Argeo : Interim Report Q1-2022 (pdf)

Quarterly Report

Q1 2022

Digitizing the ocean space

Contents

Letter from CEO……………………………………………...…	3
Q1	Highlights ………….……………………………………...…	4
Q1	Subsequent events ………….…………….…….………	4
Argeo at a Glance………………………………….….…….…	5
About Argeo ….…………….…………….…………..…………	6
Market review ………………………………………..………….	8
Company update …………….…………….…….……….….	8
Financial Review ………………………………….….…..……	10
Notes ……………………………………………………..….….….	17

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CEO Letter

Argeo is on a mission to transform the ocean surveying and inspection industry through robotization and providing data driven decisions for our customers. As last year was largely spent building the company commercially and developing our core technology, we start 2022 with a more developed fleet, at work on contracted business. The first quarter of the year proves that we are on the right course, continuously building our fleet and services to provide growth for our clients.

Steadily developing our fleet to meet market demand During the first quarter we ordered our first Hugin 6000 from Kongsberg, which will be strategically placed in Argeo's main geomarkets for rapid deployment serving the company's deep-watercustomers with state-of-the-arttechnology and data, growing our revenue potential. This is in addition to SeaRaptor 6000 AUV's procured in 2021.

We are also pleased to communicate that our USV, "Argus" is in its final stages of testing and will be commercially launched on May 24th.

Commercial

The first quarter has provided important work contracts for our AUV's. Firstly, the acquisition work for Statens Vegvesen at the Bjørnafjorden crossing, exemplified the need for AUV's in our Engineering and Construction market segments. The

"The first quarter of the year proves that we are on the right course, continuously building our fleet and services to provide growth for our clients."

project was a success delivering the data scoped, on time in a safely manner. Secondly, the newly purchased Hugin 6000 will be going straight to work after it is delivered in the second half of 2022 for a guaranteed duration of 6 months and potentially another 6 months extension. The project in Brazil has been put on hold for about 45 days waiting for a new vessel to be available with expected commencement in late May.

The overall market outlook is strengthening, and we see strong interest and opportunity in the energy markets globally. Frequency and size in tender activity in the Americas, Europe and Africa is rising sharply proving Argeo's commercial expansion and our plan for developing the North

• South America geomarket as the right move at the right time. Our plan to establish regional offices to facilitate close operations in key industrial areas has been implemented giving the company strategic advantages along with in-depth local industry know-how with our key customers.

Trond Figenschou Crantz

CEO of Argeo

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Highlights

Q1 Highlights

• Ordered a new Hugin 6000 AUV system from Kongsberg
• Signed 12-month project for the new Hugin 6000 AUV
• Awarded a NOK 8.5 million contract from Statens Vegvesen for the SeaRaptor "Alpha"
• Completed Sea Acceptance Testing (SAT) for the SeaRaptor "Alpha" in the North-Sea
• First SeaRaptor Alpha delivered in February
• Remaining work for the Hugin project in Brazil given new startup in late May

Subsequent events

• NOK 75 million private placement in April 2022
• AUV work for Statens Vegvesen successfully completed
• Commenced Multi-Client offshore wind project at Utsira Nord
• Deep-waterSeaRaptor project moved to early July

Highlights of the quarter

In March Argeo signed an agreement with Kongsberg Maritime for the purchase of a Hugin 6000 AUV (Autonomous Underwater Vehicle) for delivery early H2 2022. The Hugin 6000 is Argeo's second Hugin system and will be commercially available from the beginning of H2 2022. The system is scheduled to commence work directly after completing delivery to Argeo. The Hugin 6000 is a state-of-the-artultra-deep water autonomous vehicle with an advanced payload system. The Hugin 6000 AUV system can be strategically placed in Argeo's main geo-markets for rapid deployment serving the company's global customers with state-of-the-art technology and data.

Following the purchase Argeo secured a 12-month contract for AUV work using the Hugin 6000 AUV with immediate contract start after AUV delivery to Argeo. The project will commence early H2 2022 with a minimum guaranteed duration of 6-months and a potential 6-month extension, with estimated completion in H2 2023. The total net value contribution (EBITDA) for the full 12 months is 4.5 MUSD.

Also, in March, Argeo won a contract comprising of AUV work for Statens Vegvesen (Norwegian Public Roads Administration) on the Bjørnafjorden E36 crossing with a contract value of 8.5 MNOK. The work commenced in March 2022. Subsequent to the quarter, the work was successfully completed end of April as scheduled.

In February, the first of two ordered SeaRaptor AUV's was delivered and has subsequent to the quarter commenced work at Utsira Nord for the MultiClient offshore wind project.

Our technical team successfully completed Sea Acceptance Testing (SAT) for the Sea Raptor "Alpha" in the North-Sea in February 2022 and directly started the work for Statens Vegvesen, a project which was completed ahead of time with very good data quality.

The deep-water SeaRaptor project had to be moved to early July due to vessel availability related to drydocking and will now be carried out using the SeaRaptor Bravo.

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Argeo aims to transform the ocean space survey and inspection industry through robotics, sensor, and imaging technology. This is expected to provide an increase in data accuracy, detail, and collection efficiency, as well as a reduced CO2 footprint by reducing the need for large surface vessels. Argeo's markets are in infrastructure, offshore wind, oil & gas inspection as well as deep-water mineral exploration.

Argeo at a glance

47	3	6
EMPLOYEES	AUV CREWS	ASSETS

Note: Per 31.03.2022 Argeo counted 37 employees, 2 assets and four ordered.

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