Q3 2019 Presentation Oslo 1 November 2019 Hallvard Muri, CEO - - PowerPoint PPT Presentation

Q3 2019 Presentation

Oslo – 1 November 2019 Hallvard Muri, CEO Simon Nyquist Martinsen, CFO

Highlights Financial performance Outlook Q&A

Agenda

Highlights Q3 2019 – by CEO Hallvard Muri

• Order intake of 778 MNOK*
• 3 year service agreement signed with Mowi for the Norwegian

marine services

• Chile agreed significant barge contract with Australis Mar of 12.6

MUSD with estimated delivery in Q3/Q4 2020

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

in Q3 2018, first barge included in order backlog

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

with potential for delivery of several larger land based smolt projects

• Last twelve months order intake of 3,586 MNOK, compared to

2,555 MNOK full year 2018

Order intake

Solid order intake

471 543 342 376 732 762 644 695 87 218 300 77 45 38 38 33 43 4Q17 1Q18 51 34 3Q18 46 4Q18 639 44 1Q19 2Q18 997 50 3Q 19 1 107

SW

53

LBT CBT

2Q19 33 557 448 760 778 471 +74%

*Wise order backlog as of the sale, 55 MNOK will be accounted for as reduction in order intake, adjusted here.

• 21% increase in revenue compared to Q3 2018
• Egersund Net group of companies included from 1

September 2018

• Americas another positive quarter with revenue of 155

MNOK, up from 139 MNOK in Q3 2018

• Nordic CBT increase of 23 % compared to same quarter

last year

• A decrease in land based revenue compared to Q3 2018

due to phasing of projects

Activity level remains high

557 589 627 637 726 852 798 753 18 1Q18 4Q17 4Q18 2Q18 3Q18 1Q19 3Q19 2Q19 +21%

Revenue

Gain sale Wise

• EBITDA of 115 MNOK in the quarter, including 15 MNOK in effect
• f reclassification due to IFRS 16 (leases)
• Sale of Wise with impact of 18 MNOK in net gain
• Americas stabilized on a higher level due to improved margins,

EBITDA of 14 MNOK compared to 10 MNOK in Q3 2019

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

contributions by AKVA Marine Services and AKVA group ASA

• Egersund Net companies contributing strong with EBITDA of 42

MNOK

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

property rental agreements. YTD effect of 44 MNOK

EBITDA development

61 60 59 52 71 57 82 86 82 8 8 8 7 7 7 18 2Q19 3Q17 71 1Q19 4Q17 1Q18 2Q18 4Q18 52 3Q18 3Q19 61 60 59 57 97 101 115 +62%

EBITDA

IFRS 16 - EN Gain sale Wise IFRS 16 - AKVA

• Third quarter 2019 – Highlights

– Order backlog at end of September of 1.5 BNOK – Signed 4 barges with Chilean customer September of 12.6 MUSD – Won Land Based tender with Russian Sea of 11.9 MEUR in June, not yet in backlog – Continued positive development in net sales and service – Divestment of Wise lausnir ehf finalized, order backlog reduced with 55 MNOK

Continued high order backlog

751 844 951 825 726 908 982 961 955 629 537 479 449 359 448 629 611 569 1Q18 3Q17 2Q19 1Q19 4Q17 2Q18 1 274 3Q18 4Q18 1 381 3Q19 1 380 1 430 1 085 1 356 1 611 1 572 1 524 +41% Land Based

Order backlog

Key financial metrics

121 180 182 312 Q3 19 Q3 16 Q3 17 Q3 18 +158%

EBITDA

1 155 1 531 1 854 2 422 Q3 19 Q3 16 Q3 17 Q3 18 +110%

Revenue

1,37 2,80 2,66 3,01 0,27 0,32 0,27 0,47 Q3 18 Q3 16 Q3 17 Q3 19 +112%

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

49 105 90 106 74 59 76 128 113 125 139 177 145 136 155 379 372 412 392 506 633 603 541 Q1 19 42 Q3 18 Q4 17 Q4 18 Q1 18 726 Q2 18 Q2 19 Q3 19 557 589 627 637 852 798 771 Nordic EME Americas 18% 74% 23% 68% Q4 17 70% 9% Q1 18 63% 17% 19% 66% 6% 20% Q3 18 14% Q4 18 Q2 18 61% 22% 70% 24% 74% 10% 17% 9% Q1 19 17% 9% Q2 19 20% Q3 19

• Egersund Net contributing 104 MNOK in the quarter
• Stable development for the rental business (Scotland and

Norway) in 2019

• Service in ASA Nordic continued to deliver high revenue and

margins

• AKVA group Software with revenue increase of 14 % compared to

Q3 last year, and increased margins

• High activity level in the Norwegian marine service business with

improved margins 2019 compared to Q3 2018, and with strong

• rder backlog
• Wise lausnir ehf excluded from 1 September 2019

Development in OPEX based revenue

145 130 141 149 151 144 146 136 31 94 90 112 104 5 10 15 20 25 30 35 50 100 150 200 250 300 2Q18 26,1% 4Q17 22,1% 1Q18 22,5% 257 245 28,2% 3Q18 33,8% 32,3% 4Q18 27,5% 1Q19 2Q19 31,2% 3Q19 234 % of total revenue OPEX Based revenue Egersund Net

Revenue by product group and species

By product groups – Q3 2019 By species – Q3 2019

Cage Based Technology = Cages, barges, feed systems, nets 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

471 503 526 539 610 774 719 669 13 35 74 56 66 68 23 3Q18 32 34 4Q17 4Q18 52 1Q18 55 46 2Q18 51 47 42 1Q19 2Q19 Non seafood Other species 798 Salmon 637 557 589 627 726 852 3Q19 771 54 287 351 370 334 352 500 446 439 99 82 98 140 201 189 218 212 124 108 116 124 129 118 95 92 1 44 40 4Q17 47 852 3Q18 2Q18 1 1Q18 42 1 627 4Q18 CBT 44 1Q19 39 2Q19 Software 771 1 798 28 LBT S&AS LBT CBT S&AS 557 589 726 1 3Q19 46 637

• Wise lausnir ehf an Icelandic subsidiary was sold in Q3
• “First” barge contract signed in Chile, delivery from new partner in Vietnam
• Co-operation agreement for Land Based projects entered into with Cooke Aquaculture
• 3 years frame agreement signed for Norwegian marine services
• Good progress made on establishing service business on New Foundland
• Good progress made of renewal of Fishtalk and AKVAconnect platforms, further contracts with Observe AI (intelligent

feeding) agreed

• Continued solid performance in net and net service business and progress made of exploring net service business in Chile
• New products launched at Aqua Nor, new cage concept and waterborne feeding

Q3 – 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 Q3 2019 – by CFO Simon Nyquist Martinsen

• Last twelve months order intake and revenue now at

3,586 MNOK and 3,148 MNOK respectively

• The order book has decreased to 1,524 MNOK at the end of

Q3 2019, sale of Wise impacts decrease with MNOK 55

• Strong growth in the Nordic and Americas region, decline

in EME and Land Based (due to phasing of orders)

• Egersund Net with an 18% increase in year to date revenue

compared to 2018 (pro forma compared to last year)

• Net gain from sale of Wise included with 18 MNOK in Q3

Revenue

Q3 2019 – Financial highlights

393 408 354 449 510 537 484 557 589 627 637 726 852 798 771 Q1 Q2 Q3 Q4 2016 2018 2017 2019

• As in first half of 2019, strong contributions from Americas
• Strong improvements and contribution in the quarter from

net washing in sea and the Nordic part of AKVA group ASA

• Egersund Net with strong margins, improved from both Q1

and Q2 this year

• Margins in the Land Based segment slightly below Q3 2018

and at same level as full year 2018

• EBITDA positively affected by 15 MNOK due to

implementation of IFRS 16 in the quarter (44 MNOK YTD)

• A net gain of 18 MNOK included on the sale of Wise, EBITDA

margin at 12,9% excluding the gain

EBITDA (MNOK)

Q3 2019 – Financial highlights

40 43 38 24 54 65 61 60 59 52 71 57 97 101 115 50 100 150 Q1 Q2 Q3 Q4 2016 2019 2017 2018 5 10 15 10,0% 10,1% Q1 Q2 10,6% Q3 Q4 8,3% 10,8% 11,4% 10,4% 12,1% 12,6% 12,6% 11,1% 14,9% 5,3% 10,8% 7,8%

EBITDA %

Nordic

• Improved margins in our Norwegian barge business

compared to Q3 2018, but still strong focus on

• perational improvement potential
• Strong improvement in quarter from AKVA Marine

Services (net cleaning in sea)

• Egersund Net, Egersund Trading, UAB Egersund Net

and Grading System fully consolidated. Partly included in figures in Q3 2018. Solid contribution in Q3 2019

• Emel Balik (Turkey) and NOFI Oppdrettsservice

(Skjervøy) is accounted for using the equity method due to ownership of 50% and not controlled by AKVA group

Cage Based Technology

245 418 123 142 106 74 2 4 6 8 10 12 14 100 200 300 400 500 600 700 800 633 10,2% 2019 Q3 2018 Q3 12,6% 474

Americas EBITDA % EME Nordic

Revenue and EBITDA %

Americas

• AKVA group Chile signed agreement for delivery of four

barges, order backlog of MNOK 346 at end of Q3 2019

• Revenue has increased with 16 % compared to YTD Q3

2018

• EBITDA margins improved with 56% compared to last

years Q3, also improved compared to second quarter in 2019 EME

• On the back of solid order intake in Q2 AKVA group Turkey

came in with an increase in revenue compared to third quarter last year

• AKVA group Scotland with increase in both revenue and

margins compared to first two quarter of 2019

Cage Based Technology

245 418 123 142 106 74 2 4 6 8 10 12 14 100 200 300 400 500 600 700 800 633 10,2% 12,6% 2018 Q3 2019 Q3 474

EBITDA % Nordic EME Americas

Revenue and EBITDA %

• Contract for tender with Russian Sea of 11,9 expected

to be signed in Q4 19/Q1 20, 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 Q4

• Strong order backlog of 569 MNOK by the end of Q3,

up from 359 at end of second quarter last year

• Decrease in revenue for Q3 compared to third quarter

last year due to phasing of projects

• Margins still stronger than full year 2018 of 9.9%
• Pipeline of projects continue to be good in several

regions

Land Based Technology

114 83 10 9 2 4 6 8 10 12 14 20 30 40 50 60 70 80 90 100 110 120 130 10,0% 10,5% 2018 Q3 1 2019 Q3 92 124

Americas EBITDA % Nordic EME

Revenue and EBITDA %

• AKVA group Software with increased revenue and

margins in the quarter compared to Q3 2018

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

launched at Aqua Nor in August

• Digital solutions in Software integrated with control

systems and AI solutions create stronger combined

• fferings
• The divestment of Wise lausnir ehf was finalized at

end of the quarter

Software

35 23 4 4 10 20 30 5 10 15 20 25 30 35 40 45 1 23,3% 40 1 2019 Q3 2018 Q3 27,5% 28

EBITDA % EME Americas Nordic

Revenue and EBITDA %

Financials – Detailed P&L

• Of which Land Based is 569 MNOK
• Investment in subsidiaries accounted for by equity

method YTD Q3 classified as other operating revenues

• f 3.3 MNOK
• Net gain on divestment of Wise of MNOK 18
• Increased depreciation mainly due to investments in

AKVA Marine Services/Helgeland Plast and depreciation/amortization including Egersund Net and subsidiaries (4.9 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 (30%) in Grading Systems Ltd

(MNOK)

2019 2018 2019 2018 2018 Q3 Q3 YTD YTD Total Order backlog 1 524 1 085 1 524 1 085 1 356 Order intake 723 448 2 589 1 558 2 555

P&L

OPERATING REVENUES 771 637 2 422 1 853 2 579 IFRS 16 OPEX*

• 15
• 44
• Operating costs ex depreciations

672 567 2 154 1 672 2 342 EBITDA 115 70 312 181 238 Depreciation 22 17 67 47 69 IFRS 16 Depreciation* 14

• 41
• Amortization

13 9 37 27 39 EBIT 66 44 168 108 130 Net interest expense

• 6
• 4
• 16
• 10
• 14

IFRS 16 Interest expense*

• 5
• 15
• Other financial items
• 2
• 1
• 6
• 4

Net financial items

• 11
• 5
• 33
• 16
• 18

EBT 55 38 135 91 112 Taxes 13 11 33 21 22 NET PROFIT 42 27 102 70 89 Net profit (loss) attributable to: Non-controlling interests 0,5

• 0,3

2,0

• 0,4
• 0,3

Equity holders of AKVA group ASA 42 28 100 71 90

Number of shares 33 140 28 306 33 221 26 640 28 306 Revenue growth 21,1 % 31,6 % 30,7 % 21,0 % 23,5 % EBITDA margin 14,9 % 11,0 % 12,9 % 9,8 % 9,2 % EPS (NOK)

1,27 0,98 3,01 2,66 3,17

Group financial profile – remains strong

307 336 422 469 535

3Q19 3Q18 2Q19 4Q18 1Q19

Available cash

• Including 177 MNOK of a 300 MNOK credit

facility in Danske Bank and unused revolving facility of 200 MNOK, as of Q3 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

382 356 292 485 465 2 4 6 8 10 12 14 16 18 50 100 150 200 250 300 350 400 450 500 3Q18 4Q18 13,8% 10,3% 15,8% 1Q19 16,1% 2Q19 14,8% 3Q19

• The graph shows absolute working capital and

working capital relative to last twelve months revenue

• Revenue from Egersund Net is now included with 12

months revenue 217 304 379 399 2 4 6 8 10 12 14 50 100 150 200 250 300 350 400 3Q18 10,2% 10,7% 9,0% 4Q18 12,7% 1Q19 12,6% 2Q19 3Q19 262

• The graph shows 12 months average working

capital and average working capital relative to last twelve months revenue

CAPEX

5 10 15 10 000 20 000 30 000 40 000 50 000 60 000 70 000 80 000 90 000 31 666 2Q 2018 2Q 2017 14,2% 3Q 2017 4,0% 19 495 78 936 4Q 2017 4,3% 25 517 1Q 2018 6,8% 42 852 (TNOK) 16 881 3Q 2018 5,9% 5,8% 42 225 4Q 2018 4,2% 35 556 8,4% 23 913 1Q 2019 3Q 2019 3,0% 2Q 2019 64 893 2,6% CAPEX/Sales % CAPEX 83 117 Rental 30 742 Ordinary Intangible 10 502

CAPEX breakdown 2019 CAPEX and CAPEX/Revenue %

Net interest bearing debt/EBITDA of 1.8

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

279 356 309 371 632 531 726 662 1,4 2,6 2,5 1,9 2,2 1,8 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 1Q18 1,5 3Q17 2Q18 1,6 1Q19 1,3 4Q17 3Q18 4Q18 2Q19 605 3Q19 NIBD/EBITDA (12 mth rolling) NIBD Change in net interest bearing debt (TNOK)

• Excluding IFRS 16 liabilities

Net interest bearing debt 30.06.2019 725 517 EBITDA

• 96 420

Income taxes paid 8 435 Net interest paid 10 384 Capex 64 893 Divestment

• 41 736

Paid dividend 33 156 Buyback/sale own shares

• 1 977

Sale of fixed assets

• 168

Currency effects

• 2 500

Other changes in working capital

• 37 779

Net change

• 63 713

Net interest bearing debt 30.09.2019 661 805

Group financial profile – remains strong, continued

Equity and Equity / Total Balance NIBD / Equity

476 500 491 504 1 017 1 063 1 055 1 068 1 096 10 20 30 40 50 100 200 300 400 500 600 700 800 900 1 000 1 100 28,0% 1Q19 31,4% 30,1% 1Q18 3Q17 4Q17 26,8% 2Q18 38,2% 3Q18 39,3% 39,8% 4Q18 38,4% 37,8% 2Q19 3Q19 0,58 0,71 0,63 0,74 0,62 0,57 0,49 0,68 0,60 0,0 0,1 0,2 0,3 0,4 0,5 0,6 0,7 0,8 2Q19 3Q17 4Q17 1Q18 2Q18 4Q18 1Q19 3Q19 3Q18

• Total effect of IFRS 16 on the balance sheet end of September 2019 is 418 MNOK, negatively affecting the equity ratio when comparing to previous
• quarters. Not included in graph above
• Equity ratio would be 34,5% including IFRS 16 liabilities

Group financial profile – remains strong, continued

ROCE ROACE

4Q17 1Q18 9,8% 13,7% 16,4% 3Q19 4Q18 15,4% 2Q18 7,9% 13,4% 3Q17 7,9% 3Q18 7,0% 1Q19 8,5% 2Q19 1Q18 16,8% 16,9% 4Q17 8,6% 3Q17 14,0% 3Q18 14,5% 2Q18 11,9% 9,1% 4Q18 1Q19 9,0% 2Q19 3Q19 10,1%

• Q3 including twelve months of EBIT from Egersund Net for first time

since acquisition in August 2018

• ROCE is calculated ex balance sheet items of IFRS 16
• Q3 including twelve months of EBIT from 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)

Q3 Q3 YTD YTD Total Net cash flow from operations 76 905 65 246 229 944 155 756 204 735 Net cash flow from change in w orking capital 37 779

• 55 555
• 94 777
• 69 513
• 50 821

Net cash flow from operational activities 114 684 9 692 135 167 86 243 153 913 Net cash flow from investment activities

• 10 089
• 178 786
• 96 114
• 228 523
• 270 673

Net cash flow from financial activities

• 132 108

169 618

• 38 660

187 223 158 880 Net change in cash and cash equivalents

• 27 513

524 393 44 943 42 121 Net foreign exchange differences 5 095

• 1 994

807

• 6 510
• 2 227

Cash and cash equivalents at the beginning of the period 180 481 156 872 156 862 116 969 116 969 Cash and cash equivalents at the end of the period 158 062 155 402 158 062 155 402 156 862

Balance sheet

BALANCE SHEET 2019 2018 2018 (MNOK) 30.09 30.09 31.12

ASSETS 3 175 2 663 2 703 Intangible non-current assets 1 047 1 080 1 085 Tangible non-current assets 361 324 332 Financial non-current assets 74 64 73 IFRS 16 - RoU Asset 418

• Inventory

453 427 462 Receivables 663 588 571 Cash and cash equivalents 158 136 133 Assets held for sale

• 44

47 LIABILITIES AND EQUITY 3 175 2 663 2 703 Equity 1 092 1 017 1 062 Minority interest 4 Long-term interest bearing debt 666 612 360 Short-term interest bearing debt 154 176 401 IFRS 16 - Lease Liability 424

• Non-interest bearing liabilities

835 835 855 Liabilities held for sale

• 23

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 was 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

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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 992 392 3,0 % SIX SIS AG Nominee CHE 825 932 2,5 % VERDIPAPIRFONDET ALFRED BERG GAMBA NOR 718 491 2,2 % VERDIPAPIRFONDET NORDEA KAPITAL NOR 570 123 1,7 % VERDIPAPIRFONDET NORDEA AVKASTNING NOR 415 000 1,2 % Norron Sicav - Select LUX 400 640 1,2 % VERDIPAPIRFONDET NORDEA NORGE PLUS NOR 391 883 1,2 % EQUINOR PENSJON 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 177 883 0,5 % AKVA GROUP ASA NOR 150 000 0,4 % BJØRN DAHLE NOR 142 769 0,4 % VERDIPAPIRFONDET DNB SMB NOR 107 610 0,3 % METZLER EURO SMALL + MICRO CAP IRE 100 000 0,3 % UBS Europe SE Nominee LUX 100 000 0,3 % ASKVIG AS NOR 100 000 0,3 % BERGEN KOMMUNALE PENSJONSKASSE NOR 90 312 0,3 % STATOIL FORSIKRING A.S NOR 30 872 390 92,6 % 20 largest shareholders 2 461 913 7,4 % Other 33 334 303 100,0 % Total number of shares as per 30.06.2019

No of shares % Origin No of shareholders

26 249 997 78,7 % Norway

755

3 919 940 11,8 % Great Britain

19

1 068 772 3,2 % Switzerland

5

907 800 2,7 % Luxembourg

5

362 020 1,1 % Finland

4

825 774 2,5 % Other

109 Total number of shareholders: 897 - from 26 different countries 10 000 000 20 000 000 30 000 000 40 000 000 50 000 000 60 65 70 75 80 85

• kt.18

nov.18 des.18 jan.19 feb.19 mar.19 apr.19 mai.19 jun.19 jul.19 aug.19 sep.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 11 countries. 1 443 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 954 586 844908 283 430 479 629 437 620449 611 417 629 359 569 412 537448

2017

822 1 380

2016 2016 2019 2018 2017 2019 2017 2018 2016 2018

1 572

2019 2016 2017 2018 2019

1 274 697 1 077 1 430 1 611 1 318 886 1 085 1 523 998 1 381 1 356 340 486 588 806 283 475 384 682 360 454 414 672 489 525 779 101 103 300 250 304 87 77 92 51 72 218 55 533

2016

1 106

2016 2017 2018 2019

51

2019 2018 2017 2019

57

2016

441

2017

34

2016

33

2019 2017 2018 2018

589 639 471 760 417 546 448 778 561 557 997 778

Land Based Wise Other

Order backlog Order intake

• 37% of total order backlog relates to Land Based Technology (LBT)
• Order intake of 723 MNOK in Q3 2019
• 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 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

Outlook – AKVA group

• Digitalization strategy making further progress with additional

installations for Intelligent feeding (also in Norway)

• Competitive position strengthened by new cage concept and

waterborne feeding, launched Q3

• 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, investigations
• ngoing for establishing net services
• Presence in eastern Canada, good progress made in the quarter

with regards to establishing a service business

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