Nekkar Asa · OSL:NKR
Nekkar Asa — Q4 2024 Earnings Presentation
35 slides from Nekkar Asa's earnings presentation, Feb 13, 2025
Slide 1: Q4 2024 Financial results
Q4 2024 Financial results Ole Falk Hansen CEO, Nekkar ASA Marianne Voreland Ottosen Head of Finance, Nekkar ASA Nekkar ASA | 13.02.2025
Slide 2: Disclaimer
Disclaimer By reading this company presentation (the “Presentation”), or attending any meeting or oral presentation held in relation thereto, you (the “Recipient”) agree to be bound by the following terms, conditions and limitations. The Presentation has been produced by Nekkar ASA (the “Company”) f
Slide 3: Nekkar in brief
Nekkar in brief Revenue 2024 MNOK 624 Order backlog (31/12/24) Positioned for growth in ocean-based industries Thematic focus within sustainable oceans, robotics & intelligent logistics, and digital MNOK 744 solutions, aligned with megatrends MNOK 205 in cash Active industrial ownership of technolog
Slide 4: Strategic priorities towards 2027
Strategic priorities towards 2027 SOLID CONTINIOUS BUILD UNDERLYING IMPROVEMENT BALANCED OPERATIONS & GROWTH PORTFOLIO Focus on profitability, cash flow generation, and To innovate and invest in product excellence, team Develop strategic and balanced Nekkar portfolio disciplined capital allocation d
Slide 5: 2027 ambitions to reach 2+ bn NOK in revenue
2027 ambitions to reach 2+ bn NOK in revenue MNOK revenue, 2027 ambition 2027 targets Today 2 000+ 6-8 platform companies 5 companies 838 Strategic and balanced portfolio with Concentrated 575 multiple companies of comparable revenue size generation 2023 20241 20271 Solid underlying operations Focus
Slide 6: Operating companies overview
Operating companies overview Companies The global leading provider of shipyard solutions for safe Intelligent load handling systems, such as cranes and and efficient ship docking gangways, for renewables, subsea, and aquaculture vessels Industrial software solutions focused on digitalizing Full-serv
Slide 7: Financial highlights: Q4 2024
Financial highlights: Q4 2024 Q4 cash flow +68 MNOK1 • Revenue of MNOK 181 (179 in Q4 2023) • EBITDA of MNOK 27 (32) • EBITDA margin of 15.1% (18.0%) FiiZK • Net profit of MNOK 15 (28) • EPS of 0.14 (0.27) Won breakthrough contract for 2x “Protectus” closed fish cages in • Strong balance sheet: MNOK
Slide 8: Operational highlights | Q4 2024
Operational highlights | Q4 2024 Established business Growth companies • Contract with OilCo to remotely drill through digital twin (MNOK 10, Q1 2025) • Signed contract for shiplift and transfer system • Hanwha project successfully installed at with Norwegian Defence Estate Agency, worth drillship i
Slide 9: Key financials | Per quarter
Key financials | Per quarter Revenue EBITDA & margin (%) MNOK MNOK 50 35 179 181 32 45 30 30 152 150 40 27 140 35 25 30 20 20 25 20.0% 14 15 20 18.0% 15.1% 15 13.4% 10 10.3% 10 5 5 0 0 Q4 23 Q1 24 Q2 24 Q3 24 Q4 24 Q4 23 Q1 24 Q2 24 Q3 24 Q4 24 EBITDA EBITDA % 9
Slide 10: Key financials | Per year
Key financials | Per year Revenue EBITDA & margin (%) MNOK MNOK +9% -16% 624 109 50 110 575 45 100 92 40 90 35 80 388 68 70 30 60 25 18.9% 50 20 17.9% 15.1% 40 15 30 10 20 5 10 0 0 2022 2023 2024 2022 2023 2024 EBITDA EBITDA % 10
Slide 11: Order intake and backlog | Per quarter
Order intake and backlog | Per quarter Order intake per quarter1,2 Order backlog development2 MNOK MNOK 242 888 803 725 744 188 187 704 83 15 Q4 23 Q1 24 Q2 24 Q3 24 Q4 24 Q4 23 Q1 24 Q2 24 Q3 24 Q4 24 11 1 Does not account for FX fluctuations in existing contracts 2 Order intake/backlog does not in
Slide 12: Business update
_ BUSINESS ~ _ UPDATE
Slide 13: Syncrolift | Q4 update
Syncrolift | Q4 update Market & • Contract from Norwegian Defence Estate Agency worth MNOK 136 Sales (+ service scope option) • Continued high tendering activity The leading provider of safe & efficient shipyard solutions Ownership Employees Head office Est. 100% 52 Vestby 1958 • 2024 revenue inline
Slide 14: Tender award for Haakonsvern naval base shiplift
Tender award for Haakonsvern naval base shiplift underlines Syncrolift’s price competitiveness Norwegian Defence Estate Agency Location: Norway Scope: Newbuild shiplift and ship transfer system for submarines, plus service and maintenance support Value: MNOK 136 (+service scope option) Schedule: Del
Slide 15: Syncrolift uniquely positioned to capitalise on growing naval industry investments
Syncrolift uniquely positioned to capitalise on growing naval industry investments Modern & failsafe shiplift technology Syncrolift naval deliveries in recent years • Electric Winches with wire technology on a rigid platform • State-of-the-art remote control & monitoring Integrated provider of shipl
Slide 16: Global defence/naval spending expected to grow
Global defence/naval spending expected to grow Global defence spending1 Increased spending Predicted naval market growth5 (US$tn) worldwide 2,2 2 1,9 EU defence spending reached a 1,8 record EUR 270 billion in 20232 1,7 Global defence spend growing to US$ 2.5tn by 20283 World military arsenals to do
Slide 17: High visibility and tendering activity
High visibility and tendering activity Syncrolift order backlog by execution year1 Tender pipeline, newbuild/upgrades by year of contract award1 MNOK Per 31.12.24 MNOK Per 13.02.25 700 666 6.000 5.700 600 5.000 273 500 4.000 3.700 393 400 3.000 300 2.000 200 100 1.000 2.000 0 0 2025/26 2027--> Total
Slide 18: Service revenue continue to grow
Service revenue continue to grow Service revenue Service as % of total revenue MNOK 90 92 19% 18% 18% +28% 68 10% 46 10% 10% 34 27 2019 2020 2021 2022 2023 2024 2019 2020 2021 2022 2023 2024 18
Slide 19: Techano Oceanlift | Q4 update
Techano Oceanlift | Q4 update Market & • Tendering for a “handful” of solid leads within renewable, subsea and aqua Sales Intelligent offshore lifting & load handling solutions • Revenue and margins in 2024 impacted by low order intake and one-off cost for new deliveries/first deliveries Ownership E
Slide 20: Intellilift | Q4 update
Intellilift | Q4 update • MNOK 10 contract with OilCo to remotely drill through digital twin by use of Intellilift simulator and integration of 3rd party software (Q1 2025) Market & • Hanwha project successfully installed at drillship in Korea – demonstrating Sales Intellilift capability as “integra
Slide 21: Globetech | Q4 update
Globetech | Q4 update Market & • Continued high customer activity Sales • Strong hardware sales driven by several new build vessel installations Full service maritime IT provider • 2024 revenue of MNOK 93 - solid 30% year-on-year growth Securing operations at sea • Consolidated from 15 August 2024 –
Slide 22: FiiZK | Q4 update
FiiZK1 | Q4 update • Breakthrough contract for delivery of 2 x Protectus closed fish cages to Market & leading Norway-based fish farmer Sales • Significant market interest in closed fish cage technology, particularly for post-smolt production Supplier of closed and semi-closed fish cages • 2024 fina
Slide 23: Closed cage solutions in sea solves key challenges facing fish farmers
Closed cage solutions in sea solves key challenges facing fish farmers FISH WELFARE Increased fish welfare leading to improved biological resistance, superior growth and quality RISK OF ESCAPE PREDATOR ATTACKS Reduced risk of escape with double Reduced risk of predators such as protection (bag and n
Slide 24: New Norwegian regulations represent upside potential
New Norwegian regulations represent upside potential The government has proposed allowing fish farmers in red production zones to regain reduced production capacity if they use "zero-emission" technology. FiiZK meets requirements of the proposed1 new regulations: Closed barrier between the farming
Slide 25: Focus on post-smolt production
Focus on post-smolt production Smolt facility Protectus closed cage Open fish cages Processing facility Traditional Open cages: 16-18 months production time fish farming 100 g smolt → 4-5 kg → harvest Post-smolt Closed cage: 9 months Open cage: 9 months strategy 100 g smolt → 1.3 kg 1.3 kg → 6 kg →
Slide 26: Excellent customer feedback on post-smolt approach
Excellent customer feedback on post-smolt approach “It is a major milestone for us to be able to harvest several cages of fish without delousing. The post smolt that was released this spring came from Mowi's closed post smolt facility in the sea, located at "Slåttenes" in Matre in Kvinnherad.” “The
Slide 27: Financial update
FINANCIAL UPDATE
Slide 28: Nekkar financial highlights
Nekkar financial highlights Profit & Loss, Q4 2024 Revenue MNOK Q4 2024 Q4 2023 2024 2023 • Q4 revenue increased by 1% compared to the same period last year, driven by a solid MNOK 28 contribution from Globetech in the quarter, partially Revenue 181 179 624 575 offset by slightly lower activity leve
Slide 29: Key financials | Per operating company
Key financials | Per operating company H2 24 H2 23 2024 2023 H2 24 H2 23 2024 2023 Revenue 242 304 492 515 Revenue 25 15 44 34 EBITDA 56 74 119 132 EBITDA 2 -1 5 6 EBITDA % 23% 24% 24% 26% EBITDA % 9% -5% 12% 18% 1 H2 24 H2 23 2024 2023 H2 24 H2 23 2024 2023 Revenue 22 23 64 30 Revenue 48 34 93 71 E
Slide 30: Balance sheet
Balance sheet Assets Balance sheet, Q4 2024 • MNOK 116 in Intangible assets and goodwill from MNOK 31.12.2024 30.09.2024 31.12.2023 Globetech acquisition (Q3 24) • MNOK 81 in financial assets per Q4 from FiiZK ASSETS investment, up from MNOK 76 per Q3 Intangible assets and goodwill 202 196 67 Right
Slide 31: Cash flow
Cash flow Cash flow development, Q4 2024 MNOK Cash flow +68 MNOK • Cash flow from business: positive at MNOK 68 in -8 -13 -1 1 205 Q4 2024, driven by a significant decrease in 62 -22 0 working capital. 159 27 • Cash flow from business full-year 2024: Positive MNOK 111, supported by strong EBITDA and
Slide 32: Nekkar's capital allocation strategy
Nekkar’s capital allocation strategy Available capital, Q4 2024 MNOK Net cash 205 Grow operating companies Undrawn credit facility 200 Investments in existing operating companies to fuel organic growth while maintaining a strong balance sheet Total 405 Expecting continued solid operational cash flow
Slide 33: Summary Q4 2024 & outlook
Summary Q4 2024 & outlook Summary Outlook Solid revenue level and improved EBITDA versus previous Backlog provides good visibility for 2025 quarters despite project cost overrun in Techano Oceanlift High tendering activity Strong cash flow, healthy balance sheet with MNOK 205 in In position to
Slide 34: Alternative performance measures
Nekkar ASA Alternative performance measures INTRODUCTION TO ALTERNATIVE PERFORMANCE MEASURES (APMs) PROFIT MEASURES Nekkar Group (Nekkar) discloses alternative performance measures in addition EBITDA is short for “earnings before interest, taxes, depreciation and to those normally required by IFRS.
Slide 35: nekkar.com
AY NEKKAR nekkar.com