Slide 1: Q2/H1 2024 Financial results
Q2/H1 2024 Financial results Ole Falk Hansen CEO, Nekkar ASA Nekkar ASA | 22.08.2024
Slide 2: Disclaimer
Disclaimer By reading this company presentation (the “Presentation”), or attending any meeting or oral presentation held in relation thereto, you (the “Recipient”) agree to be bound by the following terms, conditions and limitations. The Presentation has been produced by Nekkar ASA (the “Company”) f
Slide 3: Nekkar in brief
Nekkar in brief Revenue 2023 MNOK 575 Industrial technology company Order backlog (30/06/24) Presently a portfolio of established businesses and impact technology ventures MNOK 725 within ocean-based industries World-class engineering expertise MNOK 227 in cash Proven track-record delivering complex
Slide 4: Industrial technology company driving efficiency & sustainability for ocean-based industries
Industrial technology company driving efficiency & sustainability for ocean-based industries World-class expertise Engaged industrial Flexible ownership model to ownership maximize value Scalable software leveraged across the portfolio Long-term active owner Individual degree of integration to In-ho
Slide 5: Portfolio overview
Portfolio overview Companies The global leading provider of shipyard solutions for safe Intelligent load handling systems, such as cranes and and efficient ship docking gangways, for renewables, subsea, and aquaculture vessels Industrial software solutions focused on digitalizing Full-service ICT an
Slide 6: Established
Significant expansion of Nekkar’s portfolio and earnings potential during past 12-18 months Q1 2023 Q2 2024 100 MNOK ~200 MNOK+ quarterly revenues quarterly revenues1 Established Growth Innovation 6 1 Revenue Q2 24 including Globetech and FiiZK revenues
Slide 7: Business segments
Nekkar operates in four main business segments, focused on sustainable technologies for ocean-based industries Shipyard Renewables Offshore Energy Aquaculture Solutions segments Business Digital Portfolio Impact technology ventures 7 Globetech acquisition closed in Q3 2024 and not included in Q2 fin
Slide 8: The portfolio consists of mature, financially solid businesses, and new impact technology ventures
The portfolio consists of mature, financially solid businesses, and new impact technology ventures Nekkar portfolio, overview of maturity level and key focus areas 3. Established Installed customer base 2. Growth Focus on profitability Proven products Service on installed base Broaden customer base
Slide 9: Highlights: Q2 2024
Highlights: Q2 2024 Financial highlights Operational highlights • Revenue of MNOK 150, up 14% versus Q2 2024 (132) • Good project execution • Continued high tender activity even though no • EBITDA of MNOK 20 (25) major orders signed in the quarter • EBITDA margin of 13.4% (18.6%) • New automation sy
Slide 10: Key financials | Per quarter
Key financials | Per quarter Revenue EBITDA & margin (%) MNOK MNOK +14% -20% 50 35 179 32 45 30 162 29 30 152 150 40 25 132 35 25 30 20 20 25 20.0% 15 20 18.6% 17.8% 18.0% 15 13.4% 10 10 5 5 0 0 Q2 23 Q3 23 Q4 23 Q1 24 Q2 24 Q2 23 Q3 23 Q4 23 Q1 24 Q2 24 EBITDA EBITDA % 10
Slide 11: Key financials | Per half-year
Key financials | Per half-year Revenue EBITDA & margin (%) MNOK MNOK +29% +4% 50 61 65 341 45 60 302 55 40 50 48 50 35 45 234 30 37 40 204 184 35 25 31 20.0% 20.4% 30 20 17.9% 16.7% 25 15.2% 15 20 15 10 10 5 5 0 0 H1 22 H2 22 H1 23 H2 23 H1 24 H1 22 H2 22 H1 23 H2 23 H1 24 EBITDA EBITDA % 11
Slide 12: Order intake and backlog | Per quarter
Order intake and backlog | Per quarter Order intake per quarter1 Order backlog development MNOK MNOK 242 864 888 803 747 725 188 148 61 15 Q2 23 Q3 23 Q4 23 Q1 24 Q2 24 Q2 23 Q3 23 Q4 23 Q1 24 Q2 24 12 1 Does not account for FX fluctuations in existing contracts
Slide 13: Business update
~ BUSINESS” UPDATE
Slide 14: Syncrolift | Q2 update
Syncrolift | Q2 update • No large new contracts won in Q2 Market & • Continued high tender activity for both new shiplifts and upgrade projects Sales • Geopolitical uncertainty drives agility requirements for navy yards • Tender lost due to believed strategic/political reasons The leading provider o
Slide 15: High visibility and tendering activity
High visibility and tendering activity Syncrolift order backlog by execution year1 Tender pipeline, newbuild/upgrades by year of contract award1 MNOK Per 30.06.24 MNOK Per 14.08.24 4.000 700 663 4.000 600 3.500 1.000 200 3.000 500 463 2.500 400 2.000 2.200 300 1.500 200 1.000 100 500 800 0 0 2024/25
Slide 16: Techano Oceanlift | Q2 update
Techano Oceanlift | Q2 update Market & • High tendering activity, particularly for active heave-compensated subsea Sales cranes • Targeting potential opportunities in the SOV market Intelligent offshore lifting & load handling solutions • Strong revenue increase vs Q2 2023 as execution of crane proj
Slide 17: Intellilift | Q2 update
Intellilift | Q2 update • Tendering for drilling automation, simulators and other drilling controls Market & • Cooperation agreement signed with Salunda Limited, combining Intellilift’s Sales proven automation technology and Salunda's patented camera and wearable digital zone monitoring technology f
Slide 18: FiiZK | Turnaround progressing well
FiiZK | Turnaround progressing well Ownership and business case has significantly improved compared to time of entry one year ago INVEST Profitable second quarter of 2024 41% 39% Sharpened strategy on closed and semi-closed systems to tackle the key challenges facing the industry Launched new and im
Slide 19: Increased focus on fish welfare and environmental risk driving demand for FiiZK
Increased focus on fish welfare and environmental risk driving demand for FiiZK 19
Slide 20: FiiZK Protectus and FlexiCage
FiiZK Protectus 30,000 m3 Closed system FiiZK FlexiCage Semi-closed system 20
Slide 21: Globetech – Connecting and securing maritime operations
Globetech – Connecting and securing maritime operations Product portfolio - Full-service maritime IT solutions provider Select customers – Ship owners & ship mgmt companies IT & Cyber Software & Connectivity security Services Key facts Globetech provides IT infrastructure, connectivity and support s
Slide 22: Globetech is a new digital platform for Nekkar
Globetech is a new digital platform for Nekkar Niche maritime ICT provider with solid profitable growth 75 MNOK • 10+ years track record of profitable growth and delivering solid financials • 20% EBITDA margin • Strong management team with incentives/lock in coming 3+ years 54 20% Repeat business &
Slide 23: Strong financial & strategic fit with Nekkar
Strong financial & strategic fit with Nekkar Digitalization of ocean-based industries: Good fit for Nekkar’s strategy of driving efficiency and sustainability for ocean-based industries by leveraging technology Commercial synergies: Expansion of products and offerings to better serve Nekkar's target
Slide 24: Two-staged deal to incentivize growth
Two-staged deal to incentivize growth • Nekkar acquires 67 percent ownership of Globetech - transaction completed 15th August 2024 • Enterprise value of NOK 120 million on a 100 percent basis, based on last twelve months EBTIDA and an implied multiple of 7.7x EBITDA • Share purchase for 67 percent o
Slide 25: Financial update
FINANCIAL UPDATE
Slide 26: Nekkar financial highlights
Nekkar financial highlights Profit & Loss, Q2, H1 2024 Revenue MNOK Q2 2024 Q2 2023 H1 2024 H1 2023 2023 • Q2 revenue represents a 14% increase compared to the same period last year • H1 revenue of MNOK 302, a 29% year-over-year Revenue 150 132 302 234 575 growth Syncrolift 124 118 250 211 515 Intel
Slide 27: Key financials | Per company
Key financials | Per company MNOK H1 24 H1 23 FY 23 Revenues 250 211 516 EBITDA 63 58 132 EBITDA % 25% 27% 26% MNOK H1 24 H1 23 FY 23 Revenues 19 19 34 EBITDA 3 7 6 EBITDA % 17% 37% 18% MNOK H1 24 H1 23 FY 23 Revenues 41 7 30 EBITDA 2 0 1 EBITDA % 6% 6% 4% 27
Slide 28: Balance sheet
Balance sheet Assets Balance sheet, Q2 2024 • MNOK 46.7 million of Financial assets as of Q2 MNOK 30.06.2024 30.06.2023 31.12.2023 2023 are linked to the investment in FiiZK ASSETS Working capital Intangible assets and goodwill 77 84 67 Right of use assets 13 16 14 • Working capital reduction of MNO
Slide 29: Cash flow
Cash flow Cash flow development, H1 2024 Cash flow • Cash flow from business is positive at MNOK 46 MNOK in H1 2024, driven by a solid EBITDA in the period and a reduced working capital +46 MNOK • Cash flow from share program is negative at 17 -12 -6 -2 MNOK 13 in H1 2024, due to purchase of -2 -13
Slide 30: Nekkar's capital allocation strategy
Nekkar’s capital allocation strategy Available capital, Q2 2024 MNOK Net cash 227 Portfolio growth Undrawn credit facility 200 Investments in existing portfolio companies to fuel organic growth while maintaining a strong balance sheet Total 427 Expecting continued solid operational cash flow Share b
Slide 31: Summary Q2 2024 & outlook
Summary Q2 2024 & outlook Summary Outlook Backlog provides good visibility for 2024 and Revenue growth of 14% versus Q2 2023, while EBITDA 2025 affected by differences in project mix/phasing of projects High tendering activity Successful implementation of InteliWell’s breakthrough award likely
Slide 32: Alternative performance measures
Nekkar ASA Alternative performance measures INTRODUCTION TO ALTERNATIVE PERFORMANCE MEASURES (APMs) PROFIT MEASURES Nekkar Group (Nekkar) discloses alternative performance measures in addition EBITDA is short for “earnings before interest, taxes, depreciation and to those normally required by IFRS.
Slide 33: nekkar.com
AY NEKKAR nekkar.com