Slides
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Q2 & H1 2025 Interim report Status and outlook Gunnar Pedersen, CEO Cecilie Brænd Hekneby , CFO Oslo, 28 August 2025
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This presentation has been prepared by the management of Vow ASA using commercially reasonable efforts to provide estimates and information about the company and prospective new markets. The presentation includes and is based, inter alia, on forward-looking information and statements that are subject to risks and uncertainties. In addition, important factors that could cause actual results to differ materially from those expectations include, among others, economic and market conditions in the geographic areas and industries that are or will be major markets for Vow’s businesses, market acceptance of new products and services, changes in governmental regulations, interest rates, fluctuations in currency exchange rates and such other factors as may be discussed from time to time in the presentation. Vow ASA is making no representation or warranty, expressed or implied, as to the accuracy, reliability or completeness of the information contained in the presentation, and neither Vow ASA nor any of its directors, officers or employees will have any liability to you or any other persons resulting from your use of the information in the presentation. Disclaimer 2
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Subsequent events Covenants for period ended 30 June 2025 waived on 20 August More efficient collection of overdue trade receivables has improved liquidity after quarter-end. Industrial Solutions Follum (VGM) has entered the Commissioning phase. In heat treatment customer investment activity has slowed temporarily due to tariff uncertainties. Long term potential of our solutions remains attractive. Maritime Solutions and Aftersales High activity with equipment deliveries to 18 vessels and 10 vessels to be commissioned this year. Solid growth and increasing margins in the Aftersales segment. Q2 and first half-year 2025 revenue and results marked by significant, negative catch-up adjustments following review of project portfolio. The negative catch-up adjustment and Q1-error led to a covenant breach for the period, which was waived in August following close and constructive dialog with DNB. Vow is now launching a profit improvement program to strengthen cost control, improve profitability and increase operational efficiency, and it will also revisit its strategy. Payment for VGM shares On 30 June settlement for the sale of shares in VGM was received. The net proceeds of NOK 35 million was used for additional instalment on debt. Backlog and order intake Total order backlog of NOK 1.4 billion and NOK 259 million in options provide good visibility. Highlights 3
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Financials
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• Two separate issues identified in connection with closing of Q2 and published on 15 July: 1. Q1-error • A technical accounting error in the Q1 report resulting in an overstatement of NOK 16 million in reported EBITDA • The error was related to incorrect elimination of internal margins on projects, primarily impacting the Industrial Solutions segm ent • Revenue for the first three months of H1 2025 have been restated 2. Catch-up adjustment in Q2 2025 • Revenue in projects is recognized in P&L according to the percentage -of-completion method • Catch-up adjustments in Q2 2025 are related to reversal of revenue following a review of technical reporting of progress in proj ects, reversal of project accruals of NOK 1.6 million, write-off of historical foreign VAT claims of NOK 4.9 million and settlement with a vendor following a long -lasting contract dispute • Impact of catch-up adjustments: • Both the Q1-error and Q2 catch-up adjustment are non-cash in the period • Internal practices across the Group evaluated and reinforced to ensure consistency with procedures and policies going forward NOK million Maritime Industrial Total Revenue 25.1 0 25.1 COGS 6.5 3.0 9.5 Gross profit 31.6 3.0 34.6 Q1-error and catch-up adjustments in Q2 5
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Revenues In NOK million *) Restated Q1 2025 Adj. EBITDA and margin In NOK million and % before non-recurring items *) Restated Q1 2025 Order backlog and options At end of period. In NOK million Including contracts announced to date in 2025 Backlog Options 1 061 1 103 1 680 1 532 1 424 316 116 258 250 259 Q2 24 Q3 24 Q4 24 Q1 25 Q2 25 20 18 17 -3 -33 -35 -25 -15 -5 5 15 25 Q2 24 Q3 24 Q4 24 Q1 25* Q2 25 -14.5% 8.1% Development in key financials | Group 112 93 117 102 97 55 53 52 58 59 86 122 96 84 72 Q2 24 Q3 24 Q4 24 Q1 25* Q2 25 Industrial Aftersales Maritime 253 267 265 245 228 -25 6
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• Total revenue of NOK 228 million in Q2 2025, down NOK 25 million from Q2 2024 • Adjusted for negative catch-up effects, underlying revenue for the quarter in line with the prior-year period • Underlying revenue growth in Maritime Solutions +9% • Revenue growth in Aftersales +8% revenue and increasing margins • Industrial Solutions down 5% due to lower activity levels and cost updates in certain projects • Total revenue in H1 2025 of NOK 472 million, down NOK 13 million from H1 2024 • Underlying growth of 3% for first half year with positive development in the Maritime Solutions and Aftersales segments 253 253 228 Q2 2024 10 Maritime Solutions underlying 5 Aftersales -15 Industrial Solutions Q2 2025 underlying -25 Catch-up adjustment Q2 2025 0Q/Q 485 498 472 H1 2024 5 Maritime Solutions underlying 15 Aftersales -8 Industrial Solutions H1 2025 underlying -25 Catch-up adjustment H1 2025 +13 H1/H1 Revenue development 7
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• The catch-up adjustment impacts revenue by NOK 25 million and cost of goods sold with NOK 10 million • Positive underlying gross profit development in the Maritime Solutions and Aftersales segments • Negative development in the Industrial Solutions segment, mainly due to increased commissioning cost and changes needed late in some large project 77 67 33 14 8 Q2 2024 Maritime Solutions underlying Aftersales -30 Industrial Solutions Q2 2025 underlying -35 Catch-up adjustment Q2 2025 -9Q/Q 150 128 93 13 H1 2024 5 Maritime Solutions underlying Aftersales -40 Industrial Solutions H1 2025 underlying -35 Catch-up adjustment H1 2025 -22 H1/H1 Segment ex catch- up Q2 2025 Q2 -24 Q3-24 Q4-24 Q1-25 Q2-25 Maritime 15% 27 % 19 % 20 % 25 % Aftersales 23% 30 % 33 % 35 % 34 % Industrial 54% 26 % 37 % 24 % 23 % Total 30% 27% 29% 25% 27 % Gross profit 8
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• Revenue and gross profit are heavily impacted by catch-up adjustment, but positive underlaying growth within Maritime Solutions and Aftersales. • Underlying gross margin of 27% in the quarter. • Employee expenses in Q2 are impacted by increased number of employees and in-house consultants from last year, annual salary adjustment and non-recurring costs in addition to changes in allocation of holiday payment • Non-recurring costs in H1 2025 are related to costs mainly associated with changes in executive management. • Adjusted EBITDA of NOK -33 million in the quarter is NOK 54 million lower than in Q2 2024. NOK 35 million is attributed to the catch-up adjustment, while NOK 20 million is related to increased COGS and operating costs compared with the last period. • New management has initiated a profit improvement program to strengthen cost control, improve profitability and increase operational efficiency. NOK million Q2 2025 Q2 2024 H1 2025 H1 2024 2024 Revenue 227.7 252.7 472.4 485.0 1,018.2 Gross profit 32.7 76.2 93.4 149.9 296.5 Gross margin % 14.4% 30.1% 19.8% 30.9% 29.1% Employee expenses (42.0) (31.4) (83.9) (77.0) (161.8) Other operating expenses (26.7) (30.2) (52.0) (52.2) (86.3) EBITDA (36.0) 15.1 (42.6) 20.6 48.3 Non-recurring cost (3.0) (5.4) (6.7) (5.4) (12.8) Adj. EBITDA (33.0) 20.5 (35.9) 26.1 61.1 Adj. EBITDA margin % -14.5% 8.1% -7.6% 5.4% 6.0% Result impacted by catch-up effects and increased costs Note: FY 2025 figures unaudited Operational key figures 9
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Segment information Revenues 59.2 n/a 54.6 117.6 n/a 102.2 206.9 Adj. EBITDA1 10.0 n/a 4.6 18.9 n/a 10.4 24.2 Adj. EBITDA margin 16.9% n/a 8.3% 16.1% n/a 10.2% 11.7% Aftersales Maritime Solutions Industrial Solutions Revenues 71.5 n/a 86.2 155.5 n/a 163.8 381.8 Adj. EBITDA1 (19.1) (16.1) 15.0 (28.1) (25.1) 8.8 21.3 Adj. EBITDA margin -26.7% -22.5% 17.4% -18.1% -16,1% 5.4% 5.6% Backlog (end of period) 175 365 243 NOK million Q2 2025 Q2 2025 ex catch- up Q2 2024 H1 2025 H1 2025 ex catch- up H1 2024 2024 Revenues 97.0 122.1 112.0 199.4 224.5 219.1 429.5 Adj. EBITDA1 (14.9) 16.7 10.8 (7.2) 24.2 25.0 50.5 Adj. EBITDA margin -15.4% 13.7% 9.7% -3.6% 10.9% 11.4% 11.8% Backlog (end of period) 1,249 696 1,437 • Aftersales continues to grow with increasing number of ships in operation equipped with Vow systems • Measures taken to improve profitability starting to show results • Industrial continued to deliver on large ongoing contracts during the quarter • The decline in profitability is mainly due increased cost at the end of some larger projects • Good progress on FEED studies Note: FY 2025 figures unaudited; 1) Before non-recurring. Non-recurring items for the Group amounted to NOK 3.0 million in Q2 2025, NOK 6.7 million in 1H 2025, NOK 5.4 million in Q2 and 1H 2024 and NOK 12.8 million in FY 2024 Admin Revenues - n/a - - n/a - - Adj. EBITDA1 (9.0) n/a (9.9) (19.5) n/a (18.1) (34.9) EBITDA (12.0) n/a (9.9) (26.3) n/a (18.1) (34.9) • Admin consist of expenses not allocated to business segments • Maritime underlying revenue growth up 9% and increasing profitability in the quarter as share of legacy contracts is decreasing • Growth is primarily related to increased delivery volumes to shipyards and progress on new, larger newbuilding contracts • Firm backlog - long visibility and revised T&C in new contracts 10
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Financial performance NOK million Q2 2025 Q2 2024 H1 2025 H1 2024 2024 Revenue 227.7 252.7 472.4 485.0 1,018.2 EBITDA (36.0) 15.1 (42.6) 20.6 48.3 Depreciation and amortisation (11.6) (12.1) (23.3) (22.4) (47.4) Impairment (0.0) (0.2) (0.0) (0.2) (10.7) EBIT (47.6) 2.8 (65.9) (1.9) (9.8) Share of net profit (loss) from associated company (3.4) (2.5) (5.6) (22.8) Financial items (16.7) (20.0) (41.3) (30.1) (102.8) Gain from sale of associated company 1.4 1.4 Result before tax (62.9) (20.6) (108.2) (37.6) (135.4) Reduced financial cost in the quarter • EBITDA heavily impacted by the catch-up adjustments as well as higher COGS and personnel expenses than last period • Depreciation in line with same period last year • Following the sale of Vow’s shares in Vow Green Metals in June, the share of net loss is 0 and a gain of NOK 1.4 million is recognised in the period. • Financial items for Q2 2025 are NOK 3.3 million lower than in Q2 2024 and consist of: • Net foreign exchange loss of NOK -5.1 million (loss of NOK -4.5 million in Q2 2024) • Interest cost of NOK -12.4 million (NOK -14.9 million in Q2 2024) • Other financial items NOK 0.6 million (NOK -1.4 million in Q2 2024) Note: FY 2025 figures unaudited 11
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Balance sheet NOK million 30.06.25 31.12.24 Intangible assets and goodwill 661.0 649.3 Trade receivable 211.3 205.8 Contracts in progress 195.6 297.5 Other assets 157.5 298.4 Cash and cash equivalents 34.0 46.3 Total assets 1,259.4 1,497.4 Total equity 397.4 504.5 Interest-bearing debt 464.4 394.5 Contract accruals 98.0 228.9 Trade creditors 132.0 205.4 Other liabilities 167.7 164.0 Total equity and liabilities 1,259.4 1,497.4 Note: FY 2025 figures unaudited Focus on debt collection and payment to vendors • Net contracts in progress and contract accruals impacted by timing of milestone invoicing • Other assets reduced following reduced prepayments to vendors • Trade creditors reduced due to payment of vendor debt • Net working capital reduced by NOK 2.5 million as of 30.6. Subsequent to the quarter improved processes for debt collection has started to show result improving liquidity • Interest-bearing debt increased from 31.12. 2024 with NOK 69m, but down NOK 16 m from 31.3.2025 Interest bearing debt development 394 480 464 86 Interest- bearing debt 31.12.2024 Movements Q1 2025 Interest- bearing debt 31.3.2025 -13 Instalment -35 Additional installment Change in bank overdraft Other Interest- bearing debt 30.06.2025 30 2 NOK-16m 12
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Cash flow development Figures in NOK million. Note: FY 2025 figures unaudited; 1) Available liquidity = undrawn credit lines + cash balance = undrawn credit lines The dynamics of the business impacts working capital depending on timing of milestone payments and contract structure The cash reduction primarily reflects payment of trade payables to vendors Available liquidity1 of NOK 90m 13
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Financial priorities Manage working capital to optimise cash flow in a project-driven business remains key priority Improved process for collecting debt staring to show effect Improve debt and cash situation Improve financial metrics through increased commercial awareness and cost efficiency measures Implementation of Profit Improvement Program Processes and policies are evaluated and standardised across the Group to secure consistent and precise reporting Revisit strategy and consider impairment testing of certain balance sheet items Working capital management Operational performance Accounting & reporting Capital structure improvement 14
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Market and business update
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• Two contracts concluded in Q2: • Scanship signed a EUR 3.5 million retrofit contract with a leading European shipyard to deliver wastewater treatment systems to a major Miami-based cruise operator , with deliveries starting in Q1 2026 • Scanship also signed a EUR 3.5 million newbuild contract to deliver wastewater treatment systems to a prominent European shipyard • Yards expected to conclude on quite a few more prospects during second half of 2025 • NOK 1.2 billion order backlog, almost doubled year-over-year Continued positive development for the cruise lines with improved profitability and high occupancy drives the need for newbuilds NOK million Q2 25 Q2 2025 ex catch-up Q2 24 H1 25 H2 2025 ex catch-up H1 24 2024 Revenues 97.0 122.1 112.0 199.4 224.5 219.1 429.5 Adj. EBITDA1 (14.9) 16.7 10.8 (7.2) 24.4 25.0 50.5 EBITDA margin -15.4% 13.7% 9.7% -3.6% 10.9% 11.4% 11.8% Order intake 77 216 802 380 720 Backlog 1,249 696 1,437 199 million revenues in 1H 2025 Share of total 42% 1 Before non-recurring items. There were no non-recurring items in the segment Maritime Solutions 16
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10 10 6 6 1 1 1 1 1 2 5 6 12 9 5 4 3 4 1 10 2 4 6 8 10 12 14 25 26 27 28 29 30 31 32 33 34 35 36 Year when vessel is going into service Scanship equipment normally delivered 18-24 months before Vessels with Vow equipment Tendering activity with promising growth opportunities • Backlog comprises 35 confirmed orders for cruise ships under construction • Current number of options consist of 2 vessels • Currently tendering for 49 newbuilds and 3 retrofits • Long visibility # of vessels Currently being bid In backlog, as option In backlog, confirmed Strong backlog and pipeline in cruise 17
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Equipment deliveries in 2025 • Scanship’s scheduled main system deliveries in 2025 • Delivered equipment to date: for 12 newbuilds • Total equipment deliveries this year: 18 newbuilds • Vow holds a leading position within newbuild1 Meyer Turku Meyer Werft Papenburg Fincantieri Ancona Fincantieri Monfalcone Chantiers De Atlantique Fincantieri MargheraFincantieri Sestri 18 1In Vow’s core market with >1,000 passengers Fincantieri Genova
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• Scanship’s scheduled commissioning activities in 2025 • To date: 8 newbuilds • Scheduled rest of year: 2 newbuilds • Adding 10 systems to fleet of vessels requiring spares and consumables from Scanship’s Aftersales division Commissioning in 2025 19
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Aftersales • Positive development in revenues and margins • An increasing fleet of vessels with our equipment on board will continue to drive the demand for our aftersales business • Margins continue picking up as the effects of various operational improvements are kicking in and we see a potential for growth NOK million Q2 25 Q2 24 ∆ H1 25 H1 24 ∆ 2024 Revenues 59.2 54.6 +4.6m 117.6 102.2 +15.4m 206.9 Adj. EBITDA1 10.0 4.6 +5.4m 18.9 10.4 +8.5m 24.2 EBITDA margin1 16.9% 8.3% +8.5pp 16.1% 10.2% +5.9pp 11.7% 118 million revenues in 1H 2025 Share of total 25% Aftersales revenues in NOK million 59 29 49 55 Q2 22 Q2 25 Q2 23 Q2 24 1 Before non-recurring items. Non-recurring items amounted NOK 2.3 million in FY 2024, NOK 2.0 million in Q2 and 1H 2024, and no non-recurring items in 2025. 20
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Industrial Solutions • The large-scale Circular Solutions pyrolysis projects (Follum and Rhode Island) have completed most equipment deliveries, entering a phase of commissioning activities with revenues primarily driven by hours. Margin is impacted by increased costs in these projects • Order backlog improvement is pending contract awards from FEED studies • Within heat treatment, customer investment activity has slowed temporarily due to tariff uncertainties - long-term potential remains attractive 1 Before non-recurring items. Non-recurring items amounted to NOK 10.5 million in FY 2024, NOK 3.4 million in Q2 and 1H 2024, and no non-recurring items in 2025. NOK million Q2 25 Q2 2025 ex catch-up Q2 24 H1 25 H2 2025 ex catch-up H1 24 2024 Revenues 71.5 71.5 86.2 155.5 155.5 163.8 381.1 Adj. EBITDA1 (19.1) (16.1) 15.0 (28.1) (25.1) 8.8 21.3 EBITDA margin1 -26.7% -22.5% 17.4% -18.1% -16.1% 5.4% 5.6% Order intake 33 32 65 65 157 Backlog 175 365 243 156 million revenues in 1H 2025 Share of total 33% 21
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• We have been working closely with forward leaning cruise lines to establish pyrolysis solutions suitable for the maritime market • The first solutions have been installed and there is a strong interest in the market • A full—scale certification lab has been established to support the introduction • It will be used for characterization of various feedstock to support certification, for training and demonstrations • We will capture and analyze data to validate reliability, demonstrate performance and drive continuous improvement 22 Certification lab
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Supporting new strategic owner Vow Green Metals is moving forward with a new strategic owner. Set to enter operations in the second half of 2025, VGM’s first plant will deliver biocarbon to leading metal companies in Europe. Offtake agreements has been secured for its entire capacity. • Commissioning has been initiated for the Follum phase 1 project • We are working closely together with VGM in preparing for phase 2 • Vow has built a large reactor suitable for Follum Phase 2 and delivery timeline for this reactor is part of our discussions with VGM • In HitecVision, VGM now has an owner with financial strength to complete the Follum project and with high ambitions for the continuation. To Vow, this means more opportunities in the coming years HitecVision successfully acquired all shares in VGM 23
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• Continued positive development in Maritime Solutions and reduced share of legacy contracts • Growth in revenue and margins in Aftersales • Demonstrating our Industrial Solutions in full scale • Launch profit improvement program • Focus on liquidity and debt collection • Revisit strategy 24 Summary & outlook
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Believing in a future where industry is harmonized with nature