Slide 1: Second quarter and half-year 2023 presentation
Second quarter and half-year 2023 presentation CEO Per Jørgen Weisethaunet CFO Per Kristian Reppe 15 August 2023
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: Record high revenues and increased profitability
Record high revenues and increased profitability Revenues and EBITDA Second quarter 2023 NOK million ▪ 32 per cent revenue growth from the second 418 quarter of 2022 377 ▪ Strong underlying growth in all three business 347 315 segments 270 ▪ EBITDA ended at NOK 127 million, resulting in 249 30% 27%
Slide 4: Oceans
Slide 5: Oceans – Growth supported by strong sonar sales
Oceans – Growth supported by strong sonar sales Revenues and EBITDA Second quarter 2023 NOK million ▪ Revenues of NOK 152 million, an increase of 16 per cent from Q2-22 152 ▪ Continued high demand for sonars 131 136 127 ▪ Favourable movement of USD and EUR compared to one 117 year earlier 102 104 ▪
Slide 6: Strong sales driven by continued growth in demand for sonars
Strong sales driven by continued growth in demand for sonars Oceans’ revenue mix NOK million Subsea sonars 288 14 13 12 Security 212 11 16 170 19 148 Connect 10 22 109 102 Aqua 99 57 36 Environmental monitoring H1 2021 H1 2022 H1 2023 Connect Aqua Environmental monitoring Security Sonars (excl Wingh
Slide 7: Strengthening the North American presence with Seahorse Geomatics acquisition
Strengthening the North American presence with Seahorse Geomatics acquisition ▪ NORBIT has acquired the business and certain assets from Seahorse Geomatics Inc. ▪ Seahorse Geomatics has been Oceans' distributor and reseller in the North American market for more than a decade ▪ As part of the transac
Slide 8: Strong focus on underwater surveillance for critical infrastructure
Strong focus on underwater surveillance for critical infrastructure ▪ Continued maturing of the international security market, driven by geopolitical unrest and renewable energy ▪ Growing prospect list for the security solution that offers protection GuardPoint of critical infrastructure ▪ A senior
Slide 9: Connectivity
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Slide 10: Connectivity – Record quarter with revenues more than doubling
Connectivity – Record quarter with revenues more than doubling Revenues and EBITDA Second quarter 2023 NOK million ▪ Revenues of NOK 172 million, representing an increase of 107 per cent from Q2-22, driven by strong demand for 172 On-Board Units ▪ EBITDA margin of 38 per cent, compared to 24 per cen
Slide 11: Revenue growth primarily driven by strong On-Board Unit sales
Revenue growth primarily driven by strong On-Board Unit sales Connectivity revenue mix NOK million On-Board Units 308 3 45 Enforcement modules for 16 tachographs 29 Satellite- 147 based tolling 3 42 215 Subscription 24 and e-toll 17 36 4 2 60 20 9 Other H1 2021 H1 2022 H1 2023 Other Subscription and
Slide 12: From niche to notable
From niche to notable Enforcement Units for satellite On-Board Units On-Board Units On-Board Units modules -based tolling European insurance European Blue-chip company company industrial client ~NOK 150 million ~NOK 270 million Undisclosed > NOK 500 million ~NOK 30 million H1 2023 Q2’23 – Q2’25 2023
Slide 13: PIR
Slide 14: Product Innovation & Realization – Underlying growth and improved profitability
Product Innovation & Realization – Underlying growth and improved profitability Revenues and EBITDA Second quarter 2023 NOK million ▪ Revenues of NOK 102 million, down 9 per cent from Q2- 22. Adjusted for customer reimbursements, underlying 150 revenue growth was 26 per cent ▪ The increase was drive
Slide 15: Underlying revenue growth driven by contract manufacturing
Underlying revenue growth driven by contract manufacturing PIR revenue mix NOK million 210 214 7 Contract 47 46 manufacturing 146 5 44 40 R&D products and services 161 119 101 Customer Customer reimbursements for extraordinary reimbursements material costs within contract manufacturing H1 2021 H1 20
Slide 16: NOK 80 million agreement for contract manufacturing
NOK 80 million agreement for contract manufacturing ▪ Order won for delivery of tailored electronics for data collection and transmission to the clients' cloud solution ▪ Deliveries are scheduled over a period of 30 months ▪ Estimated total value of approximately NOK 80 million over the said period
Slide 17: Group financials
Group financials
Slide 18: Financials – P&L
Financials – P&L Second quarter of 2023 Amounts in NOK million Q2 2023 Q2 2022 H1 2023 H1 2022 ▪ Revenues of NOK 417.6 million, up 32 per cent from Q2-22 Revenues 417.6 315.3 794.3 550.5 o Growth adjusted for customer reimbursement in PIR of Raw materials and change in inventories 166.9 149.1 321.4
Slide 19: Increase in profitability primarily explained by Connectivity
Increase in profitability primarily explained by Connectivity Segment EBITDA development Q2 2023 vs. Q2 2022 NOK million Oceans Connectivity PIR (7.3) 65.4 (2.9) (16.3) 22.5 19.6 57.4 54.1 14.1 52.7 11.3 20.0 EBITDA Gross profit Expense EBITDA EBITDA Gross profit Expense EBITDA EBITDA Gross profit E
Slide 20: Financials – Balance sheet
Financials – Balance sheet Amounts in NOK million 30.06.23 31.03.23 31.12.22 Fixed and intangible assets ASSETS ▪ Land and PPE: An increase of NOK 2.9 million due to investments in machinery and equipment Property, plant and equipment 186.8 183.9 187.7 Intangible assets 297.7 278.8 258.8 ▪ Intangibl
Slide 21: Working capital efficiency improved
Working capital efficiency improved Net working capital1 Per cent of annualized quarterly revenues 40% 38% ▪ Net working capital ratio at 27% in Q2-23 35% ▪ Some signs of improvement in the supply 35% 34% 34% 33% chain, but for certain semiconductor 32% 32% components the market is still challenging
Slide 22: Strong balance sheet and liquidity position
Strong balance sheet and liquidity position NIBD/EBITDA EBITDA 12 month rolling 4.5 Covenant loan facilities ▪ NIBD/EBITDA ratio stable at around 0.8x 4.0 ▪ Long-term target level between 1.0 – 2.5x 3.5 NIBD1/EBITDA over the cycle 3.0 ▪ Covenants in loan facilities at 4.0x Long-term target range NIB
Slide 23: Financials – Cash Flow
Financials – Cash Flow Cash flow development second quarter 2023 Second quarter of 2023 NOK million ▪ Operating cash flow of positive NOK 60.0 million o Net increase in working capital of NOK 50.5 million, mainly related to an increase in trade receivables and (50.5) inventory ▪ Investing activities
Slide 24: Outlook
Outlook
Slide 25: Guidance for the year is increased
Guidance for the year is increased Organic revenue and EBITDA target NOK million x% EBITDA margin >1 500 • 2024 ambition levels targeted to be reached in 2023 1 167 • Revenue target for 2023 is in excess of NOK 1.5 billion (previously in excess of NOK 1.4 billion), supported by growth in 788 all thr
Slide 26: Short-term outlook
Short-term outlook • Target to deliver growth in revenues in the third quarter compared to the corresponding period of 2022 • Strong order intake in recent months supports short-term as well as longer term outlook • Revenue guidance for second half of the year is NOK 230 – 250 million • High demand
Slide 27: Technology is part of the solution
TECHNOLOGY IS PART OF THE SOLUTION: - expla re
Slide 28: 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 ~450 EMPLOYEES ~ 18 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 l
Slide 29: NORBIT has delivered continued growth
NORBIT has delivered continued growth Historical revenues and EBITDA margin NOK million EBITDA margin Revenues >1 500 CAGR 1 167 +31% 668 788 >25% 22% 619 20% 17% 18% 361 15% 13% 14% 350 438 380 11% 292 310 10% 6% 7% 7% 6% 139 138 44 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2
Slide 30: Technology is part of the solution: Diversified and robust business model
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 2023
Shareholder overview, updated 11 August 2023 # Investor # of shares % 1 VHF INVEST AS – founder Steffen Kirknes 7,686,495 12.85 2 PETORS AS – CEO Per Jørgen Weisethaunet 7,022,868 11.74 3 REITAN KAPITAL AS 5,829,083 9.74 4 DRAUPNIR INVEST AS – family of founder Steffen Kirknes 5,102,949 8.53 5 ESMAR