Norbit Asa · OSL:NORBT
Norbit Asa — Q3 2024 Earnings Presentation
28 slides from Norbit Asa's earnings presentation, Nov 14, 2024
Slide 1: Third quarter 2024 presentation
Third quarter 2024 presentation CEO Per Jørgen Weisethaunet CFO Per Kristian Reppe 14 November 2024
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: Highlights: Growth and improved profitability
Highlights Growth and improved profitability Revenues and EBIT Third quarter 2024 NOK million ▪ Revenues of NOK 371.9 million, representing a 13 per cent increase from Q3-23 ▪ EBIT ended at NOK 53.7 million, representing 14 per cent margin 418 419 396 404 377 372 First nine months of 2024 347 329 ▪
Slide 4: Oceans
Slide 5: Oceans: Third quarter growth driven by Innomar acquisition
Oceans Third quarter growth driven by Innomar acquisition Revenues and EBIT NOK million Third quarter 2024 ▪ Revenues of NOK 158.1 million, compared to NOK 195 134.1 million in Q3-23 177 ▪ EBIT margin of 19 per cent, compared to 21 per cent 158 152 in Q3-23 131 136 134 127 117 121 41% First nine mon
Slide 6: Growth driven by increased sonar sales and Innomar contribution
Oceans Growth so far this year driven by increased sonar sales and revenue contribution from Innomar Oceans’ revenue mix NOK million 475 Subsea 422 43 sonars 23 46 21 19 316 Security 46 23 222 297 Sub-bottom profilers 164 136 Other 83 91 YTD 2022 YTD 2023 YTD 2024 WH Sonars Other Sonars Security Sub
Slide 7: NOK 100 million in new orders for GuardPoint surveillance sonars
Oceans NOK 100 million in new orders for GuardPoint surveillance sonars Accumulated security revenues NOK million 74 ▪ Secured orders for GuardPoint Intruder Detection Sonar 64 Systems for a total value of approximately NOK 100 56 million 52 42 ▪ Systems with planned delivery in the fourth quarter o
Slide 8: Connectivity
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Slide 9: Improvement in margins despite a small revenue decline
Connectivity Improvement in margins despite a small revenue decline Revenues and EBIT NOK million Third quarter 2024 ▪ Revenues of NOK 111.0 million compared to NOK 172 115.8 million in Q3-23 151 ▪ Lower sales due to rescheduling of OBU deliveries 136 ▪ EBIT margin of 25 per cent, compared to 20 per
Slide 10: Rescheduled OBU deliveries partly offset by satellite-based tolling, subscription and e-toll
Connectivity Rescheduled OBU deliveries partly offset by increased revenues from satellite-based tolling, subscription and e-toll Connectivity revenue mix NOK million On-Board Units 424 Tachograph 68 363 enforcement 31 modules 80 50 Satellite- 227 based tolling 74 59 56 34 269 Subscription 26 and e-
Slide 11: Broadening both customer base and product offering
Connectivity Broadening both customer base and product offering ▪ Toll4Europe, a leading European Electronic Toll Service (EETS) provider, has requested NORBIT to deliver a new innovative GNSS (satellite- based) On-Board Unit (OBU) – Initial NOK 160 million contract, for delivery in Q2/Q3-25 – Produ
Slide 12: PIR
Slide 13: Strong demand in contract manufacturing
Product Innovation & Realization Strong demand in contract manufacturing Revenues and EBIT NOK million Third quarter 2024 ▪ Revenues of NOK 114.4 million, up 34 per cent from 150 145 Q3-23 134 ▪ The increase was driven by strong demand from industrial 114 clients and defence in contract manufacturin
Slide 14: Increasing sales in contract manufacturing driven by industrial clients and defence
Product Innovation & Realization Increasing sales in contract manufacturing driven by industrial clients and defence PIR revenue mix NOK million 394 60 Contract manufacturing 306 299 69 R&D products 67 and services 334 224 171 Customer Customer reimbursements for extraordinary reimbursements materia
Slide 15: Secured a NOK 50 million order
Product Innovation & Realization Secured a NOK 50 million order ▪ New order from existing client in the industrial/defence area for approximately NOK 50 million ▪ Deliveries are scheduled for the fourth quarter of 2024 and the first quarter of 2025 15
Slide 16: Group financials
Group financials
Slide 17: Profit and loss statement
Financials Profit and loss statement Third quarter of 2024 Amounts in NOK million Q3 2024 Q3 2023 YTD 2024 YTD 2023 ▪ Revenues of NOK 371.9 million vs. NOK 328.6 million in Q3-23 Revenues 371.9 328.6 1 195.3 1 122.9 o The Oceans and PIR segments delivered growth, while Connectivity delivered a 4 per
Slide 18: Strongest year over year EBIT improvement in Connectivity and PIR
Financials Strongest year over year EBIT improvement in Connectivity and PIR Segment EBIT development Q3 2024 vs. Q3 2023 NOK million Oceans Connectivity PIR 8.2 (17.2) 28.1 16.7 0.3 0.2 (0.9) (0.4) (5.5) 30.7 9.4 22.7 (0.0) (2.5) 28.3 (3.0) 12.2 (0.9) (0.5) 12.4 3.7 EBIT Q3 Revenue Gross Payroll OP
Slide 19: Balance sheet
Financials Balance sheet Amounts in NOK million 30.09.24 30.06.24 31.12.23 Fixed and intangible assets ASSETS ▪ Land and PPE: An increase of NOK 20.5 million on inclusion of Innomar and leasing of production equipment Property, plant and equipment (incl. right-of-use assets) 268.5 248.0 220.5 Intang
Slide 20: A strong balance sheet for further growth
Financials A strong balance sheet for further growth NIBD/EBITDA EBITDA 12 month rolling ▪ Financing activities in Q3-24: 4.5 ▪ Entered into a EUR 38.0 million loan agreement to Covenant loan facilities finance the cash portion of Innomar acquisition, post- 4.0 closing adjustments and working capita
Slide 21: Cash flow for the quarter
Financials Cash flow for the quarter Cash flow development third quarter 2024 NOK million Third quarter of 2024 12.9 (11.1) ▪ Operating cash flow of positive NOK 83.8 million (4.8) 116.1 o Net decrease in working capital of NOK 12.9 million, mainly related 86.6 (0.4) to a decrease in trade receivabl
Slide 22: Outlook
Outlook
Slide 23: Short-term outlook
Outlook Short-term outlook • Fourth quarter has historically been the period with the highest activity for Oceans • The revenue estimate for Oceans in fourth quarter is NOK 240 – 300 million • Lower end of guidance reflects cautious revenue recognition on the GuardPoint projects on risk that the pro
Slide 24: 2027 Ambition - Organic revenue growth
2027 Ambition - Organic revenue growth Revenue Return on Leverage policy EBIT margin CAGR capital employed (NIBD/EBITDA) ~16% ~20% ~30% 1.0 – 2.5x 24
Slide 25: Technology is part of the solution
TECHNOLOGY IS PART OF THE SOLUTION: - expla re
Slide 26: NORBIT is to be recognised as world class, enabling people to explore more
NORBIT is to be recognised as world class, enabling people to explore more EXPLORING SINCE 1995 ~550 EMPLOYEES ~ 20 COUNTRIES Victory awaits him who has everything in order. Luck people call it... Defeat is certain for him who has neglected to take necessary precaution in time. This is called bad lu
Slide 27: Technology is part of the solution
Technology is part of the solution Diversified and robust business model Connectivity is a leading technology solution Product Innovation & Realization (PIR) is Oceans is offering tailored technology provider for asset identification, monitoring offering R&D services and contract solutions to global
Slide 28: Shareholder overview, updated November 2024
Shareholder overview, updated 11 November 2024 # Investor # of shares % 1 PETORS AS – CEO Per Jørgen Weisethaunet 7,091,320 11.12 2 VHF INVEST AS – founder Steffen Kirknes 6,164,495 9.67 3 REITAN KAPITAL AS 6,086,781 9.55 4 DRAUPNIR INVEST AS – family of founder Steffen Kirknes 3,602,949 5.65 5 J.P.