Nordic Unmanned ASA

Investor Presentation • Feb 23, 2023

Q4 2022 REPORT

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.
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Q4'22 and FY'22 Highlights

EUR million

PRIVATE PLACEMENT

8
EUR million
PRIVATE PLACEMENT
December 2022 offering and February 2023 subsequent offering
270 000
Kilometers
FLIGHT DISTANCE COVERED IN 2022
Almost seven times around the earth

Kilometers

NORDUN

Drone flight services. Delivers drone operations through pool of pilots, technicians, systems, certifications, sensors, control center, and more.

NUTECH

Manufacturer and developer of the Nordic Unmanned Groups' products. Including AirRobot and DroneMatrix.

NUMAR

Delivers the data analytics solutions of the Nordic Unmanned Group such as emission monitoring services. Includes Ecoxy and NUAer.

NUGLOBAL

Sales and distribution network of the products and solutions of the Nordic Unmanned Group.

NUTECH NORDUN

Flight services

Nordun delivers drone services the Maritime, Defense & Security, Offshore Energy market for both governmental and enterprise clients.

• NUMar

Products

NUTech will provide products and solutions to Group customers through Nordic global distribution network.

• NUGlobal

Focus on execution and profitability

MIKADO II

Delivery of AR100-H

To the Bundeswehr

Main revenue effect in Q2 and Q4.

TIQUILA

Delivery of Heimdal sensors

To Lockheed Martin UK Ltd

Main revenue effect Q1, Q3 and Q4

OP/5

Planning of operations

Textron Aerosonde VTOL fleet Minimal financial effect in 2023

OP/46

European deployments

3 simultaneous deployments Main revenue effect in Q2 and Q3

TWO BUSINESSES

Nordun and NUTECH

Flight services operations

Focused product portfolio of military drones, drone-in-a-box and sensors

ASSET ADJUSTMENTS

Sale of non-core assets

Assets unrelated to Nordun and NUTech core operations and budget

Opportunistic fleet review

PROFITABILITY

High invoicing levels in 2023

Delivery of high-value drone products

Improved terms and cost base for flight operations

Leaner organization

Financials On track to achieve profitability from operations and lower debt burden

• 48% growth from Q4'21

• 79% growth from FY 2022
• EBITDA loss of EUR 2.4m due to low season for flight services and ramp-up of manufacturing activities that will start invoicing in the coming months
• Sale of drone products grew to 33%
• Impairments of EUR 2.3m, and one off costs and inventory obsoleteness of EUR 0.7 million.
• Decided to derecognize deferred tax asset of EUR 5.0m

	Quarters		FY
mEUR	Q4'22	Q4'21	2022	2021
Operating revenue	3.7	2.5	16.5	9.2
EBITDA	-2.4	-2.8	-8.6	-5.3
EBITDA margin %	-65%	-113%	-52%	-57%

Quarterly revenue and EBITDA margin

Liquidity and solidity

• 1. • Group liquidity of EUR 6.7 million
• Private placement of NOK 66 million net
• 12.3 • Reduction of short-term debt, improving with EUR 4.4 million
• Equity ratio of 49%
• 9.6 6 • Sales of non-strategic assets, potential effect between EUR 3 10 million in Q2-Q4 2023
• Investments for new contracts pushed to 2024

Subs credit lines EUR 2,9 mil

Nordun OP/5 contract signed – low quarter for operations

• Revenue Q4 mEUR 1.5 (+20%)
• EBITDA Q4 mEUR 1.0 (+23%)
• Increased operational activity in an expected seasonal low -period
• 437 flight hours in Q4, increase of 43% compared to Q4 2021
• Doubled activity in full year 2022
• ⚬ 2922 flight hours FY2022, an increase of 99% compared to FY2021
• ⚬ Covered more than 260 000 km of flight distance with Aerosonde and Camcopter
• ⚬ OP/5 contract with EMSA scales on OP/46
• ⚬ First call-off received in Q1 2023 for data integration
• ⚬ Same crew and fleet complementarity between OP/46 and OP/5 contract
• ⚬ Accepted increased contract utilization on OP/46, with a third deployment, as a result of the OP/5 award

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Nordun 2022 seasonality Customer and operation

Equinor

• Offshore logistical operations with the Staaker®

EMSA

• OP46 with the Textron Aerosonde
• Estonia, Finland
• OP10 with the CAMCOPTER S-100
• France, Spain Germany
• OP1 with the Lockheed Martin Indago
• Offshore Europe

BVLOS operations

Nordun 2023 planned operations

NUMar Leading provider of accredited measurements and verifications

• Revenue Q4 mEUR 0.4
• EBITDA Q4 mEUR -0.2

NUAer (60% ownership)

• Performed operations for Port of Turku and major oil and gas company

Ecoxy (100% ownership)

• Ecoxy maintained position as a leading provider of accredited NOx measurements and verification of GHG emissions.
• 22 emission measurements in Q4
• Full year turnover of MNOK 18, an increase of 34%. EBITDA margin of 28%

Emission monitoring

48 vessels overflown 124 measurements done 47 environmental flights

General maritime surveillance 64 maritime surveillance missions

175x

Less emission from our fleet compared to its manned alternatives

We continue to make significant ESG contributions

NUTech Flagship contracts secured

• Revenue Q4 mEUR 1.5 (+89%)
• Gross profit Q4 mEUR 1
• EBITDA Q4 mEUR 0.3

AirRobot (100% ownership)

• in significant backlog for 2023 for sensors for the Lockheed Martin Indago 4
• First AR100-H sold to Police forces
• Coax patent secures EUR 350k in license revenue

DroneMatrix (55% ownership)

• Completed setup for efficient and scalable manufacturing of systems
• Completed the installation of 4 of 6 systems for Port of Antwerp

TIQUILA contract 10-year contract

• Award from Lockheed Martin UK Ltd
• Orders could exceed EUR 5 mill in 2023
• Duration: Up to 10+2 years

The Heimdal sensor is a dual Electro-Optical/Infra-Red (EO/IR) sensor, initially developed for AirRobot's AR100-H drone system sensor to be integrated on the Lockheed Martin Indago 4

Delivery model

• Supply, maintenance and life cycle support
• Full utilization of contract expected from 2024, contingent on call-offs

Opportunities

• Enhanced scope of OEM services
• Integration on the Lockheed Martin Indago 4 globally

The Heimdal sensor mounted on a Lockheed Martin Indago 4

MIKADO II Expectations in 2023

• Award from Bundeswehr in 2022
• Value potential: Up to EUR 12 million
• Delivery: 145 AR100-H systems + support
• Duration: 10+2 years

AR100-H is a system consisting of air vehicle sensors, power source, spare parts, ground control station and related software. Specially made for military and police applications

• The first batch of drones will be delivered in Q2 2023
• Second batch will be delivered in Q4 2023
• Opportunities
• Achievement of airworthiness certification is expected to trigger military demand
• Police demand in Germany, following the award

The system being delivered to the Bundeswehr, AR100-H

NUGlobal Announcement of Tiquila contract

• Revenue Q4 mEUR 0.3
• Gross profit Q4 mEUR 0.1
• EBITDA Q4 mEUR -0.3
• Revenue related to sale of Lockheed Martin Indago, frame agreement with Swedish police, and various MRO activities in Norway
• Nordic Unmanned UK Ltd. instrumental in securing the TIQUILA contract with Lockheed Martin UK
• High activity and commercial traction in newly opened US entity related to drone-in-a-box and AirRobot AR100-H

Contract backlog *Contract backlog includes the maximum remaining estimated

value of signed and/or awarded contracts. Annual utilization is based on calloffs, contract estimates and client feedback

• The TIQUILA and OP/5 contract contract now added to the contract backlog
• The OP/5 contract has a rate increase which representant a significant increase in profitability for the backlog

TOTAL CONTRACT BACKLOG*

Potential awards

Total CRM Pipeline: EUR 1.2bn

Value-adjusted win rate of ≈50%*

Awaiting tender decisions next 6 months: EUR 67 million

Drone-as-a-service for governmental customer

				. . .
	$50\%^*$				- 11
				. .

Summary Q4

Revenue target to exceed EUR 30 million

87% visibility based upon current contracts

Financial targets for 2023

Profitability

Target EBITDA margin of approx. 10% for the full year, accumulated breakeven from Q2

Target cash positive from operations for the full year, accumulated breakeven in Q2

2023 main risks

Nordun Drone-As-A-Service

• Pure-play drone "airline"
• State-of-the-art fleet of UAVs and systems
• Pilots and technicians
• Operations Control Center
• Complex missions with advanced platforms and sensors
• LUC permit

NUGlobal Sales and Distribution

• Global sales and distribution network offering:
• ⚬ Own products, solutions and services
• ⚬ Strategic partners, products and solutions
• ⚬ Global strategic distributors

NUTech Original equipment manufacturer (OEM) • Portfolio owner of Nordic Unmanned

• Group's own
• technology products
• Product families: ⚬ Staaker
• ⚬ AirRobot
• ⚬ DroneMatrix

NUMar Data-As-A-Service

• Serves maritime market
• Emission monitoring services
• Data analytics and platform
• Subsidiaries
• ⚬ Ecoxy
• ⚬ NUAer

Our business units

Organised into fully-functional business units

EBITDA	Profit/(loss) for the period before net financial items, income tax expense, depreciation and amortization
Contract backlog	Contract backlog includes the maximum remaining estimated value of signed contracts
Historic win rate	Value of opportunities above EUR 200k won divided by aggregate value of closed targeted opportunities above EUR 200k
MRO	Maintenance, repair & overhaul
Value adjusted win rate	Based on 113 historical opportunities with value above EUR 200.000
Reduced CO² emissions	Average CO² emission of Sikorsky S92 and Challenger CL604 per flight hour – Average CO² emission of CAMCOPTER S-100 per flight hour = Reduced CO² emission. Our flight operations could be conducted by these comparable manned platforms; the helicopter Sikorsky S92 and the maritime surveillance plane Challenger CL604. Therefore, the average of these two platforms have been used when comparing CO² footprint with large drone flight operations.
Definitions in sales pipeline	Prospect: Potential leads not formally confirmed Qualified lead: Lead formally confirmed or received from client RFI delivered: Response to request for information (RFI) RFP / Proposal: Ongoing proposal response Awaiting award: Tender or offer submitted Projects with ongoing negotiations or un-announced wins not included in CRM pipeline

Definitions

		Quarters		Full year
in Amounts EUR	Notes	Q4 2022	Q4 2021	2022	2021
Operating revenue	3 ,4	3 705 502	2 499 707	16 476 046	9 185 911
of goods sold Cost	4	748 738	609 589	2 627 077	1 539 041
Personnel expenses	4	3 588 516	2 538 414	12 994 797	6 440 359
and Depreciation amortisation expenses	6 5 ,	724 409 1	995 190	519 030 5	2 066 650
Impairments	5 6 ,	2 323 487	0	2 323 487	0
Other operating expenses	4	2 357 881	2 310 464	10 039 178	6 460 748
Total operating expenses		10 743 031	6 329 782	33 503 568	16 506 798
profit (loss) Operating		-7 037 529	-3 830 075	-17 027 522	-7 320 887
/ financial (expense) income Net	7	-195 814	-918	070 321 -1	149 899
(loss) Profit before tax		-7 233 343	-3 830 992	-18 097 843	-7 170 988
expense (benefit) Income tax		089 782 5	054 347 -1	2 842 039	344 803 -1
(loss) Profit for the period		-12 323 125	-2 776 646	-20 939 882	826 185 -5
Allocation of profit or loss:
Profit/loss attributable non-controlling interests to		-153 309	-42 572	-325 209	-42 572
Profit/loss attributable the to parent		-12 169 816	-2 734 073	-20 614 673	783 613 -5