Eqva : Report Q4 2023

Eqva ASA

Fourth quarter report 2023

28 February 2024

Agenda

1. Business update
2. Operational and financial highlights
3. Outlook

Enclosure

• Consolidated financial statements

The financial report does not meet the requirements for an IAS 34 report, but the accounting principles (as stated in the annual accounts) are followed in the group

Q4 Highlights - 75% y/y organic growth and increased margins

Strong development in the Products, Solutions & Renewables segment

Solid operational performance in Eqva, driven by volume increase and improved sales and margins in the Products, Solutions & Renewables segment

Robust order book (+62% NOK 487m) and positive outlook for FY2024 - mainly driven by BKS

Full year 2023 - key figures

(unaudited, amounts in NOK)

Products, Solutions & Renewables

• Significant revenues growth - up 75 % compared to last year
• Adjusted EBITDA margin increased to 8.6 %, compared to 5.3 % last year, as growth is capitalizing on current cost levels

Other

• Strategic divestment of the shipyard Havyard Leirvik in November 2023 allows Eqva to focus on current portfolio companies as well as new investment opportunities
• Acquisitions of LOS Gruppen and Kvinnherad Elektro, two high-potential Power & Automation providers, are expected to be concluded during primo Q2 2024, in line with our proactive M&A strategy

Revenues

687 million*

Order book 31.12.2023

487 million

Order book 31.12.2022

300 million*

Adjusted EBITDA

42 million*

Reported:

Equity ratio

40 %

*Pro-forma: Excl. discontinued operations (Havyard Leirvik)

Page 3

New contracts awarded - orderbook remains solid

Orderbook at NOK 487m (+62% y/y), high activity on current projects

• Increased contract scope on existing customers like Boliden, Hydro, Aker Solutions, Scale AQ and Westcon
• New contracts secured with key customers in process, offshore and landbased industries
• Stable and high volumes on frame agreements with main customers
• Significant share of ongoing projects related to clean energy, decarbonization and optimized energy usage
• • Growing demand for such expertise, and it is expected that such climate and environmental projects will form an even larger part of the business in the years to come

One of the world's most climate-effective zinc plants to become even more

climate-friendly, Odda

Page 4

Agenda

1. Business update
2. Operational and financial highlights
3. Outlook

Enclosure

• Consolidated financial statements

The financial report does not meet the requirements for an IAS 34 report, but the accounting principles (as stated in the annual accounts) are followed in the group

Segment overview

Key financial figures - full year 2023

• Adjusted EBITDA margin excluding discontinued operations at 6.1 %
• Products, Solutions & Renewables delivers a strong year
• • 8.6 % adjusted EBITDA margin for the segment
  • Negatively impacted by non-recurring effects; insolvency of customer, impact approx. NOK 9m (BKS), insolvency of sub-contractor, impact approx. NOK 4m (Fossberg Kraft), and a one-time management fee from Eqva of NOK 8m (BKS).
• FY2023 financials were impacted by poor performance from the Maritime Services segment (Havyard Leirvik)
• • The shipyard Hayard Leirvik was sold to Tersan in November 2023. The transaction was settled by NOK 30m in net cash

	Products,	Maritime	Real	Other /	Eqva	Eqva group ex.
	Solutions &
NOK million	Services	estate	Elim.	group*	discontinued*
Renewables
Revenues	687.1	107.6	10.1	-10.0	794.8	687.2
Materials and	294.0	66.5	0.1	0.0	360.6	294.1
consumables
Payroll expenses	259.3	38.7	0.0	14.0	312.1	273.3
Other opex	95.7	19.5	0.7	-9.3	106.6	90.8
EBITDA	38.2	-17.2	9.3	-14.8	15.6	29.0
Non-recurring	21.0					13.0
events
Adjusted EBITDA	59.2					42.0
Adjusted EBITDA %	8.6%					6.1%

*Consolidated financial statements for Eqva includes Havyard Leirvik accounts until the end of Q3 2023 (discontinued).

Page 6

Products, Solutions & Renewables

Capitalising on strong order book - increasing volumes and margins

• Significant organic revenue growth 75% where EBITDA	Revenue
compared to last year was up 109%		YTD
		687,1
• Growth primarily driven by BKS - high activity levels on	392,4
ongoing projects
• Strong order intake and orderbook gives traction to sustain
high activity level in 2024	Q4-22	Q4-23
• Growth is capitalizing on current cost levels - significantly
increasing profit margins
• Fossberg Kraft - two ongoing projects	Orderbook
• Delivery of Skjeggfoss power plant delayed by approx.
1 month due to insolvency of sub-contractor		487
• Construction of Haugsvær power plant on track	300
• In tender phase of new projects in hydro and solar power
	Q4-22	Q4-23

Amounts in NOK million

	EBITDA
	YTD
		59,2
	38,2
18,3
Q4-22	Q4-23	Adjusted
		Q4-23

EBITDA margin

	YTD
		8.6%
4.7%	5.6%
Q4-22	Q4-23	Adjusted
		Q4-23

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BKS in brief

60% y/y increased sales, adj. EBITDA up y/y from 4.6% to 8.1%

A part of Eqva

Company highlights	Financial performance

• Founded in 2008 and HQ in Sunde, Kvinnherad
• ~350 employees spread across 5 companies
• BKS is a fully integrated system supplier of technical installations, meaning presence throughout the entire value-chain in industrial deliveries from idea to installation
• It performs a wide range of tasks, from simple missions to complete cross-functional deliveries
• Goal to be a preferred and competitive supplier and partner to maritime, offshore and land-based industries in Norway
• 27 per cent CAGR (2018-2023)

Revenues, NOKm

EBITDA, NOKm

							619,7
				CAGR 27 %
						385,3
	288,8	268,4		313,6
186,7										Adjusted
									EBITDA
									50.5
14,4	20,7	16,4	14,2	16,7	33,5
2018	2019	2020		2021	2022	2023

Full-service provider

Selected customer base

Idea Development Production Delivery

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Solid financial position

Balance sheet as of 31 December 2023

NOK million

• Equity ratio of 40 % at the end of Q4 NOK in million

• Net interest-bearing debt was NOK 158m at the end of Q4. Increased sales have led to increased use of RCF
• Cash position of NOK 28m at the end of Q4
• The overdraft facility in BKS was increased to NOK 50m to strengthen the working capital due to strong growth
• The construction loans in Fossberg Kraft increased due to project development. These loans will be repaid when projects are delivered to customer.
• Strong cash generation expected in Q1 2024

Intangible assets

P, P & E

Other non-cur. assets

Current assets

750	750
279	301	Equity
154	177	Debt to financial
	institutions
28
289	272	Other debt
Assets	Equity & Debt

Page 9 *NIBD definition: Debt to financial institutions less unrestricted cash. Construction loans not included as part of NIBD.

Orderbook remains solid

Supports continued optimistic outlook in turbulent market sentiment

NOK in million

• Products, Solutions & Renewables orderbook at NOK 487 million

• BKS orderbook at NOK 460 million

• Fossberg Kraft orderbook NOK 27 million

• Continued strong order intake and orderbook gives traction to sustain high activity level and further growth in 2024

NOK million Equity

Goodwill

487

300

Q4 2022

Q4 2023

Current assets

Products, Solutions & Renewables

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