Slide 1: First quarter 2024 presentation
First quarter 2024 presentation CEO Per Jørgen Weisethaunet CFO Per Kristian Reppe 15 May 2024
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: Growth year over year, results affected by seasonality in Oceans and subpar margin in PIR
Growth year over year, results affected by seasonality in Oceans and subpar margin in PIR Revenues and EBIT NOK million First quarter 2024 418 396 404 ▪ 7 per cent revenue growth from the first quarter of 377 2023 347 329 315 ▪ PIR and Connectivity experienced continued 270 249 growth, while the Oce
Slide 4: Oceans
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Slide 5: Oceans: A seasonally slow quarter
Oceans A seasonally slow quarter Revenues and EBIT NOK million First quarter 2024 ▪ Revenues of NOK 121.4 million, compared to NOK 177 135.7 million in Q1-23 152 136 134 131 127 ▪ EBIT margin of 8 per cent, compared to 29 per cent 117 121 102 in Q1-23 104 38% 92 35% ▪ Margins affected by lower reven
Slide 6: Less Winghead sold in the quarter
Less Winghead sold in the quarter Oceans’ revenue mix NOK million Subsea 136 sonars 8 7 121 3 7 5 Security 3 18 81 61 6 Connect 7 8 18 88 Aqua 58 43 Environmental monitoring Q1-22 Q1-23 Q1-24 Sonars (excl. Winghead) Winghead sonar Security Environmental monitoring Other 6
Slide 7: Connectivity
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Slide 8: Connectivity: Strong demand for both existing and future products
Connectivity Strong demand for both existing and future products Revenues and EBIT NOK million First quarter 2024 ▪ Revenues of NOK 150.6 million, representing an 172 increase of 10 per cent from Q1-23 151 ▪ Driven by continued strong demand for DSRC 136 products, especially for enforcement modules
Slide 9: Growth driven by enforcement modules for tachographs and satellite-based tolling
Growth driven by enforcement modules for tachographs and satellite-based tolling Connectivity revenue mix NOK million On-Board 151 Units 136 6 3 Enforcement 27 21 modules for tachographs 8 22 15 Satellite- 25 based tolling 64 3 21 Subscription 90 70 and e-toll 17 8 15 Other Q1-22 Q1-23 Q1-24 OBUs En
Slide 10: Connectivity awarded new contract
Connectivity awarded new contract ▪ Award from a new European blue-chip client ▪ In line both with strategy of broadening the product offering and customer base ▪ Value of the first order is approximately NOK 160 million for delivery in 2025. ▪ Represent a step toward NORBIT´s 2027 target for Connec
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Slide 12: Strong revenue growth with subpar margin
Product Innovation & Realization Strong revenue growth with subpar margin Revenues and EBIT NOK million First quarter 2024 ▪ Revenues of NOK 145.2 million, up 29 per cent from 150 145 Q1-23. The increase was driven by: ▪ Growth from a range of clients within contract 112 112 112 manufacturing 99 102
Slide 13: Growth driven from broad customer base
Growth driven from broad customer base PIR revenue mix NOK million 145 0 21 Contract 112 manufacturing 4 99 24 14 21 R&D products and services 124 85 65 Customer Customer reimbursements for extraordinary reimbursements material costs within contract manufacturing Q1-22 Q1-23 Q1-24 Contract manufactu
Slide 14: Group financials
Group financials
Slide 15: Financials – P&L
Financials – P&L Amounts in NOK million Q1 2024 Q1 2023 First quarter of 2024 ▪ Revenues of NOK 404.4 million, up 7 per cent from Q1-23 Revenues 404.4 376.7 o The PIR and Connectivity segments delivered revenue growth Raw materials and change in inventories 191.4 154.5 compared to Q1 2023, whereas O
Slide 16: Lower profitability in Oceans and PIR in the quarter
Lower profitability in Oceans and PIR in the quarter Segment EBIT development Q1 2024 vs. Q1 2023 NOK million Oceans Connectivity PIR 38.8 2.6 (6.0) 41.7 (10.2) 8.6 36.6 (3.0) 17.1 (20.0) (15.9) 13.9 9.7 (7.2) 3.8 EBIT Q1 Revenue Gross Expense EBIT Q1 EBIT Q1 Revenue Gross Expense EBIT Q1 EBIT Q1 Re
Slide 17: Financials – Balance sheet
Financials – Balance sheet Amounts in NOK million 31.03.24 31.12.23 Fixed and intangible assets ASSETS ▪ Land and PPE: An increase of NOK 5.3 million due to investments Property, plant and equipment (incl. right-of-use assets) 225.7 220.5 and lease additions for new production line Intangible assets
Slide 18: A strong balance sheet and solid liquidity position
A strong balance sheet and solid liquidity position 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 o Prudent risk management 3.0 o Op
Slide 19: Financials – Cash Flow
Financials – Cash Flow Cash flow development first quarter 2024 NOK million First quarter of 2024 ▪ Operating cash flow of positive NOK 53.9 million (13.5) o Net increase in working capital of NOK 13.5 million, mainly (5.2) (0.7) related to reduction in trade payables and accruals, partly offset by
Slide 20: Outlook
Outlook
Slide 21: 2024 outlook
2024 outlook Revenue and profitability margins NOK million 2024 Outlook 1 700 – 1 800 x% EBITDA margin x% EBIT margin 1 519 ▪ Revenue target of NOK 1.7 - 1.8 billion ▪ Expecting first half revenues to show slight growth 1 167 compared to the level reported in the corresponding period of 2023 ▪ Growt
Slide 22: 2027 Ambition - Organic revenue growth
2027 Ambition - Organic revenue growth Revenue Return on Leverage policy EBIT margin CAGR capital employed (NIBD/EBITDA) ~16% ~20% ~30% 1.0 – 2.5x
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 ~500 EMPLOYEES ~ 20 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 25: Technology is part of the solution
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 26: Shareholder overview, updated May 2024
Shareholder overview, updated 13 May 2024 # Investor # of shares % 1 PETORS AS – CEO Per Jørgen Weisethaunet 7,022,868 11.70 2 VHF INVEST AS – founder Steffen Kirknes 6,164,495 10.27 3 REITAN KAPITAL AS 5,829,083 9.71 4 DRAUPNIR INVEST AS – family of founder Steffen Kirknes 4,102,949 6.84 5 The Bank