Slide 1: Presentation of second quarter and first half 2019 results
Presentation of second quarter and first half 2019 results CEO Per Jørgen Weisethaunet and CFO Stian Lønvik Oslo, Norway 22 August 2019 1
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 at a glance
NORBIT at a glance NORBIT is a global provider of tailored technology to carefully selected niches § Founded 1995 § HQ in Trondheim, Norway § Offices and Subsidiaries in 12 countries § Dedicated workforce of ~250 § Listed on OSE with ticker NORBIT - NORBIT is to be recognized as world class, enablin
Slide 4: Tailored technology for carefully selected niches
Tailored technology for carefully selected niches Segment introduction Historic Revenue development (NOK million) § Core offering of sonar solutions developed for selected niches 190 Oceans § Proprietary technology targeting global 102 maritime markets 44 § Proven indirect global distribution networ
Slide 5: Financial highlights
Financial highlights Revenue and EBITDA Comments NOK million % • All-time high revenue, with a strong growth of 47% in the quarter and 59% in the first half year compared to the corresponding periods in 2018 350 327 30% o ITS segment strongest contributor to growth based on 300 volume deliveries on
Slide 6: Oceans
Oceans 6
Slide 7: Solid development in Oceans
Solid development in Oceans Revenue and EBITDA Simplified P&L and key KPIs NOK million 140 35% NOK million Q2-19 Q2-18 1H-19 1H-18 118 120 29% 30% 28% 28% Revenue 58.7 53.9 117.6 81.8 100 25% EBITDA 16.2 15.6 33.1 17.2 82 80 21% 20% EBIT 12.5 11.5 25.7 9.0 59 60 54 15% Key KPIs 40 33 10% EBITDA marg
Slide 8: Intelligent Traffic Systems (ITS)
DSRC solutions for enforcement in satellite based truck tolling Connectivity devices for tachograph Intelligent Traffic Systems (ITS) 8
Slide 9: Significant revenue and margin step-up in ITS
Significant revenue and margin step-up in ITS Revenue and EBITDA Simplified P&L and key KPIs NOK million 90 50% NOK million Q2-19 Q2-18 1H-19 1H-18 78 44% 80 42% 40% 70 Revenue 41.7 5.1 77.8 15.7 60 30% EBITDA 17.5 0.1 34.3 -1.2 50 42 20% EBIT 13.7 -1.7 29.1 -4.9 40 34 10% 30 Key KPIs 2% 18 16 20 0%
Slide 10: Product Innovation & Realization (PIR)
Product Innovation & Realization (PIR) 10
Slide 11: Strong first half year in PIR
Strong first half year in PIR Revenue and EBITDA Simplified P&L and key KPIs NOK million 160 14% NOK million Q2-19 Q2-18 1H-19 1H-18 144 13% 140 12% 12% 121 10% Revenue 75.5 60.0 143.9 121.1 120 10% EBITDA 9.9 5.2 17.8 12.0 100 9% 8% EBIT 4.8 1.5 8.6 4.7 76 80 60 6% 60 Key KPIs 4% 40 EBITDA margin 1
Slide 12: Group financials
ll " us ———— 7 —— = Group financials |
Slide 13: Financials – P&L
Financials – P&L NOK million 1H-19 1H-18 Q2-19 Q2-18 Comments Revenue 327.3 205.5 169.7 115.4 §I Other gains and losses 1H-19 Other gains and losses 10.9 I Bargain purchase gain related to Raw materials and change in inventories 148.7 101.8 78.0 55.7 acquisition of AblePay of Employee benefits expen
Slide 14: Financials – Balance sheet (Assets)
Financials – Balance sheet (Assets) NOK million 30.06.2019 31.12.2018 Comments Fixed assets Intangible assets §I R&D 1H-19 Research and development, patents 124.3 I 104.3 § Net change of NOK 20 million Deferred tax asset 36.1 33.1 Total intangible fixed assets 160.4 137.4 § One time effect of NOK 7.
Slide 15: Financials – Balance sheet (Equity and liabilities)
Financials – Balance sheet (Equity and liabilities) NOK million 30.06.2019 31.12.2018 Comments Paid-in equity Share capital 5.7 0.4 §I Equity contribution Q2-19 Other equity 276.3 I 43.8 § Gross proceeds of NOK 250 million, Total paid-in capital 282.0 44.3 transaction cost net of tax of NOK 12.3 mil
Slide 16: Financials – Cash flow
Financials – Cash flow NOK million 1H-19 1H-18 Q2-19 Q2-18 Cash flows from operating activities Comments Profit for the period 34.6 33.0 0.5 36.4 §I Increased working capital Adjustments for: § Net increase in working capital in 1H-19 Income tax expense recognised in profit or loss 6.7 1.0 -0.3 1.9
Slide 17: Outlook
Outlook 17
Slide 18: Outlook
Outlook § Revenues and margins expected to be on same level in second half as first half of 2019 Oceans § Expansion of product offering and tailored solutions to new sub markets expected to be driver for continued growth in the medium to long term § Second half of 2019 expected to be stronger than f
Slide 19: Exploring is finding opportunities where others find limits
Exploring is finding opportunities where others find limits 19
Slide 20: Appendix
ll = 5 = Appendix -
Slide 21: Shareholder overview as of 15 August 2019
Shareholder overview as of 15 August 2019 # Investor Shares # % 1 VHF INVEST AS 8 686 495 15.30 2 PETORS AS 6 645 695 11.70 3 DRAUPNIR INVEST AS 5 702 949 10.04 4 EIDCO A/S 3 597 124 6.33 5 ESMAR A/S 2 858 579 5.03 6 HANDELSBANKEN Nordiska Smabolag 2 855 000 5.03 7 Dan Sten Olsson and family (thru S
Slide 22: Selected client references by market segments
Oceans Selected client references by market segments § A highly diversified customer base worldwide with largest customer in 2018 accounting for ~3% of Public clients within revenues hydrography § In 2018, ~3% of total NORBIT Royal Japan Coast revenues was attributed to Danish Navy Guard Defence rel
Slide 23: Established proven global indirect distribution network
Oceans Established proven global indirect distribution network Indirect distribution supported by regional offices covering a wide range of clients in various industries NORBIT HQ R&D / Engineering Sales office TIER 1 TIER 2 TIER 3 § NORBIT essential to distributor’s success § A substantial share of
Slide 24: Creating a new niche: 4D sonar for real-time dredging
Oceans Creating a new niche: 4D sonar for real-time dredging Proven ability to develop niche markets 4D sonar for real-time dredging § Created a niche market for real-time sonars in subsea dredging § Dredging jobs typically target a specific depth § Challenge: - Zero or limited subsea visibility to
Slide 25: Tailored short range communication solutions
ITS Tailored short range communication solutions EU regulation and focus on distance based tolling creates a new market with huge potential One unit to connect them all: Gradual implementation of GNSS2 in EU truck EU priority to connect all tolling in Europe and enable vehicles to only need one OBU1
Slide 26: Tailored connectivity modules for tachographs
ITS Tailored connectivity modules for tachographs Stable long-term market with ~ 400,000 trucks1 being registered in the EU annually ensure recurring revenue DSRC EU regulation implemented mid-20192: EU truck market: Mandatory to install smart tachograph in all new trucks registered after ~400,000 t
Slide 27: Secured long-term contracts
ITS Secured long-term contracts SATELLITE BASED (GNSS) TOLLING SMART TACHOGRAPHS TOLLING DSRC solutions for Connectivity devices for DSRC toll tags GNSS truck tolling tachographs (OBUs) § 1 million units frame contract § Continental § Frame contract with NPRA2 for AutoPASS tags in Norway - Tailored
Slide 28: In-house multidisciplinary R&D capabilities
PIR In-house multidisciplinary R&D capabilities R&D capabilities R&D competence § Competence covering all aspects of technology and product design Competence areas # FTEs § Special projects to explore new market domains, new technologies Embedded electronics, FPGA Firmware 15 and enable refinement o
Slide 29: World class in-house manufacturing
PIR World class in-house manufacturing Overview of NORBITs manufacturing sites § High volume robotized production § Automated, flexible, scalable Røros § Micro electronics Automotive § Thick film hybrid circuits § Automotive certified factory § Mid-low volume Selbu Defense, medical § High complexity
Slide 30: Exploring is finding opportunities where others find limits
Exploring is finding opportunities where others find limits 30