Slide 1: First quarter 2023 presentation
First quarter 2023 presentation CEO Per Jørgen Weisethaunet CFO Per Kristian Reppe 16 May 2023
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: Another record quarter supported by strong demand in all segments
Another record quarter supported by strong demand in all segments Revenues and EBITDA First quarter 2023 NOK million 377 ▪ 60 per cent revenue growth from the first 347 quarter of 2022 315 ▪ Growth supported by strong demand in all 270 249 three business segments 235 28% ▪ EBITDA ended at NOK 104 mi
Slide 4: Oceans
LS “© OCEANS
Slide 5: Oceans – Continued growth and margin improvement
Oceans – Continued growth and margin improvement Revenues and EBITDA First quarter 2023 NOK million ▪ Revenues of NOK 136 million, an increase of 68 per cent from Q1-22 136 131 ▪ Mainly attributed to increased sonar sales and a few 127 larger deliveries 117 104 ▪ EBITDA margin of 36 per cent, compar
Slide 6: Strong sales driven by continued growth in demand for sonars
Strong sales driven by continued growth in demand for sonars Oceans’ revenue mix NOK million Subsea sonars 136 7 1 7 3 Security 58 81 6 Connect 7 8 43 Aqua 61 18 Environmental monitoring Q1-22 Q1-23 Connect Aqua Environmental monitoring Security Sonars (excl Winghead) Winghead sonar 6
Slide 7: Broaden product offering
Broaden product offering PAGE 7
Slide 8: PAGE 8
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Slide 9: Connectivity – Record quarter with revenues more than doubling
Connectivity – Record quarter with revenues more than doubling Revenues and EBITDA First quarter 2023 NOK million ▪ Revenues of NOK 136 million, representing an increase of 114 per cent from Q1-22, driven by continued strong 136 demand for DSRC products ▪ EBITDA margin of 35 per cent, compared to 22
Slide 10: Revenue growth primarily driven by strong On-Board Unit sales
Revenue growth primarily driven by strong On-Board Unit sales Connectivity revenue mix NOK million On-Board Units 136 3 Enforcement 21 modules for 8 tachographs 15 Satellite- based tolling 64 3 21 90 Subscription and e-toll 17 8 15 Other Q1-22 Q1-23 OBUs Enforcement modules Satelitte-based tolling S
Slide 11: Connectivity with order intake of close to NOK 1.0 billion so far this year
Connectivity with order intake of close to NOK 1.0 billion so far this year Enforcement On-Board Units On-Board Units On-Board Units modules European insurance European Blue-chip industrial company company client ~NOK 150 million ~NOK 270 million Undisclosed > NOK 500 million H1 2023 Q2’23 – Q2’25 2
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Slide 13: Product Innovation & Realization – Growth and improved profitability
Product Innovation & Realization – Growth and improved profitability Revenues and EBITDA First quarter 2023 NOK million ▪ Revenues of NOK 112 million, up 14 per cent from Q1- 150 22. The increase was driven by primarily driven by increased demand from industrial clients within contract manufacturing
Slide 14: Revenue growth driven by contract manufacturing
Revenue growth driven by contract manufacturing PIR revenue mix NOK million 112 4 99 Contract 24 manufacturing 14 21 R&D products and services 85 65 Customer Customer reimbursements for extraordinary reimbursements material costs within contract manufacturing Q1-22 Q1-23 Customer reimbursements R&D
Slide 15: Group financials
Group financials
Slide 16: Financials – P&L
Financials – P&L First quarter of 2023 Amounts in NOK million Q1 2023 Q1 2022 ▪ Revenues of NOK 376.7 million, up 60 per cent from Q1-22 Revenues 376.7 235.2 o All segments delivered revenue growth compared to Q1 2022 Raw materials and change in inventories 154.5 100.4 Employee benefit expenses 80.2
Slide 17: EBITDA improvement driven by all segments
EBITDA improvement driven by all segments Segment EBITDA development Q1 2023 vs. Q1 2022 NOK million Oceans Connectivity PIR (4.6) 47.0 (13.1) 49.1 (7.0) 18.2 36.5 13.8 38.0 25.7 11.4 13.7 EBITDA Gross profit Expense EBITDA EBITDA Gross profit Expense EBITDA EBITDA Gross profit Expense EBITDA Q1 202
Slide 18: Financials – Balance sheet
Financials – Balance sheet Amounts in NOK million 31.03.23 31.12.22 Fixed and intangible assets ASSETS ▪ Land and PPE: An decrease of NOK 3.8 million due to depreciation offsetting investments Property, plant and equipment 183.9 187.7 Intangible assets 278.8 258.8 ▪ Intangible assets: An increase of
Slide 19: Continued deleveraging on strong results and cash flow generation
Continued deleveraging on strong results and cash flow generation NIBD/EBITDA EBITDA 12 month rolling 4.5 Covenant loan facilities ▪ NIBD/EBITDA ratio decreased to 0.8x from 4.0 1.4x in Q4-22 3.5 ▪ Long-term target level between 1.0 – 2.5x NIBD1/EBITDA over the cycle 3.0 Long-term target range ▪ Cov
Slide 20: Financials – Cash Flow
Financials – Cash Flow Cash flow development first quarter 2023 First quarter of 2023 NOK million ▪ Operating cash flow of positive NOK 109.9 million (7.0) o Net decrease in working capital of NOK 20.9 million, 20.9 (8.3) mainly related to decrease in trade receivables and an increase in trade payab
Slide 21: Outlook
Outlook
Slide 22: Short-term outlook
Short-term outlook • Target to deliver revenues in the second quarter on par with revenues of the corresponding quarter of 2022, which was the best quarter last year • Strong order intake in recent months supports short-term as well as longer term outlook • Revenue guidance for second quarter is NOK
Slide 23: Guidance for the year maintained
Guidance for the year maintained Organic revenue and EBITDA target NOK million 1 500 x% EBITDA margin • Revenue target for 2023 is in excess of >1 400 NOK 1.4 billion, supported by growth in all three business segments 1 167 • Margins expected to improve from 2022 788 668 619 • Ambition is to delive
Slide 24: Technology is part of the solution
TECHNOLOGY IS PART OF THE SOLUTION: - expla re
Slide 25: 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 ~450 EMPLOYEES ~ 18 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 l
Slide 26: 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 27: Shareholder overview, updated May 2023
Shareholder overview, updated 12 May 2023 # Investor # of shares % 1 VHF INVEST AS – founder Steffen Kirknes 7,686,495 12.93 2 PETORS AS – CEO Per Jørgen Weisethaunet 7,000,000 11.77 3 REITAN KAPITAL AS 5,829,083 9.80 4 DRAUPNIR INVEST AS – family of founder Steffen Kirknes 5,102,949 8.58 5 ESMAR AS