Slide 1: Second quarter and first half year 2024 presentation
Second quarter and first half year 2024 presentation CEO Per Jørgen Weisethaunet CFO Per Kristian Reppe 15 August 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: Continued operational and strategic progress
Highlights Continued operational and strategic progress Revenues and EBIT NOK million Second quarter 2024 ▪ Revenues of NOK 419 million, on par with level reported in Q2-23 418 419 ▪ Strong growth in Oceans and PIR, offset by decline in Connectivity 396 404 with lower On-Board Units sold due to resc
Slide 4: Acquisition of the maritime technology company Innomar
Highlights Acquisition of the maritime technology company Innomar International customer base ▪ Acquisition of Innomar completed in July for a total consideration of EUR 40.5 million on a cash-and-debt free basis. Served customers in 80+ countries ▪ Innomar has nearly 30 years of experience in acous
Slide 5: Oceans
Slide 6: Oceans: Strong growth and improved profitability
Oceans Strong growth and improved profitability Revenues and EBIT NOK million Second quarter 2024 ▪ Revenues of NOK 195 million, compared to NOK 152 195 million in Q2-23 177 ▪ High demand for sonars drove growth with particularly 152 Europe being a strong region in the quarter 131 136 134 ▪ EBIT mar
Slide 7: Growth driven by increased demand for sonar technology
Oceans Growth driven by increased demand for sonar technology Oceans’ revenue mix NOK million 317 16 Subsea 288 15 sonars 16 12 13 12 70 212 11 Security 16 99 19 57 Environmental monitoring 205 148 109 Other H1 2022 H1 2023 H1 2024 Sonars (excl. Winghead) Winghead sonar Security Environmental monito
Slide 8: New technologies to explore the ocean space increase demand for acoustic solutions
Oceans New technologies to explore the ocean space increase demand for acoustic solutions AUV technology USV technology
Slide 9: NORBIT – recognized as world-class by being qualified for Paris 2024
Oceans NORBIT – recognized as world-class by being qualified for Paris 2024 ▪ Underwater surveillance on The River Seine during The Paris 2024 Olympics ▪ Deployment of 6 GuardPoint Intruder Detection Sonar Systems ▪ Strategic and trusted collaboration with the French Law Enforcement and Security Ser
Slide 10: Connectivity
ap “CONNECTIVITY § A
Slide 11: Connectivity: Revenue decline on lower OBU sales
Connectivity Revenue decline on lower OBU sales Revenues and EBIT NOK million Second quarter 2024 ▪ Revenues of NOK 101 million compared to NOK 172 172 million in Q2-23 151 ▪ Sales of OBUs in Q2-24 reduced due to rescheduling 136 from a larger client. 116 116 31% ▪ EBIT margin of 20 per cent, compar
Slide 12: Revenue decline from lower OBU sales partly mitigated by growth in other verticals
Connectivity Revenue decline from lower OBU sales partly mitigated by growth in other verticals Connectivity revenue mix NOK million On-Board 308 Units 3 45 Enforcement 252 16 modules for 14 29 tachographs 54 Satellite- 147 46 based tolling 3 42 40 215 Subscription 24 and e-toll 17 99 60 Other H1 20
Slide 13: 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 14: Product Innovation & Realization
Slide 15: Increased activity and sequential margin improvement
Product Innovation & Realization Increased activity and sequential margin improvement Revenues and EBIT NOK million Second quarter 2024 ▪ Revenues of NOK 134 million, up 32 per cent from 150 145 Q2-23. 134 ▪ The increase was driven by strong demand from industrial clients in contract manufacturing 1
Slide 16: Revenue increase driven by industrial clients in contract manufacturing
Product Innovation & Realization Revenue increase driven by industrial clients in contract manufacturing PIR revenue mix NOK million 280 0 41 Contract 214 manufacturing 210 7 47 46 44 R&D products and services 238 161 119 Customer Customer reimbursements for extraordinary reimbursements material cos
Slide 17: Group financials
Group financials
Slide 18: Profit and loss statement
Financials Profit and loss statement Q2 2024 Q2 2023 H1 2024 H1 2023 Second quarter of 2024 Amounts in NOK million ▪ Revenues of NOK 418.9 million, on par with level in Q2-23 Revenues 418.9 417.6 823.4 794.3 o The PIR and Connectivity segments delivered strong growth, offset Raw materials and change
Slide 19: Oceans was the profitability driver in the second quarter of 2024
Financials Oceans was the profitability driver in the second quarter of 2024 Segment EBIT development Q2 2024 vs. Q2 2023 NOK million Oceans Connectivity PIR 54.0 (5.3) 3.7 79.7 9.1 (3.3) (8.6) 16.0 29.5 (7.0) 46.1 (43.5) 18.3 17.8 (0.5) (0.4) 20.8 3.0 (0.1) 2.6 4.7 EBIT Q2 Revenue Gross Payroll OPE
Slide 20: Balance sheet
Financials Balance sheet Amounts in NOK million 30.06.24 31.03.24 31.12.23 Fixed and intangible assets ASSETS ▪ Land and PPE: An increase of NOK 22.2 million due to leasing of Property, plant and equipment (incl. right-of-use assets) 248.0 225.7 220.5 production equipment to increase capacity Intang
Slide 21: Working capital efficiency continues to improve on inventory reduction
Financials Working capital efficiency continues to improve on inventory reduction Net working capital1 Per cent of last twelve months revenues 38% 37% ▪ Working capital efficiency improving post a 36% challenging period in the supply market for 36% 36% 36% raw material components last years: 35% 35%
Slide 22: A strong balance sheet for further growth
Financials A strong balance sheet for further growth NIBD/EBITDA EBITDA 12 month rolling ▪ Financing activities in Q2-24 and July: 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 worki
Slide 23: Cash flow
Financials Cash flow Cash flow development second quarter 2024 NOK million Second quarter of 2024 (7.4) ▪ Operating cash flow of positive NOK 149.5 million (8.5) 33.7 o Net decrease in working capital of NOK 33.7 million, mainly (37.4) driven by reduction of inventories ▪ Net cash used in investing
Slide 24: Outlook
Outlook
Slide 25: Short-term outlook
Outlook Short-term outlook • Third quarter is typically a slower quarter than the second and fourth quarter • In the third quarter, Oceans is expected to deliver growth compared to the corresponding period of 2023 (excluding any contribution from the Innomar acquisition) • Connectivity’s revenues fo
Slide 26: 2024 outlook
Outlook 2024 outlook Revenue and profitability margins NOK million 1 700 – 1 800 2024 Outlook x% EBITDA margin x% EBIT margin 1 519 ▪ Revenue target of NOK 1.7 - 1.8 billion reiterated ▪ Based on current forecasts and outlook, revenues 1 167 are forecasted to end up in the lower end of the range (no
Slide 27: 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 27
Slide 28: Technology is part of the solution
TECHNOLOGY IS PART OF THE SOLUTION: - expla re
Slide 29: 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 ~500 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 30: 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 31: Shareholder overview, updated August 2024
Shareholder overview, updated 13 August 2024 # Investor # of shares % 1 PETORS AS – CEO Per Jørgen Weisethaunet 7,091,320 11.16 2 VHF INVEST AS – founder Steffen Kirknes 6,164,495 9.70 3 REITAN KAPITAL AS 6,086,781 9.58 4 DRAUPNIR INVEST AS – family of founder Steffen Kirknes 3,602,949 5.67 5 The Ba