Slide 1: Fourth quarter and full year 2020 result presentation
Fourth quarter and full year 2020 result presentation CEO Per Jørgen Weisethaunet CFO Per Kristian Reppe 10 February 2021, 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: NORBIT is to be recognized as world class, enabling people to explore more
NORBIT is to be recognized as world class, enabling people to explore more • Founded 1995 • HQ in Trondheim, Norway • Manufacturing facilities in Selbu and Røros, Norway • Offices and Subsidiaries in 14 countries • Listed on Oslo Børs, ticker NORBIT Victory awaits him who has everything in order. Lu
Slide 4: 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 Oceans is offering tailored technology Intelligent Traffic Systems (ITS) is offering Product Innovation & Realization (PIR) is solutions to global maritime markets tailored connectivity soluti
Slide 5: Strategic priorities to navigate through the pandemic
Strategic priorities to navigate through the pandemic Maintain financial robustness • Reduce use of consultants • Put new employments on hold • Deliver all customer orders • Scale staffing in production to activity Strengthen platform for growth • All planned investments programs maintained • Broade
Slide 6: Stable activity during 2020
Stable activity during 2020 Fourth quarter 2020 Revenues and EBITDA ▪ NORBIT succeeded in maintaining stable activity NOK million in a challenging environment caused by the 187 pandemic 170 158 162 ▪ Revenues of NOK 162 million 154 152 155 150 ▪ EBITDA of NOK 20 million 128 32% Full year 2020 115 10
Slide 7: Oceans
epereegiere ar Oceans
Slide 8: Oceans delivers growth also in 2020
Oceans delivers growth also in 2020 Revenues and EBITDA Fourth quarter 2020 NOK million ▪ Revenues of NOK 74 million ▪ EBITDA margin of 21% for the quarter 81 83 ▪ Moderate revenue decline despite a strong 74 end to the quarter ▪ Less delivered to the aquaculture market 59 59 59 compared to the corr
Slide 9: Important milestone in 2020: Launch of WINGHEAD - a new ultrahigh resolution sonar
Important milestone in 2020: Launch of WINGHEAD® - a new ultrahigh resolution sonar ✓ Shallow Water Bathymetry ✓ Pipeline & Cable Inspection Surveys ✓ Structure inspection eg. offshore wind, quay wall, bridges ✓ Pond, River and Estuary Surveys ✓ Harbor and Lake Surveys ✓ Coastal Surveys ✓ USV & UUV
Slide 10: Adding carefully selected resellers
Adding carefully selected resellers ▪ Strategy to add selected regional resellers with sufficient domain knowledge, demo capacity, relevant practical skills and a size where commission from sales of NORBIT Sonars has a meaningful impact ▪ Geohydrocean Services Sdn Bhd appointment of as official rese
Slide 11: Environmental monitoring and Surveillance system - SeaCOP
Environmental monitoring and Surveillance system - SeaCOP ▪ The acquired SeaDarQ Radar System integrated into SeaCOP ▪ Awarded contract for delivery of the SeaCOP Environmental Monitoring and Surveillance System to European governmental customer ▪ System combining remote sensing technologies (radar,
Slide 12: NORBIT Oceans includes offering of tailored underwater cables
NORBIT Oceans includes offering of tailored underwater cables Utilize our global sales network to offer tailored underwater cables and assemblies NORBIT Kabelpartner to be included in segment Oceans 12
Slide 13: Intelligent Traffic Systems (ITS)
DSRC solutions for satellite- based truck tolling Connectivity devices for smart tachograph Intelligent Traffic Systems (ITS)
Slide 14: Intelligent Traffic Systems (ITS) increased revenues on higher OBU volumes
Intelligent Traffic Systems (ITS) increased revenues on higher OBU volumes Revenues and EBITDA Fourth quarter 2020 NOK million ▪ Revenues still impacted by inventory build down at one larger customer 62 ▪ Revenues up 82% from Q3 due to high sales of On-Board Units (OBUs) ▪ EBITDA margin of 23% 49% 4
Slide 15: Asset Tracking/Monitoring
Asset Tracking/Monitoring Taking advantage of existing key competence within high-volume wireless low power devices Strong competence and vast experience from : • RF & Microwave based wireless technology • Customized integrated antennas • Embedded Software • Lower power devices • Robotized high volu
Slide 16: European acquisition kickstarts strategy to broaden technology base for ITS
European acquisition kickstarts strategy to broaden technology base for ITS ▪ NORBIT is in advanced and exclusive negotiations regarding an acquisition of an undisclosed European technology company ▪ The target company has vast experience in the vehicle tracking market ▪ Well-established customer ba
Slide 17: Migrating OBU business from tendering to B2B partnerships
Migrating OBU business from tendering to B2B partnerships ▪ NORBIT steps into the Italian road tolling market together with DKV ▪ The mobility service provider DKV has announced to be the first non-Italian certified provider of toll settlement systems in Italy ▪ After a successful pilot phase, the I
Slide 18: Product Innovation & Realization (PIR)
Product Innovation & Realization (PIR)
Slide 19: Product Innovation & Realization on par with previous quarter
Product Innovation & Realization on par with previous quarter Revenues and EBITDA Fourth quarter 2020 NOK million ▪ Revenues of NOK 53 million in line with Q3 ▪ EBITDA of NOK -0.4 76 69 67 61 63 60 Full year 2020 57 54 53 ▪ Revenues of NOK 225 million down from NOK 260 49 51 46 million in 2019 ▪ EBI
Slide 20: Expansion and modernization of the facilities
Expansion and modernization of the facilities Røros: • Doubling of the floor area Røros • More than doubling of the production capacity Trondheim: • Established “Fast-track” center for rapid prototyping • Expansion of R&D test laboratories and assembly area Selbu: • Standardized on same high speed a
Slide 21: Established basis for growth and improved profitability in PIR going forward
Established basis for growth and improved profitability in PIR going forward • Increasing demand for “Made in Europe/Norway“ • Production capacity significantly increased, enabling opportunities for growth in contract manufacturing • Enhanced collaboration between in-house R&D and leading- edge manu
Slide 22: Group financials
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Slide 23: Financials – P&L
Financials – P&L Amounts in NOK 000's Q4 2020 Q3 2020 Q4 2019 FY 2020 FY 2019 Fourth quarter of 2020 ▪ Revenues of NOK 162.1 million, up 8% from Q3 2020, Revenues 162 110 149 966 186 467 618 798 668 176 but down 13% from Q4 2019 Other gains and losses - - - - 10 865 o Sequential growth quarter-over-
Slide 24: Majority of EBITDA development explained by lower contribution
Majority of EBITDA development explained by lower contribution EBITDA development Q4 2020 vs. Q4 2019 EBITDA development 2020 vs. 2019 NOK million NOK million 40.2 158.3 (37.6) (15.3) (13.4) (13.9) 93.5 (3.4) (1.6) 19.8 EBITDA Contribution Payroll OPEX EBITDA Adj EBITDA Contribution Payroll OPEX EBI
Slide 25: ITS and PIR explaining lion's share of Q4 EBITDA development
ITS and PIR explaining lion’s share of Q4 EBITDA development Segment EBITDA development Q4 2020 vs. Q4 2019 NOK million Oceans ITS PIR 20.3 19.6 (1.3) (2.9) 15.4 (12.8) 9.0 1.5 3.4 (6.7) EBITDA Contribution Expense EBITDA EBITDA Contribution Expense EBITDA 2.9 -0.4 Q4 2019 effect effect Q4 2020 Q4 2
Slide 26: A similar development observed throughout 2020
A similar development observed throughout 2020 Segment EBITDA development 2020 vs. 2019 NOK million Oceans ITS PIR 83.1 64.1 10.0 (14.5) 59.6 (45.2) 42.5 4.7 22.6 (15.6) (4.6) 2.3 EBITDA 2019 Contribution Expense EBITDA 2020 EBITDA 2019 Contribution Expense EBITDA 2020 EBITDA 2019 Contribution Expen
Slide 27: Financials – Balance sheet
Financials – Balance sheet Amounts in NOK 000's 31.12.20 30.09.20 31.12.19 Fixed and intangible assets ▪ Land and PPE: Increase of NOK 25.9 million from third quarter ASSETS o NOK 12.8 million related to expansion capex and investments in Land and property, plant and equipment 149 953 124 004 78 653
Slide 28: Financials – Cash Flow
Financials – Cash Flow Cash flow development fourth quarter 2020 Fourth quarter of 2020 NOK million ▪ Operating cash flow of NOK 42.0 million o Net decrease in working capital of NOK 33.0 million (22.3) ▪ Investing activities generated cash outflow of NOK 22.3 million 33.0 o NOK 12.8 million related
Slide 29: Outlook
Outlook
Slide 30: Outlook
Outlook • Sonar sales has started well in Q1-21 • Utilize on global market organization by broadening product portfolio • Long term growth supported by WINGHEAD sonar and additional products under development • Expect weak H1 2021, due to continued inventory build down at one large client and lower
Slide 31: Exploring is finding opportunities where others find limits
EXPLORING IS FINDING OPPORTUNITIES WHERE OTHERS FIND LIMITS
Slide 32: Shareholder overview, updated 8 February 2021
Shareholder overview, updated 8 February 2021 # Investor # of shares % 1 VHF INVEST AS - founder Steffen Kirknes 8,686,495 15.30 2 PETORS AS - CEO Per Jørgen Weisethaunet 6,925,695 12.20 3 DRAUPNIR INVEST AS - family of founder Steffen Kirknes 5,702,949 10.04 4 ESMAR AS 3,832,286 6.75 4 EIDCO A/S 3,