Slide 1: Q2/H1 2023 Financial results
Q2/H1 2023 Financial results Ole Falk Hansen CEO Nekkar ASA Rolf-Atle Tomassen Managing Director, Syncrolift AS Nekkar ASA | 30.08.2023
Slide 2: Disclaimer
Disclaimer By reading this company presentation (the “Presentation”), or attending any meeting or oral presentation held in relation thereto, you (the “Recipient”) agree to be bound by the following terms, conditions and limitations. The Presentation has been produced by Nekkar ASA (the “Company”) f
Slide 3: Nekkar in brief
Nekkar in brief Revenue 2022 MNOK 388 Industrial technology company Order backlog Presently a portfolio of established businesses and impact technology ventures MNOK 864 within ocean-based industries World-class engineering expertise MNOK 236 in cash Proven track-record delivering complex and profit
Slide 4: Nekkar operates in four main business segments
Nekkar operates in four main business segments, focused on sustainable technologies for ocean-based industries segments Shipyard Business Renewables Aquaculture Digital Solutions companies Portfolio technology ventures Impact 4
Slide 5: The portfolio consist of mature, financially solid business, and new impact technology ventures
The portfolio consist of mature, financially solid business, and new impact technology ventures Nekkar portfolio, overview of maturity level and key focus areas 3. ESTABLISHED 2. GROWTH Installed customer base Focus on profitability Proven products 1. INNOVATION Broaden customer base Service on inst
Slide 6: Highlights: Q2 2023
Highlights: Q2 2023 Financial highlights Operational highlights • Steady execution of projects and service • Revenue of MNOK 132, up 32% versus Q2 2022 (100) • Three new contracts with combined value of MNOK 85 • Operational EBITDA1 of MNOK 27 (25), equivalent to margin of 21% (25%) • Additional MNO
Slide 7: Key financials | Per quarter
Key financials | Per quarter Revenue Operational EBITDA & margin (%)1 MNOK MNOK +32% 132 25% 23% 21% 125 27% 10% 100 101 +8% 27 79 25 23 21 13 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Operational EBITDA Operational EBITDA % 1 Excluding losses/gain on FX contrac
Slide 8: Order intake and backlog | Per quarter
Order intake and backlog | Per quarter Order intake per quarter1 Order backlog development2 MNOK MNOK 160 1000 148 894 900 864 140 824 832 795 800 120 117 105 700 100 600 80 500 60 400 300 40 24 27 200 20 100 0 0 Q2/22 Q3/22 Q4/22 Q1/23 Q2/23 Q2/22 Q3/22 Q4/22 Q1/23 Q2/23 8 1 Does not account for FX
Slide 9: BEWI Invest and Nekkar partner through a joint investment in the aquaculture industry supplier
Acquisition announcement BEWI Invest and Nekkar partner through a joint investment in the aquaculture industry supplier FiiZK becoming the leading provider of sustainable closed-cage fish farming solutions and aquaculture software 9
Slide 10: FiiZK: A leading provider of closed cage solutions & software for aquaculture
FiiZK: A leading provider of closed cage solutions & software for aquaculture ABOUT FiiZK: • 2022 revenues of NOK ~330 million • Three business units with close to dedicated 100 employees: o Closed cage: Closed cage solutions for fish farming with 20 installed systems o Protection: Technical textile
Slide 11: Syncrolift AS presenter
Nytt bilde? Rolf-Atle Tomassen, Managing Director, Syncrolift AS 11
Slide 12: Syncrolift AS
Syncrolift AS Market leader 60% The company is the dominant supplier of ship-handling solutions for shipyards all over the world. Since 2020, Syncrolift has also captured a considerable and growing share of the global after sales and service market Market share 2012-2023 200+ Installed Base - Proven
Slide 13: Solid financial performance over time
Solid financial performance over time Syncrolift revenues Syncrolift reported EBITDA EBITDA EBITDA Margin MNOK 400 55 MNOK 469 50 +13% 350 45 383 300 40 343 34% 33% 250 35 26% 30 254 200 23% 220 21% 25 204 211 158 19% 150 20 15% 88 89 15 100 69 54 10 50 42 31 5 0 0 2017 2018 2019 2020 2021 2022 H1 2
Slide 14: Our mission is to improve shipyard docking efficiency
Our mission is to improve shipyard docking efficiency End-to-end Solution provider • Ship lifts and slipways • Fast docking solutions Vertical lifts • Upgrade of existing systems • Rail transfer and FlexTrolley Horizontal transfer • Local service 14
Slide 15: Making shipyards more flexible and profitable
Making shipyards more flexible and profitable Value proposition Faster Increased yard Higher ROI docking capacity for yard owner The bottleneck in a traditional shipyard is the ship- dock. A ship-dock can service 1-2 ships at a time. A shiplift and transfer system will increase this capacity to anyw
Slide 16: The demand is driven by three main segments
The demand is driven by three main segments The Market cycles varies with little correlation across segments, as naval typically increase investments in times of geopolitical uncertainty whereas Commercial yards more follow market cycles. Commercial Naval Mega-yachts
Slide 17: Syncrolift is committed to customers worldwide
Syncrolift is committed to customers worldwide Global footprint with more than 200 operational shiplifts and 5 service hubs Sales and service office 17
Slide 18: 60% market share for global shiplift contracts over the past decade
60% market share for global shiplift contracts over the past decade Global shiplift contracts awarded, 2012-2023 33 7 Additional Transfer Car 3 20 5 contract-350MNOK 4 4 3 4 2 3 2 2 2 2 2 4 3 1 1 1 13 2 2 1 1 1 1 1 0 0 0 0 Total shiplift 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 co
Slide 19: Four new contracts recently signed with total contract value of NOK ~115 million
Four new contracts recently signed with total contract value of NOK ~115 million Awards underline Syncrolift’s international competitiveness Undisclosed naval shipyard1 Europe Ship transfer system Song Thu Shipyard Dubai Maritime City Vietnam United Arab Emirates Extension of shiplift and ship Ship
Slide 20: High visibility and tendering activity
High visibility and tendering activity Syncrolift order backlog by execution year1 Tender pipeline, newbuild/upgrades by year1 of contract award MNOK MNOK 900 3.000 838 800 2.500 700 600 502 2.000 500 1.500 400 300 1.000 2.100 200 336 1.400 500 100 0 0 2023 2024-> Total 2023/24 2025→ 20 1 Timings ar
Slide 21: The Syncrolift approach
The Syncrolift approach 2. The reliable partner 60% historical market share and a trusted partner for customers worldwide 1. Continuous innovation 3. Customer lifecycle focus With safety and efficiency as the key design Close collaboration with the customer objective Regional presence with service h
Slide 22: Ownership view on Syncrolift
Ownership view on Syncrolift 13% 27% 838 Annual revenue growth EBITDA margin MNOK backlog 2017-2022 2017-2023 weighted average Solid tender pipeline 18% Service share of revenue1 Efficient cash conversion Strong management team Predictable revenues Strong cash flow and liquidity Scalable operating m
Slide 23: Techano Oceanlift
AY TECHANO OCEANLIFT A NEKKAR COMPANY
Slide 24: Techano acquisition unlocks expanded product offering in Nekkar's core industries
Techano acquisition unlocks expanded product offering in Nekkar’s core industries AQUACULTURE RENEWABLES Cranes | Fish handling | Hose Gangways | 3D-cranes | Control handling systems OFFSHORE CUSTOM MADE Cranes | Winches | Pre-studies | Tailor-made solutions Handling equipment
Slide 25: EUR 4 million crane contract for wind cable-lay support vessel (CLSV)
EUR 4 million crane contract for wind cable-lay support vessel (CLSV) • 70t offshore crane that can support both subsea and topside lifting operations • Intellilift to deliver the crane’s steering system • Contract value: EUR ~4 million • Delivery: 2024, project on-track Illustration: NSK Ship Desig
Slide 26: Intellilift
WV |NTELLILIFT
Slide 27: First InteliWell project progressing according to plan
First InteliWell project progressing according to plan • Four-year contract with Transocean for Transocean Norge operating for Wintershall Dea and OMV • Intellilift to execute project on behalf of InteliWell JV • Installation of InteliAutomate completed in Q2 2023, system in operation with good oper
Slide 28: InteliWell automated standbuilding on Transocean Norge
=— | % =" = PINTELIWELL. "WINTERSHALL DEA AND TRANSOCEAN, AUTOMATED S STANDBUILDING een ee OI Os THE TRANSOCEAN NORGE an, f v
Slide 29: Impact Technology Ventures
pictures Impact Technology Ventures 29
Slide 30: SkyWalker solves major bottlenecks for offshore wind
SkyWalker solves major bottlenecks for offshore wind Installation of tower sections Installation of floating Major component exchange Major component exchange for bottom fixed offshore turbines on floater at quay on bottom fixed offshore on floating offshore wind
Slide 31: SkyWalker included in plans by three consortiums for Norway offshore wind
SkyWalker wind turbine installation & maintenance tool included in plans by three consortiums for developing Norway offshore wind Undisclosed Undisclosed Undisclosed consortium consortium consortium Increased focus on Major Components Exchange for offshore wind • Focus on reducing opex through lifec
Slide 32: Financial highlights
Financial highlights Revenue Profit & Loss, Q2 2023 • Q2 revenue of MNOK 132, representing an increase of 32% compared to the same period MNOK Q2 2023 Q2 2022 H1 2023 H1 2022 2022 last year Revenue 132 100 234 184 388 Profitability Syncrolift 118 99 211 182 383 Intellilift 9 5 19 11 22 • Healthy ope
Slide 33: Balance sheet
Balance sheet Assets Balance sheet, 2Q 2023 • Intangible assets increased by MNOK 9 in H1 MNOK 30.06.23 30.06.22 31.12.22 2023, mainly due to capitalised development cost for Impact Technology Ventures and ASSETS additions following the Techano acquisition Deferred tax assets 0.0 10.5 7.0 Working ca
Slide 34: Cash flow
Cash flow Cash flow development, H1 2023 Cash flow • Operating cash flow of MNOK 81.7 in the first MNOK half of 2023, representing a significant increase +54.8 of MNOK 59.8 compared to the same period last -13.8 year. 24.4 -2.6 -14.3 236.1 3.0 -1.5 • Cash flow from investments of MNOK 14.1 in the fi
Slide 35: Nekkar's capital allocation strategy
Nekkar’s capital allocation strategy Available capital Q2 2023 MNOK Portfolio growth Net cash 236 Investments in existing portfolio companies to fuel Undrawn credit facility 200 organic growth while maintaining a strong balance sheet Total 436 Share buy-backs New business Buy-back program initiated
Slide 36: Summary Q2 2023 & outlook
Summary Q2 2023 & outlook Summary Outlook ▪ Backlog provides good visibility for 2023 and Solid revenue, operational EBITDA and EBIT 2024 ▪ High tendering activity ▪ Successful implementation of InteliWell’s Healthy order intake of NOK 148 million, order backlog of xx breakthrough award likely to op
Slide 37: Alternative performance measures
Nekkar ASA Alternative performance measures INTRODUCTION TO ALTERNATIVE PERFORMANCE MEASURES (APMs) PROFIT MEASURES Nekkar Group (Nekkar) discloses alternative performance measures in addition EBITDA is short for “earnings before interest, taxes, depreciation and to those normally required by IFRS.
Slide 38: nekkar.com
AY NEKIKAR nekkar.com