Nordic Unmanned ASA

Investor Presentation • Nov 10, 2023

Q3 2023

PRESENTATION & BUSINESS UPDATE 1

November 10th, 2023

Disclaimer – forward looking statements

• In addition to historical information, this presentation contains statements relating to our future business, events and/or results. These "forward-looking" statements include certain estimates, assumptions and projections of Nordic Unmanned ASA (the "Company"), based on information currently available to the Company. All statements, other than statements of historical fact, are statements that could be deemed forward-looking statements, including statements preceded by, followed by or that include the words "estimate, "plan," project," "forecast," "intend," "expect," "predict," "anticipate," "believe," "think," "view," "seek," "target," "goal" or similar expressions; any projections of earnings, revenues, expenses, synergies, margins or other financial items; any statements of the plans, strategies and objectives for future operations, including integration and any potential restructuring plans; any statements concerning proposed new products, services, developments or industry rankings; any statements regarding future economic conditions or performance; any statements of belief; and any statements of assumptions underlying any of the foregoing.
• Forward-looking statements do not guarantee future performance and involve risks and uncertainties. By their nature, forward-looking information and statements involve known and unknown risks, uncertainties and other important factors that could cause the actual results, performance or achievements of the Company to differ materially from any future results, performance or achievements that may be expressed or implied by the forward-looking information and statements in this report. These forward- looking statements are based on the current estimates and projections of the Company. No update or revision will be made to forward-looking statements contained herein, whether as a result of new information, future events or otherwise. Although Company believes that these assumptions were reasonable when made, because these assumptions are inherently subject to significant uncertainties and contingencies, which are impossible to predict and are beyond Company's control, Company cannot assure achievement or accomplishment of such expectations, beliefs or projections.
• The release, publication or distribution of this report/presentation in certain jurisdictions may be restricted by law, and therefore persons in such jurisdictions into which this report/presentation is released, published or distributed should inform themselves about, and observe, such restrictions. This report/presentation does not constitute an offering of securities or otherwise constitute an invitation or inducement to any person to underwrite, subscribe for or otherwise acquire securities in Nordic Unmanned ASA.

HIGHLIGHTS Q3 2023 BUSINESS UPDATE FINANCIALS Q3 2023 STRATEGY & OUTLOOK SUMMARY

HIGHLIGHTS Q3 2023

Highlights Q3 2023

*) Figures in brackets refer to corresponding period last year

Revenue of EUR 6,1 m (EUR 5,5 m)*

Adjusted EBITDA of EUR 0.9 m (EUR -1,2 m)

Revenue of EUR 14,9 m (EUR 12,8 m)

Adjusted EBITDA of EUR -1,6 m (EUR -6,2 m)

Revenue growth and improved adjusted EBITDA in the quarter and year to date

Deliveries of Heimdal sensors under the Tiquila contract for Lockheed Martin commenced

YTD 2023 YTD 2023

AR-100 UAS undergoing certification with planned delivery to Bundeswehr to start in Q4 2023

Surpassed the full 2022 flight hours per Q3 2023

Completed refinancing in October 2023

BUSINESS UPDATE

Nordic Unmanned – In brief

• Who we are: Nordic Unmanned is a leading European manufacturer (OEM) and certified operator of unmanned aircraft systems («UAS»)
• Our Purpose and vision: Above All We Protect Values and Lives
• Our strategy is to deliver controlled and profitable growth by providing quality UAS solutions and actionable data for maritime, security and defence applications to governmental agencies and large corporates in Europe
• Our people are competent, dedicated and client focused

7

Flight Services

Nordic Unmanned Flight Services is a techagnostic flight services operator providing timecritical actionable data to large corporate and governmental customers

DroneMatrix is an OEM offering a fully integrated and autonomous drone system with proprietary software

8

Business Segments

OEM - AirRobot

AirRobot is an OEM with a leading product platform in lightweight drones tailored for defense & security

OEM - DroneMatrix

LICHTENSTEIN

ANDOR RA

Live stream with GPS and sensor data to Sandnes operational control center

9

Flight Services

– Integrated service with a wide range of capabilities

OEM AirRobot

AirRobot have been in the business of making drones for 18 years

Deliveries under Tiquila contract in Q3 commenced

AirRobot is awarded the Bundeswehr Mikado II

AirRobot – Bundeswehr Mikado 2 Contract

11

Estimated contract value over the life of EUR 12 million

Heimdal EO/IR payload

Integration of the Heimdal EO/IR payload into the Lockheed Martin Indago 4 system supporting the Tiquila program (UK Ministry of Defence)

Delivery of sensors through 2023 and 2024 – first deliveries in Q3 2023

Life cycle support over 10 years

AirRobot – Lockheed Martin UK - Tiquila Contract

Initial contract value: In excess of EUR 5 million

OEM DroneMatrix*) Key offerings

*) Nordic unmanned owns 55% and has an obligation to acquire the remaining 45% by March 2025

Environmental Contributions Across Nordic Unmanned Group

Flight Services – ISO 9001/14001 certified

ESG – Environment – Social - Governance

Supporting our customers sustainability goals in Q3 by performing;

• 223 maritime surveillance missions
• 121 environmental missions

And being present on;

• 12 oil spill response vessels
• 2 fishery inspection vessels

AirRobot – EN9100 certified

The AR100-H is designed for a sustainable product life cycle due to its modularity, which allows for component-level servicing and waste reduction. The use of 3D-printed parts further minimizes material waste, and accumulators engineered for cell-level replacement extend the product's lifespan.

DroneMatrix

The Yacob system is designed for Remote Operations, significantly reducing the CO2 emissions for our customers by minimizing travel needed for pilots.

DroneMatrix have established objectives to increase the use of hybrid / electric cars and to install PV panels in their facilities.

In addition, they focus on development that supports environmental & sustainable initiatives and oil-spill developments in the project DIOS.

1927 tons CO2 saved in Q3*

*The amount of direct CO2 emissions saved by our fleet in Q3 compared to a Beech King Air B350 ER doing the same amount of flight hours.

Addressing the following UN SDGs:*

Social & Governance Contributions Across Nordic Unmanned Group

Flight Services

ESG – Environment – Social & Governance

Group initiatives

Workplace Culture: Emphasis on diversity, equality, inclusion and career growth opportunities.

safety protocols and work environment evaluations.

• Work Safety: Implementation of regular
• Employee Well-being: Established wellbeing initiatives, focusing on physical and
• Risk Management: Continuous evaluation
  -
  -

mental health.

of business and operational risks.

Quality Management: Maintained ISO 9001 and EN 9100 certifications.

Cyber Security: Ongoing initiatives to strengthen security.

Addressing the following UN SDGs:*

Workplace Culture: Emphasis on diversity, equality, and inclusion. Education Initiatives: Partnerships with Sola High School and Fagskolen for drone studies. Recently approved as an apprenticeship organization.

Community Engagement: Hosted the second annual Drone Safety Summit together with Avinor.

Safety First: Zero recordable incidents or LTIs in S Q3.

S

Updated supplier selection and human rights due G diligence to comply with the transparency act.

FINANCIALS Q3 2023

Financials - Group

Rightsized with improved margins

• Revenue growth of EUR 0.6 million, increase of 11% YoY
  • AirRobot revenue growth of EUR 1.8 million, increase of 323% YoY
    • Tiquila and Mikado 2 contracts progressing
  • Lower revenues in Flight Services of EUR 1.2 million, reduction of 23% YoY
    • 22% growth in flight hours
    • Offset by contract and fleet mix
• Adjusted EBITDA improvement of EUR 2.2 million
  • Higher volumes in AirRobot
    • Meeting milestones on Tiquila and Mikado 2 contracts
  • Efficiency measures and cost reductions
    • Reduction in crewing per operation and support functions
    • Reduction in the group overhead staff

Unaudited figures in EUR '000	Q3 2023	Q3 2022	YTD 2023	YTD 2022
Operating revenue	6,148	5,457	14,899	12,770
Cost of goods sold	437	363	1,826	1,878
Personnel expenses	2,862	3,556	8,823	9,406
Other operating expenses	1,919	2,761	5,888	7,681
Adjusted EBITDA	930	-1,223	-1,598	-6,195
Adjusted EBITDA %	15%	-22%	-11%	-49%
Non-recurring items	-	-	2,850	-
EBITDA	930	-1,223	-4,487	-6,195
EBITDA %	15%	-22%	-30%	-49%
Depreciation and amortization expenses	1,535	1,461	4,548	3,795
Impairments	-	-	2,887	-
EBIT	-605	-2,684	-11,922	-9,990
Net financial items	726	217	1,364	875
Income (loss) before tax	-1,331	-2,901	-13,286	-10,865
Income tax	189	-624	-13	-2,247
Net income (loss)	-1,520	-2,277	-13,273	-8,619

Breakdown of Revenue and EBITDA

Q u a r t e r l y r e v e n u e g r o w t h a n d a d j u s t e d E B I T D A i m p r o v e m e n t

Adjusted EBITDA per Segment - Before group costs

Revenue per Segment

OEM Businesses Total EUR 1.6million

Flight Services Business Total EUR 1 million

Balance Sheet

• Book equity of 26.9% end of the quarter
• Group cash of EUR 205k and EUR 1.3 million of undrawn overdraft facilities
• 100% of the shares in Ecoxy were disposed of in Q3 2023 with a gain of EUR 508k
• Note: In October 2023 the Group completed a refinancing with its lenders combined with a gross NOK 70 million equity raise that provides a strengthened capital structure and financial flexibility

figures '000 Unaudited in EUR	30 Sep 2023	30 Sep 2022	31 2022 Dec
Total fixed assets	35 707 ,	47 384 ,	38 267 ,
and Receivables Inventory	7 393 ,	9 593 ,	6 859 ,
Cash and cash equivalents	205	694	812
Total assets	43 304 ,	671 57 ,	938 45 ,
Equity	11 655 ,	28 384 ,	23 556 ,
Liabilities financial institutions to	2 984 ,	13 989 ,	13 129 ,
Short liabilities financial institutions term to	19 704 ,	7 142 ,	2 674 ,
Payables and other short liabilities term	8 962 ,	8 157 ,	6 579 ,
Total equity and liabilities	43 304 ,	671 57 ,	938 45 ,

Cash Flow Statement • Marginal change in cash in

• period
• Underlying improvement
• Agreements with key suppliers
• Positive Euro 1.8 million from change in working capital
• Investments in Textron Aerosonde equipment of Euro 2.4 million for Flight Services
• Net cash changes from financing relates to down payment of credit lines
• NOTE: In October 2023 the Group completed an equity raise of gross NOK 70 million

EUR 3.2 million EUR -2.8 million EUR -0.8 million

New financing structure

• Gross proceeds of NOK 70 million raised in a private placement in October 2023
• Contemplating raising up to NOK 35 million in new equity through subsequent repair before year end 2023
• Interest margin on main loan facility reduced from 5% to 3.5%
• First interest payment end Q2 2024
• Reduction in installments of EUR 7.2 million in the period 2023 – 2027 (quarterly installments changed from EUR 620k to EUR 400k)

Flight Services

• Revenue decrease of EUR 1.2 million, reduction of 23% YoY
  • 1.768 flight hours, increase of 22% YoY
  • Lower revenue due contract and UAS mix (EMSA OP 46 VS OP 10)
• Adjusted EBITDA before group costs improvement of EUR 0.1 million
  • Cost measurements and efficiency

Flight hours
2000
1800
1600 1450

Unaudited figures in '000 EUR	Q3 2023	Q3 2022	YTD 2023	YTD 2022
Operating revenue	3,730	4,881	9,173	11,382
Adjusted before EBITDA Group Cost	1,014	895	-877	-705
Adjusted EBITDA %	27%	18%	-10%	-6%
Non-recurring items	-	-	1,595	-
EBITDA	1,014	895	-2,472	-705
EBITDA%	27%	18%	-27%	-6%

• Revenue increase of EUR 1.8 million, 323% increase YoY with main sources being:
  • Heimdal sensors under the Tiquila contract
  • AR-100 UAS under the Mikado 2 contract
• Quarterly EBITDA before group costs improvement of EUR 1.5 million
  • EBITDA margin of 65% in the quarter as deliveries and certification gains progress

AirRobot

Unaudited figures in EUR '000	Q3 2023	Q3 2022	YTD 2023	YTD 2022
Operating revenue	2,354	556	5,257	1,443
EBITDA before Group Cost	1,529	39	1,820	5
EBITDA%	65%	7%	35%	0%

DroneMatrix

• DroneMatrix* revenue increase of EUR 0.4 million
  • Revenue of EUR 77k from Infrabel, EUR 83k from Port of Antwerp, EUR 156k from Counter UAV project and EUR 70k from University of Antwerp
• Improved EBITDA before group costs of EUR 0.3 million
  • Higher activity with Port of Antwerp and Counter UAV project

figures '000 Unaudited in EUR	Q3 2023	Q3 2022	YTD 2023	YTD 2022
Operating revenue	426	20	1 010 ,	20
before EBITDA Group Cost	60	-186	140	-186
EBITDA%	14%	0%	14%	0%

*) Nordic unmanned owns 55% and has an obligation to acquire the remaining 45% by March 2024

STRATEGY & OUTLOOK

Source: MarketsandMarkets 2022

Increasingly favourable regulatory environment in Europe

Increased demand for drones following greater scope of application

Advancements in drone technology (battery, sensors, cameras, etc.)

Improved awareness and education

Environmental benefits

Unmanned drones yield cost savings, efficiency gains and safety benefits

European drone services market

Industry research points to attractive growth in core markets in Europe in the years ahead

Market drivers

European UAV market - products

Defense & Government Civil & Commercial

Estimated Contract Backlog

Source: Nordic Unmanned

*) Note (1) Contract backlog includes the maximum remaining estimated value of signed and/or awarded Master Service (call-off) contracts and signed contracts/PO's as of Q3 2023. Annual utilization under Master service Agreements s based on call offs, contract estimates based on historic utilization and client feedback. Master Service Agreements with no anticipated call-offs are not included. (2) Nordic Unmanned cannot guarantee that these values will materialize as indicated, nor when they may materialize over the period

• Estimated Contract Backlog consists of:
  • EUR 41.9 million of framework contracts
  • EUR 15.7 million of purchase orders/contracts

Contract	Partner	Expires	Contract value (EURm)
Mikado I		Q1 2027	3.0
Mikado II		Q2 2026 + MRO	12
Tiquila		Q1 2033	>5
OP/1		Q1 2026	7
OP/46		Q2 2026	20
OP/5		Q2 2027	20.5

Deliver controlled and profitable growth by providing quality solutions and actionable data for maritime, security and defence applications to governmental agencies and large corporates in Europe

Hereunder:

• Optimize commercial uptime within Flight Services
• Reduce seasonality in business model
• Reduce excess inventory
• Reinforce position as a reseller
• Pursue a mix of leased and owned UAS platforms for Flight Services

"FROM STRATEGY TO EXECUTION" Strategy & outlook

• Generally positive outlook for UAS
  • products and services
• Supportive demand drivers
• Anticipate several Flight Services
  • tenders in 2024 with potential
  • start-up from 2025
• Growing interest for our OEM
  • products from AirRobot and
  • DroneMatrix

STRATEGY OUTLOOK

Revenue Target Full Year 2023: EUR 22-25m

• Implying 20% + topline growth in 2H 2023 over 1H 2023 and improved EBITDA
• Revenue range provided to allow for weather and timing of activity

Financial targets for 2023

SUMMARY

Summary