Slide 1: First quarter 2021 result presentation
First quarter 2021 result presentation CEO Per Jørgen Weisethaunet CFO Per Kristian Reppe 11 May 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 15 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: Several milestone orders, partnerships and strategic M&A
Several milestone orders, partnerships and strategic M&A ▪ Agreement to acquire the Hungarian technology company iData Kft. ▪ Milestone orders for WINGHEAD sonars ▪ Migrating On-Board Units business from tendering to B2B. – First volume orders secured ▪ NORBIT certified to supply medical devices 5
Slide 6: Strong performance in Oceans and PIR, partly offset by expected headwinds in ITS
Strong performance in Oceans and PIR, partly offset by expected headwinds in ITS Revenues and EBITDA First quarter 2021 NOK million ▪ Strong growth in both Oceans and PIR 187 ▪ ITS segment had a weak financial quarter, but 170 announced important contracts and strategic 158 162 M&A 154 152 155 150 1
Slide 7: Oceans
epereegiere ar Oceans
Slide 8: Strong growth and solid profitability in Oceans
Strong growth and solid profitability in Oceans Revenues and EBITDA First quarter 2021 NOK million ▪ Revenues of NOK 69 million, an increase of 32 per cent from Q1-20* 83 81 ▪ Solid demand for sonar systems - multiple 74 WINGHEAD sonars delivered in the quarter 69 ▪ The pandemic continues to have an
Slide 9: WINGHEAD sonars delivered to XOCEAN
WINGHEAD sonars to a total value of NOK 10 million delivered to XOCEAN Photo credit: XOCEAN
Slide 10: Intelligent Traffic Systems (ITS)
DSRC solutions for satellite- based truck tolling Connectivity devices for smart tachograph Intelligent Traffic Systems (ITS)
Slide 11: Weak quarter for Intelligent Traffic Systems (ITS)
Weak quarter for Intelligent Traffic Systems (ITS) Revenues and EBITDA First quarter 2021 NOK million ▪ Revenue decline of 57 per cent from Q1-20 due to stop in supply to one of the larger 62 clients and limited deliveries of OBUs following record-high sales in Q4-20 ▪ Delivery of connectivity modul
Slide 12: Migrating On-Board Units business from tendering to B2B
Migrating On-Board Units business from tendering to B2B Major European insurance company places NOK 50 Cooperation with Fremtind Service, subsidiary of million order for On-Board Units scheduled for Fremtind Insurance delivery in second half of 2021 12
Slide 13: Acquisition of iData, creating a broader platform for growth for ITS
Acquisition of iData, creating a broader platform for growth for ITS Specialised in GPS tracking with a subscription-based recurring revenue business model Large customer base in its home market, Hungary Vehicle tracking and fleet management services based on own proprietary technology Transaction v
Slide 14: Strategic fit with ITS' strategy of positioning itself in selected IoT 5G niche applications
Strategic fit with ITS’ strategy of positioning itself in selected IoT 5G niche applications Jump start strategy to create a new subsegment within asset and vehicle tracking/monitoring With the acquisition, ITS will diversify its revenue stream with iData’s broad customer base and subscription-based
Slide 15: Financial highlights of the iData acquisition
Financial highlights of the iData acquisition Operating revenues HUF million Other +6% Key financials Recurring 1,761 1,752 ▪ iData generating EUR 5.0 million in revenues in 2020 1,559 ▪ 13% revenue growth in 2019 and a stable development in 2020 despite of covid-19 implications ▪ Consistently high
Slide 16: Product Innovation & Realization (PIR)
Product Innovation & Realization (PIR)
Slide 17: Growth returning in Product Innovation & Realization
Growth returning in Product Innovation & Realization Revenues and EBITDA First quarter 2021 NOK million ▪ Revenues grew by 7 per cent* and reached NOK 67 million, driven by higher sales of 76 contract manufacturing and R&D services 69 67 67 63 61 60 57 ▪ EBITDA came in at NOK 2.4 million, positively
Slide 18: "Fast Track" established for rapid prototyping
“Fast Track” established for rapid prototyping ▪ ”Fast Track” established for rapid prototyping and piloting ▪ . ▪ Covers complete units including electronics, mechanical parts both in plastic and metal ▪ Invested in machinery and processes for efficient delivery (Milling, turning, 3D-printing, ultr
Slide 19: NORBIT certified to supply medical devices from Selbu
NORBIT certified to supply medical devices from Selbu ▪ ISO 13485 certification of NORBIT’s factory in Selbu completed ▪ . ▪ Enabler for manufacturing and assembly of electronic products and modules to the medical device industry ▪ Clear megatrends driving demand for medical devices 19
Slide 20: Group financials
Group financials
Slide 21: Financials – P&L
Financials – P&L Amounts in NOK 000's Q1 2021 Q1 2020 First quarter of 2021 ▪ Revenues of NOK 148.7 million, down 2% from Q1 Revenues 148 700 151 571 2020 Other gains and losses 1 230 - o Growth in Oceans and PIR year-over-year Raw materials and change in inventories 72 550 68 194 o Results impacted
Slide 22: Oceans and ITS' results largely offsetting each other year-over-year
Oceans and ITS’ results largely offsetting each other year-over-year Segment EBITDA development Q1 2021 vs. Q1 2020 NOK million Oceans ITS PIR 20.9 4.0 16.5 11.8 (17.3) 5.0 2.4 0.1 6.9 EBITDA Contribution Expense EBITDA -0.7 -1.7 (2.7) Q1 2020 effect effect Q1 2021 EBITDA Contribution Expense EBITDA
Slide 23: Financials – Balance sheet
Financials – Balance sheet Amounts in NOK 000's 31.03.21 31.12.20 Fixed and intangible assets ASSETS ▪ Land and PPE: On par with prior quarter o NOK 7.9 million in investments in fixed assets, offset by depreciation Land and property, plant and equipment 150 024 149 953 Intangible assets 179 776 171
Slide 24: Financials – Cash Flow
Financials – Cash Flow Cash flow development first quarter 2021 Fourth quarter of 2020 NOK million ▪ Operating cash flow of NOK 9.7 million o Net increase in working capital of NOK 2.4 million (4.2) ▪ Investing activities generated cash outflow of NOK (2.4) 26.6 million 17.7 o NOK 7.9 million relate
Slide 25: Outlook
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Slide 26: Outlook
Outlook • Activity continues to be high • WINGHEAD important contributor to the growth • Second quarter is a seasonally strong quarter and NORBIT expects revenues to grow quarter-over-quarter • Challenging outlook also for the second quarter with revenues and margins remaining at low levels • Outloo
Slide 27: Exploring is finding opportunities where others find limits
EXPLORING IS FINDING OPPORTUNITIES WHERE OTHERS FIND LIMITS
Slide 28: Shareholder overview, updated May 2021
Shareholder overview, updated 10 May 2021 # Investor # of shares % 1 VHF INVEST AS - founder Steffen Kirknes 8,686,495 15.30 2 PETORS AS - CEO Per Jørgen Weisethaunet 6,940,695 12.22 3 DRAUPNIR INVEST AS - family of founder Steffen Kirknes 5,702,949 10.04 4 ESMAR AS 3,832,286 6.75 5 EIDCO A/S 3,832,