Nekkar Asa · OSL:NKR
Nekkar Asa — Q3 2024 Earnings Presentation
41 slides from Nekkar Asa's earnings presentation, Nov 14, 2024
Slide 1: Q3 2024 Financial results
Q3 2024 Financial results Ole Falk Hansen CEO, Nekkar ASA Nekkar ASA | 14.11.2024
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 2023 MNOK 575 Order backlog (30/09/24) Positioned for growth in ocean-based industries Environmental, digitalization, and energy efficiency megatrends are reshaping ocean- MNOK 704 based industries, creating significant opportunities for innovation and sustainable growth Indu
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 Scalable software leveraged across the Long-term active owner Individual degree of integration to portfolio maximize synergies and value per
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 Full-service ICT an
Slide 6: Financial highlights: Q3 2024
Financial highlights: Q3 2024 Net profit MNOK 42 • Revenue of MNOK 140 (162 in Q3 2023) (MNOK 22 in Q3/23) • EBITDA of MNOK 14 (29) • EBITDA margin of 10.3% (17.8%) FiiZK • Net profit of MNOK 42 (22) Divestments of two non-core • EPS of 0.40 (0.20) businesses at 213 MNOK enterprise value • Strong ba
Slide 7: Operational highlights | Q3 2024
Operational highlights | Q3 2024 Established business Growth companies • Five-year service agreement with Dubai • Finalizing US GoM InteliWell trial Maritime City • Purchase order from Hanwha Ocean • Contract with thyssenkrupp Marine Systems • Execution of existing 70t & 150t crane contracts • Hand-
Slide 8: Key financials | Per quarter
Key financials | Per quarter Revenue EBITDA & margin (%) MNOK MNOK -14% 50 -52% 35 179 32 45 30 162 29 30 152 150 40 140 35 25 30 20 20 25 20.0% 14 15 20 17.8% 18.0% 15 13.4% 10 10.3% 10 5 5 0 0 Q3 23 Q4 23 Q1 24 Q2 24 Q3 24 Q3 23 Q4 23 Q1 24 Q2 24 Q3 24 EBITDA EBITDA % 8
Slide 9: Order intake and backlog | Per quarter
Order intake and backlog | Per quarter Order intake per quarter1,2 Order backlog development2 MNOK MNOK 242 888 803 747 725 188 704 83 61 15 Q3 23 Q4 23 Q1 24 Q2 24 Q3 24 Q3 23 Q4 23 Q1 24 Q2 24 Q3 24 9 1 Does not account for FX fluctuations in existing contracts 2 Order intake/backlog does not incl
Slide 10: Business update
~ BUSINESS” UPDATE
Slide 11: Syncrolift | Q3 update
Syncrolift | Q3 update • Comprehensive five-year+ service agreement with Dubai Maritime City Market & • Contract with thyssenkrupp Marine Systems for upgrade of ship transfer Sales system, valued at 5 MEUR including options • Contract from Norwegian Defence Estate Agency worth MNOK 164 (Q4) • Contin
Slide 12: Mission: Improve shipyard docking safety and efficiency
Mission: Improve shipyard docking safety and efficiency – making shipyards more flexible and profitable End-to-end Solution provider • Ship lifts and slipways • Fast docking solutions • Upgrade of existing systems Vertical lifts • Rail transfer and FlexTrolleys Horizontal transfer • Local service Va
Slide 13: Global installed base and service network
Global installed base and service network Global footprint with more than 200 operational shiplifts and 6 service hubs 13
Slide 14: 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 15: 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 16: Recent contract wins underline Syncrolift's competitiveness in naval sector
Recent contract wins underline Syncrolift's competitiveness in naval sector thyssenkrupp Marine Systems Norwegian Defence Estate Location: Germany Agency Scope: Upgrade of existing static Location: Norway transfer system for submarines into state-of-the-art fluid bed system Scope: Newbuild shiplift
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 30.09.24 MNOK Per 12.11.24 4 500 650 620 4 500 600 4 000 550 500 240 3 500 2 000 450 3 000 400 380 350 2 500 300 2 000 250 200 1 500 2 500 150 1 0
Slide 18: Techano Oceanlift | Q3 update
Techano Oceanlift | Q3 update • High tendering activity, particularly for active heave-compensated subsea Market & cranes but taking time due to limited track record Sales • Targeting potential opportunities in the SOV market together with Nekkar companies Intelligent offshore lifting & load handlin
Slide 19: Intellilift | Q3 update
Intellilift | Q3 update Market & • Extension of purchase order from Hanwha for drilling control system to Sales existing rig • Tendering for drilling automation, simulators and other drilling controls Data-driven performance for ocean-based industries • Revenue primarily driven by external drilling
Slide 20: Globetech | Q3 update
Globetech | Q3 update • ~170 contracted vessels on recurring service agreements (+20 since Market & acquisition) Sales • High market activity from customer meetings and shipping conferences • Commercial synergies with Techano Oceanlift and Intellilift Full service maritime IT provider Securing opera
Slide 21: Globetech: A new platform with multiple growth levers
Globetech: A new platform with multiple growth levers Niche maritime ICT provider with solid profitable growth 75 MNOK • 10+ years track record of profitable growth and delivering solid financials • Repeat business & sticky customer base • Mission critical service provider, while amounting to a low
Slide 22: Renewed stability and growth in FiiZK after successful 12-month turnaround
Renewed stability and growth in FiiZK after successful 12-month turnaround Investment Turnaround Growth 22
Slide 23: Breakthrough contract
Breakthrough contract Delivery of 2 x Protectus closed fish cages to leading Norway-based fish farmer • Market validation of new and improved closed fish cage product building on experience from the 20x previously delivered systems • Innovative product features underline sustainability profile: o Pe
Slide 24: Closed cage solutions in sea solves key challenges for fish farmers
Closed cage solutions in sea solves key challenges for fish farmers FISH WELFARE Increased fish welfare leading to improved bioligcal resistency and superior growth & quality RISK OF ESCAPE PREDATOR ATTACKS Reduced risk of escape with double Reduced risk of predators such as protection (bag and net)
Slide 25: Significant growth in closed-caged farming technologies
Significant growth in closed-caged farming technologies – upside with changes in regulations Projected volumes indicates yearly customer CAPEX close to 1 bn NOK - excluding upside from new regulations 16 22 28 37 48 63 81 # of Protectus to meet demand (Cumulative, including installed base & excl. up
Slide 26: Increased focus on fish welfare and environmental risk driving demand for FiiZK's products
Increased focus on fish welfare and environmental risk driving demand for FiiZK's products 26
Slide 27: Financial update
FINANCIAL UPDATE
Slide 28: Nekkar financial highlights
Nekkar financial highlights Profit & Loss, Q3, YTD 2024 Revenue MNOK Q3 2024 Q3 2023 YTD 2024 YTD 2023 2023 • Q3 revenue represent a decrease of 13% compared to the same period last year mainly due to slightly Revenue 140 162 442 396 575 lower activity levels at Syncrolift Syncrolift 110 149 360 358
Slide 29: Balance sheet
Balance sheet Assets Balance sheet, Q3 2024 • Intangible assets and goodwill increased by MNOK MNOK 30.09.2024 30.06.2024 31.12.2023 119 in Q3 of which MNOK 114 is related to the acquisition of Globetech ASSETS • MNOK 76 million of financial assets in Q3 are related Intangible assets and goodwill 19
Slide 30: Cash flow
Cash flow Cash flow development, Q3 2024 Cash flow • Cash flow from business is negative at MNOK 1 MNOK in Q3 2024, driven by a slight increase in working capital -1 MNOK 227 14 -12 • Cash flow from purchase of treasury shares in -6 4 -1 0 -11 the period of MNOK 11 -56 • The net cash effect of the G
Slide 31: Nekkar's capital allocation strategy
Nekkar’s capital allocation strategy Available capital, Q3 2024 MNOK Net cash 159 Portfolio growth Undrawn credit facility 200 Investments in existing portfolio companies to fuel organic growth while maintaining a strong balance sheet Total 359 Expecting continued solid operational cash flow Share b
Slide 32: Strategic update
STRATEGIC UPDATE
Slide 33: Significant expansion of Nekkar's portfolio and earnings potential
Significant expansion of Nekkar’s portfolio and earnings potential during past 12-18 months LTM Q3 2023 LTM Q3 2024 505 MNOK annual revenues 888 MNOK annual revenues1 Established Growth Innovation 33 1 Revenue LTM Q3 24 including Globetech and FiiZK revenues
Slide 34: Nekkar combines industrial operating experience with long-term active ownership
Nekkar combines industrial operating experience with long-term active ownership Industrial operator In-house engineering & Domain commercialization expertise Synergies Scaling across & strategy portfolio competence Shareholder value creation Solid Flexible financial ownership capacity model Long-ter
Slide 35: Strategic priorities towards 2027
Strategic priorities towards 2027 SOLID BUILD ORGANIC UNDERLYING BALANCED GROWTH OPERATIONS PORTFOLIO Focus on profitability, cash flow generation, and Continued development and organic growth in Develop strategic and balanced Nekkar portfolio disciplined capital allocation existing operating compan
Slide 36: Continued development and organic growth in existing operating companies
Continued development and organic growth in existing operating companies 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. Innovation Scale busine
Slide 37: Demonstrated effective capital allocation with strategic and cost-effective acquisitions
Demonstrated effective capital allocation with strategic and cost-effective acquisitions 3Q24 LTM Revenue 514 MNOK 40 MNOK 66 MNOK 183 MNOK 84 MNOK Nekkar 100% 51% 90% 39% 67% ownership Enterprise value 100% 1 MUSD1 23 MNOK 3 MNOK 136 MNOK 105 MNOK basis at 2015 2019 2023 2023 2024 acquisition year
Slide 38: 2027 ambitions to reach 2+ bn NOK in revenues
2027 ambitions to reach 2+ bn NOK in revenues MNOK revenues, 2027 ambition 2027 target portfolio Today 2 000+ 6-8 platform companies 4 companies 888 Strategic and balanced portfolio with Concentrated 575 multiple companies of comparable revenue size generation 2023 Q3 2024 LTM1 20271 Solid underlyin
Slide 39: Summary Q3 2024 & outlook
Summary Q3 2024 & outlook Summary Outlook Backlog provides good visibility for 2025 Strong net profit and EPS, while revenue and EBITDA was High tendering activity negatively affected by lower activity in Syncrolift Successful implementation of InteliWell’s breakthrough award likely to open up
Slide 40: 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 41: nekkar.com
AY NEKKAR nekkar.com