Nordic Unmanned ASA

Earnings Release • Jul 2, 2023

Nordic Unmanned - business update

Nordic Unmanned - business update

2.7.2023 16:07:15 CEST | Nordic Unmanned | Inside information

Sandnes, Norway, July 2, 2023 - Nordic Unmanned ASA (the "Company" or "Nordic

Unmanned") (ticker: NUMND) provides a business update.

Reference is made to the announcement made by the Company on 27 March 2023

regarding the Company's review of strategic alternatives, update on financing

and FY outlook. Due to short-term delays in current contracts affecting

AirRobot, and somewhat lower than planed activity in Flight Services and slower

market entry in the Americas, the Company does not expect to meet the previously

announced EUR 30 million revenue target for the year.

AirRobot: The delivery of the first batch of AR100-H drone to the Bundeswehr,

and the delivery of Heimdal electro-optical sensors to Lockheed Martin UK will

be somewhat delayed compared to previous indications and moves the expected

delivery of the Heimdal sensor to Q3 2023, and first delivery of the AR100-H to

Q4 2023. The Company is working towards the next milestones for both contracts

and technical completion of the EO/IR sensor for delivery under the contracts.

Flight Services: The Flight Services segment currently operates two parallel

deployments and plans soon to commence the 3rd deployment with its Aerosonde

long endurance system. The 3rd deployment was expected to commence in Q2 2023

but is delayed to July 2023. The flight hours from the Flight Services segment

were close to 1,400 in Q2 2023 compared to 814 in Q2 2022. The Company is

currently also experiencing delays in finalizing a contract with an

international customer for long endurance activities. This contract could

potentially commence in Q4 2023 or Q1 2024.

Other operational updates:

* DroneMatrix is progressing as expected with a growing customer base and

projects, including the delivery of six drone-in-a-box systems to the Port of

Antwerp, one of the largest ports globally.

* Ecoxy is continuing the growth path from 2022 and is on track to another

profitable year.

* The reseller activity continues with sale of Sky Hero drones to the Swedish

and Norwegian police during the first half of 2023 and a first purchase order

from a Scandinavian Ministry of Defence. The Company is generating revenue

from reselling both last generation Lockheed Martin Indago 3 drones as well

as the new Indago 4 series.

The Company is continuing its previously announced efforts to reduce the cost

base. The total number of employees has been reduced from 180 to 130 employees

since the second half of 2022 and the executive management team has been

reduced.

The Company had approximately EUR 600,000 in available liquidity at the end of

Q2 2023. On 27 March 2023, the Company announced an agreement with SpareBank 1

SR-Bank ASA for a new financing facility of up to EUR 16 million and a strategic

review of the business, including the requirement to raise EUR 13 million

through disposal of assets and/or equity issue by year end 2023. The Company and

its advisors have initiated discussions with both strategic and financial

parties, with a view to explore partnerships that can support the next growth

phase of the Company. The Company continues to evaluate options that can

strengthen the balance sheet of the Company as it progresses towards

profitability and market leadership for its services and products, including

disposal of assets and/or an equity issue, in addition to working actively and

closely with its customers, suppliers and financing partners to manage the

situation.

The Company will present its Q2 2023 results and updated full year guidance on

29 August 2023.

DISCLOSURE REGULATION

The information is deemed to be inside information pursuant to the EU Market

Abuse Regulation and is subject to the disclosure requirements pursuant to

section 5-12 of the Norwegian Securities Trading Act. The information was

submitted for publication by Lars A. Landsnes, CFO, at the time and date set out

above.

CONTACTS

* Arne Roland, CEO, +47 911 94 667, ir@nordicunmanned.com

* Lars Andreas Landsnes, Nordic Unmanned ASA, 95140370, ll@nordicunmanned.com

ABOUT NORDIC UNMANNED

Nordic Unmanned is a leading provider of high-end drone and data capture

products and flight services. Its technology business unit is an Original

Equipment Manufacturer (OEM) for the drone and sensor product lines AirRobot and

DroneMatrix, serving primarily defense, security, and productivity improvement

markets. The flight sevices business unit holds industry-leading expertise as an

operator of rotary and fixed-wing drone systems, providing pollution monitoring,

fishery control, surveillance, and logistics services. Clients include coast

guards, intelligence services, and government agencies.

Nordic Unmanned has one of the world's most comprehensive permits to fly beyond

visual line of sight (BVLOS), through its EASA-approved Light UAS operator

Certificate (LUC). The company is ISO 9001-2015 and ISO 14001:2015 certified for

the operation, maintenance, and sales of unmanned systems and sensor technology.

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

(NO), Odense (DK), Cranfield (UK), Hasselt (BE), Arnsberg (GER), and Baltimore

(US).

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

ATTACHMENTS

Download announcement as PDF.pdf -

https://kommunikasjon.ntb.no/ir-files/17847587/2467/3419/Download%20announcement

%20as%20PDF.pdf