Q4 2019 Presentation Oslo 14 February 2020 Knut Nesse, CEO Agenda - - PowerPoint PPT Presentation

Q4 2019 Presentation

Oslo – 14 February 2020 Knut Nesse, CEO

Highlights Financial performance Outlook Q&A

Agenda

Highlights Q4 2019

• Order intake of 1425 MNOK
• 500 MNOK order with Nordic Aqua Partners for a land based

salmon farming facility in China

• 10,3 MEUR contract with Cooke Aquaculture for a smolt

facility in Chile.

• Order signed for phase 3 of a smolt facility at Tytlandsvik

Aqua

• Strong quarter for Europe & ME, especially within export
• Last twelve months order intake of 4,014 MNOK, compared to

2,555 MNOK full year 2018

Order intake

Strong order intake

543 342 376 732 762 644 695 591 51 87 218 300 50 815 45 38 38 33 46 43 2Q18 34

SW

3Q18 4Q18 77 44 3Q 19 19 4Q 19 448 2Q19 1 425

CBT LBT

1Q19 997 639 471 1 107 760 778 1Q18 +43%

Technology for sustainable biology

• The software business sold in 2019 was included with 29

MNOK in Q4 2018

• Americas (Chile) and the Nordics have both significant

higher order books compared to last year, but less revenue in the quarter

• Land Based do also have significant higher order book,

though specifically due to one project being temporarily put

• n hold, has less revenue compared to last year
• Combined, export and Scotland have doubled their revenue

in the period

Revenue development

589 627 637 726 852 798 753 655 18 1Q18 3Q19 2Q18 1Q19 3Q18 2Q19 4Q18 4Q19

• 10%

Revenue

Gain sale Wise

Technology for sustainable biology

• EBITDA of minus 40 MNOK in the quarter, including 15 MNOK in effect of

reclassification due to IFRS 16 (leases)

• The software business sold in 2019 was included with 5 MNOK in Q4

2018

• Americas has improved EBITDA margins compared to last year, although

absolute contribution in the period is down.

• The Nordic CBT segment (excluding Egersund Net) is improved in the

quarter with good performance in Sperre and AMS

• The activity in Egersund Net has been low compared to LY, with effect on

absolute and relative EBITDA

• The results in the quarter are impacted by certain exceptional items

which are further described on the next slides

EBITDA development

60 59 52 71 57 82 86 82

• 55

18 60 4Q17 1Q18 2Q18 59 3Q18 4Q18 1Q19 8 57 71 2Q19 3Q19 4Q19 52 97 101 115

• 40

8 7 7 7 8 7 8

• 171%

EBITDA

IFRS 16 - EN Gain sale Wise IFRS 16 - AKVA

Exceptional items in Q4

 Profit warning sent January 20th as preliminary Q4 numbers was poor compared to expectations:  Exceptional high guarantee costs within the Nordic Cage based segment  Several projects within cage based with cost overruns  Bad debt and claims within the Land Based segment  Write off of control system modules to be phased out  The above is estimated to around 55 MNOK – around 25% related to Land Based and the rest to Cage Based.

• EBIT expectations for Q4 after this was negative with 25-30 MNOK

 Year-end closing procedures uncovered significant losses in Land Based projects, new profit warning sent February 7th  Losses not accounted for fully during the year – all projects in Danish subsidiaries revisited  Approximately 72 MNOK in additional losses

• EBIT after this for Q4 negative with 106 MNOK

Review of Land Based activities

 What happened and why  Late awareness of cost overruns in projects  Incorrect financial recognition from project accounting  Actions in progress  Third party evaluation of project management competence  Strengthening the organization with new positions  Evaluation of margin in order backlog  New generation of projects being started  Project execution capabilities will be strengthened  Improved engineering and known technology  Improved risk management  Pricing of all larger projects reviewed – normal margins expected

MNOK

Technology for sustainable biology

• Fourth quarter 2019 – Highlights

– Order backlog at end of December of 2.3 BNOK – Included orders in Q4 for a RAS facility in Chile with Cooke (10,3 MEUR) and a RAS facility (full grow out) in China with Nordic Aqua Partners for 500 MNOK – Solid growth in backlog also within export, Scotland and Spain – Other larger orders in backlog includes 4 barges for Chile with a value

• f 12,6 MUSD

– Won Land Based tender with Russian Sea of 11.9 MEUR in June, not yet in backlog

Record high order backlog

844 951 825 726 908 982 961 955 1 020 537 479 449 359 448 629 611 569 1 274 1 572 1 611 4Q17 3Q19 1Q19 3Q18 1Q18 2Q19 2Q18 1 430 4Q18 4Q19 2 294 1 381 1 274 1 085 1 356 1 524 +69% Land Based

Order backlog

Key financial metrics

144 240 238 272 Q4 16 Q4 17 Q4 18 Q4 19 +89%

EBITDA

1 603 2 088 2 579 3 077 Q4 17 Q4 16 Q4 18 Q4 19 +92%

Revenue

1,06 3,86 3,17 0,44 0,34 0,42 0,47 0,59 Q4 18 Q4 17 Q4 16 Q4 19

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

105 90 106 74 59 76 83 113 125 139 177 145 136 155 144 372 412 392 506 633 603 541 428 589 Q3 18 Q1 18 Q3 19 655 42 Q2 18 Q4 18 Q1 19 Q2 19 Q4 19 627 852 637 726 798 771 Americas Nordic EME 65% Q2 18 63% Q1 18 19% 66% 18% 22% Q4 18 20% 14% Q3 18 61% 22% Q1 19 17% 17% 70% 24% 6% 74% 9% 17% 7% Q2 19 70% 20% 10% Q3 19 13% Q4 19 76%

• Egersund Net contributing 82 MNOK in the quarter, with

increased margins this quarter compared to 4Q 2018

• Stable development for the rental business (Scotland and

Norway) in 2019

• AKVA group Software with revenue increase of 10 % compared to

Q4 last year

• The high activity level in the Norwegian marine service business

continues, and with significant improved margins in fourth quarter 2019 compared to Q3 2018

• The Norwegian marine service business with solid order backlog

Development in OPEX based revenue

130 141 149 151 144 146 136 116 31 94 90 112 104 82 5 10 15 20 25 30 35 50 100 150 200 250 300 31,2% 4Q18 22,1% 33,8% 1Q18 22,5% 28,2% 2Q18 3Q18 27,5% 1Q19 32,3% 2Q19 3Q19 30,1% 4Q19 OPEX Based revenue Egersund Net % of total revenue

Revenue by product group and species

By product groups – Q4 2019 By species – Q4 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

503 526 539 610 774 719 669 598 51 37 68 34 1Q18 47 2Q18 3Q18 42 23 1Q19 2Q19 13 3Q19 Non seafood 46 627 Other species 589 771 637 56 726 852 52 Salmon 655 35 55 798 4Q19 4Q18 66 74 20 351 370 334 352 500 446 439 349 82 98 140 201 189 218 212 180 116 124 129 118 47 42 40 44 44 39 28 16 108 1 3Q18 1 4Q18 CBT 1Q19 LBT 3Q19 2Q19 95 2Q18 1 Software 4Q19 LBT S&AS 589 627 637 1 CBT S&AS 852 771 655 1Q18 726 1 798 1 92 109

Technology for sustainable biology

• Challenging quarter with various exceptional items causing profit warning, and subsequently findings of irregularities within project

accounting within Land Based

• Solid order intake within Land Based and first large order for a full grow out salmon facility signed, with a value of 500 MNOK – new

strategy for full grow out under development

• The co-operation agreement for Land Based projects entered into with Cooke Aquaculture, resulted in an order for a RAS facility in Chile,

with a value of 10,3 MEUR

• Good progress made on establishing service business on New Foundland (agreement to acquire New Foundland Aqua Service Ltd signed

in 2020)

• New organizational structure established, see next slide. Plans for further strengthening the organization under development
• AKVA Observe (precision feeding) offering in high demand, pipeline is growing
• Strategy process initiated
• Development of new camera system, next generation Tube Net and AKVAconnect control system, progressing well

Q4 – Operational Highlights

Technology for sustainable biology CEO* CAGE BASED INTERNATIONAL COO*

Americas UK Australasia Turkey Spain Greece

CAGE BASED NORDIC COO*

Nordic Nordic Services Export Sperre Helgeland Plast AKVA Marine Services

CAGE BASED EGERSUND NET COO*

Egersund Net Egersund Trading UAB Egersund Net Emel Balik (50%) Grading Systems (70%)

DIGITAL COO*

Software IT Operations New digital solutions

LAND BASED COO*

Denmark Norway Chile

CFO*

Marketing & Communications Supply Chain & Business Excellence Research & Development CTO* HR & HSE Quality Management

New management structure

* Part of Group Management Team

Group Strategy process initiated – key themes

Land Based

On-growing Post Smolt

Digital

Data Platform Computer vision / AI

Innovation

Prioritization Fish health concepts

Learning & Development

People and competence Project and contract management

Separate focus on full grow out RAS facilities

• AKVA as strategic partner in NAP
• Potential equity stake to secure partnership and

successful execution

• Learning and developing by a close follow-up on

all technical, operational and biological performance measures

• Additional projects in pipeline

Financial performance Q4 2019

• Last twelve months order intake and revenue now at

4,014 MNOK and 3,077 MNOK respectively

• The order book has increased to 2,294 MNOK at the end of

Q4 2019, an increase of 783 MNOK in Q4

• Strong growth in export and Scotland in the quarter, decline

in Americas

• Last year software revenues included 29 MNOK from Wise,

an Icelandic business which were sold in Q3

• Lower activity in Egersund Net in the period, revenues of

117 MNOK compared to 152 MNOK in Q4 2018

Revenue

Q4 2019 – Financial highlights

393 408 354 449 510 537 484 557 589 627 637 726 852 798 771 655 Q1 Q3 Q2 Q4 2016 2018 2019 2017

• Solid margins in Americas, although lower activity and absolute

contribution compared to Q4 2018.

• Nordic CBT segment improved from Q4 2018, with solid results from

net washing in sea and Sperre (ROV).

• Lower activity in Egersund Net in the quarter, with impact on

absolute and relative EBITDA.

• Low activity in the Land Based segment, amongst others due to one

specific project being temporarily delayed.

• EBITDA positively affected by 15 MNOK due to implementation of

IFRS 16 in the quarter (59 MNOK YTD)

• Exceptional items impacted the results negatively, see separate slide

EBITDA (MNOK)

Q4 2019 – Financial highlights

40 43 38 24 54 65 61 60 59 52 71 57 97 101 115

• 40
• 50

50 100 150 Q2 Q1 Q3 Q4 2016 2019 2017 2018

• 10
• 5

5 10 15 Q4 Q2 Q3 Q1 14,9% 10,1% 10,6% 11,1% 10,0% 11,4% 10,4% 12,1% 8,3% 12,6% 10,8% 12,6% 5,3% 10,8% 7,8%

• 6,1%

EBITDA %

Nordic

• Compared to Q4 2018, improved results from the

Norwegian CBT business (excluding Egersund Net)

• Continued strong improvement in quarter from AKVA

Marine Services (net cleaning in sea), and Sperre (ROV)

• Lower activity in Egersund Net, and increased costs
• n guarantees, caused EBITDA to decrease in the

period

Cage Based Technology

359 323 152 123 82 2 4 6 8 100 200 300 400 500 600 700 800 2018 Q4 6,2% 41 529 5,9% 553 2019 Q4

EBITDA % EME Nordic Americas

Revenue and EBITDA %

Americas

• 4 barges in backlog, delivered from shipyard in Vietnam,

for delivery to customer in Q3/Q4 2020

• Solid and improved EBITDA margin in Chile in the Q4 2019

compared to same quarter last year EME

• Despite a challenging economical environment, Turkey

delivered positive EBITDA in the quarter and for the full year of 2019.

• Scotland improved its results from loss making in Q4 2018

to profit contribution in Q4 2019

• Strong contribution from export

Cage Based Technology

359 323 152 123 82 2 4 6 8 100 200 300 400 500 600 700 800 6,2% 5,9% 41 2018 Q4 2019 Q4 529 553

EME EBITDA % Americas Nordic

Revenue and EBITDA %

• A contract with Cooke in Chile for 10,3 MEUR

as well as a contract with Nordic Aqua Partners were signed in Q4 2019

• Strong order backlog of 1,2 billion NOK at the

end of 2019

• Low activity in the quarter, especially due to
• ne project being temporarily delayed
• Exceptional items hampering results, see

separate slide

Land Based Technology

110 94 18 16

• 70
• 60
• 50
• 40
• 30
• 20
• 10

10 20 20 30 40 50 60 70 80 90 100 110 120 130 1 10,0% 2019 Q4 2018 Q4

• 69,8%

129 110

EBITDA % Americas EME Nordic

Revenue and EBITDA %

• Last year revenue and EBITDA included 29 MNOK

and 5 MNOK respectively, from the divested software business on Iceland

• New recurring business model is being

developed for control systems

• Renewal of Fishtalk creates more sales
• pportunities
• Leads and pipeline for Precision feeding software

(Observe) is increasing

Software

39 11 4 5 10 20 30 40 50 60 70 5 10 15 20 25 30 35 40 45 20,7% 16 1 2018 Q4 1 44 33,6% 2019 Q4

EBITDA % EME Nordic Americas

Revenue and EBITDA %

(MNOK)

2019 2018 2019 2018 2018 Q4 Q4 YTD YTD Total Order backlog 2 294 1 356 2 294 1 356 1 356 Order intake 1 438 997 4 014 2 555 2 555

P&L

OPERATING REVENUES 655 726 3 077 2 579 2 579 IFRS 16 OPEX*

• 15
• 59
• Operating costs ex depreciations

710 670 2 864 2 342 2 342 EBITDA

• 40

57 272 238 238 Depreciation 25 22 89 69 69 IFRS 16 Depreciation* 15

• 58
• Amortization

25 12 62 39 39 EBIT

• 106

22 62 130 130 Net interest expense

• 5
• 4
• 22
• 14
• 14

IFRS 16 Interest expense*

• 5
• 20
• Other financial items
• 6

2

• 7
• 4
• 4

Net financial items

• 16
• 2
• 49
• 18
• 18

EBT

• 122

20 13 112 112 Taxes

• 36

1

• 3

22 22 NET PROFIT

• 85

19 17 89 89 Net profit (loss) attributable to: Non-controlling interests

• 0,0

0,0 2,0

• 0,3
• 0,3

Equity holders of AKVA group ASA

• 85

19 15 90 90

Number of shares 33 156 33 306 33 205 28 306 28 306 Revenue growth

• 9,8 %

30,5 % 19,3 % 23,5 % 23,5 % EBITDA margin

• 6,1 %

7,8 % 8,8 % 9,2 % 9,2 % EPS (NOK)

• 2,57

0,57 0,44 3,17 3,17

Financials – Detailed P&L

• Of which Land Based is 1,274 MNOK
• Investment in subsidiaries accounted for by equity

method YTD Q4 classified as other operating revenues

• f 6.0 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

Group financial profile – remains strong

336 422 469 535 565

4Q19 2Q19 3Q19 4Q18 1Q19

Available cash

• Including 204 MNOK of a 300 MNOK credit

facility in Danske Bank and unused revolving facility of 200 MNOK, as of Q4 2019

• Secured additional 100 MNOK of long term

loans and established a new 200 MNOK revolving credit facility in Q2 2019

Working capital Average working capital

356 292 485 465 274 2 4 6 8 10 12 14 16 18 50 100 150 200 250 300 350 400 450 500 10,3% 4Q18 13,8% 1Q19 2Q19 16,1% 14,8% 3Q19 4Q19 8,9%

• 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 304 379 399 2 4 6 8 10 12 14 50 100 150 200 250 300 350 400 10,7% 4Q18 10,2% 1Q19 12,6% 2Q19 12,7% 3Q19 262 4Q19 9,4% 290

• 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 64 893 14,2% 4,2% 19 495 4,0% 42 225 (TNOK) 4Q 2018 4,3% 3Q 2017 3Q 2018 4Q 2017 25 517 1Q 2018 6,8% 42 852 2Q 2018 2,6% 3,0% 16 881 2Q 2019 78 936 5,8% 35 556 1Q 2019 23 913 8,4% 3Q 2019 6,7% 43 888 4Q 2019 CAPEX/Sales % CAPEX 20 518 103 422 Rental Intangible 44 309 Ordinary

CAPEX breakdown 2019 CAPEX and CAPEX/Revenue %

Net interest bearing debt/EBITDA of 2,3

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

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

• Excluding IFRS 16 liabilities

Net interest bearing debt 30.09.2019 661 805 EBITDA 40 250 Income taxes paid

• 6 928

Net interest paid 10 354 Capex 43 888 Long-term financial assets 397 Paid dividend

• Buyback/sale own shares
• Sale of fixed assets
• 383

Currency effects 2 087 Other changes in working capital

• 119 903

Net change

• 30 237

Net interest bearing debt 31.12.2019 631 567

Group financial profile – remains strong, continued

Equity and Equity / Total Balance NIBD / Equity

500 491 504 1 017 1 063 1 055 1 068 1 096 991 10 20 30 40 50 100 200 300 400 500 600 700 800 900 1 000 1 100 30,1% 1Q18 4Q17 3Q18 28,0% 26,8% 38,2% 1Q19 2Q18 39,3% 4Q18 38,4% 37,8% 2Q19 39,8% 3Q19 37,9% 4Q19 0,71 0,63 0,74 0,62 0,57 0,49 0,68 0,60 0,64 0,0 0,1 0,2 0,3 0,4 0,5 0,6 0,7 0,8 1Q18 2Q18 4Q17 3Q18 4Q18 3Q19 1Q19 2Q19 4Q19

• Total effect of IFRS 16 on the balance sheet end of December 2019 is 417 MNOK, negatively affecting the equity ratio when comparing to previous
• quarters. Not included in graph above
• Equity ratio would be 32,7% including IFRS 16 liabilities

Group financial profile, continued

ROCE ROACE

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

• Exceptional items impacting Q4 ROCE
• ROCE is calculated ex balance sheet items of IFRS 16
• 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)

Q4 Q4 YTD YTD Total Net cash flow from operations

• 49 576

48 978 180 368 204 735 204 735 Net cash flow from change in w orking capital 134 186 18 692 39 409

• 50 821
• 50 821

Net cash flow from operational activities 84 610 67 670 219 777 153 913 153 913 Net cash flow from investment activities

• 43 995
• 42 149
• 140 109
• 270 673
• 270 673

Net cash flow from financial activities

• 36 207
• 28 343
• 74 867

158 880 158 880 Net change in cash and cash equivalents 4 408

• 2 822

4 801 42 121 42 121 Net foreign exchange differences

• 1 471

4 283

• 664
• 2 227
• 2 227

Cash and cash equivalents at the beginning of the period 158 062 155 402 156 862 116 969 116 969 Cash and cash equivalents at the end of the period 160 999 156 862 160 999 156 862 156 862

Balance sheet

BALANCE SHEET 2019 2018 (MNOK) 31.12 31.12

ASSETS 3 033 2 703 Intangible non-current assets 1 028 1 085 Tangible non-current assets 364 332 Financial non-current assets 75 73 IFRS 16 - RoU Asset 417

• Inventory

514 462 Receivables 475 571 Cash and cash equivalents 161 133 Assets held for sale

• 47

LIABILITIES AND EQUITY 3 033 2 703 Equity 986 1 062 Minority interest 4 Long-term interest bearing debt 665 360 Short-term interest bearing debt 127 401 IFRS 16 - Lease Liability 425

• Non-interest bearing liabilities

825 855 Liabilities held for sale

• 24

Dividend Policy

• The company is aiming to give the shareholders a competitive return
• n 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 is to be paid out in Q1 2020

Dividend and dividend policy

1,00 1,00 1,00 0,75 1,25 1,50 1,75 1,00 2018 2008 2016 2014 2017 2015 2019 2020 Q1 YTD

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 1 179 392 3,5 % SIX SIS AG Nominee CHE 866 930 2,6 % VERDIPAPIRFONDET NORDEA KAPITAL NOR 825 932 2,5 % VERDIPAPIRFONDET ALFRED BERG GAMBA NOR 614 569 1,8 % VERDIPAPIRFONDET NORDEA AVKASTNING NOR 435 740 1,3 % VERDIPAPIRFONDET NORDEA NORGE PLUS NOR 356 300 1,1 % MP PENSJON PK NOR 344 883 1,0 % EQUINOR PENSJON NOR 329 950 1,0 % J.P. Morgan Bank Luxembourg S.A. Nominee LUX 300 000 0,9 % NORDEA NORDIC SM CAP FD FIN 259 600 0,8 % Norron Sicav - Select LUX 177 883 0,5 % AKVA GROUP ASA NOR 150 000 0,4 % BJØRN DAHLE NOR 139 071 0,4 % VERDIPAPIRFONDET DNB SMB NOR 100 000 0,3 % UBS Europe SE Nominee LUX 100 000 0,3 % ASKVIG AS NOR 100 000 0,3 % BERGEN KOMMUNALE PENSJONSKASSE NOR 84 146 0,3 % NORSK LANDBRUKSKJEMI AS NOR 81 912 0,2 % EQUINOR INSURANCE AS NOR 31 049 413 93,1 % 20 largest shareholders 2 284 890 6,9 % Other 33 334 303 100,0 % Total number of shares as per 31.12.2019

Outlook – by CEO Knut Nesse

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. 1 436 employees

Solutions

Cage Based Technology Land Based Technology Software

OPEX Based Revenue CAPEX Based Revenue

Order backlog and inflow, 2016 through 2019

414647 951982 385 698825961 468 751726954 586 844908 283 430 479629 437 620449 611 417 629 359 569 412 537448 1 274

2019 2016 2017 2018 2017 2016 2016

1 356

2019 2017

1 572

2018 2019

1 523 1 274

2018

1 430

2017 2018 2019

1 020 1 611 697 1 077 822 1 318 886 1 380 1 085 998 1 381 2 294

2016

340 486 588 806 283 475 384 682 360 454 414 672 489 525 779 610 101 103 300 250 304 51 218 815 55 33

2016

997

2018

87 533

2017

57

2017

51

2016 2018

417 77

2019 2016

34 92 589

2017 2016 2018

441

2019

72

2017 2018 2019

639

2019

778 471 760 546 1 106 778 561 557 1 425 448

Wise Land Based Other

Order backlog Order intake

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

Outlook – AKVA group

• Strategy process to be revisited, on the basis of strong financial capacity and amongst
• ther stronger focus on full grow out RAS facilities within the Land Based segment
• New organizational structure established. Plans for further strengthening the organization

under development

• Service station for nets to be built in northern Norway (with partner), plans for additional

station underway

• Plans underway to further expand net sales internationally
• Presence in eastern Canada, good progress made in the quarter with regards to

establishing a service business – agreement signed for the purchase of Newfoundland Aqua Service Ltd.

• Strong order backlog, especially within Land Based, profit review of backlog carried out
• Competitive position strengthened by new cage concept and waterborne feeding,

launched Q3, as well as environmental sensor buoys and new digital camera launched in Q1 2020. New generation Tube Net (preventive sea lice solution) under development, strong interest in the market

• Digitalization strategy making further progress with additional installations for Precision

feeding – pipeline is growing