Nordic Unmanned ASA

Investor Presentation • Aug 29, 2023

Q2 2023 PRESENTATION & BUSINESS UPDATE 1

August 29th 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.

BUSINESS UPDATE HIGHLIGHTS Q2 2023 FINANCIALS Q2 2023 BUSINESS SEGMENTS MARKET & OUTLOOK SUMMARY

Highlights Q2 2023*)

Proving our OEM role with sales to a NATO MOD customer

*) Figures in brackets refer to corresponding period last year

Strategic review progressing

Break-through First Indago 4 sale

37% revenue growth to EUR 6.6m (EUR 4.8m)

Positive adjusted EBITDA. EUR 4.0m improvement

EUR 63m estimated order backlog

+69% growth in flight hours to 1416 hours (838 hours)

+EUR 1.3m (237%) revenue (OEM)

growth in AirRobot

EUR 371' revenue in DroneMatrix (OEM)

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 be a leader in the development, construction, provision, operation and resale of environmentally friendly, cost effective and reliable unmanned aerial flight systems and flight services, delivering time critical, actionable data insight and logistics services system
• Our people are competent, dedicated and client focused

5

General maritime surveillance

• 172 maritime surveillance missions
• 77 environmental missions
• 12 oil spill response vessels
• 2 fishery inspection vessels

Continued contribution towards sustainability

Emission monitoring

• 23 measurements performed (YTD 40)
• 0 verifications (YTD 35)

175x less than its manned alternatives

1361 tons CO2 saved*

*The amount of direct CO2 emissions saved by

our fleet in Q2

compared to a Beech King Air B350 ER doing

the same amount of

flight hours.

Present throughout the value-chain

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Illustrative value chain segments

		Nordic Unmanned
Product development	Manufacturing	Value-adding services & sales	Flight services	MRO
The product development phase includes prototype and process development, regulatory approvals, and infrastructure and software design	Raw material procurement and manufacturing involve electronic, mechanical, and software component development, as well as industrial manufacturing processes	The distribution stage comprises UAV service providers, e-commerce retailers, and suppliers of UAV components for industrial applications such as logistics and transportation	Flight services involves the provision of aerial photography, surveying and inspection on a contract or subscription basis
Investments in Long R&D innovation cycles	Hardware Software	Regulatory Customer compliance education	Scalability Flexibility
Safety and compliance emphasis	Customization (camera options, payload configurations, etc.)	Increased adoption by businesses	Data analytics services

Source: Nordic Unmanned

Nordic Unmanned 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

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Three Business Segments

OEM - AirRobot

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

OEM - DroneMatrix

Flight Services – Overview (I) Selected applications

Note: Nordic Unmanned segment formerly named Nordun. (1) European Maritime Safety Agency.

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Key strengths

Operates advanced fixed-wing and rotary drones developed by major defense contractors, specializing in maritime surveillance, with a focus on government customers

Customers include European and governmental entities related to maritime security such as coast guards and other organizations that conduct surveillance and perform data collection

The offering helps saving lives, strengthen defense capabilities, limit environmental disasters and enforce regulatory requirements. The service differentiates itself with quick response, low visibility, low cost, limited human involvement and high efficiency

Experienced team with extensive aviation background and regulatory knowhow combined with LUC privileges facilitate a streamlined approval process for remote operations

Flight Services – Overview (II)

AirRobot – Overview Key offerings

Advanced Camera sensor (Day&Night) for drone platforms Heimdal – Optical and IR Sensor Payload (Day&Night vision)

AirRobot – Product portfolio

Through close collaboration with operational personnel in both Army and Police, AirRobot continues to develop attractive solutions

AR100-H Surveillance UAS Heimdal EO/IR payload

AR100-H UAV

Fused Electro-Optical/Infra-Red (EO/IR) video, in full HD, enables the user to detect difficult targets of interest in complex terrain and lighting conditions.

The power of the Micro-Gimbal HD lies in the highly accurate real-time fusion of Full HD Daylight and Thermal imagery

Compatible with the AR100-H, in addition to the Lockheed Martin Indago 3 and 4

	Key
Belgian based OEM of Drone-in-a-Box solutions for inspection, surveillance, data capture and freight purposes. Nordic Unmanned owns a 55% majority share, with the founders Frank and Lander Vanwelkenhuyzen holding the remaining minority share.	takeaways Drone-in-a-Box solution (YACOB)
The YACOB intelligent drone has swappable payloads and safety systems. The docking station has a launch and landing platform, and acts as a communication hub with the proprietary flight management system (AR-WS).	Autonomous with AI onboard
Proprietary cloud-based software solution that enables remote and off-site control of any drone from anywhere. The drone uses AI to recognize and automatically track people, cars, vessels etc, and offers automatic adjustment of flight path.	High bandwidth and low latency
Contracts won in both port, industrial and rail industries, with large scale multi-system operations started. Key contracts with the Port of Antwerp and Infrabel. Significant interest from police, fire departments, and airport operators. 21 drones delivered to date.	Key contracts in large industries
YACOB is currently experiencing increased interest from first responders looking to monitor and obtain a situational description of larger defined areas, such as police, fire departments, and even airport operators.	Vast application potential

Automated weather proof docking station

DroneMatrix – Overview Key offerings

Highlights Q2 2023: Strategic Review

Strategic Review:

-

• 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.

• Target remains to arrive at a sustainable capital structure and strategic solution for the company by year end 2023.

Highlights Q2 2023*)

Proving our OEM role with sales to a NATO MOD customer

*) Figures in brackets refer to corresponding period last year

Strategic review progressing

Break-through First Indago 4 sale

37% revenue growth to EUR 6.6m (EUR 4.8m)

Positive adjusted EBITDA. EUR 4.0m improvement

EUR 63m estimated order backlog

+69% growth in flight hours to 1416 hours (838 hours)

+EUR 1.3m (237%) revenue (OEM)

growth in AirRobot

EUR 371' revenue in DroneMatrix (OEM)

Financials - Group

Continued growth with improved margins

• Quarterly turnover of EUR 6.6 million, 37% revenue growth from Q2 2022
• Improvement in adjusted EBITDA by Euro 4 million compared to Q2 2022
  • Cost reductions
  • Higher activity
  • Operational performance
• 12 month rolling revenue increase by 47%, revenue growth combined with improved financial performance

12-month rolling revenue

Unaudited figures in EUR '000	Q2 2023	Q2 2022	YTD 2023	YTD 2022
Operating revenue	6,584	4,821	8,751	7,313
Cost of goods sold	582	769	1,389	1,515
Personell expenses	2,795	3,550	5,961	5,850
Other operating expenses	2,195	3,455	3,969	4,919
Adjusted EBITDA	1,010	-2,953	-2,568	-4,971
Adjusted EBITDA %	15%	0%	-29%	0%
Non-recurring items	2,850	-	2,850	-
EBITDA	-1,839	-2,953	-5,418	-4,971
EBITDA %	-28%	-61%	-62%	-68%
Depreciation and amortization expenses	1,515	1,322	3,012	2,334
Impairments	2,887	-	2,887	-
EBIT	-6,241	-4,274	-11,317	-7,305
Net financial items	34	398	638	658
Income (loss) before tax	-6,275	-4,672	-11,955	-7,963
Income tax	867	-988	-202	-1,623
Net income (loss)	-7,142	-3,684	-11,753	-6,340

Specification of non-recurring items and impairments in Q2 2023

NON-RECURRING ITEMS IN THE QUARTER:

• Personnel related restructuring cost and close down of US operations of EUR 1 million
• Write down of other receivables totalling EUR 0.9 million
• Provisioned for Strategic Review of EUR 1 million

IMPAIRMENTS IN THE QUARTER:

-

• NUAer valuation reduced with EUR 1.5 million - Ecoxy valuation reduced with EUR 0.9 million - Camcopter fleet valuation reduced with EUR 0.5 million

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

Revenue per Segment Adjusted EBITDA per Segment

OEM Businesses Total EUR 700'

Flight Services Business Total EUR 1.1 million

Balance Sheet

• Asset and market review performed

• Impairment performed on non- strategic assets which are under process of disposal or put dormant
• Inventory build-up in AirRobot to secure critical components for Mikado 2 and Tiquila contracts
• Book equity of 27,3% end of the quarter

(in EURO '1000)	Q2 2023	Q1 2023	Q2 2022	2022
Total fixed assets	34,915	36,978	46,919	38,267
Inventory and receivables	9,958	6,544	9,573	6,859
Cash and cash equivalents	568	530	1,184	812
Total assets	45,441	44,051	57,675	45,938
Equity	12,410	18,959	30,626	23,556
Non-current liabilities	2,789	16,555	14,728	13,129
Short term liabilities to financial institutions	20,309	3,508	4,435	2,674
Payables to other short term liabilities	9,932	5,029	7,886	6,579
Total Equities and liabilities	45,441	44,051	57,675	45,938

• Reduction of 51 full time employees (FTE) from July 2022 to July 2023
  • o The ~30% reduction in total FTEs is due to staff reductions in Group overhead and Flight Services following a strategic review to ensure strategic focus and operational efficiency
  • o Last Twelve Months (LTM) revenue per FTE ~ doubled in the period, from Euro 62.780 in July 2022 to 124.519 in June 2023
  • o At current run-rate, the cost base going forward is assumed Euro ~2m lower than in YTD 2023 – all else equal

Organizational rightsizing

• Organizational costs reduced by ca. EUR 2m

Cash Flow Statement

• Marginal change in cash in period
• Underlying improvement
• Agreements with key suppliers
• Positive Euro 2 million from change in working capital
• Investments in Textron Aerosonde equipment of Euro 1.9 million for Flight Services and EUR 1.2 million related to development of proprietary technology (IP)
• Net proceeds from financing relates to draw down of credit lines

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57.

Liquidity and solidity

• Group liquidity reserve of Euro 560.000 at quarter end

• Equity ratio of 27.3%

• 7 12.3 7 • Invested in growth with additional Aerosonde systems and Aersonde Hybrid Quad for OP 46 and OP 5 in flight services and inventories in AirRobot for Mikado 2 and Tiquila

• 1. • Drawn down credit lines of EUR 5.8 million from SR-Bank and Volksbank Unna

• 9.6 • Secured waiver from its secured lenders till end October 2023, and consequently long-term debt has been reclassified as short-term debt

• The agreement with secured lenders include deferred instalments for the same period

Flight Services (100% ownership)

• Operational on two parallel deployments with the Aerosonde platform (3rd deployment start in August 2023
• 1.416 flight hours in Q2 2023, increase of 69% compared to Q2 2022
• Trained first crew for operating the Aerosonde Hybrid Quad, to get ready of OP5 contract
• Deployed on 1 European Fishery Control Agency (EFCA) vessel throughout the quarter with lightweight capability. With 2nd EFCA vessel in parallel from Q3.
• Conducted a resale of Indago 3 systems to German customer and the first Indago 4 sale to a European MOD

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Unaudited figures in EUR '000	Q2 2023	Q2 2022	YTD 2023	YTD 2022
Operating Revenue	4,407	4,491	5,442	6,501
Adjusted EBITDA	1,133	-1,081	-1,891	-1,600
Adjusted EBITDA %	26%	-24%	-35%	-25%
Non-recurring items	1,595	-	1,595	-
EBITDA	-461	-1,081	-3,486	-1,600
EBITDA %	-10%	-24%	-64%	-25%

Development in flight hours

Flight Services – Operations overview 2023

Total flight hours to date (as of June 2023)

2023 flight hour forecast is projected to surpass the total flight hours of the past three years

• Lockheed Martin UK's Tiquila project with delivery of the Heimdal sensor to the Indago 4 is the largest contributor to Q2 2023 revenue and adjusted EBITDA. Significant milestones achieved including securing inventory for the planned start of sensor delivery in Q3 and Q4 of 2023
• Delivery of the AR-100H under the Mikado 2 contract for German Army progressing in accordance with the new milestone plan. The military certification process is expected to complete in Q4 with delivery of the first batch of AR-100H
• First AR100-H award from German Police forces
• First AR100-H award from Australian customer

AirRobot ( 1 0 0 % o w n e r s h i p )

Unaudited figures in EUR '000	Q2 2023	Q2 2022	YTD 2023	YTD 2022
Operating Revenue	1,843	547	2,903	887
EBITDA	601	-12	291	-34
EBITDA%	33%	-2%	10%	-4%

DroneMatrix

(55% ownership)

• Award of large-scale counter-UAV project for a major financial institution in Belgium to be delivered in 2023 with a contract value of Euro 0.6 million
• First delivery of the Yacob system for Infrabel (national railway operator)
• Completed the installation of 6 systems for Port of Antwerp. BVLOS operations have been implemented through the LUC of Nordic Unmanned flight services
• Increased business development activity in global ports and other critical infrastructure

Unaudited figures in EUR '000	Q2 2023	Q2 2022	YTD 2023	YTD 2022
Operating Revenue	371	n/a	584	n/a
EBITDA	64	n/a	80	n/a
EBITDA%	17%	0%	14%	0%

Demand drivers

• Increased EU budgets for large-scale civil-supported security & defense operations (e.g., EMSA, Frontex) • Direct contracting with security agencies (e.g., customs, coast guards) Increasingly favourable regulatory environment in Europe

• Follow clients to new geographical markets (e.g., Americas, Africa, Asia) Environmental benefits

• Yard, industrial, utility, social infrastructure perimeter surveillance (e.g., scheduled inspection rounds, track assets, human/vehicle detection) Improved awareness and education

• Maritime port-to-shore lightweight logistics (e.g., documentation, test Unmanned drones yield cost savings and safety benefits

Note: (1) EC European Drone Strategy 2.0 https://transport.ec.europa.eu/document/download/1cb5fb4f-4252-4f97-abf4-c4a167b1c7d2\_en?filename=COM\_2022\_652\_drone\_strategy\_2.0.pdf

• Increase domestic military market share, follow customer abroad (e.g., UN Technology advancements (batteries, sensors, cameras etc.)

Increasingly greater scope of application

Well positioned towards governmental and corporate clients in a maturing and growing European drone ecosystem in need of flight services and drone systems for surveillance and data collection to protect values and lives

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 Q2 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

• Good basis for development based on estimated*) order backlog comprising signed contracts and potential values in Master Service Agreements

• Estimated Contract Backlog consists of:
  • EUR 45.5 million of framework contracts
  • EUR 17.5 million of purchase orders/contracts

Revised 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

2H 2023 Focus

Manage the challenging financial situation to minimize business disruptions

Protect and support clients, partners, operations and organization

Arrive at a sustainable financial solution before year end 2023

Progress the Strategic Review including ongoing dialogue with financial and strategic parties and stakeholders

Deliver revenue growth on current contracts and prepare for 2024

Summary