Nordic Unmanned ASA

Earnings Release • Aug 29, 2023

Nordic Unmanned announces Q2 2023 results

Nordic Unmanned announces Q2 2023 results

29.8.2023 07:00:00 CEST | Nordic Unmanned | Half yearly financial reports and

audit reports / limited reviews

The second quarter and the period after balance sheet end have been

characterized by higher activity and revenues, cost reductions taking effect and

full focus on the earlier announced strategic review process with a view to

create a best possible basis for a sustainable solution for the company.

Revenues of EUR 6.6 million in the quarter and EUR 8.8 million for the first

half 2023, up 37% and 20% respectively compared to the same periods in 2022

Adjusted EBITDA of EUR 1.0 million in Q2 2023, excluding non-recurring costs of

EUR 2.9 million. Underlying profitability, measured as adjusted EBITDA, is

positive and improved by EUR 4.0 million compared to Q2 2022. This is due to

reduced group costs, high activity in Flight Services and higher activity in the

Equipment Manufacturer (OEM) segments AirRobot and DroneMatrix

Year to date total flight hours surpassed 2.000, with Aerosonde drone operations

in Estonia and Denmark in addition to lightweight drone activity on fishery

inspection and oil spill prevention vessels. Third Aerosonde drone operation

commenced in early Q3. The projects for German Bundeswehr (Mikado 2) and

Lockheed Martin/UK Ministry of Defence (Tiquila) have been the main activity in

OEM AirRobot, with planned sensor and drone deliveries in Q3 2023. The OEM

DroneMatrix's Port of Antwerp contract became operational in first half of the

year and a counter UAV win for a major national bank was awarded in the period

The quarter ended with an estimated contract backlog of EUR 63 million, of which

EUR 45.5 million relates to framework contracts and EUR 17.5 million relates to

firm purchase orders and contracts

A review of the carrying value of assets have resulted in impairment charges

amounting to EUR 2.9 million

The Strategic Review is progressing as planned and the company continues to

evaluate all options that can strengthen its balance sheet. Information

memorandum has been prepared and discussions are ongoing with financial and

strategic parties to address the stressed liquidity situation. Constructive

dialogue is also ongoing with secured financial creditors and professional

suppliers to defer payments. The company has secured necessary waivers from its

secured financial creditors till end October 2023 which covers financial

covenants and deferral of instalments during the same period. The period till

end October 2023 corresponds with anticipated progress milestones towards a

sustainable financial and strategic solution. A final solution may include

equity raise and/or sale of certain assets. The target remains to arrive at a

sustainable capital structure and strategic solution for the company by end

The second quarter report and presentation are enclosed. There will be a

livestreamed presentation as well as a Q&A session at 10:00 CET. Register here

to view it: https://attendee.gotowebinar.com/register/3859787624145517914 -

https://eur02.safelinks.protection.outlook.com/?url=https%3A%2F%2Fattendee.gotow

ebinar.com%2Fregister%2F3859787624145517914&data=05%7C01%7Cll%40nordicunmanned.c

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DISCLOSURE REGULATION

This information is subject to the disclosure requirements pursuant to section

5-12 of the Norwegian Securities Trading Act.

CONTACTS

* Lars A Landsnes, CFO, Nordic Unmanned ASA, +47 951 40 370,

ll@nordicunmanned.com

* Stig H. Christiansen, CEO, Nordic Unmanned ASA, +47 478 07 813,

shc@nordicunmanned.com

ABOUT NORDIC UNMANNED

Nordic Unmanned is a leading European manufacturer (OEM) and certified operator

of unmanned aircraft systems ("UAS").

We are serving large corporations, government agencies and security customers by

offering systems, solutions and flight services for environmentally friendly

delivery of productivity improvements and time critical, actionable data

insights and logistics services.

Our solutions and services are organized in the three business segments as

follows:

Flight Services: is a technology-agnostic flight services operator providing

time-critical actionable data to large corporate and governmental customers. The

segment also includes Ecoxy AS, NUAer AS and Resale.

AirRobot: is an Equipment Manufacturer (OEM) with a leading product platform in

lightweight drones and sensors (payloads) tailored for defense and security.

DroneMatrix: is an Equipment Manufacturer (OEM) offering a fully integrated and

autonomous drone system with proprietary software for surveillance and security.

Nordic Unmanned is ISO 9001:2015 and ISO 14001:2015 certified for the operation,

maintenance, and sales of unmanned systems and sensor technology. AirRobot is

ISO 9001:2015 and EN 9100:2018 certified for its development and production

capabilities of unmanned systems.

Founded in Norway in 2014, Nordic Unmanned has offices in Sandnes (NO), Molde

(NO), Cranfield (UK), Hasselt (BE) and Arnsberg (GER). Nordic Unmanned also

comprise joint venture - Omni Unmanned SA with OHI Group SA (registered in

Luxemburg) and joint venture - NUAer AS with Aeromon OY (registered in Norway).

For more information visit - https://nordicunmanned.com/

ATTACHMENTS

Download announcement as PDF.pdf -

https://kommunikasjon.ntb.no/ir-files/17847587/2577/3598/Download%20announcement

%20as%20PDF.pdf

Nordic Unmanned ASA Q2 2023 Presentation.pdf -

https://kommunikasjon.ntb.no/ir-files/17847587/2577/3593/Nordic%20Unmanned%20ASA

%20Q2%202023%20Presentation.pdf

Nordic Unmanned ASA Q2 2023 Report.pdf -

https://kommunikasjon.ntb.no/ir-files/17847587/2577/3594/Nordic%20Unmanned%20ASA

%20Q2%202023%20Report.pdf