Slide 1: Presentation of fourth quarter and full year 2019 results
Presentation of fourth quarter and full year 2019 results CEO Per Jørgen Weisethaunet and CFO Stian Lønvik 14 February 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 • Dedicated workforce of ~270 • Listed on OSE in June 2019, ticker NORBIT 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 Product, Innovation and Realization (PIR) Tailored sonar technology to the global Independent supplier of tailored short- includes multi-disciplinary R&D and world maritime markets range commu
Slide 5: A strong quarter and continued profitable growth for the year
A strong quarter and continued profitable growth for the year Long-term financial targets 800 Fourth quarter 2019 • 3Y revenue CAGR > 25% starting 2017 • EBITDA margin > 20% ▪ Revenues of NOK 187 million, 46% growth 700 • Invest ~5% of revenue in R&D 668 ▪ EBITDA of NOK 40 million, 22% margin 600 55
Slide 6: Oceans
epereegiere ar Oceans
Slide 7: Oceans delivers a strong quarter
Oceans delivers a strong quarter Revenue and EBITDA Fourth quarter 2019 NOK million ▪ All-time high quarterly revenues 249 ▪ EBITDA of 24% for the quarter – Margin impacted by product mix sold in the quarter 190 Full year 2019 ▪ Revenues of 249 million, 31% growth ▪ EBITDA of 26% for 2019 81 Recent
Slide 8: Successfully broadening the application area to new markets
Successfully broadening the application area to new markets Surveillance and Environmental monitoring Strategically award to major energy company ▪ System for vessel traffic monitoring and early warning asset protection - First award to this region ▪ Proving NORBIT’s business model; - Broadening the
Slide 9: Intelligent Traffic Systems (ITS)
DSRC solutions for satellite based truck tolling Connectivity devices for smart tachograph Intelligent Traffic Systems (ITS)
Slide 10: Another strong quarter for Intelligent Traffic Systems (ITS)
Another strong quarter for Intelligent Traffic Systems (ITS) Revenue and EBITDA Fourth quarter 2019 NOK million 186 ▪ Steady growth for the quarter Y-o-Y – Volume fluctuations between quarters expected ▪ EBITDA of 43% for the quarter Full year 2019 ▪ Revenues of 186 million, a significant growth 83
Slide 11: Product Innovation & Realization (PIR)
Product Innovation & Realization (PIR)
Slide 12: Positive revenue development in PIR
Positive revenue development in PIR Revenue and EBITDA Fourth quarter 2019 NOK million 260 ▪ Revenues of NOK 67 million ▪ EBITDA of 5% for the quarter 221 – A high share of revenues from contract manufacturing Full year 2019 ▪ Revenues of NOK 260 million, 18% growth ▪ EBITDA of 9% for 2019 67 Other
Slide 13: Group financials
- eafilove mote - _ Group financials
Slide 14: Financials – P&L
Financials – P&L Revenue and EBITDA by quarter NOK million Fourth quarter 2019 187 ▪ Revenues of NOK 186.5 million, 46% growth 170 - Quarterly fluctuations normal 158 154 ▪ EBITDA NOK 40.2 million 128 Full year 2019 115 105 ▪ Revenues of NOK 668 million, 52% growth 90 - All segments contributes to t
Slide 15: Financials – Balance sheet: Assets
Financials – Balance sheet: Assets Amounts in NOK 000's Note 31.12.2019 30.09.2019 31.12.2018 ▪ Intangible assets of NOK 135.3 million ASSETS - Increase of NOK 6.7 million in Q4 and 31.0 million in 2019 Property, plant and equipment 78 653 73 540 70 963 Intangible assets 3 135 318 128 654 104 279 ▪
Slide 16: Financials – Balance sheet: Equity and Liabilities
Financials – Balance sheet: Equity and Liabilities Amounts in NOK 000's Note 31.12.2019 30.09.2019 31.12.2018 ▪ Borrowings significantly reduced in 2019 LIABILITIES - Undrawn short-term facilities of NOK 130 million - Undrawn long-term facilities of NOK 150 million Borrowings 11d) 15 843 16 892 84 8
Slide 17: Financials – Cash Flow
Financials – Cash Flow Amounts in NOK 000's 2019 2018 Q4 2019 Q4 2018 Profit for the period 77 274 47 951 24 611 7 482 Fourth quarter of 2019 Adjustments for: ▪ Operating cash flow of NOK 49.1 million Income tax expense recognised in profit or loss 18 158 7 036 6 339 3 772 Share of profit of associa
Slide 18: Outlook
- eafilove mote - _ Outlook
Slide 19: Outlook
Outlook ▪ Maintains long-term financial targets ▪ Large untapped potential for technology in Oceans in expanding to new sub-markets – Significant part of R&D investments allocated to broadening the product offering in Oceans – Expects R&D investments for 2020 to be approx. 8 to 10% of revenues – Qua
Slide 20: Exploring is finding opportunities where others find limits
EXPLORING IS FINDING OPPORTUNITIES WHERE OTHERS FIND LIMITS
Slide 21: Shareholder overview, updated February 2020
Shareholder overview, updated 12 February 2020 # Investor #shares % 1 VHF INVEST AS - founder Steffen Kirknes 8 686 495 15.30 2 PETORS AS - CEO Per Jørgen Weisethaunet 6 645 695 11.70 3 DRAUPNIR INVEST AS - family of founder Steffen Kirknes 5 702 949 10.04 4 EIDCO A/S 3 732 286 6.57 5 HANDELSBANKEN
Slide 22: Financial targets
Financial targets Long term financial targets: NOK million 668 3Y revenue CAGR from 2017 > 25% 438 EBITDA margin > 20% 352 Invest ~5% of revenue in R&D 150 75 41 2017 2018 2019 2020 2021 Revenues EBITDA 3Y revenue CAGR 25% Est 22
Slide 23: Corporate management
Corporate management Per Jørgen Weisethaunet | CEO Stian Lønvik | CFO ▪ 18 years as CEO of NORBIT Group ▪ Prior experience from FESIL and EY ▪ Joined NORBIT in 2001 ▪ Joined NORBIT as CFO in 2013 ▪ MSc in Electronics from NTNU. Business Economy and ▪ MSc in Auditing and Accounting from NHH and BI Ma