Slide 1: Q3 2023 Financial results
Q3 2023 Financial results Ole Falk Hansen CEO, Nekkar ASA Nekkar ASA | 28.11.2023
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 2022 MNOK 388 Industrial technology company Order backlog Presently a portfolio of established businesses and impact technology ventures MNOK 747 within ocean-based industries World-class engineering expertise MNOK 167 in cash Proven track-record delivering complex and profit
Slide 4: Industrial technology company driving efficiency & sustainability for ocean-based industries
Industrial technology company driving efficiency & sustainability for ocean-based industries World-class expertise Engaged industrial Flexible ownership model to ownership maximize value Scalable software leveraged across the portfolio Long-term active owner Individual degree of integration to In-ho
Slide 5: Portfolio overview
Portfolio 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 workflows through a
Slide 6: Business segments
Nekkar operates in four main business segments, focused on sustainable technologies for ocean-based industries Shipyard Renewables Aquaculture Offshore Energy Solutions segments Business Digital Portfolio Impact technology ventures 6
Slide 7: The portfolio consist of mature, financially solid business, and new impact technology ventures
The portfolio consist of mature, financially solid business, and new impact technology ventures Nekkar portfolio, overview of maturity level and key focus areas 3. Established Installed customer base 2. Growth Focus on profitability Proven products Service on installed base Broaden customer base 1.
Slide 8: Highlights: Q3 2023
Highlights: Q3 2023 Financial highlights Operational highlights • Steady execution of projects and services • Revenue of MNOK 162, up 105% versus Q3 2022 (79) • MNOK 30 contract signed in August • EBITDA1 of MNOK 29, up 71% (17) • High tender activity • EBITDA margin of 17.8% (22%) • Transocean Norg
Slide 9: Key financials | Per quarter
Key financials | Per quarter Revenue EBITDA & margin (%)1 MNOK MNOK +105% +71% 35 25,0 % 180 162 160 30 29 20,0 % 140 132 25 125 25 23 120 101 15,0 % 20 100 17 79 80 15 14 10,0 % 60 10 40 5,0 % 5 20 0 0 0,0 % Q3/22 Q4/22 Q1/23 Q2/23 Q3/23 Q3/22 Q4/22 Q1/23 Q2/23 Q3/23 EBITDA EBITDA margin 9 1 See up
Slide 10: Order intake and backlog | Per quarter
Order intake and backlog | Per quarter Order intake per quarter1 Order backlog development2 MNOK MNOK 160 1000 148 894 900 864 140 824 832 117 800 747 120 105 700 100 600 80 500 61 60 400 300 40 27 200 20 100 0 0 Q3/22 Q4/22 Q1/23 Q2/23 Q3/23 Q3/22 Q4/22 Q1/23 Q2/23 Q3/23 Additional 15 MUSD contract
Slide 11: Syncrolift Q3 update
Syncrolift Q3 update • Subsequent to the quarter: Order confirmation for 15 MUSD shiplift and transfer system to PT Pal Indonesia • NOK 30 million contract for advanced ship transfer system to European Market & naval shipyard Sales • Continued high tender activity within newbuilds and services – no
Slide 12: Syncrolift awarded USD 15 million newbuild project
Syncrolift awarded USD 15 million newbuild project “We are delighted to be awarded one of this year’s largest newbuild project for our industry segment, thereby maintaining our market leading win-rate globally. PT Pal’s systems will be customized to their specific needs, with safe and efficient oper
Slide 13: High visibility and tendering activity, no major tenders awarded nor lost in this quarter
High visibility and tendering activity, no major tenders awarded nor lost in this quarter Syncrolift order backlog by execution year1 Tender pipeline, newbuild/upgrades by year1 of contract award MNOK MNOK 800 3.000 708 700 2.500 600 201 2.000 500 400 1.500 300 2.100 507 1.000 200 1.600 500 100 0 0
Slide 14: Techano Oceanlift Q3 update
Techano Oceanlift Q3 update Market & • Tendering activity for equipment deliveries to both subsea and renewable Sales vessels Intelligent offshore lifting & load handling solutions Ownership Employees Head office Est. Financials • Second quarter with revenue contribution from Techano Oceanlift 90% 2
Slide 15: Intellilift Q3 update
Intellilift Q3 update Market & • InteliWell pursuing new contracts for automation systems Sales • Tendering for simulators and other drilling controls Data-driven performance for ocean-based industries Financials • Primarily driven by Transocean Norge scope Ownership Employees Head office Est. 51% 1
Slide 16: Financial highlights
Financial highlights Revenue • Q3 revenue of MNOK 162, an increase of 105% Profit & Loss, Q3 2023 compared to the same period last year • YTD revenue of MNOK 396, 51% year-over-year MNOK Q3 2023 Q3 2022 YTD 2023 YTD 2022 2022 growth Revenue 162 79 396 263 388 Profitability Syncrolift 149 78 358 260
Slide 17: Balance sheet
Balance sheet Assets Balance sheet, Q3 2023 MNOK 30.09.23 30.06.23 31.12.22 • Intangible assets decrease of MNOK 21.5 in Q3 2023, mainly due to the Starfish technology ASSETS utilized as a contribution in kind in the FiiZK transaction Deferred tax assets 0.0 0.0 7.0 • MNOK 50 million of Financial as
Slide 18: Cash flow
Cash flow Cash flow development, Q3 2023 Cash flow • Operating cash flow for Q3 2023 is negative at MNOK MNOK -34.6, driven by an increase of MNOK 236.1 63.5 in working capital during the period. • Cash flow from investments in Q3 2023 is -63.5 negative at MNOK -25.3 in Q3 2023 mainly related to the
Slide 19: Nekkar's capital allocation strategy
Nekkar’s capital allocation strategy Available capital Q3 2023 MNOK Portfolio growth Net cash 166 Investments in existing portfolio companies to fuel Undrawn credit facility 200 organic growth while maintaining a strong balance sheet Total 366 Share buy-backs New business Buy-back program initiated
Slide 20: Summary Q3 2023 & outlook
Summary Q3 2023 & outlook Summary Outlook Backlog provides good visibility for 2023 and Significantly improved revenue and EBITDA compared to Q3 2024 2022 High tendering activity Successful implementation of InteliWell’s breakthrough award likely to open up further rig Healthy order backlog of
Slide 21: 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 22: Historic results with updated EBITDA definition
Historic results with updated EBITDA definition Updated EBITDA definition to better reflect operational performance and separate foreign MNOK Q3 2023 Q2 2023 Q1 2023 Q4 2022 Q3 2022 Q2 2022 Q1 2022 currency effects • Losses / gains on FX contracts not qualifying for Revenue 162 132 101 125 79 100 84
Slide 23: nekkar.com
AY NEKIKAR nekkar.com