Summary of Kraken Robotics Conference Call Company and Industry - **Company**: Kraken Robotics - **Acquisition**: Covelya Group - **Industry**: Underwater technology, maritime security, and critical underwater infrastructure inspection Core Points and Arguments 1. **Strategic Acquisition**: The acquisition of Covelya Group is aimed at creating a global supplier for maritime security and underwater infrastructure inspection, addressing a rapidly growing demand in the industry [4][5] 2. **Complementary Technologies**: Kraken specializes in subsea batteries and synthetic aperture sonar, while Covelya excels in subsea navigation, positioning, monitoring, and communications, with over 50 years of experience [4][5] 3. **Growth Potential**: The combined company is expected to generate revenues of approximately CAD 360+ million by 2025, with strong profitability margins and growth in both defense and commercial markets [5][21] 4. **Acquisition Details**: The purchase price for Covelya is CAD 615 million, equating to approximately 9.7x adjusted EBITDA expected for 2025. The financing includes a CAD 150 million credit facility and a public offering for CAD 350 million [6][22] 5. **Market Expansion**: The acquisition is expected to enhance Kraken's total addressable market within the ocean economy and improve in-house technical capabilities, including production capacity [5][6] 6. **Customer Base**: The combined entity will serve over 700 customers, including major defense and commercial clients, which will facilitate cross-selling opportunities [15][18] 7. **Financial Metrics**: The combined revenues are projected to grow at a compound annual growth rate of 24% from 2023, with adjusted EBITDA expected to reach CAD 88 million by 2025, resulting in a 24% EBITDA margin [11][21] 8. **Operational Synergies**: Expected cost synergies of CAD 10 million are anticipated within 24 months, with potential revenue synergies from cross-selling and new product enhancements [22] 9. **Technological Advancements**: The acquisition will enhance Kraken's capabilities in underwater technology, including advanced sonar systems and environmental monitoring sensors [15][16] 10. **Geographic Diversification**: Covelya's operations across eight countries will improve Kraken's geographic mix and customer base, providing a balanced revenue stream from defense and commercial sectors [17][18] Other Important Content 1. **Management Structure**: The combined company will be led by Kraken's executive team along with key members from Covelya's management, including Simon Partridge as Chief Strategy Officer [10][26] 2. **Historical Performance**: Both companies have shown similar growth trajectories, with combined revenues and adjusted EBITDA growing 24% and 39% respectively since 2023 [21] 3. **Future Guidance**: Kraken's standalone revenue for 2025 is expected to be between CAD 102 million and CAD 104 million, with adjusted EBITDA between CAD 24 million and CAD 26 million, driven by strong performance in subsea battery and SAS products [23][24] 4. **Market Trends**: The subsea technology market is expected to expand alongside the growing adoption of autonomous vehicles, indicating a positive long-term outlook for both Kraken and Covelya [24] This summary encapsulates the key points discussed during the conference call regarding Kraken Robotics' acquisition of Covelya Group and the strategic implications for the combined entity in the underwater technology industry.

Strategic Acquisition to Expand Global Maritime Security and Critical Underwater Infrastructure Inspection Capabilities March 3, 2026 + Transforming Subsea Intelligence Cautionary Notes A final base shelf prospectus dated August 7, 2025 (the "Base Shelf Prospectus") containing important information relating to the securities described in this document has been filed with the securities regulatory authorities in each of the provinces and territories of Canada. The Base Shelf Prospectus, the prospectus supple ...

Core Insights - SLB has secured a contract from Petrobras for oilfield services and technology for up to 35 wells in the Santos Basin, following a competitive bidding process [1][8] - The Santos Basin is a key oil and gas producing region in Latin America, with the wells targeting significant reserves in the Atapu and Sépia oil fields [2] Project Scope - The project will utilize SLB's advanced electric completions technologies and digital solutions to provide real-time production insights and enhance reservoir management [3] - Well completion work is scheduled to begin in mid-2026, supported by SLB's advanced interval control valves designed for high-flow-rate production [4] Field Details & Stakeholders - Petrobras holds a 65.7% interest in the Atapu field, with partners including TotalEnergies (15%), Shell (16.7%), and others [5] - In the Sépia field, Petrobras has a 55.3% stake, with TotalEnergies, Petronas, QatarEnergy, and Petrogal as partners [5] Production Efficiency - SLB's technology and services are expected to enhance Petrobras' production reliability and efficiency, contributing to Brazil's energy security [6]

Financial Performance - Consolidated revenue in Q1 2025 decreased 23% to $16.1 million compared to $20.9 million in the prior year, driven by a 42% decline in product revenue to $9.2 million [6] - Service revenue increased 38% to $7.0 million due to demand for Sub-Bottom Imager™ and Acoustic Corer™ services [6] - Gross profit increased 8% to $10.1 million, resulting in a gross margin of 62.7% compared to 44.8% in the prior year [6][15] - Adjusted EBITDA decreased 32% to $2.8 million, with an adjusted EBITDA margin of 17.3% compared to 19.6% in the prior year [6][12] Market Outlook - The company expects strong top and bottom-line growth in 2025, supported by robust macro fundamentals in the naval defense market as navies modernize and adopt uncrewed platforms [3] - Anticipated defense RFP activity from 2025 to 2027 is at unprecedented levels, contributing to optimism in the naval defense segment [3] Recent Developments - The company secured nearly $45 million in subsea battery orders and $3 million in orders for Kraken SAS since the end of Q4 [5] - A new manufacturing capacity in Canada is expected to come online by the end of 2025, enhancing the company's ability to meet customer needs in offshore energy and naval defense markets [4] Financial Guidance - The company maintains its 2025 revenue guidance of $120 million to $135 million, representing a 40% growth, and an adjusted EBITDA margin of $26 million to $34 million [7] - Capital expenditures for 2025 are projected to range from $13 million to $17 million, with approximately $10 million allocated for a new subsea power manufacturing facility [8]