Slide 1: Third quarter 2023 presentation
Third quarter 2023 presentation CEO Per Jørgen Weisethaunet CFO Per Kristian Reppe 15 November 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: Solid progress in both revenues and profitability year-over-year
Solid progress in both revenues and profitability year-over-year Revenues and EBITDA Third quarter 2023 NOK million ▪ 22 per cent revenue growth from the third 418 quarter of 2022 377 ▪ Underlying growth in all three business 347 315 329 segments 270 ▪ EBITDA ended at NOK 68.2 million, resulting in
Slide 4: Oceans
Slide 5: Oceans – Continues on a growth trajectory
Oceans – Continues on a growth trajectory Revenues and EBITDA Third quarter 2023 NOK million ▪ Revenues of NOK 134.1 million, an increase of 29 per cent from Q3-22 152 ▪ 36 per cent increase in sonar sales 131 136 134 127 ▪ Strong demand in EMEA 117 ▪ EBITDA margin of 30 per cent, compared with 26 p
Slide 6: Sales growth driven by increased demand for sonars
Sales growth driven by increased demand for sonars Oceans’ revenue mix NOK million Subsea sonars 422 21 22 19 Security 316 16 262 30 15 23 222 Connect 31 164 134 1 164 Aqua 92 104 9 7 6 9 5 14 6 4 74 136 62 55 83 36 52 Environmental 16 26 monitoring Q3-21 Q3-22 Q3-23 YTD 2021 YTD 2022 YTD 2023 Conne
Slide 7: Broadening the product offering in Oceans through complementary acquisition
Broadening the product offering in Oceans through complementary acquisition ▪ Completed the acquisition of the Canadian maritime technology company Ping Digital Signal Processing Inc ▪ Renowned worldwide for producing some of the world’s most advanced interferometric side scan sonars Bytte bilde og
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Slide 9: Connectivity – Continued year-over-year progress
Connectivity – Continued year-over-year progress Revenues and EBITDA Third quarter 2023 NOK million ▪ Revenues of NOK 115.8 million, representing an increase of 44 per cent from Q3-22, driven by growth in all 172 verticals ▪ EBITDA margin of 30 per cent, compared to 24 per cent 136 in Q3-22 116 38%
Slide 10: Strong increase in demand across the business verticals
Strong increase in demand across the business verticals Connectivity revenue mix NOK million On-Board Units 424 7 Enforcement 68 modules for 31 tachographs 50 Satellite- 227 based tolling 5 59 116 34 269 Subscription 4 26 and e-toll 81 23 82 15 5 46 17 2 21 13 13 9 9 104 13 9 2 54 27 7 43 25 Other 1
Slide 11: PIR
Slide 12: Product Innovation & Realization – 14 per cent underlying revenue growth
Product Innovation & Realization – 14 per cent underlying revenue growth Revenues and EBITDA Third quarter 2023 NOK million ▪ Revenues of NOK 85.5 million, a decrease of 11 per cent from Q3-22. Adjusted for customer reimbursements, 150 underlying revenue growth was 14 per cent ▪ The increase was pri
Slide 13: Underlying revenue growth driven by contract manufacturing
Underlying revenue growth driven by contract manufacturing PIR revenue mix NOK million 306 299 7 Contract 68 manufacturing 69 215 25 67 52 R&D products and services 224 96 86 171 69 21 137 22 Customer Customer reimbursements for extraordinary 20 23 12 reimbursements material costs within contract ma
Slide 14: Group financials
Group financials
Slide 15: Financials – P&L
Financials – P&L Third quarter of 2023 Amounts in NOK million Q3 2023 Q3 2022 YTD 2023 YTD 2022 ▪ Revenues of NOK 328.6 million, up 22 per cent from Q3-22 Revenues 328.6 269.7 1,122.9 820.2 o Growth adjusted for customer reimbursement in PIR of 32 per cent y/y Raw materials and change in inventories
Slide 16: Increase in profitability driven by Oceans and Connectivity
Increase in profitability driven by Oceans and Connectivity Segment EBITDA development Q3 2023 vs. Q3 2022 NOK million Oceans Connectivity PIR (7.2) (12.7) 34.2 39.8 25.3 21.7 27.3 19.7 11.8 1.6 (5.5) 7.9 EBITDA Gross profit Expense EBITDA EBITDA Gross profit Expense EBITDA EBITDA Gross profit Expen
Slide 17: Financials – Balance sheet
Financials – Balance sheet Amounts in NOK million 30.09.23 30.06.23 31.12.22 Fixed and intangible assets ASSETS ▪ Land and PPE: A decrease of NOK 3.9 million due to Property, plant and equipment 182.8 186.8 187.7 reduction in right-of-use assets Intangible assets 296.3 297.7 258.8 ▪ Intangible asset
Slide 18: 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 declined to 0.7x 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 NIBD/EBI
Slide 19: Financials – Cash Flow
Financials – Cash Flow Cash flow development third quarter 2023 Third quarter of 2023 NOK million ▪ Operating cash flow of positive NOK 13.9 million o Net increase in working capital of NOK 41.6 million, mainly related to an increase in inventories (41.6) ▪ Investing activities generated a cash outf
Slide 20: Outlook
Outlook
Slide 21: On track to deliver on 2023 guidance
On track to deliver on 2023 guidance Organic revenue and EBITDA target NOK million x% EBITDA margin >1 500 • On track to deliver the revenue guidance of in excess of NOK 1.5 billion and an EBITDA margin above 25 per cent in 2023 1 167 • Supported by growth in all three business segments 788 668 619
Slide 22: Short-term outlook
Short-term outlook • Fourth quarter has started out strong for Oceans, and the segment is expected to report growth compared to the same period of last year. • Revenues for the fourth quarter is expected to be between NOK 115 – 125 million, up from NOK 81 million from the corresponding quarter in 20
Slide 23: Technology is part of the solution
TECHNOLOGY IS PART OF THE SOLUTION: - expla re
Slide 24: 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 25: 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 26: 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 27: Shareholder overview, updated 13 November 2023
Shareholder overview, updated 13 November 2023 # Investor # of shares % 1 VHF INVEST AS – founder Steffen Kirknes 7,686,495 12.81 2 PETORS AS – CEO Per Jørgen Weisethaunet 7,022,868 11.70 3 REITAN KAPITAL AS 5,829,083 9.71 4 DRAUPNIR INVEST AS – family of founder Steffen Kirknes 5,102,949 8.50 5 ESM