Slide 1: Fourth quarter and full year 2021 result presentation
Fourth quarter and full year 2021 result presentation CEO Per Jørgen Weisethaunet CFO Per Kristian Reppe 15 February 2022, Trondheim, Norway
Slide 2: Disclaimer
Disclaimer These materials, prepared by NORBIT ASA (the "Company"), may contain statements about future events and expectations that are forward- looking statements. Any statement in these materials that is not a statement of historical fact including, without limitation, those regarding the Company
Slide 3: All time high revenues and EBITDA doubled
All time high revenues and EBITDA doubled Revenues and EBITDA Fourth quarter 2021 NOK million 249 ▪ 54 per cent revenue increase driven by solid sales growth in all segments 200 187 190 ▪ EBITDA margin of 17 per cent, up 5 170 percentage points from the same period in 158 32% 154 152 155 162 150 149
Slide 4: Good progress towards the 2024 ambition level
Good progress towards the 2024 ambition level Revenues and EBITDA Full year 2021 NOK million ▪ Good progress despite challenges relating +22% to the pandemic and shortage in supply of 788 components 668 619 ▪ 27 per cent revenue growth - adjusted for the iData transaction, organic growth was 438 22
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Slide 6: Oceans positioned for the Blue Economy
Oceans positioned for the Blue Economy 6
Slide 7: Continued strong sonar sales in Oceans
Continued strong sonar sales in Oceans Revenues and EBITDA Fourth quarter 2021 NOK million ▪ Revenues of NOK 117 million, an increase of 58 per cent* from Q4-20, driven by strong sonar sales 117 ▪ EBITDA margin of 32 per cent for the quarter, compared with 21 per cent in Q4-20 102 ▪ The improvement
Slide 8: Winghead sonar family – a strong contributor to the 2021 results in Oceans
Winghead sonar family – a strong contributor to the 2021 results in Oceans Revenues sonar NOK million 306 71 219 14 235 205 2020 2021 Photo credit: XOCEAN Ltd Winghead Other sonar PAGE 8
Slide 9: Broadening the product offering through market-driven R&D investments
Broadening the product offering through market-driven R&D investments ▪ Broadening product offering with a new surveillance sonar – Guardpoint ▪ Designed to detect targets in challenging environments ▪ Automatically detects, tracks, classifies and alerts to the presence of underwater objects ▪ Recei
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Slide 11: Strong growth in revenues for Connectivity, but margin not satisfactory
Strong growth in revenues for Connectivity, but margin not satisfactory Revenues and EBITDA Fourth quarter 2021 NOK million ▪ Revenue of NOK 65 million, a 63 per cent increase from Q4-20, supported by the iData acquisition 65 62 ▪ EBITDA of NOK 12 million, compared with NOK 9 million in Q4-20, givin
Slide 12: iData increasing its subscription based revenues
iData increasing its subscription based revenues Revenues iData group Comments NOK million ▪ iData reported NOK 20 million in revenues in Q4-20 71 +13% ▪ Has shown a solid development during 2021, increasing revenues by 34 per cent (42 per cent in local currency) 53 53 from 2020 47 43 ▪ Over 85 per
Slide 13: Several important contracts won for sub-segment ITS
Several important contracts won for sub-segment ITS Enforcement Enforcement On-Board Units On-Board Units On-Board Units modules modules European insurance Global industrial company company NOK 27 million Undisclosed NOK 50 million* NOK 35 million NOK 30 million H2’21 – H2’23 2022 2022 2022 – Q1 202
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Slide 15: Growth also in PIR, margin slowly improving
Growth also in PIR, margin slowly improving Revenues and EBITDA Fourth quarter 2021 NOK million ▪ Revenues grew by 44 per cent* to NOK 77 million, driven by increase sale of R&D products, services and contract 78 77 manufacturing 76 69 67 67 69 ▪ Pass-through invoicing of extraordinary material cost
Slide 16: Group financials
Group financials
Slide 17: Financials – P&L
Financials – P&L Q4 2021 Q4 2020 FY 2021 FY 2020 Fourth quarter of 2021 Amounts in NOK 000's ▪ Revenues of NOK 248.9 million, up 54 per cent from Q4 Revenues 248 879 162 110 787 827 618 798 2020 Other gains and losses - - 1 230 - o 41 per cent growth year over year adjusted for iData Raw materials a
Slide 18: Increase in EBITDA driven by improved gross profit
Increase in EBITDA driven by improved gross profit EBITDA development Q4 2021 vs. Q4 2020 EBITDA development 2021 vs. 2020 NOK million NOK million (32.1) (17.9) 150.0 (18.4) 99.7 7.5 (14.7) 54.4 41.5 93.5 19.8 EBITDA Gross profit Payroll OPEX EBITDA EBITDA 2020 Gross profit Payroll OPEX Transaction
Slide 19: Oceans the main driver for the EBITDA improvement year over year
Oceans the main driver for the EBITDA improvement year over year Segment EBITDA development Q4 2021 vs. Q4 2020 NOK million Oceans Connectivity PIR (12.0) 37.3 33.9 (23.3) 26.4 12.1 15.4 9.0 2.6 2.8 0.2 EBITDA Gross profit Expense EBITDA EBITDA Gross profit Expense EBITDA -0.4 Q4 2020 effect effect
Slide 20: Financials – Balance sheet
Financials – Balance sheet Amounts in NOK 000's 31.12.21 30.09.21 31.12.20 Fixed and intangible assets ASSETS ▪ Land and PPE: On par with prior quarter as depreciation offset investments Property, plant and equipment 164 895 164 368 149 953 Intangible assets 242 337 243 893 171 454 ▪ Intangible asse
Slide 21: Liquidity further strengthened subsequent to quarter-end
Liquidity further strengthened subsequent to quarter-end Debt facilities and available credit lines Refinanced multicurrency overdraft facility NOK million ▪ Refinancing of the overdraft facility to NOK 250 303 288 million, strengthening liquidity by NOK 120 million 27 120 o 140bps p.a. margin 60 o
Slide 22: Maintaining a solid balance sheet
Maintaining a solid balance sheet NIBD/EBITDA EBITDA 12 month rolling 4.5 ▪ Maintaining a strong balance sheet and Covenant loan facilities liquidity position are first priorities for 4.0 capital allocation: 3.5 o Provide for financial flexibility 3.0 o Prudent risk management o Operating well withi
Slide 23: Financials – Cash Flow
Financials – Cash Flow Cash flow development fourth quarter 2021 Fourth quarter of 2021 NOK million ▪ Operating cash flow of negative NOK 2.6 million o Net increase in working capital of NOK 39.5 million, primarily driven by increase in inventories and receivables ▪ Investing activities generated ca
Slide 24: Outlook
Outlook
Slide 25: Short-term outlook
Short-term outlook • Segment Oceans had a strong end to the year in a seasonally active quarter • First quarter is a seasonally low period for the sonar business • NORBIT targets to deliver growth compared to the first quarter of 2021 • Segment Connectivity has shown a positive development, and acti
Slide 26: On the path to reach the ambition level in 2024
On the path to reach the ambition level in 2024 Organic revenue growth target NOK million >1 500 • Revenue target for 2022 is in excess of NOK 1.0 billion, supported by growth in all three business segments • Quarterly seasonal fluctuations are expected, along 996 >1 000 with the impact of currency
Slide 27: Exploring is finding opportunities where others find limits
EXPLORING IS FINDING OPPORTUNITIES WHERE OTHERS FIND LIMITS
Slide 28: NORBIT is uncovering possibilities through technology
NORBIT is uncovering possibilities through technology ▪ A global provider of tailored technology to selected niches ▪ Market driven R&D combined with vertical integrated manufacturing ▪ Worldwide sales and distribution platform ▪ NORBIT is divided in three business segments: – Oceans targeting the g
Slide 29: A global provider of tailored technology to carefully selected niches
A global provider of tailored technology to carefully selected niches Diversified and robust business model Connectivity encompasses NORBIT’s Product Innovation & Realization (PIR) is Oceans is offering tailored technology technology within low power wireless offering R&D services and contract solut
Slide 30: Shareholder overview, updated 11 February 2022
Shareholder overview, updated 11 February 2022 # Investor # of shares % 1 VHF INVEST AS - founder Steffen Kirknes 7,686,495 13.15 2 PETORS AS - CEO Per Jørgen Weisethaunet 6,965,695 11.92 3 REITAN KAPITAL AS 5,829,083 9.97 4 DRAUPNIR INVEST AS - family of founder Steffen Kirknes 5,102,949 8.73 5 CLE