Q2 2019 Presentation Oslo 14 August 2019 Hallvard Muri, CEO Simon - - PowerPoint PPT Presentation

Q2 2019 Presentation

Oslo – 14 August 2019 Hallvard Muri, CEO Simon Nyquist Martinsen, CFO

Highlights Financial performance Outlook Q&A

Agenda

Highlights Q2 2019 – by CEO Hallvard Muri

• Order intake of 760 MNOK
• Strong contributions from all segment and regions in the quarter
• Significant land based tender won with Russian Sea of 11.9 MEUR,

expected signing in Q3/Q4, not yet included in order backlog

• Barge Supply and Sales Contract signed with Grieg NL Seafarms Ltd

in Q3 2018, not included in order backlog

• Co-operation agreement signed with Cooke Aquaculture in August,

with potential for delivery of several larger land based smolt projects, which the first is expected to be signed in Q3

• Last twelve months order intake of 3,312 MNOK, compared to

2,555 MNOK full year 2018

Order intake

Strong financial performance

421 471 543 342 376 732 762 644 92 87 218 300 77 33 45 38 38 3Q17 51 471 1Q18 43 2Q18 546 34 44 448 557 46 4Q18 1Q19 2Q19 639

SW LBT CBT

4Q17 33 997 1 107 760 53 3Q18 +61%

• 27% increase in revenue compared to Q2 2018
• Egersund Net group of companies included from

September 1st 2018

• Americas another positive quarter with revenue of 136

MNOK, up from 125 MNOK in Q2 2018

• Positive order intake development in Nordic CBT, driving

revenue, increase of 12 % compared to YTD last year

• Good development in both net sales and net service after

integration of AKVA / Egersund net organizations

High activity in all regions

484 557 589 627 637 726 852 798 1Q19 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 2Q19 +27%

Revenue

• EBITDA of 101 MNOK in the quarter, including 15 MNOK in effect
• f reclassification due to IFRS 16 (leases)
• Americas continued positive development with an EBITDA of 12

MNOK compared to 10 MNOK in Q2 2018, driven first and foremost by improved margins

• Nordic CBT segment 6 % increase in EBITDA YoY, with strong

contributions by AKVA Marine Services and Sperre

• EBITDA in the Land Based segment on same level as in 2018 with 12

MNOK, on lower revenue

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

property rental agreements. YTD effect of 29 MNOK

EBITDA development

61 60 59 52 71 57 82 86 8 8 7 7 1Q19 1Q18 3Q17 4Q18 4Q17 2Q18 101 3Q18 2Q19 97 +94%

EBITDA

IFRS 16 - EN IFRS 16 - AKVA

• Second quarter 2019 – Highlights

– Order backlog at end of June of 1.6 BNOK – Signed another barge to Russian Sea in June of 37 MNOK – Awarded Land Based agreement with Russian Sea of 11.9 MEUR, not in backlog yet – Acquisition of remaining shares in AKVA Marine Services – Integration of Egersund Net as planned and development in net sales and service strong – Termination of agreement to divest Wise lausnir ehf

Continued strong order backlog

751 844 951 825 726 908 982 961 629 537 479 449 359 448 629 611 1Q19 3Q18 4Q17 3Q17 1Q18 2Q19 4Q18 1 085 2Q18 1 356 1 380 1 381 1 430 1 274 1 611 1 572 +23% Land Based

Order backlog

Key financial metrics

82 119 111 198 Q2 17 Q2 16 Q2 18 Q2 19 +140%

EBITDA

801 1 047 1 216 1 650 Q2 19 Q2 17 Q2 16 Q2 18 +106%

Revenue

1,01 1,80 1,67 1,74 0,12 0,23 0,19 0,30 Q2 18 Q2 16 Q2 17 Q2 19 +80%

EPS

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

YTD YTD YTD

AKVA group Agents and distributors

Our presence

AKVA group’s geographical regions – absolute and relative

Revenue in geographical regions

52 49 105 90 106 74 59 98 128 113 125 139 177 145 136 334 379 372 412 392 506 633 603 852 Q4 17 Q3 18 Q2 18 Q2 19 484 42 Q3 17 Q4 18 Q1 18 Q1 19 557 589 627 637 726 798 Nordic Americas EME 69% 23% 76% 22% 11% 20% 63% 68% Q3 17 9% Q4 17 19% 18% Q1 18 66% 9% 14% Q4 18 Q2 18 61% 17% Q3 18 70% 24% 6% 74% 17% Q1 19 Q2 19 7% 17% 20%

• Egersund Net contributing 112 MNOK in the quarter
• Stable development for the rental business (Scotland and

Norway) in 2019

• Service in ASA Nordic with higher revenue and margins compared

to Q2 2018

• Stable revenue from the Software business, 39 MNOK in Q2

2019, compared to 42 MNOK in Q2 2018

• Higher activity level in the Norwegian marine service business in

Q2 2019 compared to Q2 2018, and with healthy order backlog. Well positioned for high season in Q3

Development in OPEX based revenue

140 145 130 141 149 151 144 146 31 94 90 112 5 10 15 20 25 30 35 50 100 150 200 250 300 234 22,5% 3Q17 1Q18 29,0% 2Q18 26,1% 4Q17 22,1% 4Q18 28,2% 3Q18 257 245 33,8% 27,5% 1Q19 32,3% 2Q19 % of total revenue Egersund Net OPEX Based revenue

Revenue by product group and species

By product groups – Q2 2019 By species – Q2 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

401 471 503 526 539 610 774 719 13 74 56 66 37 23 Salmon 54 3Q17 Other species 32 52 4Q17 3Q18 34 1Q18 Non seafood 55 46 47 51 46 42 4Q18 589 2Q18 1Q19 627 484 637 557 726 852 2Q19 798 260 287 351 370 334 352 500 446 102 99 82 98 140 201 189 218 83 124 108 116 124 129 118 95 1 1 852 726 46 3Q17 1 4Q17 47 2Q18 CBT 1Q18 42 3Q18 2Q19 40 44 1 589 39 Software 1 44 4Q18 LBT S&AS 38 LBT 627 1Q19 484 557 637 798 CBT S&AS

• Improved and stable operations at pipe manufacturing
• Continued strong pipeline of land based projects, co-operation agreement signed with Cooke in August
• Continued good demand in Chile and stable margins as a result of improvement programs
• Strong performance in the acquired net and net service business, Egersund Net
• Good progress made in renewal of Fishtalk and AKVAconnect software platforms, and AI (intelligent feeding program) co-
• peration with Observe starting to materialize in contracts
• Initiated market research to investigate broadening product and service offering in Chile
• Good progress made to establish foothold in New Foundland, Loi signed with local partner for joint venture
• Continued strong competition in Norwegian barge business, operational improvement program initiated
• First barges delivered out of new partner in Vietnam
• New product/offerings made ready for presentation at AquaNor, including new cage concept and waterborne feeding

Q2 – 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 Q2 2019 – by CFO Simon Nyquist Martinsen

• Last twelve months order intake and revenue now at

3,312 MNOK and 3,013 MNOK respectively

• The order book has decreased to 1,572 MNOK at the end of

Q2 2019

• Strong growth in the Nordic region, decline in EME and

Land Based (due to phasing of orders)

• Egersund Net integration process working as planned, and

both new sales of nets and services is showing good sales growth (pro forma compared to last year)

Revenue

Q2 2019 – Financial highlights

393 408 354 449 510 537 484 557 589 627 637 726 852 798 Q4 Q3 Q1 Q2 2016 2019 2017 2018

• As in Q1, strong contributions from Americas, inclusion of Egersund

Net when comparing to the same quarter last year

• Strong improvements and contribution in the quarter from net

washing in sea and sales of ROV and FNC (net washing equipment)

• EBITDA positively affected by 15 MNOK due to implementation of

IFRS 16 in the quarter (29 MNOK YTD)

• Margins have improved YoY and compared to Q1, even if adjusting for

the IFRS effect, as well as if adjusted (proforma) for the contribution from Egersund Net

• Margins in the Land Based segment continue to improve with an

EBITDA margin of 12,2% compared to 10,5% in Q2 2018 and compared to 10,1% in Q1 2019

• Cost increases/ramp up in T&D and HQ

EBITDA (MNOK)

Q2 2019 – Financial highlights

40 43 38 24 54 65 61 60 59 52 71 57 97 101 50 100 150 Q2 Q4 Q1 Q3 2017 2016 2019 2018 5 10 15 Q3 Q1 10,1% Q2 Q4 10,6% 10,0% 12,6% 11,4% 10,4% 12,1% 8,3% 10,8% 11,1% 5,3% 10,8% 7,8% 12,6%

EBITDA %

Nordic

• Improved margins in the Norwegian barge business

compared to H2 2018 and Q1 2019, but still fierce competition and operational improvement potential

• Stable operations at Helgeland Plast
• Strong improvement in quarter from Sperre and AKVA

Marine Services (sale of ROV’s and net washers, and net cleaning in sea)

• Egersund Net, Egersund Trading, UAB Egersund Net and

Grading System fully consolidated. Not included in figures in Q2 2018. Pro forma comparison YTD 2019 show solid growth in revenue and earnings compared to 2018

• 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

260 482 118 124 58 2 4 6 8 10 12 14 100 200 300 400 500 600 700 800 2019 Q2 7,5% 664 2018 Q2 12,8% 467 90

EBITDA % EME Nordic Americas

Revenue and EBITDA %

Americas

• Both order intake and revenue is up compared to last

years Q2

• EBITDA margins also improved compared to last years Q2

and to 2018 total

• Americas region has grown in EBITDA by 109 % compared

to YTD Q2 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 59 MNOK compared to 90 MNOK the same quarter last year

• Despite this both the export area and Turkey had good
• rder intake in Q2, signing orders for 64 MNOK in total
• The Turkish joint venture Emel Balik is being ramped up to

partly serve as capacity back up for our net assembly in Lithuania

Cage Based Technology

260 482 118 124 58 2 4 6 8 10 12 14 100 200 300 400 500 600 700 800 2019 Q2 7,5% 664 12,8% 2018 Q2 467 90

EBITDA % Nordic Americas EME

Revenue and EBITDA %

• A tender with Russian Sea of 11,9 MEUR was won in

Q2, final contract expected to be signed late Q3 or early Q4, this project is not included in the order backlog

• Co-operation agreement signed with Cooke

Aquaculture in August, with potential for delivery of several larger land based smolt projects, which the first is expected to be signed in Q3

• Pipeline of projects continue to be good in several

regions

• Margins are improving quarter by quarter and

stronger than full year 2018 of 9,9%

• Strong order backlog of 611 MNOK by the end of Q2,

but the phasing of these projects indicates decline in revenue for Q3 compared to LY

Land Based Technology

115 87 8 2 4 6 8 10 12 14 20 30 40 50 60 70 80 90 100 110 120 1 10,5% 12,2% 2018 Q2 2 2019 Q2 117 95

EBITDA % EME Americas Nordic

Revenue and EBITDA %

• Digital solutions in Software integrated with control

systems and AI solutions create stronger combined

• fferings
• First version of modernized Fishtalk delivered, with
• pen, cloud based API and new modern app’s
• Brand new control system, AKVAconnect to be

launched at Aqua Nor in August

• Successful launch of Observe AI (artificial

intelligence), now in use by 15 customers globally

• As noted in stock notice of 18.06.2019 AKVA group

has terminated the agreement to divest Wise lausnir ehf and strategic options are under evaluation

• Stable contract revenue in Wise, but less

consultancy/services in the second quarter compared to last year

Software

37 34 4 4 10 20 5 10 15 20 25 30 35 40 45 42 1 2019 Q2 10,7% 2018 Q2 9,6% 1 39

EBITDA % EME Americas Nordic

Revenue and EBITDA %

(MNOK)

2019 2018 2019 2018 2018 Q2 Q2 YTD YTD Total Order backlog 1 572 1 274 1 572 1 274 1 356 Order intake 760 471 1 867 1 110 2 555

P&L

OPERATING REVENUES 798 627 1 650 1 216 2 579 IFRS 16 OPEX*

• 15
• 29
• Operating costs ex depreciations

712 575 1 482 1 105 2 342 EBITDA 101 52 198 111 238 Depreciation 22 16 45 30 69 IFRS 16 Depreciation* 14

• 27
• Amortization

12 9 24 17 39 EBIT 53 27 102 64 130 Net interest expense

• 5
• 3
• 10
• 6
• 14

IFRS 16 Interest expense*

• 5
• 10
• Other financial items
• 1
• 1
• 1
• 5
• 4

Net financial items

• 10
• 4
• 21
• 11
• 18

EBT 43 23 80 53 112 Taxes 12 4 21 10 22 NET PROFIT 31 19 60 43 89 Net profit (loss) attributable to: Non-controlling interests 1,1

• 0,1

1,5

• 0,1
• 0,3

Equity holders of AKVA group ASA 29 19 58 43 90

Number of shares 33 216 25 806 33 261 25 806 28 306 Revenue growth 27,3 % 16,7 % 35,7 % 16,1 % 23,5 % EBITDA margin 12,6 % 8,3 % 12,0 % 9,1 % 9,2 % EPS (NOK)

0,88 0,73 1,74 1,67 3,17

Financials – Detailed P&L

• Of which Land Based is 611 MNOK
• Investment in subsidiaries accounted for by equity

method YTD Q2 classified as other operating revenues

• f 1.8 MNOK
• Increased depreciation mainly due to investments in

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

418 307 336 422 469

3Q18 2Q19 2Q18 4Q18 1Q19

Available cash

• Including 88 MNOK of a 303 MNOK credit

facility in Danske Bank, as of Q2 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

186 356 292 485 2 4 6 8 10 12 14 16 18 50 100 150 200 250 300 350 400 450 500 8,2% 1Q19 2Q18 15,8% 3Q18 13,8% 4Q18 10,3% 16,1% 2Q19 382

• The graph shows absolute working capital and

working capital relative to last twelve months revenue

• Ten 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 15,6% 152 217 304 379 2 4 6 8 10 12 14 50 100 150 200 250 300 350 400 2Q18 6,7% 9,0% 3Q18 10,2% 1Q19 4Q18 10,7% 12,6% 2Q19 262

• 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 12,2%

CAPEX

5 10 15 10 000 20 000 30 000 40 000 50 000 60 000 70 000 80 000 90 000 23 913 2Q 2017 42 225 5,8% (TNOK) 4Q 2017 4,0% 31 666 3Q 2018 5,9% 19 495 3Q 2017 14,2% 78 936 4,3% 25 517 1Q 2018 6,8% 4,2% 42 852 2Q 2018 2,6% 16 881 4Q 2018 35 556 1Q 2019 2Q 2019 3,0% CAPEX/Sales % CAPEX 30 244 Ordinary 20 678 Rental Intangible 8 547

CAPEX breakdown 2019 CAPEX and CAPEX/Sales %

Net interest bearing debt/EBITDA of 2.2

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

356 309 371 632 531 726 1,6 1,4 2,6 2,5 2,2 0,35 0,70 1,05 1,40 1,75 2,10 2,45 2,80 3,15 100 200 300 400 500 600 700 800 1,6 279 4Q17 3Q17 2Q17 3Q18 1Q18 4Q18 2Q18 605 1,9 1Q19 2Q19 298 1,5 1,3 NIBD/EBITDA (12 mth rolling) NIBD Change in net interest bearing debt (TNOK)

• NIBD/EBITDA of 2,15 with inclusion of full year Egersund Net EBITDA (10 months included

in the ratio)

• Excluding IFRS 16 liabilities

Net interest bearing debt 31.03.2019 531 071 EBITDA

• 100 618

Income taxes paid 15 639 Net interest paid 10 384 Capex 23 913 Acquisitions / Divestments 39 121 Buyback own shares 14 899 Equity issue

• Sale of fixed assets
• 312

Currency effects 1 719 Other changes in working capital 189 702 Net change 194 446 Net interest bearing debt 30.06.2019 725 517

Group financial profile – remains strong, continued

Equity and Equity / Total Balance NIBD / Equity

473 476 500 491 504 1 017 1 063 1 055 1 068 10 20 30 40 50 100 200 300 400 500 600 700 800 900 1 000 1 100 30,1% 3Q17 29,4% 28,0% 2Q17 31,4% 4Q17 1Q18 38,2% 26,8% 2Q18 3Q18 38,4% 39,3% 1Q19 4Q18 37,8% 2Q19 0,63 0,58 0,71 0,63 0,74 0,62 0,57 0,49 0,68 0,0 0,1 0,2 0,3 0,4 0,5 0,6 0,7 0,8 3Q18 2Q17 4Q17 1Q18 3Q17 2Q18 4Q18 1Q19 2Q19

• Total effect of IFRS 16 on the balance sheet end of June 2019 is 435 MNOK, negatively affecting the equity ratio when comparing to previous quarters.

Not included in graph above

• Equity ratio would be 32,8% including IFRS 16 liabilities

Group financial profile – remains strong, continued

ROCE ROACE

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

• Including ten months of EBIT from Egersund Net
• 9,2% 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 ten months of EBIT from Egersund Net
• 9,7% 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)

Q2 Q2 YTD YTD Total Net cash flow from operations 74 090 43 846 153 039 90 510 204 735 Net cash flow from change in w orking capital

• 189 702
• 59 554
• 132 556
• 13 959
• 50 821

Net cash flow from operational activities

• 115 612
• 15 709

20 483 76 551 153 913 Net cash flow from investment activities

• 63 330
• 26 382
• 86 025
• 49 737
• 270 673

Net cash flow from financial activities 195 795 73 618 93 448 17 605 158 880 Net change in cash and cash equivalents 16 853 31 527 27 906 44 419 42 121 Net foreign exchange differences

• 959
• 1 675
• 4 288
• 4 516
• 2 227

Cash and cash equivalents at the beginning of the period 164 587 127 020 156 862 116 969 116 969 Cash and cash equivalents at the end of the period 180 481 156 872 180 481 156 872 156 862

Balance sheet

BALANCE SHEET 2019 2018 2018 (MNOK) 30.06 30.06 31.12

ASSETS 3 260 1 881 2 703 Intangible non-current assets 1 080 574 1 085 Tangible non-current assets 324 267 332 Financial non-current assets 68 8 73 IFRS 16 - RoU Asset 430

• Inventory

434 257 462 Receivables 719 597 571 Cash and cash equivalents 155 135 133 Assets held for sale 47 44 47 LIABILITIES AND EQUITY 3 260 1 881 2 703 Equity 1 066 498 1 062 Minority interest 2 Long-term interest bearing debt 833 535 360 Short-term interest bearing debt 242 168 401 IFRS 16 - Lease Liability 435

• Non-interest bearing liabilities

657 655 855 Liabilities held for sale 25 25 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 1.00 per share will be paid in September 2019

Dividend and dividend policy

1,00 1,00 1,00 0,75 1,25 1,50 1,75 2014 2008 2016 2015 2019 Q3 YTD 2018 2017

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 993 242 3,0 % SIX SIS AG Nominee CHE 825 932 2,5 % VERDIPAPIRFONDET ALFRED BERG GAMBA NOR 665 414 2,0 % VERDIPAPIRFONDET NORDEA KAPITAL NOR 550 123 1,7 % VERDIPAPIRFONDET NORDEA AVKASTNING NOR 493 000 1,5 % Norron Sicav - Select LUX 400 994 1,2 % STATOIL PENSJON NOR 360 640 1,1 % VERDIPAPIRFONDET NORDEA NORGE PLUS NOR 356 300 1,1 % MP PENSJON PK NOR 329 950 1,0 % J.P. Morgan Bank Luxembourg S.A. Nominee LUX 300 000 0,9 % NORDEA NORDIC SM CAP FD FIN 205 278 0,6 % AKVA GROUP ASA NOR 157 999 0,5 % VERDIPAPIRFONDET DNB SMB NOR 150 000 0,4 % BJØRN DAHLE NOR 125 894 0,4 % HANDELSBANKEN Nordiska Smabolag SWE 109 610 0,3 % METZLER EURO SMALL + MICRO CAP IRL 100 000 0,3 % UBS Europe SE Nominee LUX 100 000 0,3 % ASKVIG AS NOR 100 000 0,3 % BERGEN KOMMUNALE PENSJONSKASSE NOR 30 927 481 92,8 % 20 largest shareholders 2 406 822 7,2 % Other 33 334 303 100,0 % Total number of shares as per 30.06.2019

No of shares % Origin No of shareholders

26 134 381 78,4 % Norway

741

3 952 585 11,9 % Great Britain

21

1 071 407 3,2 % Switzerland

5

980 800 2,9 % Luxembourg

5

390 358 1,2 % Finland

5

804 772 2,4 % Other

108 Total number of shareholders: 885 - from 26 different countries 10 000 000 20 000 000 30 000 000 40 000 000 50 000 000 60 65 70 75 80 jul.18 aug.18 sep.18

• kt.18

nov.18 des.18 jan.19 feb.19 mar.19 apr.19 mai.19 jun.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. 1 527 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 698825961 468 751726 586 844908 283 430 479 629 437 620449 611 417 629 359 412 537448

2019 2017

1 611

2016 2018 2016 2018 2018 2017 2017 2019

1 381

2016 2017

886

2018

1 572

2019 2016 2019

697 1 077 1 430 822 1 318 1 274 1 380 1 085 998 1 356 340 486 588 806 283 475 384 682 360 454 414 489 525 779 101 103 300 250 304 87 77 92 72 218

2018 2016 2016 2017

51

2017 2016 2019 2018 2016

557

2017 2019 2018 2019

33 471

2017 2018 2019

441 589 639 1 106 533 778 760 417 546 448 561 997 57 34

Land Based Other

Order backlog Order intake

• 39% of total order backlog relates to Land Based Technology (LBT)
• Order intake of 760 MNOK in Q2 2019
• LBT agreement with Russian Sea awarded in Q2 2019 of 11.9 MEUR, not included in
• rder backlog yet

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

Outlook – AKVA group

• Digitalization strategy being firmed up, contracts in pipeline for

Intelligent Feeding

• Competitive position strengthened by new cage concept and

waterborne feeding, to be launched Q3/Q4

• Strong position for net sales and net services, growth potential by

increasing manufacturing capacity and plans developed for new service station in North of Norway

• Plans underway to broaden offering in Chile
• Presence in eastern Canada, plans being firmed up for a strong

product and service foothold

• Pipeline for Land Based continue to be good
• Atlantis project in execution mode – fish in the sea