Slide 1: Fourth quarter and full-year 2022 presentation
Fourth quarter and full-year 2022 presentation CEO Per Jørgen Weisethaunet CFO Per Kristian Reppe 15 February 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: All time high revenues driven by growth in all segments
All time high revenues driven by growth in all segments Revenues and EBITDA Fourth quarter 2022 NOK million 347 ▪ 40 per cent revenue growth from the fourth 315 quarter of 2021 270 249 235 ▪ EBITDA ended at NOK 67 million, resulting in a 190 200 margin of 19 per cent 187 27% 25% 22% 152 155 150 162
Slide 4: Continued good progress towards the 2024 ambition level
Continued good progress towards the 2024 ambition level Revenues and EBITDA Full year 2022 NOK million ▪ 48 per cent revenue growth 1 167 CAGR ▪ Improved profitability driven by higher +28% revenue base and operational leverage, 788 despite current inflationary environment 668 619 ▪ Earnings per sha
Slide 5: Oceans
Slide 6: Oceans – Sustained growth driven by strong sonar sales
Oceans – Sustained growth driven by strong sonar sales Revenues and EBITDA Fourth quarter 2022 NOK million ▪ Revenues of NOK 127 million, an increase of 9 per cent from Q4-21 131 127 ▪ Mainly attributed to increased sonar sales 117 ▪ EBITDA margin of 32 per cent, on par with Q4-21 102 104 92 81 83 4
Slide 7: Growth by innovating new products and solutions into new applications
Growth by innovating new products and solutions into new applications Oceans’ revenue mix NOK million Subsea 443 sonars 22 379 37 20 23 Security 53 122 267 14 71 Connect 48 13 235 239 Aqua 192 Environmental monitoring 2020 2021 2022 Other Environmental monitoring Security Winghead sonar Sonars (excl
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Slide 9: Connectivity - Continued strong demand for DSRC products
Connectivity - Continued strong demand for DSRC products Revenues and EBITDA Fourth quarter 2022 NOK million ▪ Revenues of NOK 81 million, representing an increase of 25 per cent from Q4-21, driven by continued strong 83 81 81 demand for DSRC products, including On-Board Units, and satellite-based t
Slide 10: Revenues more than doubled in 2022
Revenues more than doubled in 2022 Connectivity revenue mix NOK million On-Board 308 Units 11 Enforcement 77 modules for tachographs 48 Satellite- 145 146 based tolling 37 7 5 33 53 22 Subscription 24 and e-toll 34 136 60 52 Other 2020 2021 2022 Other Subscription and e-toll Satelitte-based tolling
Slide 11: Awarded significant On-Board Unit order
Awarded significant On-Board Unit order ▪ Subsequent to quarter-end, Connectivity received a NOK 150 million order for On-Board Units with delivery in the first half of 2023 ▪ The result of NORBIT’s strategy of migrating the sales of On- Board Units from tendering to B2B ▪ Enabled by NORBIT’s in-hou
Slide 12: Product Innovation & Realization
Slide 13: Product Innovation & Realization – Revenues doubled from Q4-21
Product Innovation & Realization – Revenues doubled from Q4-21 Revenues and EBITDA Fourth quarter 2022 NOK million ▪ Revenues of NOK 150 million, up 96 per cent from Q4- 21. The increase was driven by: 150 ▪ Strong demand from automotive clients within contract manufacturing ▪ Ramp-up of production
Slide 14: Growth driven by both contract manufacturing and R&D products / services
Growth driven by both contract manufacturing and R&D products / services PIR revenue mix NOK million 457 107 Contract manufacturing 291 94 39 225 R&D products 23 71 and services 46 256 180 Customer Customer reimbursements for extraordinary 155 reimbursements material costs within contract manufactur
Slide 15: Group financials
Group financials
Slide 16: Financials – P&L
Financials – P&L Q4 2022 Q4 2021 FY 2022 FY 2021 Fourth quarter of 2022 Amounts in NOK million ▪ Revenues of NOK 347.3 million, up 40 per cent from Q4-21 Revenues 347.3 248.9 1 167.5 787.8 o All segments delivered revenue growth compared to Q4 2021 Other gains and losses - - - 1.2 Raw materials and
Slide 17: EBITDA improvement driven by all segments
EBITDA improvement driven by all segments Segment EBITDA development Q4 2022 vs. Q4 2021 NOK million Oceans Connectivity PIR 23.9 (5.5) 40.6 8.7 3.8 37.3 8.0 (3.3) 13.3 12.1 14.1 2.6 EBITDA Gross profit Expense EBITDA EBITDA Gross profit Expense EBITDA EBITDA Gross profit Expense EBITDA Q4 2021 effe
Slide 18: Financials – Balance sheet
Financials – Balance sheet Amounts in NOK million 31.12.22 30.09.22 31.12.21 Fixed and intangible assets ASSETS ▪ Land and PPE: An increase of NOK 25.3 million, primarily Property, plant and equipment 187.7 162.4 164.9 driven by right-of-use assets following lease financing of Intangible assets 258.
Slide 19: Strong balance sheet and solid liquidity position
Strong balance sheet and solid liquidity position NIBD/EBITDA EBITDA 12 month rolling 4.5 Covenant loan facilities ▪ NIBD/EBITDA ratio down from 1.8x in Q4-21 4.0 and remained stable at 1.4x from prior quarter 3.5 ▪ Expect ratio to decline further in 2023 3.0 ▪ Long-term target level between 1.0 – 2
Slide 20: Ambition to improve working capital efficiency
Ambition to improve working capital efficiency Net working capital1 Per cent of annualized quarterly revenues 40% 38% ▪ Net working capital ratio at 29% in Q4-2022 o Challenging supply market for raw materials last 18 35% 34% months, requiring purchase of longer series of 35% 34% components to inven
Slide 21: Financials – Cash Flow
Financials – Cash Flow Cash flow development fourth quarter 2022 Fourth quarter of 2022 NOK million ▪ Operating cash flow of positive NOK 7.0 million (8.4) o Net increase in working capital of NOK 42.2 million, mainly related to increase in trade receivables and reduction of trade payables ▪ Investi
Slide 22: Outlook
Outlook
Slide 23: Target revenues in excess of NOK 1.4 billion in 2023, on track for 2024 ambition
Target revenues in excess of NOK 1.4 billion in 2023, on track for 2024 ambition 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 impro
Slide 24: Short-term outlook
Short-term outlook • Strong start to first quarter with high activity, particularly in the sonar business • Targeting to deliver growth compared to the corresponding period of 2022 • Connectivity continues to benefit from strong demand for DSRC products • Recently awarded a NOK 150 million contract
Slide 25: Technology
TECHNOLOGY IS PART OF THE SOLUTION: - expla re
Slide 26: 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 lu
Slide 27: Technology is part of the solution – Diversified and robust business model
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 28: Shareholder overview, updated February 2023
Shareholder overview, updated 10 February 2023 # Investor # of shares % 1 VHF INVEST AS – founder Steffen Kirknes 7,686,495 12.98 2 PETORS AS – CEO Per Jørgen Weisethaunet 7,000,000 11.82 3 REITAN KAPITAL AS 5,829,083 9.85 4 DRAUPNIR INVEST AS – family of founder Steffen Kirknes 5,102,949 8.62 5 J.P