILITIES AND EQUITY 3 196 1 755 2 703 Equity 1 055 491 1 062 Minority interest 1 1 Long-term interest bearing debt 579 346 360 Short-term interest bearing debt 117 91 401 IFRS 16 - Lease Liability 446

• Non-interest bearing liabilities

970 797 855 Liabilities held for sale 29 30 24

Dividend Policy

• The company is aiming to give the shareholders a competitive

return on investment by a combination of cash dividend and share price increase

• The company’s dividend policy shall be stable and predictable
• When deciding the dividend the Board will take into

consideration expected cash flow, capital expenditure plans, financing requirements/compliance, appropriate financial flexibility, and the level of net interest bearing debt

• The company needs to be in compliance with all legal

requirements to pay dividend

• The company will target to pay dividend twice a year
• A dividend of NOK 0.75 per share was paid in March 2019

Dividend and dividend policy

1,00 1,00 1,00 0,75 1,25 1,50 0,75 2008 2014 2017 2015 2016 2018 2019 Q1 YTD

Cash Dividend

Largest shareholders

20 largest shareholders Origin of shareholders, 5 largest countries Share development

Subscribe to Oslo Stock Exchange Releases from AKVA by email on: http://ir.akvagroup.com/investor-relations/subscribe

No of shares % Account name Type Citizenship 20 703 105 62,1 % EGERSUND GROUP AS NOR 3 900 000 11,7 % WHEATSHEAF INVESTMENTS LIMITED GBP 983 242 2,9 % SIX SIS AG Nominee CHE 825 932 2,5 % VERDIPAPIRFONDET ALFRED BERG GAMBAK NOR 657 432 2,0 % VERDIPAPIRFONDET NORDEA KAPITAL NOR 545 123 1,6 % VERDIPAPIRFONDET NORDEA AVKASTNING NOR 516 500 1,5 % Norron Sicav - Select LUX 405 488 1,2 % STATOIL PENSJON NOR 356 300 1,1 % MP PENSJON PK NOR 330 640 1,0 % VERDIPAPIRFONDET NORDEA NORGE PLUS NOR 327 453 1,0 % NORDEA 1 SICAV LUX 300 000 0,9 % JPMBL SA NORDEA NORDIC SM CAP FD FIN 174 615 0,5 % VERDIPAPIRFONDET DNB SMB NOR 163 610 0,5 % METZLER EURO SMALL + MICRO CAP IRL 150 000 0,4 % BJØRN DAHLE NOR 148 609 0,4 % HANDELSBANK NORDISKA SMABOLAGSFOND SWE 125 000 0,4 % UBS Europe SE Nominee LUX 109 090 0,3 % STATOIL FORSIKRING A.S NOR 100 000 0,3 % ASKVIG AS NOR 100 000 0,3 % BERGEN KOMMUNALE PENSJONSKASSE NOR 30 922 139 92,8 % 20 largest shareholders 2 412 164 7,2 % Other 33 334 303 100,0 % Total number of shares as per 31.03.2019

No of shares % Origin No of shareholders

26 164 747 78,5 % Norway

815

3 923 799 11,8 % Great Britain

17

1 062 129 3,2 % Switzerland

5

1 036 300 3,1 % Luxembourg

5

380 358 1,1 % Finland

5

766 970 2,3 % Other

110 Total number of shareholders: 957 - from 26 different countries

10 000 000 20 000 000 30 000 000 40 000 000 50 000 000 62 64 66 68 70 72 74 76 apr.18 mai.18 jun.18 jul.18 aug.18 sep.18

• kt.18

nov.18 des.18 jan.19 feb.19 mar.19

Last 12 months

Trading volume

Share price 30 000 000 60 000 000 90 000 000 120 000 000 150 000 000 180 000 000 20 40 60 80 100 2015 2016 2017 2018 2019

Last 5 years

Trading volume

Share price

Outlook – by CEO Hallvard Muri

AKVA group in brief

Leading technology and service partner Listed on Oslo stock exchange since 2006 Deliveries in 65 countries

• ver 40

years Companies in 12 countries. 1 541 employees

Solutions

Cage Based Technology Land Based Technology Software

OPEX Based Revenue CAPEX Based Revenue

Order backlog and inflow, 2016 through 2019

414 647 951982 385 698825 468 751726 586 844908 283 430 479 629 437 620449 417 629 359 412 537448

2018

1 077

2017 2016 2018

1 381

2017 2016 2016

998

2017 2016 2017 2018

886

2018

697 1 380 1 430 822 1 318 1 274 1 085 1 356

2019 2019 2019 2019

1 611 340 486 588 806 283 475 384 360 454 414 489 525 779 101 103 300 250 304 87 92 72 218

2016 2018 2017

533 778

2016 2016

546

2016

51

2017 2018 2019

441 57

2017

33

2018 2017

639

2018

589 1 106 471 417 448 561 557 997

2019 2019 2019

34

Land Based Other

Order backlog Order intake

• 39% of total order backlog relates to Land Based Technology (LBT)
• Order intake of 1 106 MNOK in Q1 2019
• LBT agreement with Svaberget Smolt AS signed in Q1 2019 of approx. 300 MNOK

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

Outlook – AKVA group

• Developing digitalization strategy, upgrading software

platform and control systems. Interim CDO hired.

• New product development well under way; cage system, and
• feeding. New CTO hired
• Egersund Net integration continued positive development –

cages, nets and mooring (total) solutions sold in the market

• Presence in eastern Canada, plans being firmed up for a

strong product and service foothold.

• Pipeline for Land Based still good – although revenue

phasing of current backlog is lower for Q2 than Q1

• Atlantis project in execution mode – fish in the sea