Slide 1: Second quarter 2022 presentation
Second quarter 2022 presentation CEO Per Jørgen Weisethaunet CFO Per Kristian Reppe 12 August 2022
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: 66 per cent revenue growth and historically high EBITDA result
66 per cent revenue growth and historically high EBITDA result Revenues and EBITDA Second quarter 2022 NOK million ▪ Revenue increased by 66 per cent from the second quarter of 2021. All segments delivered record high 315 revenues ▪ EBITDA ended at NOK 78 million, resulting in a 249 margin of 25 per
Slide 4: Oceans
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Slide 5: Strong sonar sales drove all-time high revenue
Strong sonar sales drove all-time high revenue Revenues and EBITDA Second quarter 2022 NOK million ▪ Record revenues of NOK 131 million, an increase of 29 per cent from Q2-21 131 ▪ Revenue growth was mainly attributed to increased 117 sonar sales and in particular from the Americas region 102 ▪ EBIT
Slide 6: Revenue growth from broadening the product offering through innovation
Revenue growth from broadening the product offering through innovation Oceans’ revenue mix NOK million Subsea sonars 212 27 170 19 Security 33 57 111 36 Connect 30 Aqua 101 109 80 Environmental monitoring H1 2020 H1 2021 H1 2022 Subsea sonars (ex. Winghead) Winghead sonar Security Other revenues1) 1
Slide 7: Connectivity
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Slide 8: Connectivity delivers strong growth and improved profitability
Connectivity delivers strong growth and improved profitability Revenues and EBITDA Second quarter 2022 NOK million ▪ Revenues of NOK 83 million driven by increased sales from sub-segment ITS of DSRC products and NOK 21.6 83 million in revenues from iData (part of sub-segment Smart Data) 65 64 ▪ EBIT
Slide 9: Slide 9
Slide 10: Contract manufacturing the primary growth driver in PIR
Contract manufacturing the primary growth driver in PIR Revenues and EBITDA Second quarter 2022 NOK million ▪ Revenues of NOK 112 million, up 42 per cent year over year 112 ▪ Increase driven by higher activity within contract 99 manufacturing and price increases to compensate for extraordinary mater
Slide 11: Group financials
Group financials
Slide 12: Financials – P&L
Financials – P&L Q2 2022 Q2 2021 1H 2022 1H 2021 Second quarter of 2022 Amounts in NOK million ▪ Revenues of NOK 315.3 million, up 66 per cent from Q2-21 Revenues 315.3 190.0 550.5 338.7 o 55 per cent growth year over year adjusted for iData Other gains and losses - - - 1.2 acquisition (acquired Jul
Slide 13: All segments contributing to increased profitability
All segments contributing to increased profitability Segment EBITDA development Q2 2022 vs. Q2 2021 NOK million Oceans Connectivity PIR (10.0) 54,1 19,9 44,3 (23.4) 43.6 20,0 (1.3) 11,3 10,8 1,7 EBITDA Gross profit Expense EBITDA -0,2 EBITDA Gross profit Expense EBITDA Q2 2021 effect effect Q2 2022
Slide 14: Financials – Balance sheet
Financials – Balance sheet Amounts in NOK million 30.06.22 31.03.22 31.12.21 Fixed and intangible assets ASSETS ▪ Land and PPE: Decrease of NOK 2.9 million due to depreciation Property, plant and equipment 162.0 164.9 164.9 ▪ Intangible assets: Increase of NOK 6.8 million driven by R&D Intangible as
Slide 15: Leverage ratio declining on result improvement
Leverage ratio declining on result improvement NIBD/EBITDA EBITDA 12 month rolling 4,5 ▪ Maintaining a strong balance sheet and Covenant loan facilities liquidity position are first priorities for 4,0 capital allocation 3,5 o Provide for financial flexibility 3,0 o Prudent risk management o Operatin
Slide 16: Financials – Cash Flow
Financials – Cash Flow Cash flow development second quarter 2022 Second quarter of 2022 NOK million ▪ Operating cash flow of positive NOK 44.9 million o Net increase in working capital of NOK 29.7 million, primarily driven by increase in inventories and reduction (29.7) in trade payables, partly off
Slide 17: Outlook
Outlook
Slide 18: Risk mitigating actions to manage the challenging component market
Risk mitigating actions to manage the challenging component market Security stock of R&D design Flexibility with components adaptations in-house production 18
Slide 19: Short-term outlook
Short-term outlook • Third quarter has historically been weaker than the second and fourth quarter due to seasonality • The target is to continue on the growth path comparing third quarter last year • For the second half, activity is expected to be maintained around the same level as the first half
Slide 20: On track to deliver more than NOK 1.0 billion in revenues in 2022
On track to deliver more than NOK 1.0 billion in revenues in 2022 Organic revenue and EBITDA target NOK million 1 500 • Revenue target for 2022 is in excess of NOK 1.0 billion, supported by growth in all three business segments > 1,000 1 000 • Quarterly seasonal fluctuations are expected, along with
Slide 21: Oceans: Ambition level and strategic priorities
Oceans: Ambition level and strategic priorities Organic revenue and EBITDA margin target NOK million Strategic priorities 1 Continue to broaden product offering, utilising a global market distribution 700 2 421 Increase market presence 378 249 267 190 102 3 44 Expand into new market segments 2016 20
Slide 22: Connectivity: Ambition level and strategic priorities
Connectivity: Ambition level and strategic priorities Organic revenue and EBITDA margin target NOK million Strategic priorities 1 Broaden product and customer portfolio 350 2 257 Increase share of subscription-based revenues 186 145 146 58 3 43 39 Build new sub-segment based on selected IoT/5G niche
Slide 23: PIR: Ambition level and strategic priorities
PIR: Ambition level and strategic priorities Organic revenue and EBITDA margin target NOK million Strategic priorities 1 Organic growth through new client acquisition 450 356 2 291 Exploit synergies between in-house 260 229 225 R&D and high volume 216 221 manufacturing 3 Broaden industry focus 2016
Slide 24: Technology is part of the solution
TECHNOLOGY IS PART OF THE SOLUTION: - expla re
Slide 25: 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 EXPLORING SINCE 1995 ~400 EMPLOYEES ~ 16 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 26: Technology is part of the solution
Technology is part of the solution Diversified and robust business model Connectivity encompasses NORBIT’s Product Innovation & Realization (PIR) is Oceans is offering tailored technology technology within low power wireless offering R&D services and contract solutions to global maritime markets sol
Slide 27: Shareholder overview, updated August 2022
Shareholder overview, updated 10 August 2022 # Investor # of shares % 1 VHF INVEST AS 7 686 495 13,05 2 PETORS AS 6 985 051 11,86 3 REITAN KAPITAL AS 5 829 083 9,90 4 DRAUPNIR INVEST AS 5 102 949 8,67 5 ESMAR AS 3 162 286 5,37 6 J.P. Morgan SE 3 155 784 5,36 7 EIDCO A/S 3 062 286 5,20 8 The Bank of