Untitled

EQVA ASA

ANNUAL

REPORT

2022

2ANNUAL REPORT 2022

Eqva ASA is a knowledge-based active owner of industrial

service companies that contribute to the green transition in

maritime, power intensive and renewable industries.

The group has a well-diversied product and market portfolio.

Further growth and value creation will be obtained through

a combination of industrial excellence in each portfolio

company, synergies between the companies in the group

and value-creating M&A activities.

THIS IS EQVA

ANNUAL REPORT 2022

Maritime service provider

with attractive location, strong

infrastructure and skilled

organisation.

Full-service provider of

technical, sustainable solutions

and services to maritime and

landbased industries.

A specialiced hydropower

plant developer and operator

4ANNUAL REPORT 2022

Digital solutions and green technology are needed and included in new

projects and retrotted in existing production assets and plants. This creates

an unprecedented demand for industrial services, which our portfolio

companies are well equipped to meet through their market leading positions

and focus on service and high quality in each delivery. In total this provides

a strong foundation for protable organic growth.

The transformation of industries and the new business models that emerge

create opportunities for consolidation and re-engineering of industrial service

companies. Eqva is well placed to take the lead in such transformation. It is

a responsible owner with an eternal investment perspective, and it aims to

maximise nancial return over time.

STRATEGIC PRIORITIES

The race towards carbon neutrality

is on, and customers are turning to

Eqva for help.

ANNUAL REPORT 2022

Eqva is supported by highly committed owners and powered by experienced investment

professionals and industry leaders. Our portfolio companies have earned the trust of their

customers through decades of successful deliveries, on time and within budget. Together

we take pride in delivering value to our shareholders by delivering the best possible service

to our customers.

Eqva’s nancial targets for 2023

• NOK 650-750 million in revenue

• 4-7 per cent EBITDA margin

Eqva has set a long-term EBITDA margin target for the group, ranging between 7 to 9 per cent.

6ANNUAL REPORT 2022

1.1

1.2

1.3

1.4

1.5

1.6

2.1

2.2

3.1

3.2

3.3

3.4

3.5

3.6

4.1

4.2

4.3

4.4

4.6

ANNUAL REPORT 2022

Highlights and key figures

Eqva´s history

Letter from the CEO

The segments

Presentation of the board and management

The Eqva share

Board of Director's report and Corporate Governance

Board of Director's report

Corporate Governance report

Sustainability report

Eqva´s approach to working on ESG

ESG in a year of change

Environmental and climate perspectives

Social perspectives

Governance perspectives - Corporate responsibility

Plans and aims for 2023

Financial statements

Consolidated financial statements

Notes to the consolidated financial statements

Financial statement - Parent company

Notes to the financial statement - Parent company

Independant auditor´s report

111

CONTENT

8ANNUAL REPORT 2022

Highlights and key figures

A year of change

• New growth journey: Following the business combination with HG Group, the group became 100 per cent owner of the shares

in BKS Holding and Fossberg Kraft. This marked the start of a new growth journey – to become a leading owner of integrated

service companies that contribute to the green transition in maritime, power intensive and renewable industries. The activities

are organized in two business areas Maritime Services and Products, Solutions, and renewables.

• New name: Reecting the group’s new growth journey and strategy, the group changed its name from Havyard Group to Eqva.

• Resilient revenue: New strategy makes the group’s revenue base less volatile and more resilient to market cycles, proving key

in a year of unprecedented uncertainties, such as the covid-19 restrictions, geopolitical tensions, long lead time for materials,

high ination and war in Europe.

• Successful strategic shift in Maritime Services: The high activity level in Havyard Leirvik includes conversion projects, service,

and maintenance on ship, in addition to deliveries to aquaculture and other industry. There is a strong focus on developing the

yard towards a multi-yard. Havyard Leirvik carried out major and minor assignments in 2022, from more standardised deliveries

to tailormade projects, including larger electrication projects for Fjord 1 and Norled.

• High activity for Products, Solutions & Renewables segment: BKS delivers a wide range of service- and maintenance projects

to the landbased- and maritime industry and enter 2023 with a strong orderbook. Fossberg Kraft has secured new sales- and

development orders of small-scale hydropower into 2023. In 2022 Fossberg developed and sold Skjeggfoss hydropower plant

to a UK infrastructure fund.

• High activity despite market headwinds: Eqva continues to play vital roles in major projects in renewable energy, infrastructure,

and maritime conversion projects along the Norwegian coast.

• Solid order book for 2023: Eqva's strong customer partnerships ensure a promising future.

Key figures 2022

• NOK 459.0 million in total operating revenues – including 6 months revenues from BKS and Fossberg Kraft

(due to date of acquisition 30 June 2022).

• Normalized total operating revenues NOK 629 million – including 12 months revenues from BKS and Fossberg Kraft

(Ref Q4 2022 report).

• NOK -9.3 million in EBITDA – including 6 months’ earnings from BKS and Fossberg Kraft.

• Normalized EBITDA NOK 18.3 million – including 12 months’ earnings from BKS and Fossberg Kraft.

• Orderbook NOK 491 million (February 2023).

• 420 FTEs in total.

ANNUAL REPORT 2022

EQVA ASA

Fosnavåg

Fossberg Kraft AS

Valen

Zenit Engineering AS

Sunde

Havyard Leirvik AS

Leirvik

Marine Support AS

Storebø

BKS Industri AS

Sunde

BKS VVS & Ventilasjon AS

Mathopen

BKS Power and Automation AS

Sunde

Our geographical footprint

Along the entire coast of western Norway

10ANNUAL REPORT 2022

Eqva´s history

Building on a more than 100 years of history, Eqva has a rich heritage in the maritime industry.

The group has continually evolved to meet the changing demands of the market.

ANNUAL REPORT 2022

Important milestones:

• 1918: Jonas Løland founded Løland Motorverksted (machine workshop) in Leirvik, which marked the start of the company's

activity in the maritime industry.

• 1938: The yard constructed its rst newbuilding, "Loftesnesferja", which was a signicant milestone for the company.

• 2008: BKS was founded as mainly a personnel and service engineering provider for the construction industry. In subsequent

years, BKS expanded its operations and developed into a fully integrated service provider for land-based industries. More

investors joined the company, leading to further growth and expansion of services offered.

• 2014: The group was listed on the Oslo Stock Exchange under the name Havyard Group.

• 2018: Fossberg Kraft was founded in Handeland Gard in Kvinnherad municipality. Since its inception, Fossberg Kraft has

expanded its hydropower portfolio to include the Ljotå hydropower plant in Bjørnafjorden municipality and the Svandalen

hydropower plant in Sauda municipality.

• 2020: The group initiated a restructuring of its yard to shift focus from new buildings to maintenance and service offerings,

which reected the company's evolving strategy.

• 2021: The group began revising its corporate strategy to focus on growth within repair, service, and maintenance in the marine

service segment, which reected its commitment to long-term success.

• 2022: The group entered into a business combination agreement, whereby the group acquired all shares of HG Group,

consisting of BKS and Fossberg Kraft, to start its journey towards becoming a fully integrated service provider to on- and

offshore industries.

• 2022: The group changed its name to Eqva and expanded its services to offer complete industrial services and renewable

energy to key customers, which marked a signicant step in the group’s growth and development.

12ANNUAL REPORT 2022

CEO letter

Two-fold strategy

Eqva of 2023 is pursuing a two-fold strategy. The company is an active industrial owner, which engage in value creating M&A.

Equally important, Eqva is also an engineering and fabrication group which provides services to other leading industrial players in

sectors that range from process- and metal industries to maritime transport and aquaculture.

We consider ourselves a leading and proactive creator of valuable businesses through organic growth and mergers and acquisitions.

We are opportunistic, but we are also focused and disciplined in our approach. We believe we are best as an owner of competence

intensive and asset light companies.

As a service provider to industry, we engage in projects that are typically complex and diversied, projects that involve a wide

range of engineering, electrical and piping disciplines, and assembly and commissioning work at customer sites. We encourage

virtues such as customer focus, attention to detail, exibility, and creativity when we together with our customers approach the

task at hand.

Common denominators

Across all our activities, there are some important common denominators. Whether we are chasing M&A opportunities, working

on large industrial projects, or providing engineering support to the well boat in our dock, there are people involved. Experienced

and skilled personnel, who are dedicated to their job and committed to deliver quality.

Environmental, social and governance (ESG) factors are important features in our business today, and strong drivers for growth.

Almost everything we do for our customers has a sustainability dimension. Fossberg Kraft’s efforts to identify and build new zero-

emission hydropower plants is an obvious example. Similarly obvious is our involvement in the expansion of the world’s most

climate effective zinc production in Odda.

Another remarkable year

In last year’s annual report, we wrote that 2021 had been a year of signicant

operational and organizational changes. 2022 also has been a remarkable year with

signicant changes to the company.

We started the year as a refocused Havyard Group. In the course of 2022, we expanded our business

through the combination with BKS and Fossberg Kraft, we have enjoyed a new ownership structure,

established a new strategy, and decided a new name: Eqva.

The name alludes to characteristics that we hold high, such as equity and equality, variety, and value. These

are words that describe our company well and reect our ambition and plans.

ANNUAL REPORT 2022

ESG is also becoming increasingly relevant in Eqva itself. In 2022, we committed to

taking our own ESG work to the next level. During 2023 we will establish clear targets

and develop a sustainability strategy and reporting procedures, which will form the

basis for our rst comprehensive sustainability report in 2024.

We hope you will enjoy reading our annual report for 2022, and that you will nd

our recent achievements and ambitions for the future relevant for you. We are

committed to creating value for all our stakeholders: customers, employees, business

partners, and shareholders alike.

We thank you all for your continued commitment and support and look forward to

yet another eventful and successful year together.

Best regards

Erik Høyvik

CEO

14ANNUAL REPORT 2022

The segments

Maritime services

The Maritime Service segment, which includes the subsidiary Havyard Leirvik,

accounted for approximately 40 per cent of Eqva`s total pro-forma revenues in 2022.

Havyard Leirvik has its roots back to 1918 and is strategically located at the far end of Sognefjorden, Norway. The location

provides easy access to the maritime industry along the Norwegian coast. The segment offers a wide range of services and

solutions to its diverse customer base, including standard maintenance services and more complex, customized projects. The

multi-yard had 69 FTEs in 2022 and has the capacity to manage several projects simultaneously.

Havyard Leirvik is committed to helping customers reduce their environmental impact, promoting energy-efcient solutions, and

increasing the competitiveness of their vessels.

Share of approximately 40 per cent of Eqva’s total revenues in 2022:

• Aquaculture

• Green power

• Maritime assets

Key markets:

40%

60%

40 %

ANNUAL REPORT 2022

Products, Solutions & Renewables

The Products, Solutions, and Renewables segment is a new reporting segment for Eqva

as of 1 July 2022. It accounted for 60 per cent of pro forma revenue in 2022.

The segment comprises two subsidiaries: BKS and Fossberg Kraft.

BKS is a full-service provider of technical installations to both land-based and maritime industry in Norway. With a strong

presence throughout the value chain, BKS has developed long-standing relationships with well-known players in the industry. BKS

was established in 2008 and is headquartered in Sunde, Kvinnherad, with branch ofces in Bergen and Austevoll. The company

had 420 FTEs at the end of 2022, of which 75 per cent are skilled professionals with at least one certicate.

Fossberg Kraft focuses on the development and operation of small-scale hydropower plants in southern Norway. Fossberg

Kraft currently operates several small-scale power plants. It is also involved in the development of new projects. Fossberg Kraft was

established in 2018 and is headquartered in Handeland, Kvinnherad. The company has 4 FTEs.

Share of approximately 60 per cent of Eqva’s total revenues in 2022:

• Renewable energy

• Solutions

• Process

Key markets:

40%

60%

60 %

16ANNUAL REPORT 2022

The board and management

Management team

Erik Høyvik

CEO

Eirik Sævareid

CFO

Tor Leif Mongstad

CEO of Havyard Leirvik

With 15 years of experience in maritime and

land-based industries. Mr. Høyvik brings

extensive knowledge to the company. He

holds 0 shares in the company.

Mr. Sævareid brings over 15 years of

experience from executive nance positions

in large industrial companies. He holds

58 297 shares in the company.

Trygve Kjerpeseth

CEO of BKS

Group Head of Risk and Projects

Bringing 15+ years of experience as a partner

in a law rm and 8 years as an in-house lawyer

in HG Group. Mr. Handeland holds 584 163

shares in the company through Handeland

Eigedom AS.

Sverre Olav Handeland

In-house lawyer

Bringing 30+ years of experience from senior

project management. Mr. Kjerpeseth holds 0

shares in the company.

With 30 years of leadership experience

with a primary focus on production and

procurement. Mr. Jensen holds 0 shares in

the company.

With 25+ years of diversied experience in

the maritime industry. Mr. Mongstad holds 0

shares in the company.

Tom Jensen

CEO of Fossberg Kraft

ANNUAL REPORT 2022

Even Matre Ellingsen

Chairman

Vegard Sævik

Board Member

Rune Skarveland

Board Member

Ellen Merete Hanetho

Board Member

Anne Soe Myrmel Bruun-Olsen

Board Member

Geir Helge Nordstrand

Board Member

Employee Representative

Jan Olav Gjerde

Board Member

Employee Representative

Former Group CEO of Astrup Fearnley with extensive board

experience in both regulated and non-regulated businesses. Mr.

Matre Ellingsen holds 7 993 462 shares in the company through

Neve Eiendom AS.

Employed in Havila Holding and holds several board positions,

and is Chairman of the Board in Fjord1. Mr. Sævik holds 1 290

000 shares in the company through Innidimman AS. Mr. Sævik

also holds a non-controlling position in Havila Holding AS which

holds 10 000 000 shares in the company.

Former CEO of Skarveland AS from 1997 to 2008 and has held

several board positions in property development, industrial, and

hydropower companies. Mr. Skarveland holds 7 960 358 shares

in the company through Eikestø AS og Eikestø Eiendom AS.

Brings over 20 years of experience in nancial and strategic

business development to the board. Mrs. Hanetho has

leadership experience from her prior positions in HydrogenPro,

MPC Energy Solutions and Goldman Sachs. Mrs. Hanetho

holds 0 shares in the company.

Mrs. Bruun-Olsen was the former CEO in Cushman & Wakeeld

Realkapital (2000-2018), now acting as senior Partner for the

company. She also brings extensive boad experience from

former board membership of Pure Water AS, NEAS ASA and

Odin Forvaltning (Sparebanken 1). Mrs. Bruun-Olsen has 25+

years of strategic, sales/marketing, and HR/people experience.

Mrs. Bruun-Olsen holds 0 shares in the company.

Board of directors

18ANNUAL REPORT 2022

The share

Eqva aims to be an attractive investment for its shareholders, delivering

competitive return through sustainable growth both organically and

through value-adding acquisitions.

Key facts

• Eqva is a publicly limited company. The share is listed on the Oslo Stock Exchange and the ticker code is EQVA.

• Eqva, formerly as Havyard Group ASA, was listed in July 2014.

• All share have equal rights and are freely transferable. Each share grants the holder one vote and there are no

structures granting disproportionate voting rights.

• 97 per cent of our shares are held by Norwegian shareholders.

• Eqva holds 323 046 treasury shares number of treasury shares as of 31 December 2022, making it the 15

largest

shareholder.

Key gures

• NOK 205.2 mill market cap as of 31 December 2022.

• 72 million number of shares.

• 3 583 number of shareholders.

• During 2022 – the total return on holding the share (including dividend of HAV-Group shares in June 2022) was 259%.

Share price development during 2022

0,5

1,5

2,5

3,5

4,5

jan. …

f eb. …

mar .…

apr.…

mai.…

jun.…

jul. 00

aug .…

sep .…

Jan 22 Feb 22 Mar 22 Apr 22 May 22 Jun 22 Jul 22 Aug 22 Sep 22 Oct 22 Nov 22 Dec 22

4,5

3,5

2,5

ANNUAL REPORT 2022

The 20 largest shareholders as of 31 December 2022

OWNER EQVA SHARE COUNTRY

1 NINTOR AS

16 938 645

23.53 % Norway

2 HAVILA HOLDING AS

10 000 000

13.89 % Norway

3 NEVE EIENDOM AS

7 993 462

11.10 % Norway

4 ROS HOLDING AS

5 660 027

7.86 % Norway

5 EIKESTØ EIENDOM AS

4 960 847

6.89 % Norway

6 FURENESET EIENDOM AS

4 960 847

6.89 % Norway

7 EIKESTØ AS

2 999 511

4.17 % Norway

8 FURENESET INVEST AS

2 999 511

4.17 % Norway

9 EMINI INVEST AS

1 290 000

1.79 % Norway

10 HSR INVEST AS

1 290 000

1.79 % Norway

11 INNIDIMMAN AS

1 290 000

1.79 % Norway

12 MP PENSJON PK

1 086 468

1.51 % Norway

13 HANDELAND EIGEDOM AS

584 163

0.81 % Norway

14 PISON AS

430 000

0.60 % Sweden

15 EQVA ASA

323 046

0.44 % Norway

16 KAMATO AS

315 000

0.44 % Norway

17 K R HÜBERTZ

226 000

0.31 % Norway

18 A JOHNSEN

221 376

0.31 % Norway

19 P A WIND

208 888

0.29 % Norway

20 CLEARSTREAM BANKING S.A.

190 203

0.26 % Norway

20ANNUAL REPORT 2022

Board of Director's report

& Corporate Governance

ANNUAL REPORT 2022

22ANNUAL REPORT 2022

BOARD OF DIRECTORS REPORT

2.1 Introduction

2022 was an eventful year for Eqva. In the beginning of the year,

the company was still trading as Havyard Group ASA at the Oslo

Stock Exchange. After the general assembly in May, the company

formally acquired all shares in BKS and Fossberg Kraft. Thus,

starting a new journey towards becoming a leading active owner

of industrial service companies that contribute to the green

transition in maritime, power intensive and renewable industries.

The strategic change was cemented by the name change to Eqva

ASA (ticker: EQVA) in October.

2.2 2022: A Year of Change and Attractive Long-Term Growth

Prospects

In 2022, Eqva started to fully deliver on its revised corporate

strategy to focus on repair, service and maintenance to the

maritime industry. The company acquired HG Group to become

a fully integrated service provider to on- and offshore industries.

By the end of the year, Eqva had developed a complete industrial

service offering and could be considered a renewable energy provider.

Key events

On 20 May 2022, Eqva (at that time Havyard) signed a business

combination agreement with the shareholders of HG Group AS

to buy all outstanding shares in the company and with Nintor

AS to buy its 50% shares in BKS Holding AS not already held

by HG Group, pursuant to which Havyard agreed to acquire all

said shares for an aggregate equity value of NOK 215 million (the

"Business Combination Agreement").

Through the Acquisition, the businesses of Havyard and HG

Group have been combined, and Havyard become a 100%

owner of BKS and Fossberg Kraft and formed the new Havyard

Group ASA. The Acquisition was completed on 29 June 2022.

In connection with completion of the Acquisition, Havyard

distributed 10,000,000 shares in HAV Group ASA, which were

owned by Havyard, as dividend to its existing shareholders,

corresponding to approximately 0.4035 HAV Group ASA shares

per Havyard share.

The completion of the merger, through the takeover of the shares

in HG Group, marks an important milestone in the development

of Eqva as a fully integrated supplier of in-demand services and

solutions for maritime, power-intensive, and renewable energy.

In October, Havyard Group ASA changed its name to Eqva ASA.

The name change reects the company’s growth strategy and

marks its transformation to a fully integrated service company,

which contributes to green transition in maritime, power intensive

and renewable industries.

The name Eqva was formed by combining the letters “EQ”, the

starting point of the words equal, equity and equality, and “va”

the starting point of the words “variety” and “value” – words

that reects the company’s strategic priorities. The “VA” also

brings association to the Norwegian word for “Water” (Vann),

signalling a company proud of its origin as a maritime company,

and who wants to use its over 100-year long history of expertise

in its positioning.

In December 2022, the group launched an employee incentive

program aimed at creating a strong and motivated team that is

dedicated to delivering value to our shareholders over the long

term. This program aligns the interests of our key personnel with

those of the shareholders, which we believe is crucial for our

continued success and growth as a company.

2.3 Overview of the business

The board of directors’ report for Eqva group (“Eqva” or “the

group”) encompasses Eqva ASA (“the Parent company” or “the

company”) with its subsidiaries.

Business concept and location

Eqva ASA is a public limited liability company organised and

existing under the laws of Norway pursuant to the Norwegian

Public Limited Companies Act. The shares of Eqva ASA are listed

on Oslo Børs with the stock ticker EQVA.

The Eqva group has as at year-end 420 employees in total. The

corporate headquarter is located in Fosnavåg.

Eqva ASA is a knowledge-based active owner of industrial service

companies that contribute to the green transition in maritime,

power intensive and renewable industries. The purpose of the

company is to assist the subsidiary with strategic management,

nance, logistics, proling and other support functions.

BOARD OF DIRECTORS REPORT

ANNUAL REPORT 2022

BOARD OF DIRECTORS REPORT

With its current subsidiaries, Eqva has a well-diversied product

and market portfolio, and further growth will be established

through a combination of company-based development,

utilisation of synergies between the companies in the group and

value-creating M&A activities.

Key companies in the group are Havyard Leirvik, BKS Industri and

Fossberg Kraft, each building on decades of experience and widely

recognised by clients in a broad range of industries. The three

subsidiaries are located in Leirvik, Sunde and Handeland, respectively.

Business segments

The business is organised in two business segments:

1. Maritime Services

Maritime Services (previously Ship Technology) with the multi-

yard Havyard Leirvik in Sogn, delivers conversion, service, and

maintenance of vessels to a wide customer base. The shipyard

has an attractive geographical location with proximity to maritime

sectors along the coast of Norway. It offers a broad variety of high-

quality services, including complex design, extension, conversion,

service, and maintenance of vessels.

Eqva’s Maritime Services help customers to minimise their

environmental impact, secure energy-efcient solutions and

increase vessels’ competitiveness. Key strategic markets are

aquaculture, green power, and landbased- and maritime industry.

2. Products, solutions & renewables

Products, solutions & renewables (new segment) consists of

the service and maintenance provider BKS, with underlying

subsidiaries, and the small-scale power plant company Fossberg

Kraft. Together they form a fully integrated service and hydropower

provider.

BKS provides service and maintenance to the Norwegian land-

based and maritime industry, functioning as a full-service supplier

of technical installations with presence throughout the value-

chain. It has long-term relationships with large clients, tailor-made

and recurring customer projects.

Fossberg Kraft specialises in the establishment and operation

of small-scale hydropower plants and has new projects in the

pipeline. It has four employees.

2.4 Financial review

Accounting principles

The following nancial review is based on the consolidated

nancial statements of Eqva ASA and its subsidiaries. The

statements have been prepared in accordance with International

Financial Reporting Standards (IFRS) as adopted by the EU as well

as the Norwegian accounting legislation.

In the view of the board, the statement of prot and loss, the

statement of nancial position, the statement of cash ows, the

statement of changes in equity and the accompanying notes

provide satisfactory information about the operations, nancial

results and position of the group and the Parent company at 31

December 2022.

Statement of prot and loss

The operating income for the group in 2022 was NOK 459.0

million compared with NOK 910.2 million in 2021. The decline

in is mainly due to the strategic restructuring of the Maritime

segment from newbuilding activity to service and maintenance

work at the yard in Leirvik.

The operating prot (EBIT) for the group in 2022 was NOK -19.2

million compared with NOK 51.4 million in 2021. The decrease

in operating prot is mainly due to the cost associated with the

transaction and restructuring of the group which falls under other

operating expenses.

The group prot after tax for 2022 was NOK -19.6 million

compared with NOK 379.7 million in 2021.

Consolidated statement of prot and loss includes nancial gures

from the companies acquired in June 2022 (BKS, Fossberg Kraft)

as of 1 July 2022.

Statement of cash ow

Net change in cash ow for the group during the period is

NOK -92.3 million compared with NOK 71.7 million in 2021.

The cash ow from operating activities is NOK -33.0 million

compared with NOK 340.4 million in 2021. The cash ow is

affected by, among other things, changes in work in progress

(newbuilding project at the yard).

The net cash ow from investment activities is NOK -26.1

million in 2022 compared with NOK -349.9 million in 2021.

The negative cash ow in 2022 is driven by the transaction

where HG Group and BKS was acquired in June 2022 and the

reduction of the ownership position in the former subsidiary

HPR Sp.z.o.o .

The net cash ow from nancing activities is NOK -33.2 million

in 2022 compared with NOK 81.2 million in 2021. The cash

ow from nancing activities is mainly driven by increased bank

debt.

In general, the cash ow statement in 2022 reects a year with

signicant restructuring of the group`s activities

The cash ow statement shows changes in liquidity throughout

the year.

24ANNUAL REPORT 2022

BOARD OF DIRECTORS REPORT

Statement of nancial position and liquidity

The group’s cash position was NOK 61.1 million as of 31 December

2022. The group’s liquidity is considered to be satisfactory. Any

operational measures will be put in place if required.

The group has total liabilities of NOK 400.2 million as of 31

December 2022. Of this sum, NOK 196.3 million is short-term

debt. More details regarding the group`s bank debt can be found

in note 17. The group meets all valid bank covenants as at 31

December 2022.

The balance shows total assets for the group in 2022 of NOK

712.4 million compared with NOK 490.2 million in 2021.

Equity for the group was NOK 312.1 million as of 31 December

2022 compared with NOK 297.8 million at year-end 2021. Equity

has increased as a result of the business combination with BKS

and Fossberg Kraft as of 1 July 2022.

Parent company accounts and allocation of prot

The parent company had an operating income of NOK 5.7 million

in 2022 compared with NOK 45.1 million in 2021. This reduction

was primarily due to a reduction in the group’s internal services.

The annual result in 2022 was NOK 110.3 million compared with

NOK 263.3 million in 2021. The 2022 earnings are affected by

market value adjustments related to HAV Group ASA shares.

Transferred to other equity in total NOK 110.3 million.

The board proposes a dividend of NOK 0.

The board believes that the annual accounts give a correct

outline of the group’s assets and liabilities, nancial position and

performance.

2.5 Events after 31 December 2022

On 20 January 2023, Havyard Leirvik announced a contract

for the conversion of the ferry M/F Vannes to meet the

requirements from the Norwegian Maritime Directorate for

operating in an extended trafc area. For Havyard Leirvik and

for Eqva, this is an important contract for several reasons. The

yard focuses particularly on projects related to conversion and

upgrading of existing ships, and the contract is conrmation that

this investment is yielding results. The contract value of such

contracts are normally between NOK 10 and 20 million, and they

require two months to complete.

On 13 February 2023, BKS announced its largest contract to

date, for the prefabrication and installation work at Boliden's

advanced zinc factory in Odda in Vestland county. For Eqva and

BKS, the contract joins the series of assignments aimed at making

Norwegian power-intensive industry and shipping more climate-

friendly, the demand for which has been increasing. A large part

of the prefabrication will take place at our workshop in Sunde,

with the work calculated for around 60 man-years over the next

12-16 months. The contract is a framework contract with a value

of NOK 160 million for revenue recognition in 2023 and the rst

half of 2024.

For further information, please see Note 28 – events after the

balance sheet day.

2.6 Going concern

The accounts have been prepared under the assumption of a

going concern; see Section 3–3a of the Norwegian Accounting

Act. We hereby conrm that this assumption is correct.

2.7 Risk assessment

Risk assessment is generally handled as an integral part of the work

processes. All managers across our companies are responsible

for risk management and internal control within their area of

responsibility. The board generally receives quarterly reports on

the company's nancial situation, information about projects and

market conditions.

The operational companies in Eqva bears the commercial risk in

relation to contracts with clients. In a limited number of cases,

the parent company (Eqva ASA) provides guarantees.

Within the group, it is the individual subsidiary that bears the

risk for its performance. In addition to the contract risk factors

described above, the group is exposed to the following risk factors:

Financial risk:

The group’s activities expose it to nancial risks such as, market

risks, credit/counterpart risk and liquidity risk. The Board of

Directors is responsible for setting the objectives and underlying

principles of nancial risk management for the group. The

Board of Directors also establishes detailed policies such as

authority levels, oversight responsibilities, risk identication and

measurement, exposure limits and hedging strategies (if relevant).

Foreign currency and interest rate risk

The group’s policy states that foreign currency exposure should

be identied, and, as far as possible, secured in consultation with

corporate management and the company's board of directors.

The company may also be exposed to interest rate uctuations.

Market risk:

The nature of the business dictates that the group must

enter into new contracts as existing orders are completed

and delivered. Contracts are awarded in competitive markets

based on bidding processes against other suppliers and where

the ability to meet the requirements of the respective clients

is crucial.

ANNUAL REPORT 2022

BOARD OF DIRECTORS REPORT

The COVID-19 outbreak that started in early 2020 and

subsequently spread globally continued to have an impact on

global trade and industry during the rst half of 2022. The Group

has also experienced the effects of this pandemic, including

reduced market activity and increased sick leave among key staff.

The risk of delays in projects also signicantly increased during

and post the COVID-19 pandemic, both as a result of temporary

shutdowns nationally and globally and a lack of input factors.

We nd ourselves in an unreal situation with war in Europe, which

affects us all strongly. Large parts of the world are united in the

condemnation of Russia's war in Ukraine, and where extensive

international sanctions have been imposed.

The Group complies with sanctions implemented by Norwegian

authorities, and has stopped all potential new sales with Russian

exposure. None of our companies are directly nancially exposed

in relation to the applicable sanctions against Russian companies

and individuals, but in general we observe price increases and

longer lead-times for materials because of the warfare.

Credit risk:

The credit risk is thought to be limited. Security instruments a.s.o

will be considered when relevant.

Liquidity risk:

A liquidity budget is established for each project and is managed

in line with the progress of the project thus ensuring an adequate

supply of liquidity.

Risk is generally handled as an integral part of the work processes.

All managers are responsible for risk management and internal

control within their area of responsibility.

Climate risk:

The climate risk consists of both physical risk and transition risk.

Physical risk can be the effect of extreme weather events, and

transition risk is risk associated with the transition to a low-

emission society. The physical risk of weather-related damage, for

example at the multi-yard in Leirvik (HLE), is considered to be

limited due to the yard`s location and premises.

Transition risk can be political changes and regulations that

result in increased fees, nes and orders. In relation to Havyard's

multi-yard in Leirvik, BKS and Fossberg, the transition risk is also

considered to be relatively low, but political decisions as i.e. tax on

aquaculture business may affect the group`s businesses.

Overall, the climate risk and its impact on future earnings is

considered to be relatively low.

2.8 Employees and organisation

Working environment

In 2022, there was an average sickness absence rate (short term)

in the group of 1.6 per cent; this was down from 2021 when the

average sickness absence rate was 7.98 per cent. The drop in

average sickness level is among others related to a signicantly

lower number of employees in the group (mainly Havyard Leirvik)

in 2021.

The company took proactive measures to minimize damages,

ensure workplace safety, and improve personal protective

equipment for both employees and subcontractors. Additionally,

the company made efforts to bring back workers who were on

extended sick leave.

Havyard Leirvik has not experienced any work-related accidents

resulting in personal injuries or sick leave. BKS has had three

minor accidents resulting in sick leave of less than 6 months.

During the year, there have been no accidents causing signicant

material damage or long-term sick leave exceeding 6 months.

The board receives quarterly statistics on developments within

quality, health, safety, and the environment. Read more about

Eqva’s efforts within employee health and working environment in

our ESG section, page 38.

Equality and discrimination

One of the Eqva group’s goals is to comply with the Norwegian

Equality and Anti-Discrimination Act, including the promotion

of equality and the prevention of discrimination on the basis

of gender, pregnancy, leave in connection with childbirth or

adoption, care responsibilities, ethnicity, religion, belief, disability,

sexual orientation, gender identity, gender expression, age or

other signicant characteristics of a person.

The group seeks to provide equal employment opportunities, treat

all employees and job seekers fairly. Two of Eqva’s subsidiaries,

Havyard Leirvik and BKS Industri, are subject to the requirement

to provide an annual equality statement describing the company's

efforts to secure equal opportunities under section 26-a in the

Norwegian Equality and Anti-Discrimination Act. The annual

equality statements can be found on Havyard Leirvik and BKS

websites.

Employees

On 31 December 2022, a total of 4,5 was permanent employees

of Eqva Group ASA. Across its subsidiaries, Eqva had 420

permanent employees and 10 apprentices on 31 December 2022.

In addition, Eqva’s subsidiaries employed 0 temporary workers for

operational projects.

26ANNUAL REPORT 2022

Changes to the executive management and board

The Executive management team consists of CEO of Eqva Erik

Høyvik and CFO Eirik Sævareid. In addition, the operational

Management team include CEO Havyard Leirvik Tor Leif

Mongstad, CEO BKS Trygve Kjerpeseth, CEO Fossberg Kraft

Tom Jensen, and in-house lawyer Sverre Olav Handeland.

The board consists of Even Matre Ellingsen (chair), Vegard Sævik,

Rune Skarveland, Ellen Merete Hanetho, Anne Soe Myrmel

Bruun-Olsen, Geir Helge Nordstrand (employee representative)

and Jan Olav Gjerde (employee representative). According to the

articles of association, the board of directors of the company shall

have 3 to 7 members.

The two employees-elected directors were elected in March

2022, for a period of 2 years.

Directors’ and ofcers’ insurance

Eqva ASA has a board liability insurance for the group, including

the parent company and its subsidiaries. The insurance covers

the board members, CEO and members of the management

team. The insurance comprises personal legal liabilities, including

defence- and legal costs.

2.9 Natural environment

Eqva’s activities do not directly affect the natural environment,

apart from that which must be assumed to be natural for this type

of business. The company complies at all times with the prevailing

legal requirements in this area.

In 2022, there have been no environmental issues at the

production facilities or in the natural environment that

necessitated special measures. The group has not had any air or

water emissions in excess of those permitted by the authorities.

The shipyard has been awarded ISO 14001 certication for its

focus on the environment. This is an international standard for

companies on managing their environmental responsibilities, and

companies are required to prepare objectives and be proactive in

reducing their company’s impact on the environment. The main

focus is on everything that is discharged into the air and the sea,

such as greenhouse gases and chemicals.

External parties conduct control and follow-up of the company

and the company's activities relating to ISO certication.

Eqva’s activities, in isolation, do not affect the natural environment

apart from that which must be assumed to be natural for this type

of business. The company always complies with the prevailing

legal requirements in this area.

2.10 Research and development

The group limits its research and development activities to

providing technical solutions that assist its subsidiaries.

2.11 Corporate governance

Good corporate governance ensures a robust risk management

system, allowing the organisation's board of directors to retain

control over the business and have clearly dened responsibilities.

Thus, it is one of the cornerstones of a well-functioning business,

providing the foundation for long-term value creation for

shareholders, employees, and other stakeholders.

The board of directors of Eqva ASA has established a set of

governance principles to ensure a clear division of roles between

the board of directors, the executive management, and the

shareholders. The principles are based on the Norwegian Code

of Practice for Corporate Governance.

Being listed at the main market at the Oslo Stock Exchange, Eqva

is subject to corporate governance reporting requirements under

section 3-3b of the Norwegian Accounting Act and the Norwegian

Code of Practice for Corporate Governance, cf. section

4.4 of the Oslo Stock Exchange Rule Book II. The Norwegian

Accounting Act may be found (in Norwegian) at lovdata.no. The

Norwegian Code of Practice for Corporate Governance may be

found at nues.no. Eqva follows the Norwegian Code of Practice

for Corporate Governance, and the company’s practice is in

accordance with these recommendations.

The annual statement on corporate governance has been

approved by the board and can be found on pages 28 to 32.

Accounting Act 3-3b mandates disclosing equality and diversity

guidelines, which Eqva lacks at the corporate level due to

governance structure and employee count. However, its

subsidaries BKS Industri and Havyard Leirvik have their own

guidelines, detailed on pages 38-39 of our sustainability report.

2.12 Corporate social responsibility

Eqva is required to report on its corporate responsibility and

selected related issues under section 3-3a and section 3-3c of

the Norwegian Accounting Act. Eqva has chosen to report on its

efforts related to the environment, social matters, and corporate

governance, which is described in the ESG report.

Eqva is covered by the Transparency Act's duty to carry out due

diligence assessments (§3) and submit an annual statement on

this (§5). Due diligence assessments have been initiated in 2022

and will continue in 2023. The rst statement will be published by

30 June 2023 at www.eqva.no.

BOARD OF DIRECTORS REPORT

ANNUAL REPORT 2022

2.13 Shareholder ownership

EQVA ASA (formerly Havyard Group ASA) was listed on the stock

exchange in July 2014, and has 3 583 different shareholders as of

31 December 2022.

The number of issues shares is 71 987 316. Nintor AS is the

largest shareholder in Eqva ASA as of 31 December 2022 with an

ownership of 23.5%.

The company holds 323 046 treasury shares.

2.14 Outlook and future development

The board of directors is pleased to report that the group has

a strong order book and outlook for 2023, boosted by large

contract wins in the latter part of the fourth quarter and early

2023. Among others this include BKS’ largest contract in its

history, with Boliden, with a value of about 160 million, which

resulted in a substantial increase in the order book.

The Norwegian government's announcement of a resource

tax on aquaculture further intensied the political uncertainty,

signicantly affecting the entire maritime segment in Norway.

As a result, many investment decisions in the value chain and

markets closely linked to aquaculture were put on hold. The

turbulence in the maritime market persisted throughout the

year, and it is likely to take some time before a sense of stability

returns to the industry.

Despite a turbulent market environment during parts of 2022,

with pressure on raw material prices and macroeconomic

uncertainty, Eqva's diversied service offerings provided

stability and resilience.

Even Matre Ellingsen

Chairman of the Board of Directors

Anne Soe Myrmel Bruun-Olsen

Board member

Jan Olav Gjerde

Board member

employee representative

Vegard Sævik

Board member

Rune Skarveland

Board member

Geir Helge Nordstrand

Board member

employee representative

Ellen Merete Hanetho

Board member

Erik Høyvik

CEO

BOARD OF DIRECTORS REPORT

2.15 Declaration by the board of directors and CEO

In accordance with Section 5–5 (2) of the Norwegian Securities

Trading Act, we hereby declare that the annual accounts for

the 1 January to 31 December 2022, have, to the best of

our knowledge, been prepared in accordance with current

accounting standards and that the information in the accounts

provides a correct picture of the company’s and the group’s

assets, liabilities, nancial position and performance as a whole.

We also declare that the annual report provides a correct

outline of developments and the performance and position of

the company and the group together with a description of the

key risk and uncertainty factors to which the company and the

group will be exposed.

Eqva’s strategic shift in Maritime services reinforces its

reputation as a dependable partner, with strong relationships

with its customers in both land-based and maritime industries.

This has also proven to be a key to success in the current

macro environment that has been turbulent during parts of

2022.

Additionally, with the growing demand for modular solutions

and pre-fabrication, our Maritime Services segment is well-

equipped to become a leading sub-contractor for larger

projects in the maritime and offshore industry, as well as

increasing its focus on other sectors such as land-based and

aquaculture.

Fosnavåg, 31. March 2023

The board of directors of Eqva ASA

28ANNUAL REPORT 2022

CORPORATE GOVERNANCE

STATEMENT CONCERNING

CORPORATE GOVERNANCE

Eqva seeks to maintain high standards for corporate governance

and believes that good corporate governance is an important

prerequisite for value creation.

1. Recommendations and regulations for corporate governance

The Company is subject to corporate governance reporting

requirements pursuant to Section 3-3b of the Norwegian

Accounting Act, and the Norwegian Code of Practice for

Corporate Governance drawn up by the Norwegian Corporate

Governance Board (NUES), cf. also Euronext Oslo Rulebook II

(issuer rules). The Accounting Act is available at www.lovdata.

no, and NUES is available at www.nues.no.

Information that the Company is obliged to provide pursuant

to Section 3-3b of the Accounting Act concerning reporting on

corporate governance is taken into account in this statement,

and, where natural, follows the same system as NUES.

In addition to the NUES requirements, Accounting Act 3-3b

mandates describing the Company's equality and diversity

guidelines. Due to the governance structure and employee

count, the Company lacks corporate-level guidelines. However,

corporate-level guidelines are currently under development.

Eqva's subsidaries BKS and Havyard have their own guidelines,

detailed on pages 38-39 of our sustainability report.

Core values

The Company strives to maintain a strong reputation for credibility

by consistently conducting its business with integrity and adhering

to all relevant acts and regulations governing its activities.

Members of the board of directors and employees shall act in

a fair and honest manner and demonstrate integrity in all their

dealings with other employees, business associates and clients,

the general public, the business community, shareholders,

suppliers, competitors and public authorities.

The Company's values and commitment to sustainable

development shall be reected, promoted and implemented

through guidelines, decisions and actions. The Company’s

guidelines “Code of Conduct for Business, Ethics and

Corporate Social Responsibility” and the Company's anti-

corruption program are available on the Company's website

www.eqva.no.

2. The business

The Company aims to be a leading knowledge-based active

owner of industrial service companies that contribute to the

green transition in maritime, power intensive and renewable

industries.

3. Equity and dividends

The board is committed to maintain a satisfactory capital

structure for the company to support its goals, strategy, and risk

prole, thereby ensuring that there is an appropriate balance

between equity and other sources of nancing.

Equity

At 31 December 2022, the company’s equity totaled NOK

312.1 million, which corresponds to an equity ratio of 43.8 per

cent. The board considers the Company’s nancial position

to be solid with the necessary capacity to support its strategic

priorities and risk prole.

Dividend

At a board meeting held on 17 March 2014, the board of

directors adopted the following dividend policy, which was

made known to the Company's shareholders and the market in

a prospectus dated 10 June 2014:

“The Company will continuously work to ensure that

shareholders receive a competitive return on their investment,

and give this priority over investments that are not directly

related to the Company's core activities. The Company will

thus focus strongly on value creation for its shareholders and

maintain a dividend policy, which safeguards the interests of the

shareholders and the Company in a good manner, with a clear

objective of the total, annual dividend payments corresponding

to 50–75 per cent of the prot after tax on a consolidated basis.

The Company intends to pay dividend on a quarterly basis to

achieve this objective.

It cannot be guaranteed that dividend will be proposed or

declared for each period. When the board of directors considers

whether to propose a dividend and determines the amount,

the board will take into account the limitations in legislation,

the Company's capital requirements, including capital costs,

the Company's nancial position, market prospects and other

ANNUAL REPORT 2022

STATEMENT CONCERNING

CORPORATE GOVERNANCE

general business terms and conditions. Any limitations on the

payment of dividend in the Company's loan commitments or

other contractual commitments will be taken into account, as

will requirements for the maintenance of adequate nancial

exibility."

The board of directors has launched an initiative to revise the

group's dividend policy which will be communicated to the

market during Q2 2023. It is proposed to not pay dividends for

the 2022 scal year.

Board mandates

During the annual general shareholder meeting in 2022, the

board was granted the following mandates:

The board of directors is authorised to increase the company's

share capital or acquire treasury shares for specic purposes

only, and the authorisation is granted for a period not exceeding

the next general meeting. Each purpose covered by the

authorisation is subject to a vote at the general meeting. Any

proposals related to share capital increases must be presented

to the general meeting for approval.

The mandates are valid until the annual general meeting in 2023.

4. Equal treatment of shareholders

The company has one class of shares. Each share of the

company carries one vote, and all shares carry equal rights.

In the event of a decision to waive the pre-emption rights of

existing shareholders to subscribe for shares in a share capital

increase, the decision must be based on the common interest of

the company and its shareholders, as well as applicable equal

treatment regulations.

In the event that the board decides to carry out a capital

increase without granting existing shareholders preferential

rights, based on an authorization from the general meeting, the

reason for this decision will be disclosed in the stock exchange

statement released in connection with the capital increase.

The Company's guidelines stipulate that board members and

executive personnel with a direct or indirect material interest in

agreements entered into by the Company are required to notify

the Company of such interests.

All transactions between the Company and its close associates

must be based on ordinary market terms and be conducted

at arm's length. Transactions that are not immaterial must

be subject to a valuation by an independent third party. The

Company is committed to ensuring that signicant transactions

with close associates comply with the requirements of the Public

Limited Liability Companies Act.

Information regarding transactions between close associates

can be found in note 27 (Related party transactions) included in

the Company's 2022 annual accounts.

The company's transactions involving treasury shares will be

conducted through the Oslo Stock Exchange’s (Oslo Børs)

trading platform at the prevailing market price, or through

a public offer made to all shareholders. In cases where the

company's shares have low liquidity, the board of directors will

exercise caution when making purchases and sales through the

stock exchange to ensure equal treatment of shareholders.

5. Freely negotiable shares

Eqva's shares are freely tradeable and listed on the Oslo Stock

Exchange, and there are no restrictions on ownership, trading,

or voting rights associated with the shares.

6. General meetings

The general meeting is the highest decision-making body of

the Company. The board of directors determines the format of

the meeting, which may be held physically or electronically in

compliance with relevant laws and regulations.

Notice of the annual general meeting

The board of directors is committed to facilitating the

participation of as many shareholders as possible in the

Company's general meetings and to making the general

meeting an effective forum for interaction between shareholders

and the board. To achieve this, the board ensures that:

• Shareholders receive the notice of the general meeting at

least 21 days before the meeting takes place, with the notice

being made available on Oslo Børs' notication system www.

newsweb.no and the Company's website www.eqva.com

simultaneously.

• The case documents provided to shareholders contain

sufcient information to enable them to form an opinion on

the matters to be discussed in advance of the meeting.

• The registration deadline is set as close to the meeting date

as possible but no later than two days before the general

meeting. Shareholders who have not registered may be

denied admission to the meeting.

Meeting chair and voting

The chair of the board of directors and the CEO are required

to attend the general meeting, and the other board members

and the chairman of the Nomination Committee may also be

present. The auditor shall also attend the general meeting, if

the issues to be discussed require their presence.

All shareholders registered with the Norwegian Central

Securities Depository (VPS) receive a notice of the general

meeting and are entitled to participate by submitting proposals

30ANNUAL REPORT 2022

CORPORATE GOVERNANCE

and voting directly or by proxy. The notice of the general

meeting includes a proxy form, which shareholders can use to

authorize someone to vote on their behalf.

In accordance with the Company's Articles of Association,

documents that are to be considered at the general meeting

may be made available on the Company's website instead of

being distributed with the notice of meeting. This also includes

documents that are required by law to be included in or enclosed

with the notice of the general meeting. However, shareholders

can request to receive these documents by mail.

At the general meeting, the annual accounts will be presented

for approval, and the prot will be allocated, or the loss will be

covered. The meeting will also address any other matters that

are within its scope of responsibility, as required by law or the

Company's Articles of Association.

The Company's Articles of Association do not specify who should

preside over the general meeting. Therefore, in accordance

with the provisions of the Public Limited Liability Companies

Act, the chair of the board opens the meeting, and the general

meeting elects the chair of the meeting.

7. Nomination Committee

The Company has established a Nomination Committee in

accordance with its Articles of Association. The committee comprises

two members, Rune Skarveland (leader) and Tore Thorkildsen.

The shareholders have approved the guidelines for the

Nomination Committee at the general meeting. The primary

role of the committee is to assist the board in fullling its

responsibility to nominate candidates for election at the general

meeting, ensuring that they possess the necessary qualications

and integrity to carry out their duties.

Specically, the committee is responsible for identifying and

evaluating potential board members, recommending them

for election at the general meeting, and proposing directors'

fees. Additionally, the committee provides advice to the board

on matters such as board composition, instructions, and

evaluation.

The general meeting determines the fees for members of the

Nomination Committee.

8. The Board of Directors, composition, and independence

The composition of the board of directors is intended to serve

the interests of all the shareholders and to meet the company’s

need for competence, working capacity, and diversity.

According to the Company's Articles of Association, the board

is composed of three to seven members who are elected for

two-year terms. The chair of the board is elected by the general

meeting.

On 31 December 2022, the Company’s board comprises seven

members, of which ve are elected by the general meeting. The

elected board members include two women and three men. Four

of these members are independent of the Company's executive

personnel, signicant business associates, and principal owner.

The Company does not have a corporate assembly, but it does

have two employee representatives who serve as members of

the board.

The composition and qualications of the board are believed

to have a positive impact on the Company's growth and the

protection of shareholders' interests. A comprehensive overview

of the board members is provided in the annual report on page

1 7.

9. The work of the board of directors

The board is responsible for ensuring the Company's sustainable

value creation and establishing its goals, risk prole, and

strategies, as well as monitoring and tracking progress in these

areas. Additionally, the board is responsible for overseeing and

regulating the Company's operations, ensuring that they are

conducted within the bounds of the law.

The board employs and exercises rights of instruction in relation

to the chief executive ofcer (CEO), who is responsible for the

day-to-day running of the Company. The board oversees the

CEO’s operative responsible and its management. The board

has established guidelines for its own operations and those of

the CEO, with a specic emphasis on creating a well-dened

internal division of responsibilities and duties.

The board follows an annual work plan and holds meetings

as needed, with a minimum of ve per year. The Company's

nancial calendar is available on www.newsweb.no and the

Company's website at www.eqva.com. The Company's nancial

results are published quarterly, unless the board decides

otherwise.

The board periodically discusses and evaluates its own work

processes, including the preparation and execution of meetings,

as well as its overall qualications and ability to oversee the

Company's activities.

10. Risk management and internal control

The board is accountable for implementing effective internal

control systems and risk management procedures that

are aligned with the Company's scope and activities. This

responsibility also includes the Company's core values and

Code of Conduct for Business, Ethics and Corporate Social

Responsibility.

ANNUAL REPORT 2022

CORPORATE GOVERNANCE

The most important risk for the Company is the market risk

associated with large contracts within its modication and

manufacturing activities, technology development, nancial risk

and operational risk.

In practice, risk management is integrated into the work

processes, with all managers responsible for internal control and

risk management within their respective areas of responsibility.

The board receives quarterly reports on the Company's nancial

situation, projects, and market conditions, as well as statistics

on quality, health, safety, and environmental developments.

External parties conduct control and follow-up of the Company

and its activities related to ISO certication.

The board continuously evaluates the information submitted to

the board by the administration and adopts amendments to the

reporting procedures if required.

The Company's nancial reports are drawn up pursuant to

the accounting principles specied in the annual report. The

Company's quarterly reports to the board and the reports

published each quarter are prepared on the same principles.

The Company has an Audit Committee consisting of two of

the board members. One of the members have accounting

expertise. The Audit Committee plays a key role in overseeing

the nancial reporting process and the effectiveness of the

Company's internal control systems. The committee also

assesses the effectiveness of the external audit process and the

independence and qualications of the external auditor. The

Audit Committee reports its ndings and recommendations to

the board.

11. Remuneration of the board of directors

The remuneration to the directors is not performance-related

and is determined based on factors such as their responsibilities,

expertise, time invested, and the complexity of the business.

Remuneration of the board of directors and the Audit

Committee are decided annually by the general meeting.

Information about the remuneration paid to directors in 2022 is

presented in note 5 to the nancial statements, in accordance

with the Accounting Act section 7-31b. In addition, the company

will present an annual remuneration report to the shareholders

in accordance with the Norwegian Public Limited Liabilities

Companies Act section 6-16b, which will provide further details

on the remuneration of the board of directors and executive

management.

12. Remuneration of executive personnel

The Company strives to attract and retain executive personnel

who possess the necessary qualities to effectively run the

business and promote value creation. In order to achieve

this, competitive remuneration packages are offered to each

employee, which reect their area of responsibility and job

performance based on market standards.

The Annual General Meeting in 2021 approved the most recent

guidelines for remuneration of senior executives, in accordance

with the Public Limited Liability Companies Act 6-16a.

The Company's Compensation Committee, comprising two

board members, is responsible for formulating guidelines for

executive compensation and other benets, as per Section

6-16a of the Public Limited Liability Companies Act, to promote

value creation.

Further information about remuneration to executive personnel

is provided under note xxx to the nancial statements

pursuant to the Accounting Act, section 7-31b, and in the

annual remuneration report, which will be presented to the

shareholders in accordance with the Norwegian Public Limited

Liabilities Companies Act, section 6-16b.

13. Information and communication

The Company places a strong emphasis on transparency

and timely communication with its shareholders and other

stakeholders. The Company believes that providing accurate

and equal information to all stakeholders is crucial in enabling

them to make informed assessments of the Company's current

and future position. The Company is committed to upholding

high standards of reporting and ensuring that all stakeholders

have access to the information they need to make informed

decisions.

The Company is committed to timely and effective

communication of all information relevant to assessing its

operation and value to both shareholders and the market, in

compliance with the applicable regulations for companies listed

on Oslo Børs. The Company shall publish signicant information

through Oslo Børs' notication system at www.newsweb.no and

on its website at www.eqva.com, ensuring transparency and

equal treatment for all stakeholders.

The Company shall have a dialogue with its shareholders and

providing them with equal access to information via adequate

forums based on the principle of equal treatment and equal

access to information.

32ANNUAL REPORT 2022

The Company will publish an annual nancial calendar on

its website and through other appropriate channels, outlining

important dates and events such as quarterly reports and the

general meeting.

14. Takeovers

The board has established guidelines on how to act in the event

of a take-over bid.

In the event of a takeover bid, the board will strive to ensure that

all shareholders of the Company receive equal treatment and

ensure that shareholders have access to sufcient information

and adequate time to evaluate the offer.

The board shall not seek to prevent or impede takeover

bids for the Company's activities or shares unless there are

justiable reasons to do so. Such justiable reasons may include

protecting the Company's employees or assets or ensuring that

the Company is not taken over at an unfairly low price.

If a takeover bid is launched for the shares in the Company,

the board shall release a statement providing shareholders with

relevant and reliable information, and a recommendation on

whether shareholders should or should not accept the offer.

15. Auditor

The general meeting appoints the auditor and approves the

auditor's fee.

The auditor's responsibility is to audit the annual accounts and

the annual report submitted by the board of directors and

the chief executive ofcer pursuant to the Auditors Act and

generally accepted accounting practices.

The auditor presents the main features of the plan for the

auditing work to the Audit Committee and the board of

directors each year. Meetings are held between the auditor and

the board of directors, either the full board or the chair, as

necessary.

The auditor will have annual meetings with the Audit Committee

to review the Company's control procedures.

The auditor will not take on assignments for the Company

that can lead to conicts of interest and will issue an annual

conrmation of his/her independence to the Audit Committee.

It is the board of directors' responsibility to maintain the

independent role of the auditor.

Fosnavåg, 31 March 2023

The board of directors of Eqva Group ASA

ANNUAL REPORT 2022

https://fossbergkraft.no/wp-content/uploads/2019/03/

fossefall.jpg

Sustainability report

34ANNUAL REPORT 2022

Key figures and highlights

• 2 conversion projects (electrification/ hybridization) carried out at Havyard Leirvik’s yard in 2022

• 201 customer projects within upgrading to more sustainable systems carried out by BKS in 2022

• 2 hydro power plants sold and developed by our subsidiary Fossberg Kraft

• Eqva has 420 FTEs by end of 2022

• In 2022, our companies Havyard Leirvik and BKS, initiated the establishment of ESG strategies

and materiality assessment processes

Eqva’s approach to working on ESG

In Eqva, we are committed to ensure that our business is sustainable in terms of the economy, environment, and

society. As a knowledge-based active owner of engineering, construction, and service companies, we strive to be a

contributor to the green transition across all parts of our group.

We recognise that sustainable development is essential for the long-term success of our business and the well-being

of our society. As such, we are committed to nd innovative solutions that reduce our carbon footprint, minimise

environmental impact, and promote economic growth.

Society

Environment Economy

SOCIETY

ENVIRONMENT ECONOMY

ESG

ANNUAL REPORT 2022

ESG in a year of change

Despite major changes in the group structure in 2022, Eqva has always had a strong commitment to complying with

applicable legal requirements in all areas. While the company was unable to comply with GRI and other sustainability

reporting standards this year, we recognise the importance of continuous improvement and strive to nd solutions

that reduce our environmental impact and promote sustainability.

In Eqva, we acknowledge our responsibility to reduce emissions and limit our impact on the environment. The group

has not exceeded the emissions limits set by the authorities and has had no signicant impact on air or water quality

in 2022.

Two of our subsidiaries, Havyard Leirvik and BKS Industri, have been certied with the ISO 14001 environmental

certicate, which recognises their efforts to reduce their environmental impact. This international standard requires

companies to set objectives and actively work to reduce their environmental impact, particularly in areas such as

greenhouse gas emissions and chemical usage. External parties regularly monitor and evaluate our activities related

to certication according to ISO standards.

Reporting framework

Eqva has not publicly released an ESG report in accordance with reporting standards,

but we acknowledge the importance of ESG reporting and has in 2022 taken the initial

steps to begin reporting in accordance with standards by the end of 2023. The GRI

framework will be used to ensure that the reporting for 2023 is in reference to the GRI

standards.

Eqva’s subsidiaries BKS Holding and Havyard Leirvik have initiated separate sustainability

reporting processes and plan to publicly release their sustainability reports in 2023.

BKS Holding will provide an overall report including its subsidiaries; BKS Industri

AS, BKS Power & Automation AS, Zenit Engineering AS, BKS VVS AS, and Marine

Support AS. Individual company reporting for these subsidiaries will be implemented

once the EU's proposed reporting directive (CSRD) is expanded to include reporting

requirements and attestation requirements, expected to occur in 2024/2025.

ESG

36ANNUAL REPORT 2022

Materiality assessment process initiated

Eqva acknowledges the signicance of conducting a materiality assessment for the group, in reference to the GRI

standards. The company intends to establish a unied materiality assessment across all group companies within

the end of 2023. In this process, the materiality assessment will be linked to our inuence on the UN Sustainable

Development Goals (SDGs).

In 2022, Eqva’s subsidiaries Havyard Leirvik and BKS Holding began the process of identifying their most signicant

SDGs. In early 2023, Eqva reviewed the results of the separate SDG workshops conducted by its companies and

found that a number of the identied goals were common for both. Consequently, Eqva decided to work further on

these goals in the effort to adopt common SDGs as representative of the entire group.

ESG

ANNUAL REPORT 2022

Environmental and climate perspectives

With our aim to be a leading owner of industrial service companies that contribute to the green transition in

maritime, power-intensive, and renewable industries, we recognise the signicant responsibility we have in

managing our environmental production footprint. We are committed to not only promoting the green transition

and sustainable solutions for our customers but also reducing our own climate and environmental impact.

CO2 emission and mitigation

Through our subsidiaries, Havyard Leirvik and BKS Holding, Eqva has taken the rst steps towards measuring and

reducing the group's total emissions (Scope 1 and 2). As of the end of 2022, both companies are still in the process

of identifying a common system to accurately capture their emissions, which they plan to implement in the coming

year.

Havyard Leirvik has come the furthest in the implementation process and has set ambitious climate goals as part

of its sustainability strategy, aiming to achieve carbon neutrality by 2030 and zero emissions by 2050. To achieve

these goals, the company has developed a set of activities that it will focus on going forward. These activities include

designing a roadmap to climate neutrality, creating a waste emissions plan, and establishing new procedures at the

dock.

BKS Group companies are involved in a large number of environmental projects and have become an important

supplier to many sustainable environmental investment projects. They are involved in electric, hybrid and hydrogen

ships, reducing the environmental footprint of the aquaculture industry and energy saving projects in the process

industry. We see the environment as an important area of industrial growth. BKS is certied according to ISO 14001.

Energy management

Efcient energy use and sustainable energy sourcing are crucial for ensuring a secure supply while also reducing

Eqva's global greenhouse gas footprint. Although Eqva has a relatively small energy consumption at the corporate

level, some of our subsidiaries are highly energy-intensive and rely on fossil fuels in their services. Therefore, Eqva is

proactively engaging with our subsidiaries to reduce energy usage and minimise our carbon footprint.

ESG

38ANNUAL REPORT 2022

Social perspectives

We are committed to always ensuring safe operations. We rmly believe that all incidents can and should

be prevented, which is why we operate under a zero-harm philosophy at all our subsidiaries that guides

our everyday work. In Eqva, having a skilled, engaged, and diverse workforce is the key to our continued

success, and we are committed to provide a safe and healthy work environment for all our employees

across all subsidiaries.

Employee health

Eqva recognises that a strong health and safety culture is vital to our operations. Our environment, health,

and safety (HMS) efforts are centred on a zero-harm philosophy, and in our subsidiaries, BKS Holding and

Havyard Leirvik, we have implemented HMS management systems to work systematically towards this

united goal.

The number of injuries across our subsidiaries where at from 2021 to 2022 and there were no fatalities or no

high-consequence injuries in any of our subsidiaries during 2022.

We continually monitor and improve our health and safety performance, and we aim to reduce the number of

incidents by identifying and addressing risk areas through effective risk assessments and proactive measures.

Key statistic from our subsidiaries in 2022:

Diversity and inclusion

As a knowledge-based owner of industrial service companies, Eqva aims to promote diversity and have highly

qualied board members and managers that serve as role models in their companies no matter of gender.

Women are well represented in our boards but are underrepresented in leadership roles at corporate level and

in our portfolio companies. During the latest years, our companies have worked to recruit more females to the

industry, and both Havyard Leirvik and BKS have made progress in this area.

In 2022 BKS and Havyard initiated a process to promote diversity and combat discrimination systematically. This

process follows the four mandatory steps outlined in Norwegian law regarding equal rights and discrimination: (1)

risk assessment, (2) analysis of identied risks, (3) implementation of appropriate measures, and (4) evaluation of

results from steps 1-3. The details of this process are outlined in separate documents and are publicly available

on the company’s websites.

Customer Havyard Leirvik

BKS

Fossberg Kraft

Sick leave 1.76% 1.60% 0%

Number of injuries 2 (2021:2) 4 (2021:1) 0

*H1-value 10.1 1,96 0

*H1-valuee shows the frequency of occupational accidents that are serious enough to result in absence from work.

ESG

ANNUAL REPORT 2022

Number of FTEs where Eqva has the majority ownership:

Human development and wealth

In Eqva, we recognise that to achieve our goal of becoming a leading owner of knowledge-based industrial services

companies, we must prioritise competence development among our managers and future executives, while also

recruiting top talent to our portfolio companies.

In 2022, we launched our employee incentive scheme to not only align top managers and other employees in the group

with the interests of the owners, but also to align their ambitions with Eqva’s ambition - to being a leading contributor to

the green transition in the maritime, power-intensive, and renewable industries. We believe that providing opportunities

for wealth growth will not only benet our employees, but also strengthen our overall organisation as we work towards

a sustainable future.

Human rights

Eqva is committed to follow the UN's guiding principles on business and human rights (UNGP), and we believe

transparency is crucial to ensure high-quality services that adhere to ethical standards. We support the increasing

adoption of international best practices into legal requirements, such as Norway's Transparency Act. This legislation

obliges Norwegian companies to evaluate and mitigate negative impacts on human and labour rights, as well as ensuring

public access to information.

As the Act takes effect, we're enhancing transparency and oversight throughout our value chain to safeguard all impacted

by our business. We're committed to complying with the new law and will issue a statement on required due diligence

by June 30, 2023. We hold ourselves accountable to these principles and laws and expect all future companies we invest

in to do the same.

(Head count) Eqva corporate

Havyard Leirvik BKS

Fossberg Kraft

FTEs 4,5 69 342 4

Female share in company (%) 22% (1 of 4,5) 13% (9 of 69) 3% (10 of 342) 25% (1 of 4)

ESG

40ANNUAL REPORT 2022

Governance perspectives - Corporate responsibility

The credibility and reputation of Eqva depend on conducting its business with the highest

level of integrity and complying with all relevant laws and regulations that govern the group's

operations. Eqva recognises the importance of upholding ethical values and has a strong

commitment to acting responsibly in all aspects of its business, building trust among

stakeholders, and maintaining a positive reputation.

Eqva adheres to the principles of “the Norwegian Code of Practice for Corporate Governance”

issued by the Norwegian Corporate Governance Board (“NUES” or the “Code”). The

objective of this Code is that companies listed on regulated markets in Norway will practice

corporate governance that regulates the division of roles between shareholders, the board of

directors and executive management more comprehensively than is required by legislation.

More information about or corporate governance can be found in part 2 of this report – the

board of directors’ report on corporate governance.

Code of Conduct for Business, Ethics and Corporate Social Responsibility

In 2022, Eqva undertook a signicant effort to review its guidelines for ethics and social

responsibility, leading to the establishment of a new "Code of Conduct for Business, Ethics

and Corporate Social Responsibility". The aim of the establishment of a new code of conduct

was to ensure that any person acting on Eqva’s behalf does so ethically. It applies to all Eqva

employees.

The guidelines in the Code of Conduct provide clear rules for maintaining ethical and

responsible business relationships, including a policy on giving and receiving gifts and managing

condential information.

Additionally, the guidelines provide direction on how to identify and manage potential conicts

of interest and lay out clear expectations for employee behaviour that safeguards the trust of

Eqva’s stakeholders.

Eqva recognises that our managers and employee representatives have a particularly important

role in upholding these guidelines, Therefore, they should serve as role models in their

adherence to the Code of Conduct for Business, Ethics and Corporate Social Responsibility.

The Code of Conduct is available here: Corporate Responsibility - Eqva.

ESG

ANNUAL REPORT 2022

Anti-corruption

Eqva takes a strong stance against corruption and upholds a zero-tolerance policy towards it. To ensure that our

business activities are conducted with the highest level of integrity, an anti-corruption program has been developed,

which includes the identication of potential risk areas and the implementation of active and preventive measures.

The program is designed to educate employees and business associates on the risks and consequences of corruption,

and to provide clear guidelines on how to handle situations where corruption may be suspected. This includes rules

for gifts (in line with our principles in our Code of Conduct) and handling of condential information, as well as the

reporting of any suspicious activities.

With our anti-corruption program, we aim to maintain a culture of transparency and ethical behaviour, and to

prevent any instances of corruption from occurring within the group.

Read more about our Anti-corruption program here: Corporate Responsibility - Eqva.

ESG

42ANNUAL REPORT 2022

Reports of concerns

Eqva believes that openness and good communication throughout the organization promotes a better work culture.

Eqva acknowledges the risk of violations of the Code of Conduct and depends on the willingness of employees an

external party to raise concern to uphold high ethical standards.

Eqva has established the following core principles for handling reports of concerns:

• Fair and objective process

• Protection of the whistle-blower against retaliation

• Protection of the legal rights of the individual who is the subject of the report.

• Condentiality

• Protection of sources

• Protection of personal data

No “Reporting of concerns” were registered in Eqva in 2022.

To learn more about our Reporting of concerns go to our web site here: Corporate Responsibility - Eqva

Plans and aims for 2023

Our Strategic sustainability priorities for 2023 include the following:

• Conducting a comprehensive Materiality Assessment for the group, which will take place during the rst half of

the year (Q1-Q2 2023).

• Determining the UN's Sustainability Goals that we will focus on during the year, which will be done in Q1 2023.

• Preparing our reporting process in reference to the GRI-framework to ensure that we can produce a comprehensive

sustainability report that meets international standards for the annual report 2023. This will be done in Q4 2023.

ESG

ANNUAL REPORT 2022

Financial statements

44ANNUAL REPORT 2022

(NOK 1,000) Note 2022 2021

Revenues from contracts with customers 4,14,27 456 431 902 893

Other operating revenues 4,23 2 562 7 293

Operating income 458 994 910 186

Materials and consumables 15,21,27 228 756 636 956

Payroll expenses 5 172 360 164 574

Other operating expenses 5,6 67 219 51 761

Operating expenses 468 335 853 291

Operating profit/loss before depreciation and

amortisation (EBITDA)

-9 342 56 895

Impairment of non-current assets 0 0

Depreciation 4,11,12,13 9 860 5 409

Operating profit/loss (EBIT) 4 -19 202 51 486

Financial income 8 4 138 57 597

Financial expenses 8 -21 045 -16 245

Share of profit/ loss of associate 4,9 668 -1 128

Profit / loss before tax 4 -35 441 91 711

Income tax expense 4,7 -15 796 -957

Profit from continued operations -19 647 92 666

Profit from discontinued operation 10 0 286 997

Profit / loss for the Year 4 -19 647 379 663

Attributable to :

Equity holders of parent -21 410 347 200

Non-controlling interest 1 763 32 463

Total -19 647 379 663

Earnings per share (NOK) 25 -0,30 14,01

Diluted earnings per share (NOK) 25 -0,30 14,01

Earnings pr. share from continued operations

Earnings per share (NOK) 25 -0,30 3,74

Diluted earnings per share (NOK) 25 -0,30 3,74

CONSOLIDATED STATEMENT OF PROFIT OR LOSS

Eqva ASA

CONSOLIDATED STATEMENT OF PROFIT OR LOSS

ANNUAL REPORT 2022

(NOK 1,000)

Note 2022 2021

Profit for the year -19 647 379 663

Foreign currency translation differences -2 038 -3 312

Other comprehensive income -2 038 -3 312

Total comprehensive income -21 685 376 351

Attributable to:

Equity holders of parent -23 449 343 888

Non-controlling interest 1 763 32 463

Total -21 685 376 351

CONSOLIDATED STATEMENT OF OTHER COMPREHENSIVE INCOME

Eqva ASA

46ANNUAL REPORT 2022

(NOK 1,000)

ASSETS

Note 2022 2021

Non-current assets

Deferred tax benefit 0 0

Goodwill 10,11 248 260 0

Licenses, R&D and customer relationships 11 32 208 0

Property, plant and equipments 12 128 927 16 116

Right of use assets 13 10 933 332

Investment in associates 9 25 544 194 185

Loan to associates 4 840 4 338

Investment in equity instruments measured at fair value

through profit and loss

2,16,19 16 163 4 610

Other non-current receivables 16, 20 2 648 111

Total non-current assets 469 523 219 692

Current Assets

Inventory 1 7, 2 1 13 681 2 781

Accounts receivables 14,16,17,27 90 955 19 784

Other current receivables 16,20 25 552 26 176

Contract assets customer contracts 14,15,17 51 537 0

Cash and cash equivalents 16,17,22 61 117 221 733

Total current assets 242 843 270 474

TOTAL ASSETS 4 712 366 490 167

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

Eqva ASA

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

ANNUAL REPORT 2022

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

EQUITY AND LIABILITIES

NOTE 2022 2021

Equity

Share capital 24 3 599 1 239

Share premium reserve 195 175 22 535

Treasury shares -16 -3

Retained earnings 109 991 274 042

Non-controlling interests 8,9,10,27 3 387 0

Total equity 312 136 297 814

Non-current liabilities

Deferred tax liability 7 0 731

Lease liabilities 13 9 624 225

Loans and borrowings 16,17 152 868 4 348

Other long-term liabilities 17 41 474 31 933

Total non-current liabilities 203 967 37 237

Current liabilities

Accounts payables 16,27 56 147 27 793

Tax payables 7 1 360 2 603

Public duties payables 37 524 17 523

Bond loan (short term) 16,17 0 0

Loans and borrowings, current 16,17 22 498 435

Contract liabilities 14,27 861 35 558

Lease liabilities 13 1 619 132

Other current liabilities 14,15,17,18,26 76 255 71 073

Total current liabilities 196 263 155 117

Total liabilities 400 230 192 353

TOTAL EQUITY AND LIABILITIES 4 712 366 490 167

Fosnavåg, 31 March 2023

The Board of Directors and CEO

Eqva ASA

Even Matre Ellingsen

Chairman of the Board of Directors

Anne Soe Myrmel Bruun-Olsen

Board member

Jan Olav Gjerde

Board member

employee representative

Vegard Sævik

Board member

Rune Skarveland

Board member

Geir Helge Nordstrand

Board member

employee representative

Ellen Merete Hanetho

Board member

Erik Høyvik

CEO

48ANNUAL REPORT 2022

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

Eqva ASA

(NOK 1,000)

Note

capital

premium

reserve

Treasury

Retained

earnings

Total Non-

controlling

interest

Total equity

January 1, 2022 1 239 22 535 -3 274 042 297 814 0 297 814

Profit for the Year 4 -21 410 -21 410 1 763 -19 647

Other comprehensive income 4 -2 038 -2 038 -2 038

Total comprehensive income 4 0 0 0 -23 449 -23 449 1 763 -21 685

Issue of new shares in Eqva in connection with

acquisitions of BKS and Fossberg Kraft

10 2 360 172 640

175 000 1 624 176 624

Dividend distribution shares in HAV Group ASA

-140 600 -140 600 0 -140 600

Repurchase of own shares

-13

-13 -13

Minority interests from transaction 0 0

December 31, 2022 3 599 195 175 -16

109 990 308 753

3 387 312 136

(NOK 1,000)

Note

capital

premium

reserve

Treasury

Retained

earnings

Total Non-

controlling

interest

Total equity

January 1, 2021 1 239 22 535 -3 -102 581 -78 809 47 986 -30 823

Profit for the Year 4,10 347 200 347 200 32 463 379 663

Other comprehensive income 4,10 -3 312 -3 312 0 -3 312

Total comprehensive income 4,10 343 888 343 888 32 463 376 351

Transactions with owners

Capital Increase in HAV Group net after costs

70 179 70 179 16 487 86 667

Sales of share in HAV Group

net after costs

93 611 93 611 22 218 115 829

Dividend distribution shares

in HAV Group ASA

-163 998 -163 998 0 -163 998

Derecognition of non-controlling interest caused

by loss of control in HAV Group ASA

-75 203 -75 203

Redemption of loan presented as part of non-

controlling interest in Havyard Ship

Technology

32 942 32 942 -43 951 -11 009

December 31, 2021 1 239 22 535 -3

274 042 297 814

0 297 814

ANNUAL REPORT 2022

CONSOLIDATED STATEMENT OF CASHFLOW

Eqva ASA

(NOK 1,000) Note 2022 2021

CASH FLOW FROM OPERATIONS

Profit/ (loss) after tax -19 647 379 663

Income tax expense 7 -15 796 -957

Depreciation 11,12 7 524 5 409

Net financial items 16 907 41 353

Impairment of other financial fixed assets 8 0 10 054

Effect from public debt settlement - no cash 8 0 -54 803

Gain on disposal discontinued operations 10 0 189 981

Profit and loss items without cash effect in discontinued operations 10 0 26 300

Agio Profit/loss realized 0 -1 745

Depreciation charge of right-of-use assets 13 2 335 359

Share of (profit)/loss from associates 9 -668 1 128

Changes in inventory 21 -4 719 -5 783

Net changes in construction loans 16 0 -724 456

Changes in accounts receivables 9 775 -80 850

Changes in accounts payable -25 780 -387 002

Changes in customer contracts, asset -51 537 821 285

Changes in customer contracts, liabilities -14 116 16 111

Changes in restricted deposits 68 318 -79 284

Changes in other current receivables/liabilities 17 -5 603 183 655

Net cash flow from/ (to) operating activities -33 006 340 416

CASH FLOW FROM INVESTMENTS

Investments in property, plant and equipment 12 -3 204 -11 792

Sale of property 12 7 002 40 360

Investment in intangible assets 11 -50 -11 062

Net R&D grants 23 824 6 166

Loan to associates 16 -502 -2 338

Cash effect from aquisition of new companies 10 -6 441 0

Disposal of financial assets 19 0 3 250

Cash in HAV Group ASA when loss of control 0 -375 888

Cash in HPR at time for loss of control -18 824 0

Changes in long term receivables 20 -4 922 1 390

Net cash flow used in investing activities -26 118 -349 914

CASH FLOW FROM FINANCING ACTIVITIES

Repayment of bond loan 17 0 -87 999

Repayment of lease liabilities 13 -1 629 -10 203

New bank debt 17 510 0

Instalments on bank debt 17 -7 500 0

Repaid loan of subsidiary 0 -20 429

Interest payment 17 -11 214 -2 625

Aquired own shares 24 -890

Changes in other long-term liabilities 17 -15 460

Sale of shares in HAV Group ASA net of transaction costs 10 3 010 115 829

HAV Group ASA transactions with treasury shares 10 0 86 667

Net cash flow from/ (used in) financing activities -33 173 81 241

Net change in cash and cash equivalents -92 297 71 742

Cash and cash equivalents at start of the year 139 809 68 067

Cash and cash equivalents at end of the year 22 47 512 139 809

Restricted cash at end of year 13 605 81 923

Cash and cash equivalent recognised in the balance sheet 61 117 221 733

50ANNUAL REPORT 2022

NOTES

Eqva ASA

Note

1 General information

2 Significant accounting policies

3 Significant judgements and estimates

4 Segment information

5 Salary, fees, number of employees etc.

6 Other operating expenses

7 Income tax

8 Financial income and financial expenses

9 Subsidiaries, associates and other financial investments

10 Business combinations and other changes in the group

11 Intangible assets

12 Property, plant and equipment

13 Leasing

14 Revenue from contracts with customers

15 Losses to completion

16 Financial risk management

17 Interest bearing debt

18 Other current liabilities

19 Non-current financial investments

20 Other current and non-current receivables

21 Inventory

22 Cash and cash equivalents

23 Government grants

24 Share capital

25 Earnings per share

26 Contingencies and provisions

27 Related party transactions

28 Sustainability and climate risk

29 Subsequents events

ANNUAL REPORT 2022

1. GENERAL INFORMATION

Eqva ASA is a public limited company based in Norway, and its

head office is in Fosnavåg, Herøy.

Eqva ASA is a knowledge-based active owner of industrial

service companies that contribute to the green transition in

maritime, power intensive and renewable industries.

Eqva takes responsibility for developing technological and

commercial solutions, which provide unique advantages for

our customers within land based- and maritime industry. The

group has a well-diversified product and market portfolio, and

further growth will be established through a combination of

company-based development, utilization of synergies between

the companies in the group and value-creating M&A activities.

In June 2022, Havyard Group ASA (now Eqva ASA) acquired

all shares in HG Group AS and BKS Holding AS including

subsidiaries. Havyard Group ASA changed name to Eqva ASA

during the autumn 2022. Both the acquisition and the change

of name are parts of the transformation to a fully integrated

service company, which contributes to green transition in

maritime, power intensive and renewable industries.

The new group structure is operationally organized in 3

segments (reporting structure):

• Maritime services consists of Havyard Leirvik - a multi-

service yard facility which provides services to both

maritime sector, aquaculture and land-based industry. The

yard have both infrastructure and skilled personnel able to

carry out complex projects for clients.

• Products, solutions & renewables which include BKS and

Fossberg Kraft. BKS provides service- and maintenance

assignments to the land-based and maritime industry,

while Fossberg Kraft is specialized in the establishment and

operation of small-scale hydropower plants.

• Other in which the parent company is the main entity

– the segment also includes companies without regular

operations and elimination of intra-group transactions.

The Eqva group include a total of 420 FTEs as of December

31, 2022.

The Board of Directors confirm that the prerequisites for

continued operations as a going concern have been met. This

assumption is based on the preparations of the accounts,

forecast and budgets for 2022 and the Group’s long-term

forecast.

ACCOUNTS FOR 2022 ARE PRESENTED IN ENGLISH.

2. SIGNIFICANT ACCOUNTING POLICIES

2.1 Basis of preparation

The consolidated financial statements of Eqva ASA and its

subsidiaries (the "Group") are prepared in accordance with

International Financial Reporting Standards (IFRS) as adopted

by the EU.

The consolidated financial statements have been prepared on

a historical cost basis except for certain financial assets and

liabilities (including derivative instruments) that are measured

at fair value.

The consolidated financial statements are presented in NOK

1,000. Figures in all notes to the financial statements are also

presented in NOK 1,000 unless otherwise specified.

The consolidated accounts were approved by the Board of

Directors on 30 March 2023.

New standards and changes applicable for the financial year

2022 (those considered relevant)

Property, plant and equipment - Revenue before intended use

- Amendments to IAS 16

The amendments to IAS 16 Property, plant and equipment

prohibit an entity from deducting sales revenue from goods

produced while the fixed asset is being prepared for its

intended use from the acquisition cost of a fixed asset. It

also emphasizes that an entity "tests whether the asset is

functioning properly" as long as it assesses the asset's technical

and physical performance. The financial performance is not

relevant for this assessment. Units must disclose separately the

revenues and costs associated with the goods produced that

are not the result of the units' normal activities.

Loss contracts - Cost of fulfilling a contract - Amendments

to IAS 37

The amendment to IAS 37 emphasizes that the direct costs

of delivering under a contract include both incremental costs

of fulfilling the contract and allocation of other costs directly

related to fulfilling the contract. Before a loss provision is made

for a loss contract, any write-down of impairment of assets

used to deliver under the contract must be carried out.

Upcoming changes and new standards

(those considered relevant)

The following standards and interpretations have been issued,

for which the Group has chosen not to implement early.

NOTES

52ANNUAL REPORT 2022

Classification of debt as short-term or long-term -

Amendments to IAS 1

A limited amendment was made to IAS 1 Presentation of

Financial Statements, which specifies that debt should be

classified as current or long-term based on the rights that

exist at the end of the reporting period. The classification is

unaffected by the expectations of the unit or the events after

the balance sheet date (for example, breach of loan terms).

The amendments also specify what IAS 1 means when it refers

to the 'settlement' of a liability. It is also emphasized that

breaches of loan conditions at the end of the period implies

that the debt must be classified as short-term debt even if

reporting is done at a later point in time.

The changes may affect the classification of liabilities, especially

for entities that previously assessed management's intentions

to determine the classification, as well as for some debt items

that can be converted to equity.

The amendment must be applied retrospectively in accordance

with the main rule in IAS 8 Accounting policies, changes in

accounting estimates and errors.

Definition of Accounting Estimates – Amendments to IAS 8

The amendment to IAS 8

Accounting Policies, Changes in Accounting Estimates and

Errors clarifies how companies should distinguish changes in

accounting policies from changes in accounting estimates.

The distinction is important, because changes in accounting

estimates are applied prospectively to future transactions and

other future events, whereas changes in accounting policies

are generally applied retrospectively to past transactions and

other past events as well as the current period.

The Group will adopt the changes to IAS 1 and IAS 8 starting

1 January 2024.

2.2 Basis of consolidation

The consolidated financial statements include Eqva ASA and

companies in which Eqva ASA has a controlling influence.

Controlling interest is normally achieved when the Group

has control over the enterprise and can use it to influence

the return, is exposed to or has variable return rights, and the

Group is able to exercise effective control over the company.

Note 9 shows an overview of subsidiaries.

Internal transactions and intercompany balances, including

internal profits and unrealized gains and losses, are eliminated.

Similarly, unrealized losses are eliminated, but only to the

extent that there are no indications of impairment of the asset

sold internally.

A change in ownership interest in a subsidiary, without loss of

control, is accounted for as an equity transaction.

2.3 Investments in associates

An associated company is an entity in which the group has

significant influence. Significant influence normally exists

when the Group has 20 % to 50 % of the voting rights unless

other terms and conditions affect the Group’s influence. The

investments in associates are accounted for using the equity

method. Such investments are initially recognized at cost.

Cost includes the purchase price and other costs directly

attributable to the acquisition such as professional fees and

transaction costs.

Under the equity method, the interest in the investment is

based on the Group’s proportional share of the associate’s

equity, including any excess value and goodwill. The Group

recognizes its share of net income, including depreciation

and amortization of excess values and any impairment losses,

in Share of profit/(loss) of associates. Unrealized gains and

losses resulting from transactions between Eqva ASA, and the

associate are eliminated to the extent of the interest in the

associate.

The financial statements of the associates are prepared for

the same reporting period as the Group. When necessary,

adjustments are made to bring the accounting policies in line

with those of the group.

After application of the equity method, the Group determines

whether it is necessary to recognize an impairment loss.

2.4 Foreign currency

The Group's consolidated financial statements are presented in

NOK, which is also the parent company's functional currency.

Transactions in foreign currency are initially recorded by the

Group entities' functional currency at the exchange rate at the

time of the transaction. Monetary items in foreign currency are

translated to functional currency using the exchange rate at the

balance sheet date. Non-monetary items that are measured at

the historic exchange rate in foreign currency are translated

using the exchange rates at the date of the initial transactions.

2.5 Segments

Segments are identified based on the organization and

reporting structure used by management including top

decision maker. Operating segments are components of a

business that are evaluated regularly by the chief operating

decision-maker for the purpose of assessing performance and

allocating (to assess performance and allocate) resources. The

Group’s chief operating decision-maker is the CEO.

NOTES

ANNUAL REPORT 2022

The group has 3 reportable segments after a change in the

reporting structure in 2022:

1. Maritime Services,

2. Products, solutions & renewables

3. Other

Costs not directly attributable to the segments Maritime

Services or Products, solutions & renewables, are related to

the segment "Other", ref Note 4 Segment information.

The group divides the customers into geographical areas based

on the customers' nationalities. The areas are Norway and the

other.

2.6 Related parties

Parties are related if one party has the ability, directly or

indirectly, to control the other party or exercise significant

influence over the party in making financial and operating

decisions. Parties are also related if they are subject to

common control or common significant influence.

Transactions with related parties are disclosed in note 27.

2.7 Revenue recognition

The Group recognizes revenue as the Group fulfills a delivery

obligation upon transfer of goods or services to the customer.

The Group's operating revenues are related to the following

income streams:

• Conversion of vessels (or other large, fixed price projects)

• Service - and maintenance assignments to land based – and

maritime industry.

• Hydro power Plants – development, sale and operation

Conversion of vessels (e.g hybridization/electrification or

other large, fixed price projects)

Conversion contracts are based on industry standards. An

example of a contract can be hybridization/electrification of

ferries.

The contracts define the transaction price but include

clauses that may result in an adjustment of the transaction

price as a result of delayed delivery or deviation from agreed

specifications. The maximum transaction price adjustment

is defined in the contracts, and normally constitutes a small

part of the transaction price. As the adjustment clauses are

rarely triggered and can only lead to limited transaction price

adjustments, the contract price is used as the transaction

price, unless one has specific information that the adjustment

clauses are triggered.

A signed sales contract should be in place before purchase,

construction and other startup cost apply. There are not

started significant project works without a signed contract in

place. The customer can only terminate the contract because

of a breach by Eqva.

The rationale for using the method of recognition of revenue

over time, and not at the time of delivery, is based on the

assumption that we are adding value to an asset controlled by

the customer.

The Group uses accrued costs against expected total costs

as measure of progress. Relevant costs in the assessment are

costs that are directly related to the individual project and

costs that can be attributed to the contract's activity in general

and can be allocated to the contract. This includes labor costs

(including construction supervision), the cost of materials used

in the construction and equipment acquired, depreciation of

equipment used on the contract, and if relevant the cost of

design and technical assistance directly related to the contract.

For a production that is performed by subcontractors, a

concrete assessment is made in relation to when one takes

over control of what subcontractors’ manufacture. Depending

on the facts and contract terms, this can be both as the

subcontractor produces or when there is a physical delivery

from the subcontractor.

The same costs as described above are included in the

assessment of whether one has an onerous contract and

associated measurement of estimated losses. Costs of errors

in production or abnormal shrinkage of material are treated

as period costs and do not generate progress. As there are

normally greater uncertainty in measuring the outcome of the

contract in the early stages of production, revenue recognition

is normally limited to accrued costs until the percentage of

completion reaches 20%. If the uncertainty in a project is so

large that it is not possible to estimate the potential outcome,

no revenue is recognized until the uncertainty is reduced.

Accrued costs in this phase is presented as inventory if criteria

for recognition as inventory is met. If the costs do not qualify

as inventory, it is recognized as operating expenses.

Change orders usually arises as a result of minor modifications

to the vessel under conversion and will therefore normally

not be considered as a separate contract obligation, neither

when considered in combination with remaining construction

of the ship. Change orders are therefore normally accounted

for as a change of existing contract where transaction price

and progress are updated when the change order is approved

by both parties. Payment terms for conversion contracts vary

somewhat depending on the ship type.

NOTES

54ANNUAL REPORT 2022

Service - and maintenance assignments to land based – and

maritime industry

Contracts for Service - and maintenance assignments to

land based – and/or maritime industry usually have a variable

payment facility where customers can pay for the number of

hours and use of materials with a supplement. Larger projects

may be based on fixed price. The contracts normally have a

duration from a few weeks up to some months. For variable-

fee contracts, the amount that one has the right to invoice

on the balance sheet date is recognized as income. For fixed-

price contracts, a measure of progress like that for Conversion

assignments – ref above - is used.

Power plants

Power plants under development are usually organized in

separate legal entities (SPVs) The ownership of the SPV will

be transferred to the buyer when the project is completed,

and the SPV will be consolidated as a subsidiary during the

construction phase. Development and construction of power

plants are output of the ordinary activities of the company, and

the buyer is considered to be a customer. Management has

therefore concluded that the transaction should be accounted

within the scope of IFRS 15 once a firm contract is signed. The

customer can only terminate the contract in if the Group fails

to deliver as promised in the contract.

Eqva has an enforceable right to payment, and the asset

under construction is without alternative use because of

contractual limitations, and revenues are therefore recognized

over time. The Group use cost incurred against expected

total construction cost as measure of progress. The contracts

include standard LD penalties for late delivery, but these are

capped at a moderate level. When the shares in the SPV are

transferred at completion, the share price is determined based

on the agreed price of the power plant, adjusted for any net

debt and working capital items in the SPV.

Services related to operations and maintenance of power

plants owned by a third party are normally based on contracts

with a fixed fee for a defined period. Revenues are recognized

in each accounting period. If a power plant starts power

production before delivered to a client, these revenues are

presented as sales revenues. Costs related to the power

production are presented as operational costs.

2.8 Taxes

Tax expense for the period comprises current and deferred

tax. Tax is recognized in the income statement, except to the

extent that it relates to items recognized directly in equity. In

this case, the tax is also recognized in equity, respectively.

The current income tax charge is calculated based on the tax

laws enacted or substantively enacted at the balance sheet

date in the countries where the company’s subsidiaries and

associates operate and generate taxable income. Management

periodically evaluates positions taken in tax returns with respect

to situations in which applicable tax regulation is subject to

interpretation. It establishes provisions where appropriate

based on amounts expected to be paid to the tax authorities.

Deferred income tax is recognized, on temporary differences

arising between the tax bases of assets and liabilities and their

carrying amounts in the consolidated financial statements.

However, the deferred income tax is not accounted for if

it arises from initial recognition of an asset or liability in a

transaction other than a business combination that at the time

of the transaction affects neither accounting nor taxable profit

nor loss. Deferred income tax is determined using tax rates (and

laws) that have been enacted or substantially enacted by the

balance sheet date and are expected to apply when the related

deferred income tax asset is realized or the deferred income tax

liability is settled.

Deferred income tax assets are recognized only to the extent

that it is probable that future taxable profit will be available

against which the temporary differences can be utilized.

Deferred income tax is provided on temporary differences

arising on investments in subsidiaries and associates, except

where the timing of the reversal of the temporary difference is

controlled by the group and it is probable that the temporary

difference will not reverse in the foreseeable future.

Deferred income tax assets and liabilities are offset when there

is a legally enforceable right to offset current tax assets against

current tax liabilities and when the deferred income taxes assets

and liabilities relate to income taxes levied by the same taxation

authority on either the taxable entity or different taxable entities

where there is an intention to settle the balances on a net basis.

2.9 Property, plant and equipment

Property, plant and equipment is stated in the balance sheet

at cost, net of accumulated depreciation and accumulated

impairment losses, if any. Cost includes expenditures that are

directly attributable to the acquisition of the item of property,

plant and equipment. Depreciation is calculated on a straight-

line basis over the estimated useful lives of the assets as follows:

• Buildings 10-40 years

• Machinery 3-10 years

• Operating equipment 3- 10 years

When significant parts of property and equipment are required

to be replaced at intervals, the Group recognizes such parts

as individual assets with specific useful lives and depreciates

them accordingly. All other repair and maintenance costs are

recognized in profit and loss as incurred.

NOTES

ANNUAL REPORT 2022

An item of property and equipment and any significant part

initially recognized is derecognized upon disposal or when

no future economic benefits are expected from its use or

disposal. Any gain or loss arising on derecognition of the

asset (calculated as the difference between the net disposal

proceeds and the carrying amount of the asset) is included

in the income statement when the asset is derecognized. The

residual values, useful lives, and methods of depreciation of

property and equipment are reviewed at each financial year

end and adjusted prospectively, if appropriate.

2.10 Impairment of property, plant and equipment

Assessment of indications that assets may be impaired is

made at the end of each reporting period. If indications exist,

recoverable amount of the asset is estimated. If carrying value

exceeds the estimated recoverable amount, the asset is written

down to its recoverable amount. Recoverable amount is the

higher of fair value less costs to sell and value in use. The write-

down may be reversed by up to an amount corresponding to

the write-down, if the book value is lower than the recoverable

amount.

Assets are considered as part of a Cash Generating Unit (CGU).

Impairment is done at CGU-level if the impairment test does

not justify the carrying amount of the CGU including goodwill.

2.11 Intangible assets

Intangible assets acquired separately are measured on initial

recognition at cost. The cost of intangible assets acquired in a

business combination is their fair value at the date of acquisition.

Following initial recognition, intangible assets are carried at cost

less any accumulated amortization and accumulated impairment

losses. Internally generated intangible assets,

excluding capitalized development costs, are not capitalized and

expenditure is reflected in profit and loss in the period in which

the expenditure is incurred.

The useful lives of intangible assets are assessed as either finite

or indefinite. Intangible assets with finite lives are amortized over

the useful economic life and assessed for impairment whenever

there is an indication that the intangible asset may be impaired.

The amortization period and the amortization method for an

intangible asset with a finite useful life are reviewed at least at

the end of each reporting period. The amortization expense

on intangible assets with finite lives is recognized in the income

statement as the expense category that is consistent with the

function of the intangible assets.

Intangible assets with indefinite useful lives are not amortized,

but are tested for impairment annually, either individually or

at the cash-generating unit level. The assessment of indefinite

life is reviewed annually to determine whether the indefinite life

continues to be supportable.

Research and development costs (R&D)

Research costs are expensed as incurred. Development

expenditures on an individual project are recognized as an

intangible asset when the Group can demonstrate:

• The technical feasibility of completing the intangible asset

so that it will be available for use or sale

• Its intention to complete and its ability to use or sell the

asset

• How the asset will generate future economic benefits

• The availability of resources to complete the asset

• The ability to measure reliably the expenditure during

development.

Following initial recognition of the development expenditure

as an asset, the cost model is applied requiring the asset to

be carried at cost less any accumulated amortization and

accumulated impairment losses. Amortization of the asset

begins when development is complete, and the asset is

available for use. It is amortized over the period of expected

future benefit. Amortization is recorded in cost of sales. During

the period of development, the asset is tested for impairment

annually.

The main part of the research and development costs that

are recognized as an intangible asset are related to the

development of new ship designs and fish handling equipment.

2.12 Goodwill

Excess value resulting from acquisition of an enterprise that

cannot be allocated to identifiable assets or liabilities on the

date of acquisition is classified as goodwill in the balance sheet.

Goodwill is calculated on a 100 % ownership. In regards of

investments in associated companies, goodwill is included in

the cost price of the investments.

Goodwill is not depreciated, but is subject to a yearly

impairment test. The purpose of the impairment test is to

evaluate whether the booked value of the goodwill can be

justified based on predictions of future earnings. The goodwill

is assessed at each closing of accounts. An assessment is

made whether the discounted cash flow relating to goodwill

exceeds the value of the goodwill recognized in the accounts.

If the discounted cash flow is lower than the recognized value,

goodwill will be written down to the higher of value in use

and fair value less cost to sell. Goodwill is allocated to cash

generating units (CGUs) for the purpose of impairment testing.

The CGUs used in the goodwill assessment are described in

note 11.

NOTES

56ANNUAL REPORT 2022

2.13 Borrowing costs

Borrowing costs directly attributable to the acquisition,

construction or production of an asset that necessarily takes

a substantial period to get ready for its intended use or sale

are capitalized as part of the cost of the respective assets. All

other borrowing costs are expensed in the period in which

they occur. Borrowing costs consist of interest and other costs

that an entity incurs in connection with the borrowing of funds.

2.14 Inventories

Inventories of purchased goods are valued at the lower of

acquisition cost and net realizable value. Net realizable value is

the estimated sales price in the ordinary course of business, less

estimated costs of completion and estimated costs to sell. The

acquisition cost is assigned using the FIFO method and includes

expenses incurred on acquisition of the goods and the cost of

bringing the goods to their present state and location. Finished

goods and work in progress are valued at full cost.

2.15 Treasury shares

Own equity instruments that are reacquired (treasury shares)

are recognized at cost and deducted from equity. No gain or

loss is recognized in profit or loss on the purchase, sale, issue

or cancellation of the Group’s own equity instruments. Any

difference between the carrying amount and the consideration,

if reissued, is recognized in retained earnings. Voting rights

related to treasury shares are nullified for the Group and no

dividends are allocated to them.

2.16 Contract assets and liabilities

Recognized revenue within the scope of IFRS 15 are presented

as a contract asset in the balance sheet if the right to payment

is conditional of future performance (usually to complete

the project). If the right to payment is unconditional, the

recognized amount is presented as accounts receivable.

Advance payments received are presented as a reduction of

the contract asset on a contract level. If advance payments

received are higher than recognized revenue for a specific

contract, the net is presented as a contract liability in the

balance sheet. Credit loss of contract assets are like those for

accounts receivable.

2.17 Financial Instruments.

Investing in shares

Investments in shares are measured at fair value through profit

or loss, except for shares in associated companies.

Receivables

The Group maintains its accounts receivable and other

receivables in a business model where the purpose is to recover

contractual cash flows, so that these are measured at amortized

cost. Receivables are classified as current assets. Receivables

include "accounts receivable and other receivables", as well

as cash and cash equivalents in the balance sheet. Financial

assets are derecognized when the right to receive cash flows

from the investment ceases.

Loan

Debts are measured at amortized cost. Loans are recognized

at fair value when the loan is disbursed, less transaction costs.

In subsequent periods, loans are recognized at amortized cost

calculated using the effective interest rate. The difference

between the loan amount paid out (less transaction costs)

and the redemption value is thus recognized in the income

statement over the term of the loan. Effective interest is

recognized in the income statement unless it is recognized

in the balance sheet on the purchase/ manufacture of a fixed

asset or other qualifying asset. Loans are classified as current

liabilities unless there is an unconditional right to defer payment

of the debt for more than 12 months from the balance sheet

date. First-year repayments on long-term debt are presented

as short-term debt.

Accounts payable

Trade payables are recognized at fair value on initial recognition.

Accounts payable are classified as short-term. Due to the short

maturity, the face value of the debt is considered to reflect fair

value. Normally, fair value will equal transaction price.

In agreements that reduce the value of outstanding debt, the

value of the debt is reduced and recorded as income. Upon

subsequent calculation of the value of the agreement, changes

are entered as an adjustment of the debt with a counter-item

in the income statement.

2.18 Provisions

Provisions are recognised when there is a present obligation

(legal or constructive) because of a past event, it is probable

that a future outflow of economic resources will be required

to settle the obligation and a reliable estimate can be made of

the amount.

Provisions usually relates to warranties. Provisions for warranty-

related costs are recognized when the product is sold, or

service provided to the customer. Initial recognition is based

on historical experience. The initial estimate of warranty-

related costs is revised annually. The normal warranty period

is 12-24 months from delivery of projects. Key sub-suppliers

have warranty responsibilities for their deliveries into projects.

–Eqva`s warranty obligations are related to the works carried

out of Eqva in the projects.

NOTES

ANNUAL REPORT 2022

2.19 Cash flow statements

The cash flow statements are based on the indirect method.

Cash equivalents are short-term, highly liquid investments that

are readily convertible to known amounts of cash and which

are subject to an insignificant risk of changes in value.

2.20 Government grants

Government grants are recognized when it is reasonably

certain that the company will meet the conditions stipulated

for the grants and that the grants will be received. Operating

grants are recognized systematically during the grant period.

Grants are deducted from the cost which the grant is meant

to cover. Investment grants are capitalized and recognized

systematically over the asset’s useful life. Investment grants are

recognized as a deduction of the asset’s carrying amount.

2.21 Discontinued operations

Discontinued operations are part of the Group sold or

classified as held for sale and represent a significant part of one

of the Group's operations or geographical areas. The results of

the divested business are presented separately in the income

statement.

Note 3 - SIGNIFICANT JUDGEMENTS AND ESTIMATES

The preparation of the Group's consolidated financial

statements requires management to make judgments and

estimates. These estimates are based on the actual underlying

business, its present and forecast profitability over time, and

expectations about external factors. Uncertainty about these

estimates could result in outcomes that require a material

adjustment to the carrying amount of assets or liabilities

affected in future periods.

The following judgements and estimates have the most

significant risk of resulting in a material adjustment in the next

financial statements:

3.1 Revenue recognition

To determine how the Group's customer contracts should

be recognized as income, the management has made several

critical assessments. The Group recognizes revenue as the

Group fulfills a delivery obligation upon transfer of goods or

services to the customer. The contracts define the transaction

price but include clauses that may result in an adjustment of

the transaction price as a result of delayed delivery or deviation

from agreed specifications. The maximum transaction price

adjustment is defined in the contracts, and normally constitutes

a small part of the transaction price. As the adjustment clauses

are rarely triggered and can only lead to limited transaction

price adjustments, the contract price is used as the transaction

price, unless one has specific information that the adjustment

clauses are triggered.

3.2 Degree of completion and provision for loss contracts

A part of Eqva's business consists of executing projects where

revenues are recognized over time. Revenue recognition is

based on estimates and assessments made at the discretion

of management.

Revenue recognition and cost estimates depend upon

variables such as steel prices, labor costs and availability,

estimated number of manhours, and other production inputs.

The Group must also evaluate and estimate the outcome of

variation orders, contract claims and requests from customers

to modify contractual terms which can involve complex

negotiations with customers.

3.3 Impairment of non-financial assets including goodwill

An impairment exists when the carrying value of an asset or

cash generating unit (CGU) exceeds its recoverable amount,

which is the higher of its fair value less costs to sell and its

value in use. The fair value less cost to sell calculation is

based on available data from binding sales transactions,

conducted at arm’s length, for similar assets or observable

market prices less incremental costs for disposing the asset.

The value in use calculation is based on a discounted cash

flow model. The cash flows are derived from the budget for

the next five years and do not include restructuring activities

that the Group is not yet committed to or significant future

investments that will enhance the asset’s performance of the

CGU being tested. The recoverable amount is most sensitive

to the discount rate used for the discounted cash flow model

as well as the expected future cash-inflows and the growth rate

used for extrapolation purposes. The key assumptions used to

determine the recoverable amount for the different CGUs,

including a sensitivity analysis, are disclosed, and further

explained in note 11.

3.4 Power plants

For power plants under construction, these are organized in

separate companies where incurred costs are entered on the

balance sheet as operating assets/facilities under construction.

In the group accounts, revenues in these projects are

recognized based on estimates of progress, revenues and costs

for the assets under construction.

3.5 Evaluation of acquiring part in transaction

Subsequent to the acquisition of BKS and Fossberg Kraft, an

evaluation has been done to identify the acquiring part in the

transaction. Key factors considered in the evaluation were

ownership structure of the new group, board of directors and

group management structure. Based on an overall assessment,

Eqva ASA (prev. Havyard Group ASA) was identified as the

acquirer from an accounting perspective.

NOTES

58ANNUAL REPORT 2022

4. SEGMENT INFORMATION

The new group structure in Eqva is organized in 3 reporting

segments:

• Maritime services consists of Havyard Leirvik - a multi-

service yard facility which provides services to both

maritime sector, aquaculture and land-based industry. The

yard have both infrastructure and skilled personnel able to

carry out complex projects for clients.

• Products, solutions & renewables which include BKS and

Fossberg Kraft. BKS provides service- and maintenance

assignments to the land-based and maritime industry,

while Fossberg Kraft is specialized in the establishment and

operation of small-scale hydropower plants.

• Other in which the parent company is the main entity –

the segment also includes companies without regular

operations and elimination of intra-group transactions.

See note 9 for a specification of each segment at company

level.

The group divides the customers into geographical areas based

on the customers' nationalities. The areas are Norway and

Others.

The Group's customer base consists of a wide range of

companies. The Group's three largest customers in 2022

compose 40 % of total Group revenue.

Sales to customers that account for more than 10% of total

sales revenues is presented below:

Customer Segment Revenue

2022 2021

1. Norled AS

2. Fjord 1 AS

Maritime Services

97 282

52 694

6 282

64 746

The 2021 numbers have been recalculated retrospectively to be aligned with the new segment-/ reporting structure. For more

segment details see note 1.

Transfer prices between operating segments are basis in a manner similar to transactions with third parties.

The accounting principles for segment reporting correspond to those used by the group, with the exception of discontinued

operations which are treated in the same way as continuing operations in segment reporting.

2022

(NOK million)

Maritime services Products, solutions &

renewables

Other /

Elimination

Eqva ASA

Operating revenues, External 235,2 219,5 4,2 458,9

Operating revenues, Internal 0,0 0,0 0,0 0,0

Operating income 235,2 219,5 4,2 458,9

EBITDA 12,9 9,3 -31,5 -9,3

Depreciation 2,8 6,9 0,1 9,9

Operating profit/(loss) (EBIT) 10,1 2,3 -31,6 -19,2

Net financial items -1,3 0,6 -16,2 -17,0

Share of profit/(loss) from

associate

0,0 0,0 0,7 0,7

Profit/(Loss) before tax 8,7 2,9 - 4 7, 2 -35,5

Income tax expense -0,4 0,0 -15,4 -15,8

Profit/(Loss) 9,1 2,9 -31,7 -19,6

NOTES

ANNUAL REPORT 2022

Geographical areas Norway Other Total

Operating revenues 578,3 331,9 910,2

Non-current assets 0,0 0,0 0,0

"Other" contains parent company items and elimination of intra-group transactions.

*Property, plant and equipment and intangible assets

2021

(NOK million) Maritime services Products, solutions &

renewables

Other /

Elimination

Eqva ASA

Operating revenues, External 87 9,0 0,0 31,2 910,2

Operating revenues, Internal 0,0 0,0 0,0 0,0

Operating income 87 9,0 0,0 31,2 910,2

EBITDA 41,9 0,0 15,0 56,9

Depreciation 3,1 0,0 2,4 5,4

Operating profit/(loss) (EBIT) 38,9 0,0 12,6 51,5

Net financial items 119,0 0,0 - 7 7, 6 41,4

Share of profit/(loss) from

associate

0,0 0,0 -1,1 -1,1

Profit/(Loss) before tax 157,8 0,0 -66,1 91,7

Income tax expense -1,8 0,0 0,8 -1,0

Profit/(Loss) 159,6 0,0 -66,9 92,7

Total assets 263,0 0,0 2 2 7, 2 490,2

Equity 36,7 0,0 261,1 2 9 7, 8

Liabilities 226,3 0,0 -33,9 192,4

Addition PP&E and intangibles* 0,5 0,0 9,0 9,5

Geographical areas Norway Other Total

Operating revenues 4 5 9, 0 0,0 4 59,0

Non-current assets 0,0 0,0 0,0

"Other" contains parent company items and elimination of intra-group transactions.

*Property, plant and equipment and intangible assets

(NOK million)

Maritime services Products, solutions &

renewables

Other /

Elimination

Eqva ASA

Total assets 161,8 315,5 235,1 712,4

Equity 39,6 53,7 218,8 312,1

Liabilities 122,3 261,7 16,2 400,2

Addition PP&E and intangibles* 0,5 2,5 0,3 3,2

NOTES

60ANNUAL REPORT 2022

Reconciliation to Group profit before tax 2022 2021

Segment result for the period 0 92,7

Profit/loss discontinued operations 0 2 8 7, 0

Profit/loss before tax 0 37 9, 7

Discontinued operations Hav Group ASA

(MNOK) 2021

Operating revenues, External 920,7

Operating revenues, Internal 0,0

Operating income 920,7

EBITDA 123,6

Depreciation 26,3

Operating profit/(loss) (EBIT) 9 7, 3

Net financial items 185,6

Share of profit/(loss) from associate 0,0

Profit/(Loss) before tax discontinued operation 282,9

Income tax expense -4,1

Profit from discontinued operation 2 8 7, 0

*Total assets 0

Equity 0

Liabilities 0

Addition PP&E and intangibles 0

5. SALARY, FEES, NUMBER OF EMPLOYEES ETC.

The Group has a defined contribution plan covering all employees. The Group's pension scheme satisfies the requirements of the Act

on Compulsory Occupational Pensions. Pension costs for the Group's defined contribution plans are expensed on a continuous basis

with earnings for the employees. The Group's duty is limited to the payment of agreed contribution and where the actuarial risk and

investment risk fall on the individual employee.

(NOK 1,000)

Payroll expenses 2022 2021

Wages 142 854 129 468

Employer's part of social security costs 17 385 16 964

Pension, contribution plans 7 653 12 286

Other benefits 4 468 5 857

Total salaries and social expenses 172 360 164 574

FTEs at year end 420 266

NOTES

ANNUAL REPORT 2022

Erik Høyvik

CEO

Eirik Sævareid,

CFO

(NOK 1,000) 2022 2021 2022 2021

Salary 2 183 1 917 750 0

Pension 95 90 52 0

Other remuneration 146 138 6 0

Total remuneration 2 424 2 145 809 0

Incentive programs established in Eqva

The Group has established a incentiv arrangement (bonus) which applies to leaders and key personnel in the Group. The payments

depends on, among others, group performance (e.g reported EBITDA measured against budgeted EBITDA). The payments are expensed

as salaries. There has been no payments in 2022.

The Group has also established a new share purchase program where all employees can participate. Employees can buy shares for up

to NOK 20,000 with a discount of 20 %. The share discount are expensed as salaries.The share purchase program is conducted annually.

The third Group program established is the shareoption program which applies to Board of directors, leaders and key personnel in

the Group. The participants receive 40 000 or 100 000 options, dependent of level in the group, with a vesting period of 3 years. The

program has effect from 1 January 2023.

Remuneration to key management personnel and the Board of Directors:

Eirik Sævareid replaced Vegard Fiksdal as CFO in May 2022. Earlier in the year, Vegard Fiksdal replaced Pål Aurvåg as CFO.

Frank-Levi Kvalsund, SVP HR, finished in Havyard/ Eqva per April 2022. The position was not replaced.

Key management does not have bonus agreements or any share-based payment outside arrangements listed above. Refers to the

statement of remuneration of executive personell.

No loans or guarantees to the Group CEO or any member of the bord per 31/12/22.

Eqva ASA parent company: NOK 2 066 666 in board fees have been paid to external board members in 2022 (NOK 1 380

000 in 2021). Remuneration board members agreed 2022: Chariman NOK 800 000, board member NOK 350 000, employee

representative NOK 220 000, member nomination committee NOK 0, member compensation committee NOK 50 000 and

audit committee NOK 50 000. The group has established a board of director insurance.

Frank-Levi Kvalsund

Tidl. SVP HR/QHSE

(NOK 1,000) 2022 2021

Salary 780 1 350

Pension 33 92

Other remuneration 58 159

Total remuneration 870 1 601

NOTES

62ANNUAL REPORT 2022

6. OTHER OPERATING EXPENSES

Auditor's fees are stated excluding VAT.

7. INCOME TAX

The parent company Eqva ASA is resident in Norway, where the corporate tax rate is 22 %, while some parts of the group are taxed

in other jurisdictions and other tax regimes.

The major componenents of income tax expense/ (income) for the year are:

Reconciliation of actual tax cost against expected tax cost in accordance with the ordinary Norwegian income tax rate of 22%.

(NOK 1,000) 2022 2021

Consolidated income statement

Current income tax:

Taxes payable 1 360 0

Changes in deferred tax -17 156 -957

Income tax expense/(income) reported in the income statement -15 796 -957

(NOK 1,000)

Other operating expenses 2022 2021

Rent expenses* 7 033 1 109

Office and administration expenses 16 278 17 950

Plant, tools and equipment (including IT) 14 337 15 101

Travel and employee expenses 10 480 7 137

Hired consultants** 19 141 9 240

Marketing and communication 1 462 344

Other operating expenses*** -1 513 880

Total 67 219 51 761

Fees to the auditor consists of the following services: 2022 2021

Statutory audit 2 707 3 250

Tax advice 0 235

Other assistance 1 768 610

Total 4 475 4 095

NOTES

*Rent expenses short term/insignificant amounts (not classified under IFRS15)

**Fees to auditor are included here

***The negative figure is due to release of provisions - mainly related to warranty obligations.

ANNUAL REPORT 2022

Deferred tax relates to the following temporary differences:

Deferred income tax and liabilities are offset when there is a legally enforceable right to offset current tax assets against current tax liabilities

and when the deferred income taxes relate to the same fiscal authority. Deferred tax assets are not recognised for companies with a recent

history of reported losses in accordance with IAS 12.

(NOK 1,000) 2022 2021

Profit before tax -35 441 91 711

Tax expense 22%/ 22% -7 797 20 176

Recognized tax expense -15 796 -957

Difference between expected and recognised tax expense -7 999 -21 134

Difference is related to:

Income from investment in related parties 0 248

Results in associates (22%/ 22%) 1 387 0

Prior year adjustments 0 0

Addition deferred tax from aquisition -16 425 0

Loss on sale shares 1 434 0

Impairment financial assets 2 066 0

Other permanent differences -10 467 2 955

Tax payable from previous year 0 0

Effect from public debt settlement 0 12 057

Deferred tax asset not recognized 14 007 -36 392

Total -7 999 -21 134

2022 2021

(NOK 1,000)

Non-current assets -29 246 -20 600

Customer contracts 11 780 1 117

Leasing 1 683 2 550

Current assets -4 267 -150

Accruals and provisions -7 879 -25 304

Gain/(loss) account for deferral 12 544 -2 443

Cut off interest to related parties carried forward -2 019 -19 629

Tax loss carried forward -321 502 -207 456

Total temporary differences -338 905 -271 915

Net deferred tax lability / deferred tax asset (-) -74 559 -59 821

Deferred tax asset not recognised 74 559 60 552

Deferred tax liability in the balance sheet 0 731

NOTES

64ANNUAL REPORT 2022

8. FINANCIAL INCOME AND FINANCIAL EXPENSES

9. DATTERSELSKAP, TILKNYTTEDE SELSKAP OG ANDRE

FINANSIELLE INVESTERINGER

(NOK 1,000)

2022 2021

Interest income 898 690

Agio income 598 0

Effect from public debt setlement 0 54 803

Profit from share sale 2 636 0

Other financial income 6 2 105

Total financial income 4 138 57 597

Interest expenses 11 214 3 315

Agio loss 352 1 746

Impairment of other financial assets 9 389 0

Loss from share sale -639 10 054

Other financial expenses 729 1 129

Total financial expenses 21 045 16 245

Share of profit/loss of associate* 668 -1 128

Net financial items -16 239 40 225

NOTES

*Share of profit/loss of associate in 2022 consists of portion from Havila Charisma IS (ref. note 9) -the balance is from the ownership in

HAV Group ASA until reduction of ownership in June 2022.

ANNUAL REPORT 2022

9. SUBSIDIARIES, ASSOCIATES AND OTHER FINANCIAL INVESTMENTS

2022

Eqva ASA has the following owner-

ship in subsidiaries as of 31/12/2022

Ownership

share/

voting share

Business office Segment Currency Share

capital

(1,000)

Total

equity

(NOK

1,000)

Havyard Ship Technology AS 100 % Leirvik i Sogn Other NOK 60 102 6 820

Havyard Ship Invest AS 100 % Fosnavåg Other NOK 150 000 -1 822

Havyard Leirvik Holding AS 100 % Fosnavåg Other NOK 2 539 2 459

Havyard Leirvik AS 100 % Leirvik i Sogn Maritime Services NOK 2 509 30 230

Norwegian Marine Systems AS 100 % Fosnavåg Other NOK 226 3 727

Mjølstadneset Eiendom AS 100 % Fosnavåg Other NOK 143 10 512

BKS Industri AS 100 % Valen i Kvinnherad Products, solutions & renewables NOK 72 29 059

BKS Power & Automation AS 100 % Sunde i Kvinnherrad Products, solutions & renewables NOK 30 203

HG Group AS 100 % Valen i Kvinnherad Other NOK 684 176 702

Handeland Industri AS 100 % Valen i Kvinnherad Other NOK 375 12 931

BKS Holding AS 100 % Sunde i Kvinnherrad Products, solutions & renewables NOK 30 5 211

Fossberg Kraft AS 100 % Valen i Kvinnherad Products, solutions & renewables NOK 1 002 24 490

Fossberg Kraft Produksjon AS 100 % Valen i Kvinnherad Other NOK 1 002 -18 993

Havyard Eiendom Holding AS 100 % Sunde i Kvinnherrad Maritime Services NOK 50 50

BKS Eiendom AS 100 % Valen i Kvinnherad Products, solutions & renewables NOK 150 3 004

Havyard Leirvik Eiendom AS 100 % Leirvik i Sogn Maritime Services NOK 1 311 9 326

Zenit Eiendom AS 100 % Sunde i Kvinnherrad Products, solutions & renewables NOK 30 30

Zenit Engineering AS 82 % Sunde i Kvinnherrad Products, solutions & renewables NOK 300 5 175

Kvævebekken 2 AS 100 % Valen i Kvinnherad Products, solutions & renewables NOK 80 -242

Skjeggfoss Kraftverk AS 100 % Valen i Kvinnherad Products, solutions & renewables NOK 30 -120

BKS VVS AS 67 % Straume i Øygarden Products, solutions & renewables NOK 100 3 871

Marine Support AS 70 % Storebø i Austevoll Products, solutions & renewables NOK 300 10 069

NOTES

In June 2022 Havyard Group ASA, later changed name to Eqva ASA, aquried Fossberg Kraft and BKS. The settlement of 285 MNOK was based on a combination

of share issues, sellers credit and cash repayment. See note 13 for information regarding the share issue. See also note 10.

The parent company changed name from Havyard Group ASA to Eqva ASA in November 2022.

Havyard Eiendom Holding AS was established during the autum 2022. The company is the parent company of BKS Eiendom AS, Zenit Eiendom AS og Havyard

Leirvik Eiend om AS (all companies owned 100%). The establishment of the internal property group was based on demerger/sales transactions from respectively

Havyard Leirvik AS (HLE), Zenit Engeneering AS og BKS Holding AS. After the transactions HLE, Zenit and BKS carry out only operational core activities.

The ownership in HAV Group ASA was reduced from 33.3% to 4.7% in June 2022 by distributing dividend shares (10,000,000 shares) to the owners of Havyard

Group AS (now Eqva ASA). The distribution is recognized at fair value in accordance with IFRIC 17. Eqva has 1.5 million shares left in HAV group ASA after dividend

and ownership is 4.4 %.

Eqva had a 50% ownership in HPR Spzoo. The company suffered from missing orders and declining liquidities during the autum 2022. In December 2022 the

company was filed for bankruptcy, the fileing included both the Norwegian branch and the Polish registerd company. Eqvas accounted losse where limited.

66ANNUAL REPORT 2022

Investment in associates - balance sheet amount (NOK 1,000)

Value of investment 1/1/2022 29 792

Share of profit/(loss) -6 305

Investments 0

Additions through aquistiion 2 007

Other adjustments 50

Carrying value of investment 31/12/2022 25 544

Aggregate financial information of associates

according to owner share

Operating revenue 50 061

Profit/(loss) -12 610

Total Comprehensive Income -12 610

Total assets 162 860

Equity 45 060

Liabilities 117 800

NOTES

Investments in associates as of 31/12/2022 Ownership share/

Voting share

Business office Currency Share of result

(1,000)

Havila Charisma IS 50 % Fosnavåg NOK -6 305

EW Nord, Estland 47 % Tallinn EUR N/A

The accounting for associates has been according to the equity method.

2021

Havyard Group ASA has the following

ownership in subsidiaries as of 31/12/2021

Ownership

share/

voting share

Business office Segment Currency Share capital

(1,000)

Havyard Ship Technology AS 100 % Leirvik Shipbuilding Technology NOK 60 102

Havyard Ship Invest AS 100 % Fosnavåg Other NOK 150 000

Havyard Leirvik Holding AS* 100 % Fosnavåg Shipbuilding Technology NOK 2 539

Havyard Leirvik AS* 100 % Leirvik Shipbuilding Technology NOK 2 509

Havyard Production sp.z.o.o** 100 % Gdansk Shipbuilding Technology PLN 500

Norwegian Marine Systems AS 100 % Fosnavåg Other NOK 226

Mjølstadneset Eiendom AS 100 % Fosnavåg

Other

NOK 143

ANNUAL REPORT 2022

The accounting for associates has been according to the equity method.

* The balance numbers for HAV Group will be obtained in connection with the annual accounts 2022.

NOTES

In connection with the establishment of HAV Group ASA in Q1 2021 - Norwegian Greetech AS, Norwegian Electric Systems AS, HAV Design AS,

HAV Hydrogen AS and their foreign subsidiaries were transferred from Havyard Group ASA to HAV Group ASA.

The investment in HAV Group ASA is listed under Associates below.

Norwegian Production SP Z. o.o har been liquidated in 2021.

*New HST Holding AS and New Havyard Ship Technology AS, changed names to Havyard Leirvik Holding AS and Havyard Leirvik AS in 2021.

** Regarding Havyard Production sp.z.o.o. see note 28 for subsequent events after balance sheet date.

Investments in associates as of 31/12/2021 Ownership share/

Voting share

Business office Currency Share of result (1,000)

Havila Charisma IS 50 % Fosnavåg NOK -1 128

HAV Group ASA 33 % Fosnavåg NOK Not relevant before 2022

Investment in associates

- balance sheet amount

(NOK 1,000) (NOK 1,000)

Havila Charisma IS HAV Group ASA

Value of investment 1/1/2021 30 920 0

Share of profit/(loss) -1 128 0

Investments 0 164 393

Carrying value of investment 31/12/2021 29 792 164 393

Aggregate financial information of associates

according to owner share

Havila Charisma IS HAV Group ASA

Operating revenue 49 419 922 387

Profit/(loss) -2 255 97 016

Total Comprehensive Income -2 255 97 016

*Total assets 165 771 0

Equity 57 984 0

Liabilities 107 786 0

68ANNUAL REPORT 2022

The companies were aquired as a part of Eqva`s strategy to develop to-

wards an integrated supplier of products and services to both maritime

sector and land-based industries.

Goodwill is related to the aquired companies documented ability to

deliver growth combined with positive financial results.

10. BUSINESS COMBINATIONS AND OTHER CHANGES IN

THE GROUP

Aquisition of BKS company structure and Fossberg Kraft

On 29 June 2022, Havyard Group ASA (now Eqva ASA) acquired 100%

of the shares and voting rights in HG Group AS and BKS Holding AS

including subsidiaries. The main business in the aquisition targets is re-

lated to delivery of technical services to industrial clients (BKS) and

development of small hydropower plants (Fossberg Kraft). A Purchase

prize allocation (PPA) has been prepared in accordance with IFRS 3

where identifiable assets and liabilities are assessed at fair value at the

time of takeover. The difference between the group's acquisition cost

and the fair value of net assets is allocated to goodwill.

The companies were aquired for 215 MNOK, where 175 MNOK was

settled in shares in Eqva (issue of 47 206 166 new shares), 15 MNOK

was was settled in cash and 25 MNOK as seller credit. The number of

sharer increased from 24 781 150 to 71 987 316.

PPA allocation (amounts in mNOK)

Equity targets at time of aquisition -76,4

PPA-adjustments 291,4

Transaction value 215,0

NOTES

The assets and liabilities recognised as a result of the aquisition are as follows : Fair value (mNOK)

Cash 8,6

Trade receivables 101,5

Inventories 6,2

Other short-term receivables 13,0

Land and buildings 102,6

Plant and equipment 25,3

Investments 11,4

Deferred tax asset 0,9

Intangible assets - trademarks 0,0

Intangible assets - customer contracts 32,0

Deferred tax liabilities -17,3

Trade payables -54,1

Bank debt -177,6

Other long-term liabilities -3,0

Other short term liabilities -81,1

Net identifiable assets acquired -31,6

Minority interests -1,6

Goodwill 248,3

Net assets acquired 215,0

ANNUAL REPORT 2022

Pro-forma accounts 2022 Aquisition targets

half 2022

Eqva ASA 2022* Pro-forma

accunts 2022**

Operating income 191,0 4 5 9, 0 650,0

Materials and consumables 49, 5 228,8 278,2

Payroll expenses 105,4 172,4 2 7 7, 8

Other operating expenses 28,9 67,2 96,1

EBITDA 7, 2 -9,3 -2,1

*consolidated group accounts

**as if the transaction was done 01 January 2022 i.e. including full-year effect of aquired companies

Change in ownership in HAV Group ASA

The ownership in HAV Group ASA was reduced from 33,3 % per 1 January 2022 to 4,4% per 31 December 2022. This due to distribution of dividend

shares (10 000 000 shares) in June 2022, and sale of shares to the market (110 105 shares) during the Autumn 2022. Per 31 December 2022, Eqva

has 1 548 542 shares remaining in HAV Group ASA.

In the 2022 accounts, Eqva booked a profit (share of profit associates) at 7,1MNOK from the owhershipt position in HAV Group ASA.

The dividend of 10 000 000 shares in June 2022 led to a loss of 6,1 MNOK booked as financial expenses.

11. INTANGIBLE ASSETS

2022

(NOK 1,000)

Licenses, patents and R&D Customer contracts Goodwill Total

Acquisition cost as of 1/1 0 0 0 0

Additions during the year 1 425 32 000 248 260 281 685

Disposals during the year 0 0 0

Acquisition cost as of 31/12 1 425 32 000 248 260 281 685

Accumulated impairment as of 1/1 0 0 0 0

Impairment for the year 150 1 067 0 1 217

Disposals during the year 0 0 0

Accumulated impairment as of 31/12 150 1 067 0 1 217

Accumulated impairment as of 1/1 0 0 0 0

Impairment for the year 0 0 0 0

Disposals during the year 0 0 0 0

Accumulated impairment as of 31/12 0 0 0 0

Book value as of 31/12 1 275 30 933 248 260 280 468

Depreciation rate 5-7 years 15 years* Impairment

testing

Depreciation plan Linear

*Depreciation rate for customer relationships is set based on the aquired companies` history of long-term relationships with key customers.

NOTES

70ANNUAL REPORT 2022

Allocation of goodwill 2022

Products, solutions & renewables 248 260

Total goodwill 248 260

NOTES

2021

(NOK 1,000)

Licenses, patents and R&D Customer contracts Goodwill Total

Acquisition cost as of 1/1 189 330 0 94 694 284 024

Additions during the year 11 062 0 0 11 062

Disposals during the year 200 392 0 94 694 295 086

Acquisition cost as of 31/12 0 0 0 0

Accumulated impairment as of 1/1 100 178 0 0 100 178

Impairment for the year 16 007 0 0 16 007

Disposals during the year 116 185 0 0 116 185

Accumulated impairment as of 31/12 0 0 0 0

Accumulated impairment as of 1/1 0 0 46 263 46 263

Disposals during the year 0 0 46 263 46 263

Book value as of 31/12 0 0 0 0

Depreciation rate 5-7 years Impairment

testing

Depreciation plan Linear

ANNUAL REPORT 2022

NOTES

2022

Goodwill

Goodwill is monitored as tested for impairment at the

level of operating segments. The entire goodwill relates to

the aquisition of BKS and Fossberg Kraft in late June 2022

Bacause of the short period from the aquisition date to the

end of the reporting period, management has not performed

a full impairment test. Instead, management has evaluated

whether any unfavouable changes have occured, and whether

the assumptions in the business plan that was the basis for the

transaction is stilll valid. Management has concluded that there

has not been any changes that could reasonably lead to an

impairment of the recognised goodwill.

2021

Goodwill

Goodwill is allocated to the Group's cash generating units

(CGUs) identified according to the business segment.

Impairment

The Group has carried out an impairment-test of goodwill and

intangible assets by the requirements of IAS 36.

The recoverable amount of a CGU is determined based

on value-in-use calculations. These calculations use cash

flow projections based on financial budgets approved by

management covering a five-year period. Cash flows beyond

the five-year period are extrapolated using estimated growth

rates . The growth rate does not exceed the long-term average

growth rate for the business in which the CGU operates.

Goodwill is not amortised, but an annual assessment is made

to evaluate whether the value can be justified in relation to

future earnings. The goodwill are assessed at each closing

of accounts. An asessment is made whether the discounted

cash flow relating to goodwill exceeds the value of the goodwill

recognized in the accounts. If the discounted cash flow is

lower than the recognized value, goodwill will be written down

to the net realisable value.

The Goodwill from the Norwegian Electric Systems AS

aquisition in 2015, related to the HAV Group ASA segment,

has been written down from 45 MNOK to 0 in 2021.

72ANNUAL REPORT 2022

NOTES

2022

(NOK 1,000) Land and buildings Machinery Operating equipment Total

Acquisition cost as of 1/1 258 555 50 251 53 630 362 436

Additions from aquisition 106 435 6 116 15 368 127 919

Additions during the year 144 2 218 842 3 204

Disposals during the year 6 152 4 990 861 12 002

Acquisition cost as of 31/12 358 981 53 595 68 980 481 557

Accumulated depreciation as of 1/1 248 608 45 758 51 953 346 320

Depreciation for the year 2 210 3 220 877 6 307

Accumulated depreciation as of 31/12 250 818 48 978 52 831 352 627

Book value as of 31/12 108 164 4 617 16 149 128 927

Useful life 10-40 years

3-10 years

12. PROPERTY, PLANT AND EQUIPMENT

Other operating equipment mainly relates to office equipment.

Depreciation

The Group has identified three classes of property, plant and equipment; land and buildings, machinery and operating

equipment and are depreciated by the linear method over expected useful life.

Disposals during the year in note 12 with discontinuing operations 2021.

2021

(NOK 1,000) Land and buildings Machinery Operating equipment Total

Acquisition cost as of 1/1 296 433 63 121 74 53 1 434 084

Additions during the year 8 970 2 822 11 792

Disposals during the year 46 848 12 870 23 723 83 441

Acquisition cost as of 31/12 258 555 50 251 53 630 362 436

Accumulated depreciation as of 1/1 275 968 43 741 65 539 385 247

Depreciation for the year 2 089 2 021 2 387 6 497

Disposals during the year 29 448 4 15 972 45 424

Accumulated depreciation as of 31/12 248 608 45 758 51 953 346 320

Book value as of 31/12 9 946 4 493 1 677 16 116

Useful life 10-40 years

3-10 years

ANNUAL REPORT 2022

13. LEASES

Amounts recognised in the balance sheet.

The balance sheet shows the following amounts relating to leases:

(NOK 1,000) 2022 2021

Right of use assets

Property 1 021 41

Equipment 7 827 291

Cars 2 086 0

Sum 10 933 332

Additions, right-of-use assets in the period 12 937 0

Disposals of right-of-use assets in the period 0 38 442

Disposals non-discounted liabilities in the period 0 0

Amounts recognised in the statement of profit or loss.

The statement of profit or loss shows the following amounts

relating to leases:

2022 2021

Depreciation charge of right-of-use assets

Properties 310 148

Equipment 866 100

Cars 1 160 111

Total 2 335 359

Interest expense 229 389

Expenses relating to short-term leases 7 033 1 109

Expenses relating to leases of low-value 0 73

The total cash outflow for leases in 2022 was MNOK 8,884 (2021: MNOK 10,592) which includes short/insignificant lease arrangements.

NOTES

2022 2021

Right of use assets - development 2022

Right of use assets - 01.01 332 38 775

Additions during the year 12 937 358

Depreciation 2 335 359

Disposals during the year 0 38 442

Right of use assets - 31.12 10 933 332

74ANNUAL REPORT 2022

NOTES

14. REVENUE FROM CONTRACTS WITH CUSTOMERS

Changes in the delivery time of the projects can have a significant impact on the measurement of contract assets and contractual

liabilities.

The amount accounted as contractual liabilities on Opening balance (IB) is recognized over the remaining of the contract period.

The revenue profile can vary significantly from one year to another by changes in the number of projects under construction and

the average degree of completion of the projects.

NOTE 14.1

2022

Disaggregation of revenue Maritime services Products, solutions &

renewables

Other / Elimination Eqva

Service and maintenence 235 218 200 236 4 164 439 617

Construction of power plants 0 16 813 0 16 813

Total revenue from contract with customers 235 218 217 049 4 164 456 431

See note 4

NOTE 14.2

Contract assets 2022 2021

Opening balance 0 829 438

Payments received on assets from previous balance sheet date 0 829 438

Assets from contracts entered into current year 51 537 0

Closing balance 51 537 0

Contract liabilities 2022 2021

Opening balance -35 558 -100 436

Revenues booked on liabilities from previous balance sheet date 35 558 100 436

Liabilities from contracts entered into current year 861 35 558

Closing balance -861 -35 558

2021

Disaggregation of revenue Shipbuilding Technology Other / Elimination Havyard Group

Sale and repairment of vessels 862 425 23 871 886 296

Repair and maintenence services 16 597 0 16 597

Total revenue from contract with customers 879 022 23 871 902 893

See note 4

(NOK 1,000)

ANNUAL REPORT 2022

NOTES

NOTE 14.3

Transaction price allocated to fully or partly unsatisfied performance obligations

2022 2021

Transaction price allocated to remaining performance 41 573 139 719

Expected delivery of remaining performance obligations

Within one year 41 573 139 719

Between one and two years 0 0

NOTE 14.4

No revenue was recorded in 2022 on previously completed contracts

(NOK 1,000) 2022 2021

Provisions

Provisions from previous period 0 11 155

Reduced deposit 0 -11 155

New provisions 0 0

Total 0 0

15. LOSSES TO COMPLETION

The provision is presented as part of other current liabilities in the balance sheet. The the profit and loss statement the expense is allocated

between the line items materials and consumables, payroll expenses and other operating expenses.

76ANNUAL REPORT 2022

16. FINANCIAL RISK MANAGEMENT

Below the financial instruments of the Group are presented according to category:

2022

Fair value through profit or loss Amortized cost Total

Assets as per balance sheet

Investments in shares 16 163 0 16 143

Loans to associates 0 4 840 4 840

Trade and other current receivables 0 116 507 116 507

Non current receivables 0 2 648 2 648

Cash and cash equivalents 0 61 117 61 117

Total 16 163 185 113 201 275

Liabilities at fair value through

the profit or loss

Amortized cost Total

Liabilities as per balance sheet

Accounts payables 0 56 147 56 147

Other long-term liabilities 0 41 474 41 474

Lease liabilities 0 11 243 11 243

Other current liabilities 0 76 255 76 255

Liabilities to financial institutions 0 175 366 175 366

Total 0 360 485 360 485

NOTES

2021

Fair value through profit or loss Amortized cost Total

Assets as per balance sheet

Trade and other current receivables 0 45 960 45 960

Non current receivables 0 111 111

Cash and cash equivalents 0 221 733 221 733

Total 0 267 805 267 805

Liabilities at fair value through

the profit or loss

Amortized cost Total

Liabilities as per balance sheet

Accounts payables 0 27 793 27 793

Other current liabilities 0 71 073 71 073

Liabilities to financial institutions 0 4 783 4 783

Total 0 103 649 103 649

For shares considered at fair value, please refer to note 19.

Financial instruments valued at amortized cost is considered to have market value which not differ significantly from booked value.

ANNUAL REPORT 2022

NOTES

Assessment of fair value

The different levels have been defined as follows:

Level 1: Fair value is measured by using quoted prices in active

markets for identical financial instruments. No adjustments are

made related to these prices.

Level 2: The fair value of financial instruments that are not

traded on an active market is determined using valuation meth-

ods. These valuation methods maximise the use of observable

data where they are available, and rely as little as possible on

the Group’s own estimates. Classification at level 2 requires

that all significant data required to determine fair value are

observable data.

Level 3: Fair value is measured using significant data that are

not based on observable market data.

Financial Risk

The Group’s activities expose it to financial risks such as, mar-

ket risks, credit/counterpart risk and liquidity risk.

The Board of Directors is responsible for setting the objec-

tives and underlying principles of financial risk management

for the Group. The Board of Directors also establishes detailed

policies such as authority levels, oversight responsibilities, risk

identification and measurement, exposure limits and hedging

strategies (if relevant).

Market Risk

Market risk is the risk that fluctuations in market prices,

e.g. exchange rates, the price of such raw materials as steel,

and interest rates, will affect future cash flows or the value

of financial instruments. Market risk management aims to

ensure that risk exposure stays within the defined limits, while

optimising the risk-adjusted return. Attempts should be made

to secure major purchases in connection with projects as soon

as possible after the final clarification of the project.

Currency risk

The Group’s revenue and costs are denominated primarily in

Norwegian Krone(“NOK”) which is the functional currency

of all entities within the Group. Currency risk arises through

ordinary business when transactions occur in a currency other

than the functional currency of the Group. The Group is

mainly exposed to Euro (EUR) - but currency risk is considered

to be limited in Eqva`s current operations. The Group has a

currency hedging strategy where financial instruments (mainly

forward contracts) are used to minize the currency risks.

78ANNUAL REPORT 2022

Credit/Counterparty risk

Credit risk refers to the ability and willingness of counterparts to pay for services rendered and to stand by their future contractual

commitments with the Group. The Group has implemented thorough procedures to limit the exposure to unreliable counterparts

and the Group avoids undue concentration of credit and counterpart exposure. Prior to fixing any business with new customers or

medium to longer term business with existing customers, commercial departments have to get approval from the Group’s credit

risk team. The credit assessments are based on information from external credit rating agencies, public information, the Group's

previous experience with the counterpart and internal analysis. Country and political risk also forms a part of the assessment. The

Group actively seeks to diversify its exposure to particular industries and/or jurisdictions.

The age analysis of trade receivables is as follows:

Impairment of trade receivables are mainly related to a few issues were clients have experienced financial difficulties.

The impairment amount is calculated in each case based on best estimate of amount to be received.

Liquidity risk

Liquidity risk is the risk that the group will be unable to fulfil its financial obligations as they fall due. The Group monitors its liquidity

risk by maintaining a level of cash and bank balances deemed adequate by management to finance the Group’s operations and

mitigate the effects of fluctuations in cash flows.

Management monitors rolling forecasts of the Group’s liquidity reserve and cash and bank balances on the basis of expected cash

flow. Close follow of the cash flow development is also the basis for the continued operation considerations. Reference can be

made to note 22 for details on cash, note 17 for interest bearing debt and note 13 leasing liabilities.

Liquidity risk can also be caused by customers not able to establish long-term financing for projects or that the Group is unable

to secure construction financing.

NOTES

NOK (1,000) 2022 2021

Not past due 75 259 1 728

Past due < 3 months 9 723 630

Past due 3 to 6 months 2 395 371

Past due over 6 months 7 338 17 055

Impairment -3 760 0

Trade receivables 90 955 19 784

Contract assets customer contracts 51 537 0

Total credit/counterparty risk to customers 142 492 19 784

ANNUAL REPORT 2022

NOTES

Liabilities in balance sheet

2022 Current Long Term

NOK (1,000) 0-3

months

3-6

months

6-12

months

1-2 years 2-5 years > 5 years

Non Derivatives

Accounts payables 56 147 0 0 0 0 0

Lease 0 0 1 765 0 10 538 0

Other long-term liabilities 0 0 0 3 904 43 492 0

Liabilities to financial institutions 7 523 10 260 26 977 56 261 95 858 0

Total 63 670 10 260 28 742 60 165 149 888 0

Derivatives

Forward contract foreign exchange 0 0 0 0 0 0

Total 63 670 10 260 28 742 60 165 149 888 0

2021 Current Long Term

NOK (1,000) 0-3

months

3-6

months

6-12

months

1-2 years 2-5 years > 5 years

Non Derivatives

Accounts payables 42 088 0 5 831 0 0 0

Lease 0 0 132 0 225 0

Liabilities to financial institutions 0 0 435 0 4 348 0

Total

42 088 0 6 398 0 4 573 0

Derivatives

Forward contract foreign exchange

0 0 0 0 0 0

Total

42 088 0 6 398 0 4 573 0

Capital Management

The Group’s objectives when managing capital are to safeguard the Group’s ability to continue as a going concern and to maintain

an optimal capital structure so as to maximise shareholder value. In order to maintain or achieve an optimal capital structure, the

Group may return capital to shareholders or obtain borrowings.

The group`s main target for managing capital is return on equity (ROE).

Interest rate risk

The Group are exposed to changes in interest rates, as the liabilities have floating rates. The Group have not entered into interest

rate hedging instrument. Reference is made to Note 17 for more information regarding interest bearing debt.

80ANNUAL REPORT 2022

NOTES

17. INTEREST BEARING DEBT

The Liabilities to financial institutions of total 157 MNOK include Innovation Norway loan to Havyard Leirvik EIendom, DNB loan

to BKS, construcion loans from Sparebank 1 SR-Bank to Fossberg Kraft and Pareto bank loan to Eqva ASA.

The loan from Innovasjon Norge has a maturity of 3-11 years, the loans from DNB have a maturity on 4 years and the loan from

Pareto has a maturiy of 3 years. Construction loans from Sparebank 1 SR-Bank has a maturity of 2 years. All the loans have floating

interest rates.

As of 31 December 2022, Eqva ASA was in compliance with all its valid debt covenants.

Other long-term liabilities include among others a sellers credit from the aquisition of HG Group and BKS (25 MNOK) and a loan

from Havila Holding (13 MNOK).

(NOK 1,000)

Interest bearing long-term debt 2022 2021

Lease liabilities 9 624 225

Liabilities to financial institutions 152 868 4 348

Other long-term liabilities 41 474 31 933

Sum 203 967 36 506

Interest bearing short-term debt 2022 2021

Liabilities to financial institutions 22 498 435

Construction loan 0 0

Bond loan 0 0

Lease liabilities 1 619 132

Sum 24 116 567

Debt secured by mortgage 2022 2021

Long-term debt to financial institutions 152 868 4 348

Short-term debt to financial institutions 22 498 435

Sum 175 366 4 783

ANNUAL REPORT 2022

Leasing liabilities

For information about group's leasing, see note 13.

Book value of pledged asset

(NOK 1,000) 2022 2021

Buildings 108 164 12 000

Machinery, operating equipment 20 766 12 000

Earned, not billed production 51 537 0

Inventory 13 681 0

Accounts receivables 90 955 0

Bank deposits 47 519 0

Sum book value of pledged assets 332 621 24 000

2022

Loans Changes in liabilities

(NOK 1,000) Start of period Borrowing Additions by

aquisition

Installment Not cash

changes

End of period

Liabilities to financial institutions 4 783 510 177 573 7 500 0 175 366

Sellers credit to shareholders 0 0 0 0 25 000 25 000

Other long-term liabilities 31 933 0 0 15 460 0 16 474

Lease liabilities 357 9 492 3 023 1 629 0 11 243

Total interest-bearing debt 37 072 10 002 180 596 24 589 25 000 228 083

2021

Loans Changes in liabilities

(NOK 1,000) Start of period Borrowing Additions by

aquisition

Installment Not cash

changes

End of period

Liabilities to financial institutions 95 602 0 0 -20 429 -70 391 4 783

Bond loan- unsecured 80 000 0 0 -80 000 0 0

Other long-term liabilities 16 136 0 0 0 15 797 31 933

Lease liabilities 41 579 0 0 -10 203 -32 509 357

Total interest-bearing debt 233 316 0 0 -110 631 -87 102 37 072

As of 31 December 2021, the Group was in compliance with all its existing debt covenants.

82ANNUAL REPORT 2022

NOTES

18. OTHER CURRENT LIABILITIES

Other current liabilities consists of the following:

19. NON

-CURRENT FINANCIAL INVESTMENTS

As per December 31. 2022 the Group has investments in financial assets of NOK 17.8 million (NOK 4.6 million as of December

31. 2021). The investments are classified as noncurrent. The investments are recognized at fair value with changes in value in the

income statement.

Except for the HAV Group investment, which is a listed company, the rest are unquoted equity shares and are classified as level

3 investments.

*The investment in HAV Group ASA is based on marketvalue (1.5 million shares). The investment in HAV is a reduction from 33.3%

in 2021 to 4.4%, mainly by distribution of dividend-shares(10 million shares) and sale of shares. The investment is reclassified from

"Investment in associates". The investment in Fafnir Offshore hf (7,61%) has been sold for 3.3 MNOK i 2021.

**The investment of 3 MNOK is related to 3 appartements outside the shipyard in Leirvik (HLE).

(NOK 1,000) 2022 2021

Employee-related liabilities 38 133 20 361

Warranty provisions 7 879 23 395

Accrud interest expense 2 323 0

Other current liabilities 27 920 27 318

Total other current liabilities 76 255 71 073

2022

(NOK 1,000)

Company Ownership share/

voting share

Business Office Carrying

amount

HAV Group ASA* 4.4% Fosnavåg 13 163

Other non-current financial investments** 3 000

Carrying amount as of 31/12/22 16 163

2021

(NOK 1,000)

Company Ownership share/

voting share

Business Office Carrying

amount

Vest North Group AS 19,30 % Bergen 1 610

Other non-current financial investments 3 000

Carrying amount as of 31/12/21 4 610

All investments are unquoted equity shares and are classified as level 3 investments.

ANNUAL REPORT 2022

NOTES

Changes in carrying amount from 31/12/21 to 31/12/22:

*Due to reduction in ownership in HAV Group ASA, the investment is reclasified from "Investment in associates".

Market value per 31.12.2022.

Valuation (Vest North Group AS) is based on value adjusted equity in the ship owning companies. External valuations are used to

estimate value of ships. These are subject to general factors in the world economy and speicifically in the shipping industry.

20. OTHER CURRENT AND NON

-CURRENT RECEIVABLES

(NOK 1,000)

Other non-current receivables 2022 2021

Long-term investments

Prepaid leasing obligations 2 648 111

Sum other non-current receivables 2 648 111

Other current receivables 2022 2021

Prepayments suppliers 7 494 12 544

Accrued income 6 447 0

Employee-related items 1 426 0

Receivables VAT and government grants 1 550 8 604

Other short-term receivables 8 634 5 028

Sum other current receivables 25 552 26 176

(NOK 1,000) 2022 2021

Level 1 investments 01/01 0 0

Investment 0 0

Reclassified* 13 163 0

Impairment 0 0

Sale of investment 0 0

Adjustment 0 0

Level 1 investments 31/12 13 163 0

(NOK 1,000) 2022 2021

Level 3 investments 01/01 4 610 17 914

Investment 0 0

Impairment 0 10 053

Sale of investment 0 3 250

Adjustment 0 0

Level 3 investments 31/12 4 610 4 610

84ANNUAL REPORT 2022

NOTES

21. INVENTORY

22. CASH AND CASH EQUIVALENTS

Cash and cash equivalents consist of:

23. GOVERNMENT GRANTS

Government grants have been received for several development projects. The grants are entered as a cost reduction over other

operating costs and as a reduction of R&D in the balance sheet.There are no unsatisfied conditions or conditions attached to these

grants. The grants are taken as a cost reduction.

Government grants have been received for several projects. There are no unfulfilled conditions or contingencies attached to these

grants.

(NOK 1,000) 2022 2021

Raw materials (at cost) 13 681 2 781

Total Inventories 13 681 2 781

Impairment for obsoletness 0 0

Inventory is measured at the lower of average cost and net realisable value, and consists of raw

materials.

NOK (1,000) 2022 2021

Cash at banks - unrestricted 47 512 139 811

Cash at banks - restricted 13 605 81 923

Total 61 117 221 733

Restricted cash consists of:

Security furnished to customer for payment in advance 0 77 824

Tax withholding accounts 10 976 4 099

Other 2 629 0

At 31 December 2022 the Group had MNOK 0 (2021: NOK mill 0) in undrawn committed borrowing facilities.

NOK (1,000) 2022 2021

Received during the year 824 17 867

Released to the income statement 824 17 867

Of this - booked as reduction of other operating expenses 824 17 867

Of this - booked as reduction of capitalized R&D 0 0

31.12 - Unrecognized income 0 0

ANNUAL REPORT 2022

NOTES

24. SHARE CAPITAL

Capital increase

The share capital was increased by NOK 2 360 308 to 3 599 366, by issuing 47 206 166 new shares, in June 2022. The increase

was related to the aquisition of BKS and Fossberg Kraft. After the increase the number of shares are 71 987 316, at NOK 0.05.

Treasury shares

Eqva ASA has 323 046 treasury shares (0.4 % of share capital) as of 31/12/2022.

Dividends and group contributions

The ownership in HAV Group ASA was reduced from 33.3% to 4.7% in June 2022 by distributing dividend shares (10,000,000 shares)

to the owners of Havyard Group AS (now Eqva ASA). The distribution is recognized at fair value in accordance with IFRIC 17. Eqva has

1.5 million shares left in HAV group ASA after dividend (ownership now is 4.4 %).

The board proposes NOK 0 in dividend for the general meeting.

Ordinary shares issued and fully paid

2022 2021

Number of ordinary shares 71 987 316 24 781 150

Par value (NOK) 0.05 0.05

Share capital (NOK) 3 599 366 1 239 058

All shares have equal rights.

Shareholders as of 31/12/2022 Controlled by Number of shares Ownership

Nintor AS 16 938 645 23,5 %

Havila Holding AS Vegard Sævik (Board) 10 000 000 13,9 %

ROS Holding AS 5 660 027 7,9 %

Neve Eiendom AS Even Matre Ellingsen (DB) 4 993 951 6,9 %

Eikestø Eiendom AS Rune Skarveland (Board) 4 960 847 6,9 %

Fureneset Eiendom AS 4 960 847 6,9 %

Eikestø AS Rune Skarveland (Board) 2 999 511 4,2 %

Neve Holding AS Even Matre Ellingsen (DB) 2 999 511 4,2 %

Fureneset Invest AS 2 999 511 4,2 %

Emini Invest AS Vegard Sævik (Board) 1 290 000 1,8 %

HSR Invest AS 1 290 000 1,8 %

Innidimann Invest AS 1 290 000 1,8 %

MP Pensjon PK 1 086 468 1,5 %

Other shareholders (<1 %) 10 518 498 14,6 %

Number of shares 71 987 816 100 %

86ANNUAL REPORT 2022

NOTES

25. EARNINGS PER SHARE

The group has no financial options or convertible loans with a future dilution effect.

2021

The share capital was NOK 1 239 058 divided by 24 781 150 shares, at NOK 0.05.

Teasury shares

Havyard Group ASA has 55,159 treasury shares (0,2 % of share capital) as of 31.12.2021.

Dividends and group contributions

The Group has paid out dividend to its owners by distribution of 11 631 034 dividend shares in Hav Group ASA, to a book value of

13.8 MNOK (market value 164 MNOK), in 2021.

Shareholders as of 31/12/2021 Controlled by Number of shares Ownership

Havila Holding AS 10 000 000 40,4 %

Innidimann AS Vegard Sævik (CB) 1 290 000 5,2 %

Emini Invest AS 1 290 000 5,2 %

HSR Invest AS Hege S.Rabben (Board) 1 290 000 5,2 %

MP Pensjon PK 1 086 468 4,4 %

Avanza Bank AB 709 705 2,9 %

Pison AS 430 000 1,7 %

Clearstream Banking S.A. 384 142 1,6 %

Nordnet Bank AS 305 019 1,2 %

Other shareholders (<1 %) 7 995 816 32,3 %

Number of shares 24 781 150 100 %

(NOK 1,000) 2022 2021

Profit attributable to equity holders of parent -21 410 347 200

Weighted average number of shares outstanding 71 987 24 781

Earnings per share (NOK) -0,30 14,01

Adjusted weighted average number of shares outstanding 71 987 24 781

Diluted earnings per share (NOK) -0,30 14,01

Earnings from continued operations

Earnings per share (NOK) -0,30 14,01

Diluted earnings per share (NOK) -0,30 14,01

(NOK 1,000) 2022 2021

Profit attributable to equity in continued operations -21 410 92 666

Weighted average number of shares outstanding 71 987 24 781

Earnings per share (NOK) -0,30 3,74

Adjusted weighted average number of shares outstanding 71 987 24 781

Diluted earnings per share (NOK) -0,30 3,74

Earnings from continued operations

Earnings per share (NOK) -0,30 3,74

Diluted earnings per share (NOK) -0,30 3,74

ANNUAL REPORT 2022

NOTES

26. CONTINGENCIES AND PROVISIONS

Legal disputes

Non

Tax

Non

Guarantees/warranties

Being a group in the shipbuilding industry, the Group from time to time faces warranty claims as part of its ordinary business. No

material warranty claim has as of the date of these financial statements been directed at any of the companies in the Group, nor

have any of the companies in the Group been notified of any such claims.

2022

Guarantees

Provisions 1/1/2021 23 395

Used provision -16 371

New provisions 856

Provisions 31/12/2021 7 879

2021

Guarantees

Provisions 1/1/2020 18 002

Used provision -11 214

New provisions 16 607

Provisions 31/12/2020 23 395

88ANNUAL REPORT 2022

NOTES

27. RELATED PARTY TRANSACTIONS

Transactions with related parties

The Group has various transactions with related parties. All the transactions have been carried out as part of the ordinary

operations and at arms` length principle.

The most significant transactions are as follows:

Amounts in NOK 1 000

Related to renting administrative services in Eqva ASA.

HAV Group ASA is a 33.3% owned subsidiary of Havila Holding AS, which owns 19.3% of the shares in Eqva ASA.

Handeland Gard AS is controlled 100% by Board Member Rune Skarveland.

The balance sheet includes the following receivables and payables resulting from transactions with associated companies:

Handeland Gard AS Sales to related parties Purchases from related parties Accounts payables to related parties

2022 0 399 26

2021 0 0 0

2022 2021

Account receivables 0 0

Account payables 2 862 46 000

Net total (positive sign - net receivable) -2 862 -46 000

*HAV Group ASA Sales to related parties Purchases from related parties Accounts payables to related parties

2022 4 189 22 297 2 836

2021 23 875 0 636

*HAV Group ASA incl. subsidiaries

ANNUAL REPORT 2022

NOTES

28. SUSTAINABILITY AND CLIMATE RISK

The climate risk consists of both physical risk and transition

risk. Physical risk can be the effect of extreme weather events,

and transition risk is risk associated with the transition to a

low-emission society. The physical risk of weather-related

damage, for example at the multi-service yard in Leirvik

(HLE), is considered to be limited due to the yard`s location

and premises. Transition risk can be political changes and

regulations that result in increased fees, fines and orders. In

relation to Havyard's multi-service yard in Leirvik (HLE), BKS

and Fossberg, the transition risk is also considered to be

relatively low, but political decisions as i.e. tax on aqualculture

business may affect the group`s busineses. Overall the climate

risk and its impact on lower future earnings is considered to

be relatively low.

Eqva has initiated a survey to identify status and measures in

relation to being able to run its business in line with sustainability

requirements. The group seeks to be at the forefront of

future legal requirements for sustainability reporting. Of the

companies in the group, this is particularly relevant for the

multi-service yard (HLE) and BKS, which has already started

the mapping process. This work will continue in 2023.

Due to that a significant part of the group`s business is due to

projects which have a positive climate effect (electrifications/

hybridifications of vessels, energy optimizing projects to

process industry and smelters), increased focus on the "green

shift" is considered to give signficiant business opportunities

for the group going forwards.

29. SUBSEQUENT EVENTS

There have not been any events after the balance sheet date

with significant impact on the financial accounts as at 31

December 2022.

90ANNUAL REPORT 2022

NOTES

PARENT COMPANY

ANNUAL REPORT 2022

NOTES

92ANNUAL REPORT 2022

PROFIT OR LOSS STATEMENT PARENT COMPANY

Eqva ASA

Note 2022 2021

Operating revenues and operating expenses

Revenues 10 5 663 510 45 109 396

Total revenue 5 663 510 45 109 396

Materials 12 291 40 062

Wages and salaries 3 10 569 249 24 317 609

Depreciation 6, 7 186 020 837 224

Other operating expenses 3, 10 20 268 339 23 344 937

Total operating expenses 31 035 898 48 539 832

Operating profit -25 372 388 -3 430 436

Financial income and expenses

Income from subsidiaries 0 107 901 657

Other financial income 2 134 905 982 187 035 209

Impaiment of other financial fixed assets 0 23 979 942

Other interest expenses 2 4 104 491 76 594

Other financial expenses 2 1 598 681 509 409

Net financial income and expenses 129 202 810 270 370 919

Profit before taxes 103 830 422 266 940 483

Taxes 15 -6 490 059 3 641 161

Profit for the year 11 110 320 481 263 299 322

Allocations

Transferred to other equity 110 320 481 263 299 322

Total allocations 11 110 320 481 263 299 322

ANNUAL REPORT 2022

BALANCE SHEET PARENT COMPANY

Eqva ASA

Note 2022 2021

ASSETS

Non current assets

Deferred tax benefit 15 6 490 059 0

Research and development 7 0 0

Total intangible assets 6 490 059 0

Fixed assets

Operating equipment, fixtures, fittings, tools, etc 6 257 531 1 019 741

Total tangible fixed assets 257 531 1 019 741

Financial fixed assets

Investments in subsidiaries 4 230 443 591 25 341 027

Investments in associated companies 0 13 777 261

Loan to Group companies 10 170 394 340 26 714 353

Investments in shares 4,5 4 494 470 0

Other long-term receivables 8 8 255 111 295

Total financial fixed assets 405 340 656 65 943 936

Total fixed assets 412 088 247 66 963 677

Current assets

Accounts receivable 0 3 706 730

Receivables from group companies 10 6 935 865 61 914 793

Other current receivables 2 4 921 608 6 407 197

Total receivables 11 857 473 72 028 720

Cash and bank deposits 9 3 168 482 23 565 582

Total current assets 15 025 955 95 594 302

Total assets 427 114 203 162 557 979

94ANNUAL REPORT 2022

BALANCE SHEET PARENT COMPANY

EQUITY AND LIABILITIES Note 2022 2021

Equity

Share capital 11, 12 3 599 366 1 239 058

Own shares 11, 12 -16 152 -2 758

Share premium 11 195 174 785 22 535 094

Total paid-in equity 198 757 999 23 771 394

Retained equity

Retained earnings 11 58 724 116 89 880 441

Total retained earnings 58 724 116 89 880 441

Total equity 11 257 482 116 113 651 835

Liabilities

Non current liabilities

Long-term liabilities to financial institutions 13 70 000 000 0

Sellers credit - owners 13 25 000 000 0

Other long-term liabilities 13 14 298 328 8 327 083

Total non current liabilities 109 298 328 8 327 083

Current liabilities

Short-term liabilities to financial institutions 13 20 000 000 0

Accounts payable 5 519 525 2 552 128

Payable tax 15 0 0

Public duties payable 1 102 823 1 466 888

Debt to group companies 10 29 625 098 31 908 145

Other current liabilities 2 4 086 312 4 651 899

Total current liabilities 60 333 758 40 579 061

Total liabilities 169 632 086 48 906 144

Total equity and liabilities 427 114 203 162 557 979

Fosnavåg, 31 March 2023

The Board of Directors and CEO

Eqva ASA

Even Matre Ellingsen

Chairman of the Board of Directors

Anne Soe Myrmel Bruun-Olsen

Board member

Jan Olav Gjerde

Board member

employee representative

Vegard Sævik

Board member

Rune Skarveland

Board member

Geir Helge Nordstrand

Board member

employee representative

Ellen Merethe Hanetho

Board member

Erik Høyvik

CEO

ANNUAL REPORT 2022

STATEMENT OF CASHFLOW PARENT COMPANY

Eqva ASA

Note 2022 2021

Cash flow from operations

Profit/(loss) before tax 11 103 830 422 266 940 483

Impairment of other financial fixed assets 0 23 979 942

Loss on receivables 2 386 690 0

Depreciation 6 186 020 837 224

Group contribution - no cash effect 0 -32 476 814

Market value adjustment dividend shares -128 783 201 -150 220 324

Changes in accounts receivables and accrued income 3 706 730 14 506 698

Changes in accounts payables 2 967 397 -7 996 188

Changes in other current receivables/ liabilities 362 646 -140 562 177

Net cash flow from operating activities -15 343 298 -24 991 156

Cash flow from investments

Investments in property, plant and equipment 6 -284 322 -544 005

Disposal of financial assets 0 121 282 776

Sale of fixed assets 1 135 825 0

Investment in subsisiaries -15 000 000 0

Repaid loan from owners of previous subsidiary 0 1 064 705

Interest income 5 022 0

Sale of shares HAV 3 004 793 0

Net cash flow from investing activities -11 133 660 123 860 058

Cash flow from financing activities

Net decrease FoU grants -6 554 442 6 166 048

Aquired own shares -890 200 0

Loan from financial institutions 13 95 000 000 0

Installments to finacial institutions 13 -5 000 000 0

Repayment Bond 0 -87 999 000

Interest payments and fees -3 941 358 0

Change intercompany balances -72 534 142 -8 791 492

Net cash flow from financing activities 6 079 858 -90 624 444

Net change in cash and cash equivalents -20 397 100 8 244 458

Cash and cash equivalents at start of the period 23 565 582 15 321 124

Cash and cash equivalents at end of the period 3 168 482 23 565 582

Of this restricted cash 9 608 402 712 611

96ANNUAL REPORT 2022

NOTES PARENT COMPANY

ANNUAL REPORT 2022

NOTES PARENT COMPANY

NOTE 1 ACCOUNTING PRINCIPLES

Accounting Principles

The financial statements are set up in accordance with

the Norwegian Accounting Act. They are prepared using

Norwegian accounting standards and generally accepted

accounting principles.

Management has used estimates and assumptions that affect

the income statement and the valuation of assets and liabilities,

as well as contingent assets and liabilities, at the balance

sheet date during the preparation of financial statements in

accordance with generally accepted accounting principles.

Fixed assets are comprised of assets intended for long-term

hold and use. Fixed assets are stated at cost. Fixed assets are

capitalized and depreciated over the asset's useful life.

Expenditure on research and development is capitalized

to the extent that a future economic benefit related to the

development of an identifiable intangible asset can be

identified and where the acquisition cost can be measured

reliably. Otherwise, such expenses are expensed on an ongoing

basis. Capitalized research and development is depreciated on

a straight-line basis over its economic life.

Tangible fixed assets are written down to the recoverable

amount when impairment is not expected to be temporary.

The recoverable amount is the higher of an asset’s net selling

price and its value in use. An asset’s value in use is the present

value of the estimated future cash flows from the asset. If the

reasons for impairment no longer exist, the impairment loss

is reversed.

Current assets and liabilities consist of items that fall due for

payment within one year of acquisition, as well as items related

to the business cycle. Current assets are valued at the lower

of cost and net realizable value. Current liabilities are stated at

nominal value at the time of acquisition.

Monetary items in foreign currency are translated using the

exchange rates at the balance sheet date. Transactions in

foreign currency are translated at the rate applicable on the

transaction date.

NOTES TO THE FINANCIAL STATEMENTS 2022

PARENT COMPANY

Trade receivables and other receivables are recorded at

nominal value less a provision for doubtful accounts. The

provision is made based on an individual assessment of each

receivable.

Subsidiaries and associated companies are assessed according

to the cost method in the company accounts. The investment

is valued at the acquisition cost of the shares unless impairment

has been necessary. Write-downs have been made at fair value

when a fall in value is due to reasons that cannot be assumed

temporary, and it must be considered necessary according

to good accounting practice. Impairment losses are reversed

when the basis for impairment is no longer present.

Dividends, group contributions and other distributions

from subsidiaries are recognized in the same year as they

are recognized in the financial statement of the provider. If

dividends/group contribution exceed withheld profits after the

acquisition date, the excess amount represents repayment of

invested capital, and the distribution will be deducted from the

recorded value of the acquisition in the balance sheet for the

parent company.

The tax expense in the income statement is comprised of both

the period’s payable tax and changes in deferred tax. Deferred

tax is calculated at a rate of 22 % based on the temporary

differences that exist between accounting and tax values, and

tax losses carried forward at the year-end. Tax increasing and

tax-reducing temporary differences that are reversed or can be

reversed in the same period are offset. Net deferred tax assets

are recognized to the extent that it is probable that the amount

can be utilized against future taxable income.

Accounting principles are further discussed in the

accompanying notes to individual financial statement items.

98ANNUAL REPORT 2022

NOTES PARENT COMPANY

Income statement

The item "Other financial income" consists of: 2022 2021

Interest from Group companies 3 117 887 2 166 817

Other interest income 5 002 474 021

Agio 20 3 253

Market value adj. for dividend shares in HAV Group 128 783 201 150 220 324

Profit share sale (HAV Group ASA) 2 636 338 0

Value adj. HAV shares 363 534 0

Other financial income from Group companies 0 34 170 794

Total 134 905 982 187 035 209

The item "Other financial costs" consists of: 2022 2021

Other interest costs 424 390 76 594

Disagio 2 532 1 74 7

Establishment fee and interes Pareto loan 3 680 102 0

Other financial costs 1 596 149 507 662

Total 5 703 172 586 003

Balance sheet

The item "Other current receivables" consists of: 2022 2021

Prepaid expenses 1 451 318 1 959 161

Other current receivables 3 470 290 4 448 036

Total 4 921 608 6 407 197

The item "Other current liabilities" consists of: 2022 2021

Unpaid wages and vacation pay 1 968 887 4 464 849

Accrued interests 1 742 425 0

Other current liabilities 375 000 187 050

Total 4 086 312 4 651 899

NOTE 2 MERGED ITEMS

ANNUAL REPORT 2022

NOTES PARENT COMPANY

Eirik Sævareid replaced Vegard Fiksdal as CFO in May 2022.

Earlier in the year, Vegard Fiksdal replaced Pål Aurvåg as CFO.

Frank-Levi Kvalsund, SVP HR, finished in Eqva per April 2022.

The position was not replaced.

"No loans or guarantees have been issued to the CEO,

the Chairman of the Board or other related parties. As of

31.12.2022."

Incentive programs established in Eqva

Eqva has established a incentiv arrangement (bonus) which

applies to leaders and key personnel in the Group. The

payments depends on, among others, group performance (e.g

reported EBITDA measured against budgeted EBITDA).

Payroll expenses 2022 2021

Wages 6 462 177 16 099 666

Social security tax 1 419 218 3 419 861

Pension costs 340 787 2 486 012

Other payroll-related costs 2 347 069 2 312 070

Total 10 569 249 24 317 609

FTEs at year end 4,5 10

Auditor remuneration is distributed as follows: 2022 2021

Statutory audit 1 878 955 2 800 000

Tax consulting 0 213 550

Other services 1 665 325 480 000

Total (net of VAT) 3 544 280 3 493 550

Erik Høyvik,

CEO

Eirik Sævareid,

CFO

Management remunerations 2022 2021 2022 2021

Wages 2 183 1917 750 0

Pension 95 90 52 0

Other benefits 146 138 6 0

Total 2 424 2 145 809 0

Frank-Levi Kvalsund,

SVP HR/QHSE

Styret

Management remunerations 2022 2021 2022 2021

Wages 780 1350 2 067 1 380

Pension 33 92 0 0

Other benefits 58 159 0 0

Total 870 1 601 2 067 1 380

The payments are expensed as salaries. There has been no

payments in 2022.

The Group has also established a new share purchase program

where all employees can participate. Employees can buy

shares for up to NOK 20,000 with a discount of 20 %. The

share discount are expensed as salaries.The share purchase

program is conducted annually.

The third Eqva program established is the shareoption program

which applies to Board of directors, leaders and key personnel

in the Group. The participants receive 40 000 or 100 000

options, dependent of level in the group, with a vesting period

of 3 years. The program has effect from 1 January 2023.

Pension scheme

The company has a defined contribution plan in accordance with the Norwegian Law on Required Occupational Pension. The

pension depends on paid-in contributions and the return on these contributions. For the company, the year's pension cost is equal

to the year's premium. The company's pension scheme meets the requirements of the Norwegian Law on Required Occupational

Pension.

NOTE 3 PAYROLL EXPENSES, NUMBER OF EMPLOYEES, REMUNERATIONS, ETC.

100ANNUAL REPORT 2022

NOTES PARENT COMPANY

NOTE 4 INVESTMENT IN SUBSIDIARIES

2022

Subsidiaries are accounted for using the EK method.

Company

Subsidiaries of Eqva ASA

Business office Owner's share Book value Company's

equity 100%

Company's

result 100%

HG Group AS Sunde i Kvinnherrad 100 % 125 940 965 180 300 054 -12 796 538

Havyard Eiendom Holding AS Sunde i Kvinnherrad 100 % 50 000 -2 246 863 -2 296 863

Havyard Leirvik Holding AS Leirvik i Sogn 100 % 11 160 665 2 459 209 -26 596

Havyard Ship Technology AS Leirvik i Sogn 100 % 0 6 819 608 1 439 837

Havyard Ship Invest AS Fosnavåg 100 % 0 -1 821 903 -8 202 091

*BKS Holding AS Sunde i Kvinnherrad 50 % 89 059 035 4 856 092 -354 780

Norwegian Marine Systems AS Fosnavåg 100 % 0 3 726 915 -12 147

Mjølstadneset Eiendom AS Fosnavåg 100 % 4 232 926 10 512 476 -162 621

Book value as at 31.12. 230 443 591 204 605 588 -22 411 799

Subsidiary of Havyard Leirvik Holding AS

Havyard Leirvik AS Leirvik i Sogn 100 %

Subsidiaries of Havyard Eiendom Holding AS

BKS Eiendom AS Sunde i Kvinnherrad 100 %

Zenit Eiendom AS Sunde i Kvinnherrad 100 %

Havyard Leirvik Eiendom AS Leirvik i Sogn 100 %

Subsidiaries of HG Group AS

Handeland Industri AS Sunde i Kvinnherrad 100 %

Fossberg Kraft AS Sunde i Kvinnherrad 100 %

Fossberg Kraft Produksjon AS Sunde i Kvinnherrad 100 %

Subsidiaries of Handeland Industri AS

*BKS Holding AS - owned 50/50% beweeen

Handeland Industri AS and Eqva ASA - total

100%

Sunde i Kvinnherrad 50 %

Subsidiaries of BKS Holding AS

BKS Industri AS Sunde i Kvinnherrad 100 %

BKS Power & Automation AS Sunde i Kvinnherrad 100 %

Zenit Engineering AS Sunde i Kvinnherrad 82.5%

BKS VVS AS Sunde i Kvinnherrad 67 %

Marine Support AS Sunde i Kvinnherrad 70 %

101

ANNUAL REPORT 2022

NOTES PARENT COMPANY

Aquisition of BKS and Fossberg Kraft

In June 2022 Havyard Group ASA (later changed name to Eqva ASA) aquried Fossberg Kraft and BKS. The settlement of 215

MNOK was based on a combination of share issues, sellers credit and cash repayment. See note 11 for information regarding the

share issue.

Other changes

Havyard Eiendom Holding AS was established during the autum 2022. The company is the parent company of BKS Eiendom AS,

Zenit Eiendom AS og Havyard Leirvik Eiend om AS (all companies owned 100%). The establishment of the internal property group

was based on demerger/sales transactions from respectively Havyard Leirvik AS (HLE), Zenit Engeneering AS og BKS Holding AS.

After the transactions HLE, Zenit and BKS carry out operational core activities.

Eqva had a 50% ownership in HPR Spzoo. The company suffered from missing orders and declining liquidities during the autum

2022. In December 2022 the company was filed for bankruptcy, the fileing included both the Norwegian branch and the Polish

registerd company. Eqvas accounted losse where limited.

Eqva ASA reduced its ownership in HAV Group ASA, from 33.3% to 4.7% in June 2022. The reduction was due to distribution of

10 000 000 dividend shares i June 2022. During the autum 2022 Eqva continued to sell shares. At 31.12.2022 the ownhership was

down to 4.4% (1.5 million shares). See also note 5.

2021

Subsidiaries are accounted for using the EK method.

Company

Subsidiaries of Eqva ASA

Business office Owner's share Book value Company's

equity 100%

Company's

result 100%

Havyard Leirvik Holding AS Leirvik i Sogn 100,0 % 21 108 101 2 539 000 -7 790

Havyard Ship Technology AS Leirvik i Sogn 100,0 % 0 21 638 822 -2 399 996

Havyard Ship Invest AS Fosnavåg 100,0 % 0 6 380 189 -4 704 615

Norwegian Marine Systems AS Fosnavåg 100,0 % 0 3 739 064 -24 706

Mjølstadneset Eiendom AS Fosnavåg 100,0 % 4 232 926 10 675 098 11 325 810

Book value as at 31.12. 25 341 027

Subsidiary of Havyard Leirvik Holding AS

Havyard Leirvik AS Leirvik i Sogn 100,0 % 2 539 000 24 502 446 22 896 849

Subsidiary of Havyard Leirvik AS

*Havyard Production sp.z.o.o Gdansk 100,0 % 0 -13 069 769 13 651 496

Investments in associated companies

HAV Group ASA Fosnavåg 33,3 % 13 777 261

102ANNUAL REPORT 2022

Changes in ownership Hav Group ASA

In connection with the establishment of HAV Group ASA in Q1

2021 - Norwegian Greetech AS, Norwegian Electric Systems

AS, HAV Design AS, HAV Hydrogen AS and their foreign

subsidiaries were transferred from Havyard Group ASA to

HAV Group ASA. The investment in HAV Group ASA is listed

under associates companies above.

Havyard Group ASA sold 33.3% (from 100% to 66.6%

ownership) in HAV group ASA in Q1 2021 for MNOK 120. Net

profit form the sale was MNOK 107.9.

Havyard Group ASA reduced its ownership in HAV Group

ASA, from 66.6% to 33.3%, in Q4 2021 by distribution of

dividend shares.

Other changes

New Havyard Ship Technology AS and New HST Holding AS

have changed names to Havyard Leirvik AS and Havyard Leirvik

Holding AS.

The investment in Havyard Ship Invest AS was written down

by NOK 3 401 416 in 2021 due to revaluation of assets."

The investment in Norwegian Marine Systems AS was written

down with NOK 5 730 643 in 2021 due to revaluation of assets.

Norwegian Production sp.z.o.o has been liquidated in 2021.

The subordinated loan in Havyard Leirvik of NOK 13 211 483

(classified as equity) was forgiven and the amount turned into

equity.

* Regarding Havyard Production sp.z.o.o.

see note 17 for subsequent events after balance sheet date.

103

ANNUAL REPORT 2022

NOTES PARENT COMPANY

NOTE 5 SHARES AND SECURITIES

Shares and securities are valued at the lower of cost and fair value on the balance sheet date.

The investment in Fosnavåg kulturhus has a bookvalue NOK 0.

NOTE 6 TANGIBLE FIXED ASSETS

2022

The rent expense for 2022 amounts to NOK 535 975

(2021: NOK 1 291 493)

2021

The rent expense for 2021 amounts to NOK 1 291 493.

(2020: NOK 1 649 581)

Company Owner's share Book value

Shares in HAV Group ASA 4.4% 4 494 470

Book value as at 31.12. 4 494 470

Operating equipment and fixtures Total

Acquisition cost as at 01.01 10 194 330 10 194 330

Additions during the year 284 322 284 322

Disposals during the year 2 684 289 2 684 289

Acquisition cost as at 31.12 7 794 363 7 794 363

Acc. depreciation as at 01.01 9 174 590 9 174 590

Acc. depreciation as at 31.12 before disp 9 360 610 9 360 610

Disposal depreciation 1 823 777 1 823 777

Acc. depreciation as at 31.12 7 536 833 7 536 833

Book value as at 31.12 257 531 257 531

Depreciation for the year 186 020 186 020

Economic life 3-5 years

Depreciation method Linear

Operating equipment and fixtures Total

Acquisition cost as at 01.01 9 650 325 9 650 325

Additions during the year 544 005 544 005

Acquisition cost as at 31.12 10 194 330 10 194 330

Acc. depreciation as at 31.12 9 174 590 9 174 590

Book value as at 31.12 1 019 741 1 019 741

Depreciation for the year 837 224 837 224

Economic life 3-5 years

Depreciation method Linear

104ANNUAL REPORT 2022

NOTES PARENT COMPANY

NOTE 7 SHARES AND SECURITIES

2022

2021

The company's capitalized research and development concerns the development of a hydrogen system solution. The project name

is FreeCO2ast. The project was trasferred to HAV Group ASA as part of the drop-down in Q1 2021.

Research and development

Acquisition cost as at 01.01 1 523 262

Additions during the year 0

Acquisition cost as at 31.12 1 523 262

Transferred -1 523 262

Acc. depreciation as at 31.12 0

Book value as at 31.12 0

Depreciation for the year 0

Economic life 5-10

Depreciation method Linear

Research and development

Acquisition cost as at 01.01 0

Additions during the year 0

Acquisition cost as at 31.12 0

Transferred 0

Acc. depreciation as at 31.12 0

Book value as at 31.12 0

Depreciation for the year 0

Economic life 5-10

Depreciation method Linear

2022 2021

Other long-term receivables 8 255 111 295

Total 8 255 111 295

Maturity after 1 year 8 255 111 295

Maturity after 5 year 0 0

NOTE 8 OTHER LONG-TERM RECEIVABLES

105

ANNUAL REPORT 2022

NOTES PARENT COMPANY

NOTE 9 RESTRICTED CASH

NOK 608 402 of cash and cash equivalents relates to tax withholdings.

NOTE 10 INTERCOMPANY BALANCES AND TRANSACTIONS

2021 2020

Non-current receivables 170 394 340 26 714 353

Current receivables (incl group contribution) 6 935 865 61 914 793

Accounts receivable 0 3 070 843

Accounts payable 0 0

Current liabilities (incl group contribution) -29 625 098 -31 908 145

Total 147 705 107 59 791 844

Transactions 2022 2021

Management fee (subsidiaries) 4 731 323 45 009 561

Rental costs -535 975 -1 291 493

Total 4 195 348 43 718 068

NOTE 11 EQUITY

Share issue

The share capital was increased by NOK 2 360 308 to 3 599 366, by issuing 47 206 166 new shares, in June 2022. The increase

was related to the aquisition of BKS and Fossberg Kraft. After the increase the number of shares is 71 987 316, at NOK 0.05.

Dividends and group contributions

The ownership in HAV Group ASA was reduced from 33.3% to 4.7% in June 2022 by distributing dividend shares (10,000,000 shares) to

the owners of Havyard Group AS (now Eqva ASA). Eqva has 1.5 million shares left in HAV group ASA after dividend and ownership is 4.4 %.

The board proposes NOK 0 in dividend for the general meeting

Treasury shares

Eqva ASA has increased its number of treasury shares from 55 159 to 323 046 treasury shares (0.4 % of share capital) as of

31/12/2022.

Share capital Own shares Share premium Retained earnings Total

Equity as at 01.01 1 239 058 -2 758 22 535 094 89 880 441 113 651 835

Profit for the year 0 0 0 110 320 481 110 320 481

Dividend (shares in

HAV Group ASA)

0 0 0 -140 600 000 -140 600 000

Share issue - aquisition of

BKS/Fossberg Kraft

2 360 308 0 172 639 691 0 174 999 999

Aquisition of own shares 0 -13 394 0 -876 806 -890 200

Equity as at 31.12. 3 599 366 -16 152 195 174 785 58 724 116 257 482 116

106ANNUAL REPORT 2022

NOTES PARENT COMPANY

NOTE 12 SHARE CAPITAL AND SHAREHOLDER INFORMATION

The company got one stock group and all shares have same rights.

The share capital was 3 599 366 divided by 71 987 316 shares, at NOK 0.05.

Eqva has 323 046 treasury shares (0.4 % of share capital) as of 31.12.2022.

Boardmember Vegard Sævik has indirect ownership in Eqva through his ownership in Havila Holding AS.

Shareholders as of 31.12.2022 Controlled by Number of shares Ownership

Nintor AS 16 938 645 23,5 %

Havila Holding AS Vegard Sævik (Board) 10 000 000 13,9 %

ROS Holding AS 5 660 027 7, 9 %

Neve Eiendom AS Even Matre Ellingsen (DB) 4 993 951 6,9 %

Eikestø Eiendom AS Rune Skarveland (Board) 4 960 847 6,9 %

Fureneset Eiendom AS 4 960 847 6,9 %

Eikestø AS Rune Skarveland (Board) 2 999 511 4,2 %

Neve Holding AS Even Matre Ellingsen (DB) 2 999 511 4,2 %

Fureneset Invest AS 2 999 511 4,2 %

Emini Invest AS 1 290 000 1,8 %

HSR Invest AS 1 290 000 1,8 %

Innidimann Invest AS Vegard Sævik (Board) 1 290 000 1,8 %

MP Pensjon PK 1 086 468 1,5 %

Other shareholders (<1 %) 10 518 498 14,6 %

Number of shares 71 987 816 100,0 %

107

ANNUAL REPORT 2022

NOTES PARENT COMPANY

Book value of liabilities secured by mortgages 2022 2021

Other long term liabilities (financial leasing) 0 44 355

Total 0 44 355

Not booked guarantee 2022 2021

Guarantee supplier for daughter of subsidiary 250 000 250 000

Guarantee supplier for subsidiary 0 0

Guarantee customer for subsidiary 0 0

Total 250 000 250 000

As safety for the guarantees there are given mortages in shares and accounts receivables.

Book value of pledged assets 2022 2021

Leased equipment 0 0

Accounts receivable 0 0

Total 0 0

NOTE 13 NON-CURRENT LIABILITIES

Other non-current liabilities

Other long-term debt includes project grants for the R & D

project FreeCO2ast (MNOK 1.7), which are settled against

incurred project cost which are invoiced from Hav Group.

In addition the amount includes debt to Havila Holding AS

(MNOK 12.6) that was transferred from Havyard Leirvik AS to

Eqva ASA, as part of the agreement in June 2022 when BKS

and Fossberg Kraft were aquired.

Pareto loan

Longterm loan - 95 MON where 5 MNOK was repaid in Q4

2022 - rest 90 MNOK. Quarterly installments of 5 MNOK in 3

NOTE 14 MORTGAGES

Non-current liabilites 2022 2021

Loan Pareto 70 000 000 0

Sellers credit to shareholders 25 000 000 0

Other non-current liabilities 14 298 328 8 327 083

Total 109 298 328 8 327 083

years - then settlement of the rest amount. Nominal intererest

rat p.t 6.75%.

Yearly installments:

2023: 20 MNOK - classifed under "Current liabilities"

2024: 20 MNOK

2025: 20 MNOK

2026: 30 MNOK

Sellers credit to shareholders

Longterm loan. Amount part of the settlment when BKS and

Fossberg Kraft were aquired in June 2022.

108ANNUAL REPORT 2022

NOTES PARENT COMPANY

NOTE 15 TAXES

Taxes are expensed as they incur, i.e. the tax charge is related to the pre-tax accounting profit. Taxes are comprised of payable

tax (tax on the year’s taxable income) and changes in deferred tax. The tax expense is allocated between the ordinary profit and

extraordinary items in accordance with the tax base.

Specification of temporary differences:

Below is a breakdown of the difference between profit before taxes in the P&L statement and the year’s tax base.

The income tax expense in the profit and loss statement consists of the following:

2022 2021

Financial leasing 0 493 180

Non-current assets 24 037 -250 030

Gain/(loss) account for deferral -123 138 -153 924

Receivable -30 226 0

Deposition guarantee 0 0

Tax losses carried forward -27 352 143 0

Cut off interest rates carried forward -2 018 802 -2 018 802

Total temporary differences and tax losses carried forward. -29 500 273 -1 929 576

Not accounted deffered tax asset 0 -424 507

Deferred tax / deferred tax asset (-) -6 490 059 0

Applied tax rate 22 % 22 %

2022 2021

Profit before taxes 103 830 422 266 940 483

Permanent differences -131 401 120 -266 601 153

Change in temporary differences 218 555 45 059

The year's tax base before tax losses carried forward -27 352 143 384 390

Changes in tax losses carried forward 27 352 143 0

Net group contribution 0 10 251 451

Utilisation of tax losses carried forward 0 -10 635 841

The year's tax base 0 0

Payables tax in balance sheet 0 0

2022 2021

Tax payable 0 0

Change deffered tax assets (-) -6 490 059 0

Tax effect from group contribution 0 3 641 161

This year's tax expense -6 490 059 3 641 161

109

ANNUAL REPORT 2022

NOTES PARENT COMPANY

NOTE 16 FINANCIAL MARKET RISK

Interest rate risk

Interest rate risk arises in the short and medium run as the

Company's liabilities are subject to floating interest rates.

Foreign currency risk

Fluctuations in exchange rates entail both direct and indirect

financial risks for the company. The Group uses currency

hedging instruments to keep the currency risk at a low level.

Liquidity risk

Liquidity risk is the risk that the group is unable to fulfill its

financial obligations as they fall due. The Group has routines

for continued monitoring of the cash flow.

NOTE 17 SUBSEQUENT EVENTS

There has not been detected any subsequent event with impact

on the Financial statements after balance sheet date.

The accounts has been prepared under the assumption of

going concern.

See also Group note 29 for more information in group

accounts related to subsequent events.

110ANNUAL REPORT 2022

NOTES PARENT COMPANY

111

ANNUAL REPORT 2022

INDEPENDENT AUDITOR’S REPORT

PricewaterhouseCoopers AS, Sandviksbodene 2A, Postboks 3984 - Sandviken, NO-5835 Bergen

T: 02316, org. no.: 987 009 713 MVA, www.pwc.no

Statsautoriserte revisorer, medlemmer av Den norske Revisorforening og autorisert regnskapsførerselskap

To the General Meeting of Eqva ASA

Independent Auditor’s Report

Report on the Audit of the Financial Statements

Opinion

We have audited the financial statements of Eqva ASA, which comprise:

• the financial statements of the parent company Eqva ASA (the Company), which comprise the

balance sheet as at 31 December 2022, the profit or loss statement and statement of cashflow

for the year then ended, and notes to the financial statements, including a summary of

significant accounting policies, and

• the consolidated financial statements of Eqva ASA and its subsidiaries (the Group), which

comprise the consolidated statement of financial position as at 31 December 2022, and the

consolidated statement of profit or loss, statement of other comprehensive income, statement

of changes in equity and statement of cashflow for the year then ended, and notes to the

financial statements, including a summary of significant accounting policies.

In our opinion

• the financial statements comply with applicable statutory requirements,

• the financial statements give a true and fair view of the financial position of the Company as at

31 December 2022, and its financial performance and its cash flows for the year then ended in

accordance with Norwegian Accounting Act and accounting standards and practices generally

accepted in Norway, and

• the consolidated financial statements give a true and fair view of the financial position of the

Group as at 31 December 2022, and its financial performance and its cash flows for the year

then ended in accordance with International Financial Reporting Standards as adopted by the

EU.

Our opinion is consistent with our additional report to the Audit Committee.

Basis for Opinion

We conducted our audit in accordance with International Standards on Auditing (ISAs). Our

responsibilities under those standards are further described in the Auditor’s Responsibilities for the

Audit of the Financial Statements section of our report. We are independent of the Company and the

Group as required by relevant laws and regulations in Norway and the International Ethics Standards

Board for Accountants’ International Code of Ethics for Professional Accountants (including

International Independence Standards) (IESBA Code), and we have fulfilled our other ethical

responsibilities in accordance with these requirements. We believe that the audit evidence we have

obtained is sufficient and appropriate to provide a basis for our opinion.

To the best of our knowledge and belief, no prohibited non-audit services referred to in the Audit

Regulation (537/2014) Article 5.1 have been provided.

We have been the auditor of the Company for 5 years from the election by the general meeting of the

shareholders on 28 May 2018 for the accounting year 2018.

Key Audit Matters

Key audit matters are those matters that, in our professional judgment, were of most significance in

our audit of the financial statements of the current period. These matters were addressed in the

112ANNUAL REPORT 2022

INDEPENDENT AUDITOR’S REPORT

2 / 6

context of our audit of the financial statements as a whole, and in forming our opinion thereon, and we

do not provide a separate opinion on these matters.

Revenue recognition over time has the same characteristics and risks as in the prior year, and

therefore continues to be an area of focus this year. Furthermore, the Acquisition of BKS Holding AS

and HG Group AS qualified as a new Key Audit Matter for the 2022 audit due to the significant value

of the underlying investments and applied level of management judgment in determining the value of

the acquired assets and liabilities.

Key Audit Matters

How our audit addressed the Key Audit

Matter

Revenue recognition over time

The Group has multiple revenue streams i.e.

service yard, service and maintenance to land

based and maritime industry and construction of

small

-scale hydropower plants.

Revenue recognition over time was considered a

key audit matter

as the Group has multiple

ongoing long

-term contracts at the balance-

sheet date

, and because estimating the

percentage

of completion may be complex and

affected by management judgment

. Specifically,

management applies judgment when estimating

total project costs and determining the contract

price.

Refer

to notes 2.7, 3.1, 3.2 and 14 to the

consolidated

financial statement for further

information on the Group’s revenue recognition

We reviewed a selection of contracts and

assessed the Group’s principles for revenue

recognition against the requirements in IFRS 15.

We found that the accounting of contracts was in

accordance with the terms of the contracts and

that

the accounting principles applied were in

line with relevant requirements in IFRS 15.

Measurement

of percentage of completion,

including determination of final forecasted costs,

involves use of judgment from management.

part of our audit, we have conducted interviews

wit

h management and project leaders to gain an

understanding of the estimates and underlying

assumptions.

Furthermore, we assessed the reliability of

management's estimates by comparing budget

against actual costs incurred for a selection of

projects.

o assess the estimated percentage of

completion

, we, among other things, tested on a

sample basis whether

accrued costs had been

allocated to correct projects. We also challenged

project managers on calculations related to the

remaining costs before final

completion of the

projects.

Also

, to test whether the correct contract price

was

used as a basis for calculating recognised

revenue

, we obtained a selection of contracts

and variation orders and

compared these with

the contract prices used as a basis for r

evenue

recognition.

We also

assessed whether the disclosure

requirements in IFRS were met.

Acquisition of BKS Holding AS and HG Group

113

ANNUAL REPORT 2022

INDEPENDENT AUDITOR’S REPORT

3 / 6

During Q2 2022 Eqva ASA completed the

acquisition of 50% of BKS Holding AS and 100%

of HG Group AS The agreed purchase price

consisted of a consideration of NOK 215

million

The acquisition was determined to constitute a

business combination and using the acquisition

method o

f accounting in line with IFRS 3

requirements was deemed appropriate

management

The purchase price allocation (PPA) and the

measurement and determination of fair values

required financial modeling of the cash flows

relating to each tangible asset acqui

red and

abandonment provision assumed, including tax

effects. The modeling and the identification of

assets

are inherently complex and require a

number of estimates and judgements to be

applied.

We focused on

Acquisition of BKS Holding AS,

HG Group AS

and Fossberg Kraft AS due to the

significant value the investment represents in the

balance sheet, and the applied level of

management judgment in determining the value

of the assets and liabilities acquired from the

transaction and resulting subsequent p

otential

impacts on the income statement.

Refer to note 10

to the consolidated financial

statements

for a description of the business

combination and how management has

accounted for the PPA.

We obtained and read the Sale & Purchase

Agreement and Exemp

ted Document between

Eqva ASA and the shareholders of BKS Holding

and HG Group AS and held meetings with

management to understand the nature and

details of the transaction.

Management prepared a purchase price

allocation (PPA) showing the estimated fair

alue of assets and liabilities acquired in the

transaction. We found the methodology to be in

line

with the requirements in IFRS.

We challenged

whether there could be other

assets and liabilities not properly accounted for.

As part of this process

, we discussed with

management and obtained underlying

documentation to support calculations and

measurements in the PPA.

A major part of the value assumed in the

transaction was allocated to the properties in

BKS Holding AS and Fossberg Kraft AS.

Management

measured the value of the

investment in the properties using valuations

based on contractual lease agreements. We

challenged management related to yield and

future cash flows from rental payments.

compared the applied

yield to third party

valuations

as well as to our own calculations.

Further, we assessed the cash flow from future

rental payments

based on the existing rental

agreement.

Some

of the value assumed in the transaction

was allocated to BKS

’ customer relations.

Management measured the value of investment

in the customer relations as the net present

value (NPV) after tax of future estimated cash

flows. We applied selected procedures

evaluate input in the model relating to lifespan,

sales growth, contributory asset charge (“CAC”)

and discount rate. For the evaluation of lifespan

we considered the history of BKS

’ customer

relations going back several years.

When

evaluating sales gr

owth, we compared the input

used in the model

to the actual growth in BKS in

previous years. We

assessed the

reasonableness of growth rates applied in the

model. When assessing the CAC used in the

model

, we assess the Group's underlying CAC

calculation. We compared the different elements

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INDEPENDENT AUDITOR’S REPORT

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in the discount rate calculation to our own

expectations and the general expectations in the

market

. We found that the underlying

assumptions were reasonable.

The goodwill from the transaction relates to

technical goodwill

calculated as the difference

between the estimated fair market value and tax

value of the assets acquired. We tested the

mathematical calculation of technical goodwill.

The results of our testing showed that

management applied reasonable assumptions

for

the valuation of assets and liabilities

assumed as part of the transaction, and that the

model was mathematically accurate.

We evaluated the appropriateness of the related

note disclosures and found that they satisfied

IFRS requirements.

Other Information

The Board of Directors and the Managing Director (management) are responsible for the information

in the Board of Directors’ report and the other information accompanying the financial statements. The

other information comprises information in the annual report, but does not include the financial

statements and our auditor’s report thereon. Our opinion on the financial statements does not cover

the information in the Board of Directors’ report nor the other information accompanying the financial

statements.

In connection with our audit of the financial statements, our responsibility is to read the Board of

Directors’ report and the other information accompanying the financial statements. The purpose is to

consider if there is material inconsistency between the Board of Directors’ report and the other

information accompanying the financial statements and the financial statements or our knowledge

obtained in the audit, or whether the Board of Directors’ report and the other information

accompanying the financial statements otherwise appear to be materially misstated. We are required

to report if there is a material misstatement in the Board of Directors’ report or the other information

accompanying the financial statements. We have nothing to report in this regard.

Based on our knowledge obtained in the audit, it is our opinion that the Board of Directors’ report

• is consistent with the financial statements and

• contains the information required by applicable statutory requirements.

Our opinion on the Board of Director’s report applies correspondingly to the statements on Corporate

Governance and Corporate Social Responsibility.

Responsibilities of Management for the Financial Statements

Management is responsible for the preparation of financial statements that give a true and fair view in

accordance with the Norwegian Accounting Act and accounting standards and practices generally

accepted in Norway, and for the preparation and true and fair view of the consolidated financial

statements of the Group in accordance with International Financial Reporting Standards as adopted

by the EU, and for such internal control as management determines is necessary to enable the

preparation of financial statements that are free from material misstatement, whether due to fraud or

error.

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In preparing the financial statements, management is responsible for assessing the Company’s and

the Group’s ability to continue as a going concern, disclosing, as applicable, matters related to going

concern. The financial statements of the Company use the going concern basis of accounting insofar

as it is not likely that the enterprise will cease operations. The consolidated financial statements of the

Group use the going concern basis of accounting unless management either intends to liquidate the

Group or to cease operations, or has no realistic alternative but to do so.

Auditor’s Responsibilities for the Audit of the Financial Statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole

are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that

includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that

an audit conducted in accordance with ISAs will always detect a material misstatement when it exists.

Misstatements can arise from fraud or error and are considered material if, individually or in aggregate,

they could reasonably be expected to influence the economic decisions of users taken on the basis of

these financial statements.

As part of an audit in accordance with ISAs, we exercise professional judgment and maintain

professional scepticism throughout the audit. We also:

• identify and assess the risks of material misstatement of the financial statements, whether due

to fraud or error. We design and perform audit procedures responsive to those risks, and

obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The

risk of not detecting a material misstatement resulting from fraud is higher than for one

resulting from error, as fraud may involve collusion, forgery, intentional omissions,

misrepresentations, or the override of internal control.

• obtain an understanding of internal control relevant to the audit in order to design audit

procedures that are appropriate in the circumstances, but not for the purpose of expressing an

opinion on the effectiveness of the Company's and the Group's internal control.

• evaluate the appropriateness of accounting policies used and the reasonableness of

accounting estimates and related disclosures made by management.

• conclude on the appropriateness of management’s use of the going concern basis of

accounting and, based on the audit evidence obtained, whether a material uncertainty exists

related to events or conditions that may cast significant doubt on the Company's and the

Group's ability to continue as a going concern. If we conclude that a material uncertainty

exists, we are required to draw attention in our auditor’s report to the related disclosures in the

financial statements or, if such disclosures are inadequate, to modify our opinion. Our

conclusions are based on the audit evidence obtained up to the date of our auditor’s report.

However, future events or conditions may cause the Company and the Group to cease to

continue as a going concern.

• evaluate the overall presentation, structure and content of the financial statements, including

the disclosures, and whether the financial statements represent the underlying transactions

and events in a manner that achieves a true and fair view.

• obtain sufficient appropriate audit evidence regarding the financial information of the entities or

business activities within the Group to express an opinion on the consolidated financial

statements. We are responsible for the direction, supervision and performance of the group

audit. We remain solely responsible for our audit opinion.

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We communicate with the Board of Directors regarding, among other matters, the planned scope and

timing of the audit and significant audit findings, including any significant deficiencies in internal control

that we identify during our audit.

We also provide the Audit Committee with a statement that we have complied with relevant ethical

requirements regarding independence, and to communicate with them all relationships and other

matters that may reasonably be thought to bear on our independence, and where applicable, related

safeguards.

From the matters communicated with the Board of Directors, we determine those matters that were of

most significance in the audit of the financial statements of the current period and are therefore the

key audit matters. We describe these matters in our auditor’s report unless law or regulation precludes

public disclosure about the matter or when, in extremely rare circumstances, we determine that a

matter should not be communicated in our report because the adverse consequences of doing so

would reasonably be expected to outweigh the public interest benefits of such communication.

Report on Other Legal and Regulatory Requirements

Report on Compliance with Requirement on European Single Electronic Format (ESEF)

Opinion

As part of the audit of the financial statements of Eqva ASA, we have performed an assurance

engagement to obtain reasonable assurance about whether the financial statements included in the

annual report, with the file name 5967007LIEEXZXH9Q807-2022-12-31-en, have been prepared, in all

material respects, in compliance with the requirements of the Commission Delegated Regulation (EU)

2019/815 on the European Single Electronic Format (ESEF Regulation) and regulation pursuant to

Section 5-5 of the Norwegian Securities Trading Act, which includes requirements related to the

preparation of the annual report in XHTML format, and iXBRL tagging of the consolidated financial

statements.

In our opinion, the financial statements, included in the annual report, have been prepared, in all

material respects, in compliance with the ESEF regulation.

Management’s Responsibilities

Management is responsible for the preparation of the annual report in compliance with the ESEF

regulation. This responsibility comprises an adequate process and such internal control as

management determines is necessary.

Auditor’s Responsibilities

For a description of the auditor’s responsibilities when performing an assurance engagement of the

ESEF reporting, see: https://revisorforeningen.no/revisjonsberetninger

Bergen, 31 March 2023

PricewaterhouseCoopers AS

Fredrik Gabrielsen

State Authorised Public Accountant

EQVA ASA

ANNUAL

REPORT

2022