HAV : RE ITEM 4 - Annual Accounts 2023

HAV Group ASA

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A SUSTAINABLE FUTURE AT SEA

SETTING COURSE TOWARDS

A SUSTAINABLE FUTURE AT SEA

Page CONTENT

1. CEO letter

1. HAV Group
   18 Sustainability in HAV Group
   20 Board of directors report
   26 Responsibility statement from board and CEO
   27 Consolidated statement of profit or loss

28 Consolidated statement of financial position

1. Statement of cash flow
2. Notes group

1. Parent company
2. Consolidated statement of profit or lossparent company

58	Consolidated statement of financial position parent company

1. Statement of cash flow parent company
2. Notes parent company

71 Independent Auditor's report

HAV Group's vision is "A sustainable future at sea". This is backed up by the provision of numerous technologies, products, systems and services that support the marine and maritime industries towards the ultimate goal of zero emission operations.

HAV Group ASA - Annual report 2023

Moving in the right direction

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Dear co-shareholder,

While 2023 represented a year of both ups and downs for HAV Group, we remain encouraged by the supporting global maritime megatrends and many positive commercial developments that underline our ambition of being a leading enabler of green transition at sea.

Like everyone else in the maritime industry, HAV Group is affected by what is going on around us. While the winds of change in the maritime industries are increasingly providing tailwinds for HAV Group, we would have liked to see an even quicker transition tempo for the global offshore and shipping fleets.

That said, we are seeing many positive signs from both publicly and private owned businesses who are keen on utilising

technologies that can bring down their energy consumption, emissions and operating costs. And that is exactly what HAV Group offers to our clients: The ability to deliver higher value and at the same time reduce their operating expenditure and their environmental footprint. These benefits go hand- in-hand, which we believe is the most valuable offering we bring to our customers and society as a whole.

From a shareholders' perspective it is important to remember that green technology is not necessarily synonymous with new technology (and inherent higher risk) or exclusive to new vessel types. Our product portfolio is already stacked with solutions that reduce energy consumption and operating costs. HAV Group will continue to be a supplier to most vessel types, and our proven vessel technologies will contribute towards reducing the environmental footprint of these vessels.

HAV Group ASA - Annual report 2023

All industries often rely on both the carrot and the stick to encourage a desired behaviour. Our role at HAV Group is to provide our customers with the "carrot" - how to save money and reduce emissions. New regulatory requirements often represent the "stick".

Last year, IMO presented its revised greenhouse gas reduction strategy for shipping. The strategy's objectives include strengthening energy efficiency design requirements for ships, and a goal of reducing annual greenhouse gas emissions (GHG) from internation shipping by minimum 20%, striving for 30%, by 2030, compared to 2008, and minimum 70%, striving for 80%, by 2040, compared to 2008. The strategy also includes a point about uptake of zero or near-zero GHG emission technologies, fuels and/or energy sources to represent at least 5%, striving for 10%, of the energy used by international shipping by 2030. Further, it also includes a basket of mid-term GHG reduction measures to be finalized and agreed by 2025 - moving from "soft" to "hard" requirements for the shipping industry.

Although not set in stone yet, I have no doubt that new IMO guidelines will set a clear direction for international shipping and help fast-track the adoption of energy efficient and low- and zero emission solutions, such as the many systems and technologies that HAV Group already offer our customers.

From a financial perspective, 2023 was another transitional year - especially the second half. While we were experiencing a more positive global maritime market, certain investment decisions were also being delayed. The combination of delayed investment decisions and differences in our own project mix, resulted in weaker margins in the second half of the year. However, every challenge presents a new opportunity. Our mid- and long-term outlook remain positive. So instead of cutting costs, we utilised excess capacity in projects that were aimed at improving the group's competitive position to be able to fully capitalise on the forthcoming growth opportunities.

This proved to be a wise decision, as we won multiple new contracts toward the end of 2023 and in early 2024. At year- end 2023, our external order backlog was 25% higher than when we entered the year, reflecting both an improved marked and our competitive edge. This order backlog

provides us with good visibility for 2024.

Subsequent to year-end, we have also won several new contracts. There is not enough space to mention all here, but I would like to highlight the importance of being chosen as Fjord1's technology partner for the four autonomous, zero-emission ferries that will operate the Lavik-Oppedal crossing on Norway's west coast. At the time of writing, Fjord1 has awarded our ship design business a contract to deliver ship design and an engineering package for all four ferries, while Tersan Shipyard has awarded our energy design and smart control systems business a contract to act as system integrator and provide complete system deliveries for power system, automation and bridge design including navigation and communication solutions for the four ferries.

For a group that prides itself on being an enabler of green transition at sea, this contract is obviously a perfect strategic fit for us. We are still at the early adopter stage of autonomous sailing capabilities and automation of vessel functions, so this market is expected to grow considerably in the coming years and decades. The Lavik-Oppedal contracts put us in pole position to capitalize on this market growth.

HAV Group's strategy is to create profitability by exploiting the synergies that exist within the group and develop our businesses with complementary resources, activities and solutions that give customers the greatest value. We create growth through organic development, strategic partnerships and corporate acquisitions that provide added value to customers and through cooperation within the group. In early 2023, we added Undheim Systems AS to our group, which further strengthened our offering within dynamic positioning and autonomous vessel capabilities. With the recent Lavik- Oppedal contract awards fresh in mind, this acquisition is obviously a good match for our strategy.

All in all, we retain our positive outlook, and we expect revenue to grow in 2024 (compared to 2023) and increase further in 2025. Finally, I would like to thank our customers, colleagues and shareholders for their continued support.

Gunnar Larsen

CEO

HAV Group

HAV Group ASA - Annual report 2023

HAV Group; an enabler of the green transition at sea

HAV Group is an international provider of technology and services for maritime and marine industries.

Although the group was formally established as late as 2021, it

6 currently comprises four subsidiaries - HAV Design, Norwegian Electric Systems, HAV Hydrogen and Norwegian Greentech- that have several decades of combined industry experience.

The company is headquartered in Fosnavåg, Norway, with offices in Bergen, Ålesund and Egersund (Norway), Sopot (Poland), Matulji (Croatia) and Istanbul (Turkey).

Our experience and expertise, as well as the focus on efficiency, safety, and sustainability, is the foundation for developing and delivering high-quality innovative solutions to our customers in the seafood, energy, and transport sectors.

The group and its subsidiaries possess special expertise in guiding the marine and maritime industries towards zero emissions.

Ship design:

Supplier of innovative ship design, pioneering the design and construction of zero and low-emission vessels.

Energy design and smart control systems:

Supplier of sustainable energy systems, electric propulsion, automation and NavCom systems for a wide range of vessels.

Hydrogen-based energy systems:

Supplier of zero-emissionhydrogen-based energy systems for vessels.

Water treatment systems:

Supplier of ballast water treatment system and other water treatment systems for aquaculture and maritime use.

HAV Group is listed on Euronext Growth Oslo (ticker: HAV).

For more information, see www.havgroup.no

HAV Group's solutions and services include:

HAV GroupHAV ASAGroup- AnnualASA - reportAnnual2022report 2023

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HAV Group ASA

HAV is the Norwegian word for ocean.

The HAV Group is an international provider of technology and services for maritime and marine industries.

The Group's vision is

"A sustainable future at sea".

HAV Group was established in 2021 and comprises four subsidiaries with a leading position in supporting the marine and maritime industries towards the ultimate goal of zero emissions, all based on our Norwegian heritage, experience, quality focus and innovative solutions.

Our experience and expertise, as well as the focus on efficiency, safety, and sustainability, lays the foundation for developing and delivering high- quality innovative solutions to our customers in the seafood, energy, and transport sectors.

This insight provides our customers with a head start, increases their competitiveness, and enables them to realize the green shift towards a sustainable future at sea.

The Group shall create shareholder value by contributing to its subsidiaries and projects through:

Actively taking part in subsidary companies' strategic development to implement group strategy

Stimulating intercompany business development and R&D processes

Extracting synergies through economies of scale and standardization of processes and systems

Pursuing value accretive growth

- organic and through M&A

HAV Group ASA - Annual report 2023

Ship design

HAV Group advises customers regarding selection of vessel parameters and technologies that allow shipowners to increase their competitiveness and enable the green

transition at sea.

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It provides pioneering innovations in the design and construction of low and zero-emission vessels and energy- optimized ship designs.

This entails developing the most efficient vessels possible, covering every aspect of the vessel's functionality and performance, including environmental performance, through concept development, detail design, equipment selection, procurement, system engineering and integration.

Further, innovative simulation-based ship design enables analysis and documentation of real-life performance of a vessel - before it has been built.

In total, HAV Group possesses the competence and tools available to help shipowners design, develop and construct low and zero emission vessels, thereby supporting the global maritime industry in reaching its emission targets.

HAV Group's subsidiary HAV Design has a track record of more than 100 ship designs.

For more information, see www.havdesign.no