Slide 1: Presentation of the second quarter 2020 results
Presentation of the second quarter 2020 results CEO Per Jørgen Weisethaunet and CFO Per Kristian Reppe 13 August 2020, Oslo, 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 12 countries • Listed on Oslo Børs, ticker NORBIT PAGE 3
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 Tailored technology and solutions to the global Product, Innovation and Realization (PIR) Intelligent Traffic Systems (ITS) offering maritime markets offering R&D services and contract connect
Slide 5: Highlights from the second quarter and first half of 2020
Highlights from the second quarter and first half of 2020 Revenues and EBITDA Second quarter of 2020 NOK million 200 187 50% ▪ Revenues of NOK 155 million, 9% down from Q219 180 170 45% ▪ EBITDA of NOK 29.5 million, margin of 19% 158 154 155 ▪ Appointed Per Kristian Reppe as new CFO 160 152 40% ▪ La
Slide 6: Oceans
epereegiere ar Oceans
Slide 7: Improved results from Oceans despite challenging business climate
Improved results from Oceans despite challenging business climate Revenues and EBITDA Second quarter of 2020 NOK million 90 ▪ Revenues of NOK 58.7 million, in line with Q219 and up 81 13% from the previous quarter despite challenges 80 caused by the pandemic 70 ▪ EBITDA of NOK 15.7 million, margin o
Slide 8: Investing in broadening the offering in Oceans
Investing in broadening the offering in Oceans Examples of recent technology/ product innovations New sonar for security SeaCOP WINGHEAD® applications • System for environmental monitoring and • Recently launched ultra-high resolution sonar • Long range sonar with 360 degrees coverage for surveillan
Slide 9: Launch of WINGHEAD® - the new ultra-high resolution sonar
Launch of WINGHEAD® - the new ultra-high resolution sonar The new sonar has got its name from the winghead shark which has an exceptionally large “hammer”, enabling a wide spacing of the eyes and a superb vision PAGE 9
Slide 10: Case study from use of WINGHEAD®: Old Town Bridge in Trondheim
Case study from use of WINGHEAD®: Old Town Bridge in Trondheim Full resolution point cloud data of combined multibeam + LiDAR survey 10
Slide 11: Object located next to bridge pier
Object located next to bridge pier 1024 beams provides ultra-high sounding density 11
Slide 12: Intelligent Traffic Systems (ITS)
DSRC solutions for satellite- based truck tolling Connectivity devices for smart tachograph Intelligent Traffic Systems (ITS)
Slide 13: ITS revenues and margins affected by pandemic
ITS revenues and margins affected by pandemic Revenues and EBITDA Second quarter of 2020 NOK million 70 ▪ Revenues of NOK 38.4 million, 8% decline from Q219 62 o Lower deliveries to customers due to COVID-19, 60 including closure of automotive facilities o Volume fluctuations between quarters expect
Slide 14: New opportunities following changes in tolling value chains
New opportunities following changes in tolling value chains Example of new innovation Ongoing changes in various value chains related to tolling systems creates new opportunities for potential strategic partnerships PAGE 14
Slide 15: Product Innovation & Realization (PIR)
Product Innovation & Realization (PIR)
Slide 16: PIR affected by reduced activity
PIR affected by reduced activity Revenues and EBITDA Second quarter of 2020 NOK million 80 76 ▪ Revenues of NOK 57.4 million, 24% down from Q219 o Reduction in contract manufacturing related to 69 70 67 reduced activity in the European automotive industry 63 and other industrial companies in Europe
Slide 17: Group financials
- eafilove mote - _ Group financials
Slide 18: Financials – P&L
Financials – P&L Amounts in NOK 000's Q2 2020 Q1 2020 Q2 2019 Second quarter of 2020 ▪ Revenues of NOK 155.2 million, 9% down from Q219 and Revenues 155 152 151 571 169 653 up by 2% since previous quarter Raw materials and change in inventories 77 298 68 194 77 982 o COVID-19 impacted demand for pro
Slide 19: Financials – Balance sheet
Financials – Balance sheet Amounts in NOK 000's 30.06.20 31.03.20 31.12.19 Fixed and intangible assets ASSETS ▪ Land and PPE: Increase of NOK 22.7 million related to investments in machinery and equipment and expansion capex at Røros Land and property, plant and equipment 114 058 91 309 78 653 ▪ Int
Slide 20: Financials – Cash Flow
Financials – Cash Flow Cash flow development Second quarter of 2020 NOK million ▪ Operating cash flow of NOK 48.3 million o Net decrease in working capital of NOK 20.8 million 20.8 ▪ Investing activities of NOK 49.6 million o NOK 27.9 million related to Røros plant expansion and investments in machi
Slide 21: Outlook
- eafilove mote - _ Outlook
Slide 22: Summary and Outlook
Summary and Outlook ▪ Oceans expected to continue to be affected by pandemic, level of impact to vary across regions o New sonar WINGHEAD® expands addressable market and expected to contribute positively to sales ▪ Segment ITS remains affected in Q3, gradual improvements anticipated in Q4 o Pandemic
Slide 23: Exploring is finding opportunities where others find limits
EXPLORING IS FINDING OPPORTUNITIES WHERE OTHERS FIND LIMITS
Slide 24: Shareholder overview updated 11 August 2020
Shareholder overview updated 11 August 2020 # Investor #shares % 1 VHF INVEST AS – founder Steffen Kirknes 8 686 495 15.30 2 PETORS AS – CEO Per Jørgen Weisethaunet 6 925 695 12.20 3 DRAUPNIR INVEST AS – family of founder Steffen Kirknes 5 702 949 10.04 4 EIDCO A/S 3 832 286 6.75 5 Handelsbanken Nor